16. Inventories

Inventories can be analyzed as follows:

(in thousands of Euros)

12/31/2007

12/31/2006

Pirelli Tyre

652,684

590,925

Pirelli Real Estate

114,291

120,642

Other

9,499

3,966

776,474

715,533

Inventories include capitalized borrowing costs of Euros 679 thousand at December 31, 2007 (Euros 4,110 thousand at December 31, 2006).

The impairment losses on inventories recorded in 2007 amount to Euros 1,337 thousand (Euros 2,530 thousand at December 31, 2006).

Inventories are not secured s collateral.