Mumbai, 31^st July 2006 : The promoters of Birla Sun Life Insurance have infused an additional capital of Rs.30 crores into the capital base of the Company. The infusion enhances the Company's capital to Rs.520 crores as of July 31, 2006. This has been done to expand the company's distribution network and to invest in technology infrastructure.

The additional infusion is as per the current IRDA guidelines and is in the ratio of 74:26 between the Aditya Birla Group and Sun Life Financial Inc. respectively.

“The JV partners have a strong commitment to the growth of Birla Sun Life Insurance. The additional capital will be utilized to strengthen the infrastructure of BSLI. Our distribution network is an area of focus. We are expecting to grow our branch strength from 85 to more than 110 by September 2006. The additional branches are planned in smaller towns across India.

BSLI has led the way in technology investments in the industry. Part of the capital infusion will contribute towards projects in technology, which will enhance cost reductions and improve customer service. Some of these projects are “Document Imaging”, web site enhancement. Our website has been updated and developed on the latest Microsoft technology platform, this allows an enhanced navigation experience for customers who visit the website. said Mr. Nani Javeri, CEO, Birla Sun Life Insurance.

“BSLI’s project on “Document Imaging”, automates business processes in BSLI to reduce end-to-end cycle time, eliminates delays and there by improves productivity. This will result in further enhancing turn around times. It also ensures standardization & quality processing of new business applications to facilitate superior customer service and stay competitive”.

Birla Sun Life Insurance has achieved a total premium of approximately Rs.1,200 crores in the financial year 2005-06.The company has already covered in excess of 1.1 million lives since inception and the total Sum Assured is approximately Rs.27,000 crores. The total Assets Under Management (AUM) of the company are approximately Rs.2,600 crores as of March 31, 2006 .BSLI also has one of the highest persistency ratios amongst private life insurers of 97.30% in terms of premium as on March 31, 06 in the Life insurance industry.

About the Aditya Birla Group

The Aditya Birla Group has a turnover close to Rs. 38000 crores (as on March 31, 2006) and is one of the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. With over 75 business units, spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. The group is anchored by 72,000 employees and has 7 lakh shareholders, with a market capitalization of Rs.53,400 crores.

Additional information is available at www.adityabirla.com

About Sun Life Financial Inc. 

Sun Life Financial Inc. is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2006, the Sun Life Financial group of companies had total assets under management of USD 343 billion.

Additional information can be found at www.sunlife.com

For further information kindly contact:
Ms. Anjana Grewal, Vice President - Marketing & Communication,
Birla Sun Life Insurance Company Limited, Ph: 022-6678 3333
E-mail: anjana@birlasunlife.com