CISCO Joins Pirelli's Newly Formed Optical Components and Submarine Optical Systems Companies With a 10% Equity Investment

Milan, 3 August 2000 - In conformity to the plans outlined on December 20, 1999 - on the occasion of the signing of the strategic alliance with CISCO Systems - Pirelli announces that CISCO has joined Pirelli's newly formed Optical Components and Submarine Optical Systems Companies with a 10% equity investment.

The investment carried out by the World leader in networking solutions, for a total consideration of USD 100 million, confirms the commitment of both CISCO and Pirelli to achieve the common goals set in the partnership agreement signed last December.

This agreement allows the strengthening of Pirelli's strategic and competitive position - in particular in the U.S. market, but also in the growing European market - in the core business of optical components and submarine optical systems, which are among the fastest growing segments of the optical industry.

For further information on Pirelli Cables and Systems: www.pirelli.com/cables

For further information on CISCO Systems: www.cisco.com