7th February offer in option of new shares concluded

These written materials are not for distribution in the United States, Canada , Australia or Japan . The information contained herein does not constitute an offer of securities for sale in the United States , Canada , Australia or Japan . The securities may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration. The Company does not intend to register any portion of the Offering in the United States or to conduct a public offering of securities in the United States. No money, securities or other consideration is being solicited and, if sent in response to the information contained herein, will not be accepted.

PRESS RELEASE

• 7 TH FEBRUARY OFFER IN OPTION OF NEW SHARES SUCCESSFULLY CONCLUDED
•  
• N 1,509,553,320 ORDINARY SHARES, THE 99.47% OF THE OFFER, HAVE BEEN SUBSCRIBED, FOR AN AMOUNT OF 1,056.7 MILLION EUROS
•  
• N 20,297,145 OPTION RIGHTS, CORRESPONDING TO N 8,118,858 SHARES, WERE NOT EXERCISED AND WILL BE TRADED ON THE STOCK EXCHANGE FROM 7 MARCH 2005
• 
  
  
  Milan, 2 March 2005 - The offer in option of new shares related to Pirelli & C. SpA capital increase, approved by the Company extraordinary Shareholders' Meeting on 21 January 2005 , has been concluded with total success.
  
  During the pre-emption period, started on 7 February and ended on 25 February 2005, n 1,509,553,320 ordinary shares - i.e 99.47% of the offer - were subscribed at the price of 0.70 Euros each, for an amount of approximately 1,056.7 million Euros.
  
  N 20,297,145 option rights, corresponding to n 8,118,858 shares, were not subscribed. These rights will be offered on the Stock Exchange on the Company's behalf by Mediobanca SpA in the trading sessions of 7, 8, 9, 10 and 11 March 2005 . In the first session, the overall amount of the rights will be offered; in the following sessions, the amount not placed in the previous days will be offered. Subscription of the related new ordinary shares will have to be done by 15 March 2005 , otherwise the right will decay.
  
  The Pirelli & C. Shareholders' Agreement subscribed n 691,025,860 new shares (corresponding to the 45.5% of the offer), exercising the option rights pertaining to the shares conferred at present. Moreover, Cam Finanziaria SpA subscribed - also through companies it controls - further n 95,729,764 shares (corresponding to the 6.3% of the offer).
  
  The Prospectus, containing the information on the investment and the cautions for the investor, can be obtained, on request, at the registered office of Pirelli & C., the Borsa Italiana SpA and Monte Titoli SpA as well as from Internet www.pirelli.com
  
  Download the Press Release (PDF, 50Kb)