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To: Carl Worth who wrote (9019)	6/5/2004 5:04:04 PM
From: Sam Citron	Read Replies (1) \| Respond to of 13403

Hi Carl, RDY is facing some headwinds and uncertainty near-term, partly centered on the Lilly litigation, and these are reflected in the share price. On a top-down basis, I like the India growth theme, and although this is a worldwide company that happens to be based in India, and pharmas are traditionally a defensive sector, I think it is worth nibbling on during periods of weakness. I don't have any specific catalyst. But I note that their R&D/Sales ratio has risen sharply over the last 5 years: 2000 2.7% 2001 3.3% 2002 4.4% 2003 7.6% 2004 10.0% and I expect these efforts will lay the foundation for future growth. They have a strong balance sheet. I'm not really capable of commenting on their pipeline because I don't have enough expertise to make such an assessment. I basically think it's a good solid company and that American portfolio managers are going to want to gradually get more exposure to the Indian market. RDY is the only Indian pharma ADR, and the only Indian ADR with options. You can also get some exposure to RDY through Emerging Market iShares EEM. Sam