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Pirelli starts procedure for the valuation of the Tyre Sector

Also launches the process of disposal of financial
participations with the aim of focusing on core
businesses

Milan , 14 February 2006 – The Board of Directors
of Pirelli & C. SpA met today and resolved to undertake
procedures aimed at arriving at a better valuation of the
activities of its tyre division (Pirelli
Tyres), including a possible listing on the Milan
Stock Exchange, while continuing to maintain the majority stake in
Pirelli Tyres in the possession of Pirelli & C SpA.

The conditions of the main markets and segments in which the
Group’s tyre sector is active continue to be favourable, especially
in the high performance segment where the Pirelli brand is
recognized as a world leader. This constitutes the basis for
further growth compared with that registered by Pirelli Tyres in
recent years.

Together with the process of valuation of the activities of Pirelli
Tyres, the Board of Directors has also approved a plan for the
further concentration of resources in the Group’s strategic
activities through the disposal of financial participations for a
sum of approximately 400 million euros, at current values, equal to
about half of this portfolio.

The Board has thus given a mandate to the Chairman, Marco
Tronchetti Provera, and to the Managing Director, Carlo Buora, to
identify the best possible solutions for the realization of the
above-mentioned operations.
The strengthening of finances and balance sheets resulting from the
operations outlined above will allow the Company to fully focus on
its various core businesses.

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