Pirelli and Michelin have entered today into a cooperative
agreement to further jointly develop Pax System, adding to
Michelins project Pirellis best technological
expertise of Total Mobility and high performance.

After having evaluated together the Pax System, Michelin and
Pirellis common assessment is that a joint development
project increases the potential to answer the growing demand for
innovative solutions which bring run flat capabilities without
compromising on other performances.

To fully exploit this potential, the two companies have already
identified several areas of technological improvements to develop
leading edge solutions targeted at each market segment. Both
companies believe that joining their efforts and innovation
capabilities will accelerate this development and as soon as early
2000 will provide vehicle manufacturers and consumers with a
broader supplier base.

Pax System technology is an integrated system comprising a new tire
design, a wheel with a flat-base profile, a flexible support ring
and a run-flat detector. It provides enhanced performance, improved
security and also allows run-flat capabilities to the vehicle, thus
eliminating the need for a spare wheel; it finally offers new ways
for the design of future vehicles.