Electrical automotive cable JV in Tunisia

Milan, November 12th, 2001 - Pirelli Energie Cbles et Systmes France and Tunisie Cbles have announced the creation of a joint venture for the production of electrical cables for vehicles in Tunisia. The company, called Auto Cbles Tunisie, is participated 51% by Pirelli and 49% by Tunisie Cbles. Total initial investment amounts to 3,6 million Euro.

The plant of Auto Cbles Tunisie will start the new production of vehicle cables by 1Q02, and expects to produce, once up and running in 2003, 500'000 km of cables per annum, with sales of about 15 million euro. The project is particularly significant for Pirelli, as it allows the Group to satisfy the needs of a strongly growing automotive cable market and to reinforce links with harnesses producers, who have a solid local presence.

" This joint venture testifies the involvement of Pirelli in the Energy sector, in which the Group is world leader," Oscar Carlos Cristianci, Vice President and CEO Energy Pirelli Cavi e Sistemi, commented. " Thanks to this agreement we are today able to produce this kind of cables directly in Tunisia, an important market which constitutes the access key to the whole Mediterranean area."

Electrical automotive cables, which are normally bound in harnesses, constitute the heart of the electrical system of a car, and were previously produced only in Pirelli's French and Brasilian plants.