Cyberstar affirms its Lexmark commitment

NEW DELHI

March 12, 2007

Close on the heels after being appointed by Lexmark as a national
distributor, Bangalore-based Cyberstar Infocom has assured that the company
will continue to work closely with Lexmark regional distributors in the
Indian region. "We are reassuring our stand on this issue. We will continue
to work closely with Lexmark regional distributors in this region. As a
result these RDs will continue to drive Lexmark business in the regional
geographies that they are representing," informed Raj Rathi, MD, Cyberstar
International.

Brushing aside any room for creation of conflicting situations between
regional distributors (RDs) and Cyberstar, Rathi said that the national
distributor would route all Lexmark business opportunities through its set
of RDs only. "The whole idea of having a regional distributor is to make
sure that the company has better profitability. So, certainly we are not
going to create any kind of conflicting situation for our partners," he
added.

With an aim to ensure proper availability of Lexmark's product range, the
company has devised a two-pronged strategy to direct its inkjet business to
RDs. It is also looking forward to appointing dedicated corporate focused
resellers for Lexmark's laser business in the Indian region.

"As part of this strategy, we are going route Lexmark inkjet business to our
existing RDs and we will be looking at selecting new partners for the Laser
products in India. As India is a growing geography for us, we are looking at
having close to 50 such focused resellers who will concentrate on the
corporate segment for pushing Lexmark laser products in this region," he
informed.

While Cyberstar has assured its commitment when it comes to working with the
existing regional distributors for Lexmark, the new strategy would surely
affect RDs who are involved in selling both laser as well as inkjet range of
products for the company. "We are now looking forward to working closely
with the national distributor of Lexmark. But this new strategy is going to
hurt the business of a RD as the laser business will not stay with them
anymore," informed a Lexmark partner on conditions of anonymity.

It may be recalled that Lexmark had recently opted for an 'offshore model'
in India and consequently appointed Bangalore based Cyberstar-Infocom to act
as its national distributor in the region.