Results as of September 30, 2009

PIRELLI & C. SPA

The first nine months of the 2009 fiscal year of the Pirelli Group show positive operating indicators overall in line with what was set out in the 2009-2011 industrial plan, thanks to positive effects of the restructuring measures, and efficiencies adopted in order to contrast the slowdown in the real estate sector and the automotive industry, which is showing the first signs of recovery. The results reached allow the Group to forecast that for the full year 2009, barring extraordinary events unpredictable today, the Pirelli Group should reach the targets identified in the 2009-2011 industrial plan presented last February, in some cases with an improvement over the targets, especially due to the positive performance of Pirelli Tyre.

At consolidated level, revenues as of 30 September 2009 amounted to 3,307.4 million euros for the nine-month period, down 9.8% compared with 3,668.0 million euros in the first nine months of 2008. In the third quarter revenues amounted to 1,169.8 million euros, up 6.9% compared to 1,094.6 million euros in the second quarter of 2009; while in the third quarter of 2008 revenues amounted to 1,213.2 million euros.

EBIT including restructuring charges as of 30 September 2009 stood at 163.8 million euros (183 million euros in the first nine months of 2008) or 5.0% of revenues, in line with targets in the 2009-2011 industrial plan. EBIT including restructuring charges in the third quarter amounted to 62.7 million euros (5.4% as a percentage of revenues), up from 2.1 million euros in the third quarter of 2008 and 54.3 million euros in the second quarter of 2009.

As of 30 September 2009 attributable consolidated net income of Pirelli & C. SpA amounted to 18.2 million euros for the nine-month period, compared with a net loss of 51.3 million euros in the first nine months of 2008. The results were influenced by, in addition to the operating trends of the various businesses, the negative impact for a total of 17.5 million euros, related to writedowns and sales of Telecom Italia shares in the period. As of today, Pirelli holds no Telecom Italia shares.

The net financial position of the Group as of 30 September 2009 was negative for 691.4 million euros, decidedly improved over the 1,107.6 million euro figure as of 30 June 2009, especially thanks to the positive contribution of operations (188 million euros), the capital increase of Pirelli Re (167 million euros) and the sale of Telecom Italia shares (130 million euros).

The results of the subsidiaries are:

PIRELLI TYRE
Revenues: 2,958.6 mln € (-8.4% vs. 9M08, -5.8% excluding exchange rate effects). In the third quarter, in particular, sales amounted to 1,042.7 million euros (down 1.9% compared with 1,062.9 million euros in the third quarter of 2008, +1.4% excluding exchange rate effects).

EBITDA before restructuring charges: 382.8 million euros (378.3 million in 9M08) with a margin of 12.9%. In the third quarter, in particular, EBITDA amounted to 142.0 million euros (133.0 million euros in the third quarter of 2008), with an improvement in the EBITDA margin to 13.6% compared with 8.6% in the corresponding period of 2008.

EBIT: 240.8 mln € (231.8 mln € in 9M08) with a margin of 8.1%. In the third quarter, in particular, the EBIT margin stood at 9% versus 3.8% of 3Q08
Net profit: 90.9 mln € (108.3 mln € in 9M08).

PIRELLI ECO TECHNOLOGY
Revenues: 38.8 mln € (47.5 mln € in 9M08).
EBIT: -8.8 mln € (-6.5 mln € in 9M08). During the third quarter of 2009, the process of homologation for particulate filters in Germany was completed. Concluded during the first half of the year the process of homologation in China .

PIRELLI RE
Consolidated revenues amounted to 657.6 mln € (714.5 mln € in 9M08).
EBIT including net income from investments before restructuring costs and asset writedowns/revaluations was negative for 30.2 mln € (positive for 22.4 mln € in 9M08).

PIRELLI BROADBAND SOLUTIONS
Revenues: 103.1mln € (+11.7% from 92.3 mln € in 9M08).
Net Income: 3.5 mln € (from 2.3 mln € in 9M08).