EIB AND PIRELLI: FINANCING AGREEMENT FOR 50 MILLION EUROS

The European Investment Bank (EIB) and Pirelli have signed a financing agreement for EUR 50 million today. The loan will finance an increase in tyre production for cars and light commercial vehicles in Pirelli’s production facility in Slatina, Romania. It will be used within the context of the EUR 250 million in investments previously announced by the Group for its Romanian activities for a three-year period from 2009 to 2011.                 The new loan consolidates the relationship between Pirelli and the EIB, which in the past participated in the Group’s consistent commitment to innovation and increasing competitiveness globally, in research and development as well as in support of industrial growth.

PIRELLI CONFIRMED BRAND OF THE YEAR IN BRAZIL

From Brazil new recognition for Pirelli. The ninth Os Eleitos survey, the annual research project conducted in collaboration with the consultancy company Gfk Indicator, which asks the owners of the 40 best-selling cars in the country for their preferred brands, has just been published in Quatro Rodas magazine. The result is an index of satisfaction that classifies brands and models on the basis of their ability to meet motorists’ expectations.
Pirelli came top in the tyre category this year with a five percentage point lead over its nearest rival and is confirmed as the country’s preferred brand.

To know more:
http://quatrosrodas.abril.com.br/eleitos/2009/

PEERS & MARKETS

Profit taking on the major international stockmarkets in the week 7-11 December 2009, with sharp losses, particularly in financial securities.
Pirelli & C fell 0.8% to close at 0.429€; with Michelin, the company outperformed the European Auto&Parts sector as a whole (+1pp vs DJ Stoxx Auto).
The analysts’ average valuation of Pirelli was 0.46€, with a BUY recommendation from most (71%) of the coverage, represented by 18 investment banks, with 29% recommending Hold and 0% Sell.
Pirelli RE shares also outperformed their sector average, despite falling 2.1% during the week to close at 0.501 (+2pp vs the Epra Europe Index).

For more in-depth information please follow the link to: Investors > Peers & Markets.