A second managing Director of The Company has be appointed.

The Board of Directors of Pirelli SpA met today and decided to revise top management positions, with the objective of enhancing the Company's strategic focus and managerial effectiveness. The decision has been made in consequence of the Company's increased complexity, also as a result of recent international acquisitions, and of the strong liquidity aimed at further extending activities, in both product portfolio and geographical spread. Reporting directly to the Chairman and Managing Director of Pirelli SpA, Marco Tronchetti Provera, a second Managing Director of the Company has been appointed, Carlo Buora, who will also keep the position of General Manager. All responsibilities for Finance and Administration activities are delegated to Carlo Buora. Following the recently announced decision to separate Energy activities from Telecom activities in the Cables and Systems Sector, premise for a future separation also from a corporate viewpoint, two new General Managers have been appointed: Oscar Cristianci was appointed General Manager Energy Cables and Systems, Kevin Riddett General Manager Telecommunication Cables and Systems. Giovanni Ferrario continues to be General Manager Tyre Sector. The Board of Directors also expressed their great appreciation for the Group's strong increase in value during the '90s and, in particular, during the year that has just ended, with the brilliant conclusion of both Cisco and Corning Inc. deals.