Pirelli Broadband Solutions S.p.A.

Pirelli Broadband Solutions (PBS), a Pirelli Group company established at the end of 2004, operates in the fields of broad band access solutions and second-generation photonics based on nanotechnology.

The objective of Pirelli Broadband Solutions is to allow the Group to focus its resources in these high technology and state of the art sectors.

In developing its solutions, aimed at the major telecommunications systems producers throughout the world, Pirelli Broadband Solutions takes advantage of the expertise and research of Pirelli Labs, the Group’s centre of technological excellence set up in 2001 in the Milano-Bicocca area with an investment of over 135 million euro. Through its second-generation photonics products, based on nanotechnology, Pirelli Broadband Solutions provides telecommunications operators the opportunity to offer voice, data and multimedia services with customised products and end-to-end platforms, reducing operating costs and at the same time increasing performance and flexibility.

Pirelli Broadband Solutions won recognition for its technological excellence in 2007 with the prestigious InfoVision Award, for its Wi-Fi/GSM Phone product, acknowledged by the industry as the Top product in the “Broadband Appliances, Devices and Home Networking” category.

Innovation that is not only managed sustainably, but, albeit indirectly, also has a significant sustainable environmental impact. Indeed, the PBS systems make a major contribution to the increasing use of videoconferencing and video calls, which are progressively replacing the movement of staff between workplaces via land, sea or air.

In 2007, Pirelli Broadband Solutions, in addition to consolidating the management of end-of-life products in Italy and certain European export countries (directive 2002/96/EC – WEEE), also worked on the introduction of the requirements of the Directive 2005/32/EC - EuP (Energy using Products) into its projects involving energy using products.

PBS also started to implement the actions required by the European Regulation 1907/2006 – REACH (Registration, Evaluation, Authorization of Chemicals) aimed at achieving total control of chemicals used in the products.

In line with the Group’s sustainability policy and in order to assist and improve the management of its environmental performance, the management of Pirelli Broadband Solutions has decided to govern its activities by adopting a Health, Safety and Environmental Management System in accordance with the UNI EN ISO 14001 and OHSAS 18001 standards, and has set the achievement of both certifications as a target for 2008.

As announced in last year’s report, this Project was initiated in 2007 and led to the setting out and dissemination of a PBS Health, Safety and Environmental Policy, which is fully in line with the related Group Policy. The identification of significant environmental impacts was also initiated, accompanied by the setting out of a series of objectives including, among others, greater control over energy consumption to achieve its optimisation (an objective already partly achieved at the end of 2007) and the enhancement of separate waste collection.

In 2008, resources will be allocated to increasing the focus on environmental issues by employees, suppliers, customers, and outside companies through appropriate communication and awareness raising campaigns.