New Delhi, Delhi, India, Thursday, March 16, 2006 — Goldman Sachs announced today its intention to build a
wholly-owned onshore investment banking and securities firm in India. As
part of this commitment, Goldman Sachs will be making the necessary
applications to establish its own domestic broker dealer and intends to
seek other necessary licenses needed to build a leading financial services
firm in India.

In addition to the creation of a full-service domestic presence, the
firm’s India strategy will encompass businesses including principal
investing and asset management.

“The Indian market represents tremendous growth and opportunity. Now, more
than ever, there is a compelling case for us to build an onshore presence
which is fully integrated with our global businesses,” said Mr. Brooks
Entwistle, Chief Executive Officer of Goldman Sachs (India) L.L.C.

The decision to build a wholly-owned platform in India brings to an end
the firm’s 10 year-old strategic alliance with Kotak Group.

The termination of the strategic alliance will see Goldman Sachs sell to
Kotak Group its 25% interests in both joint venture entities, Kotak
Securities Limited and Kotak Mahindra Capital Company Limited.

Goldman Sachs and Kotak have entered into a business cooperation agreement
for a period of up to one year.

“Our partnership with Kotak Group has been very successful over the past
decade. Upon the completion of the sale of our joint venture interests,
Kotak has agreed to provide consent for our regulatory filing process and
we look forward to continuing our friendship,” added Mr. Entwistle.

Goldman Sachs is a leading global investment banking, securities and
investment management firm that provides a wide range of services
worldwide to a substantial and diversified client base which includes
corporations, financial institutions, governments and high net worth
individuals. Founded in 1869, it is one of the oldest and largest
investment banking firms. It is headquartered in New York and maintains
offices in London, Frankfurt, Tokyo, Hong Kong and other major financial
centers around the world.