Siemens Medical Solutions Diagnostics Ltd has informed BSE that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:

“During the quarter, consequent to the implementation of a new ERP system and related migration issues, management have noted certain deviations / errors in inventory valuation particularly those relating to computation of weighted average price and obsolescence. Management is in the process of resolving this matter. Any adjustments that may arise on completion of this exercise are currently not determinable.“