TODAY’S AGREEMENT BROADENS COLLABORATION BETWEEN THE TWO COMPANIES, WHICH ALREADY INCLUDES BUILDING AN INDUSTRIAL HUB IN TOGLIATTI, WITH APPROXIMATELY 1500 EMPLOYEES

Rome, 3 December 2009 - Pirelli and Russian Techonologies signed an Agreement on Implementation of Memorandum on Terms of Joint Venture to extend the collaboration begun in the context of the joint venture now being finalized, for production of tyres and steelcord in Russia. In addition to the plan already announced by the Parties to build a new industrial plant in the Russian region of Samara in the second half of 2010, the Agreement signed today foresees that the 50/50 jv being set up acquires an already existing factory, which is currently being identified among some potentially interesting Russian enterprises. It is foreseen that the acquisition will take place in 2010.

The agreement was signed today in Rome in the presence of Russian President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi, by the Director General of Russian Technologies Sergey Chemezov and the Chairman of the Pirelli Group Marco Tronchetti Provera.

The new industrial hub will be established on the territory of Togliatti industrial technology park (Samara region). The hub establishment will begin as soon as the Russian authorities make the decision on the area for production of automotive components, which is expected in the second half of 2010. The new factory will be built in two phases. In the first phase a factory for radial tyres for industrial vehicles will be built. The second phase foresees a factory to manufacture steelcord. At full capacity, the industrial hub will employ about 1500 workers.

In the five-year period, the new factories together with the expected acquisition will guarantee manufacturing capacity of more than 4 million pieces, as foreseen by the initial plans. Total resources to be committed by the joint venture, in line with what has already been announced, will amount to about 300 million euros.

PIRELLI GROUP

Pirelli & C. SpA is the parent company, listed on the Italian Stock Exchange, of a multinational Group active in more than 160 countries with industrial experience dating back more than 135 years. Pirelli Tyre is the fifth-largest tyre manufacturer in the world in revenue terms, and is leader in the high-performance segments of the market. The company has 23 factories located around the world. Pirelli also operates in real estate with Pirelli RE, with assets mainly in Italy and Germany. Thanks to its focus on technology and research, in recent years the Group has started initiatives in industries with a high level of innovation, such as in sustainable mobility and renewable energy, with Pirelli Eco Technology and Pirelli Ambiente. The Group also includes Pirelli Broadband Solutions for broadband access.

RUSSIAN TECHNOLOGIES

Russian Technologies State Corporation is a state-owned company set up by the Government of the Russian Federation in accordance with Federal Law dated 23 November 2007. The mission of Russian Technologies is to assist Russian design and manufacturing organizations to develop, produce and export high technology industrial products in domestic and international markets, and attract corporate investments in various industrial sectors.

The Samara Region is located in a southeast part of the European territory of Russia, in the middle course of the Volga. It is one of the most developed industrial areas in the country and among the leading regions of the Volga Federal District. The region’s industrial complex is presented by 476 large- and medium-sized enterprises and more than 3,500 small ones. It has favorable conditions for innovative development – a significant research and production potential, a mature infrastructure for innovative activities, and a high vocational and educational level of labor. The Samara Region’s basic specialization is manufacturing activities particularly in the energy sector. The region accounts for 70% of all cars manufactured in Russia, 66% of linoleum, more than one fifth of synthetic rubbers. Bearings, petroleum products, plastics and synthetic resins are also produced in the region. The aerospace industry is also highly developed. Togliatti Industrial and Technology Park is located in a northwest part of Togliatti, on the city boundary, in close proximity to the basic industrial site of Avtovaz car maker. The plot has ideal transport accessibility by road and rail. The park plan provides for opportunities for further development and territory expansion in the southern and western directions.

Milan, 2 September 2009 – Rally Australia is back on a new route after two years of absence from the WRC calendar, and looks like being one of the most interesting events of the 2009 Championship.

Leaving the expanse of red earth of the city of Perth, the new race will be held on the east coast of the Northern Rivers Region of New South Wales. The road surface is mixed gravel track with stones: for the occasion the Pirelli technicians will supply Scorpion in the hard compound variant.

This is the version developed by the Italian Group to guarantee maximum performance and versatility on gravel tracks and which responds to the eco-compatibility requirements set by the organizer and the Australian government, which has always been particularly aware of these issues.

It should be noted that all Scorpion tyres use aromatic oil free compounds, in advance with respect to the legislation which starting in 2010 will come into force also in Europe.

So, with its new route, Rally Australia has everything it needs to become the ideal “terrain” for Pirelli Scorpion tyres.  The Australian rally will not see the young Pirelli Star Drivers in action, but will instead be the scene of the shoot-out valid for selection of the Pirelli Star Driver 2010 for the Asia Pacific area.

There will in fact be ten young talents, from Australia, New Zealand, Japan, China and Malaysia, who will fight it out at Kingscliff to win one of the five Mitsubishi Evo Xs with which next year, the winners, will tackle 6 WRC events completely sponsored by Pirelli and the FIA.

After 36 years the WRC returns to Poland for one of the most thrilling races of the season.  The Pirelli tyre guarantees top performance and safety  for the teams and drivers on the most challenging terrain.

Milan, 19th June 2009. The Pirelli Scorpion “Soft” in the eighth race of the World Rally Championship; returning to the roads of Poland after 36 years, the rally promises to be one of the best of the season. The Rajd Polski WRC, from 26-28th June, presents numerous new challenges for both drivers and teams, and will be a treat for the public.

The new stages for the WRC and the challenging terrain will put the teams to the test but Pirelli technicians will be bringing the soft version of the Scorpion, the tyre developed specifically by the Italian company, to guarantee the highest performance and safety on the soft terrain and mud. The closely fought leadership battle between Mikko Hirvonen in the Ford Focus, and the current world champion Sebastian Loeb, who saw the lead on his rival drop to just seven points after the Rally Acropolis, will keep fans on the edge of their seats.