Mumbai, September 1, 2004: LIC Housing Finance Limited (LICHFL), a leading player in the Indian housing finance industry has successfully concluded its maiden offering of Global Depository Shares ("GDS"). The Company had launched the offering on Friday, August 27, 2004.

The price has been fixed at US$ 5.97 per GDS (i.e. Rs. 276.735 per GDS) comprising 2 equity shares at a price of Rs. 138.368 per equity share of Rs. 10 each. This price is at a 1.5% premium to the average closing price of the Company's shares one week prior to launch date. CLSA Asia-Pacific Markets and Kotak Investment Banking acted as the Joint Global Coordinators and Book Runners for this offering.

LICHFL has issued five million GDSs representing 11.77% of the post offer equity capital of the company aggregating US$ 29.85 mn through this offering. The GDSs are proposed to be listed on the Luxembourg Stock Exchange.

Speaking on the occasion, Mr. A.K. Dasgupta, CEO and Director, LIC HFL, added: "We are extremely pleased that large institutional investors have appreciated our business model and reposed faith in our company, by investing in the Company's GDS. This step also marks a beginning in the Company's efforts to increase its presence in the global markets.

Mr. Richard Taylor, CLSA Asia-Pacific Market's Head of Investment Banking said that "The GDS issue received a good response from top-quality institutional investors across the globe and was comfortably oversubscribed". Pankaj Agrawal, Managing Director of Investment Banking, India added that strong demand for the GDS issue was witnessed from foreign institutional investors.

Mr. S Ramesh - Executive Director and Head of Equity Product Group at Kotak Investment Banking said, "It has been our privilege to be associated with the successful completion of the GDS offering of LIC Housing Finance. This has been achieved through a combination of the company's performance and the conviction demonstrated by very high quality institutional investors."

About LIC Housing Finance Limited

LIC Housing Finance Ltd. is the second largest housing finance company in India and its core business is providing housing finance to individuals, corporates, developers and co-operative societies for the purchase, construction, development and repair of houses, flats, commercial property and undeveloped areas of land.

The Company has one of the widest marketing networks among HFCs in India which includes six regional offices, 113 operating offices supported by a chain of nationwide camp offices. The Company also has a wide network of direct sales agents and home loan agents across the country.

Since incorporation, the Company has provided housing finance to over 650,000 customers, sanctioned loans to individuals amounting to more than Rs.188 billion and disbursed loans to individuals amounting to more than Rs.166 billion. As of March 31, 2004, the outstanding loan portfolio amounted to Rs.98.9 billion. In fiscal 2004, the profit before tax was Rs.1.9 billion.

As of March 31, 2004, the tier 1 capital adequacy ratio and total capital adequacy ratio were each 15.1%.

For more information on this release contact:

Mr. A.K. Dasgupta	Mr. Hemant Batra
Director & Chief Executive	Adfactors PR
LIC Housing Finance Ltd	Ph: 91 9820325109
Ph: 91 22 2285 4248	Fax: 91 22 2281 3569
Fax: 91 22 2281 8750

Note: This Press Release may not be distributed in the United States or to a US person.