Intention to sell stake in Capitalia communicated to members of shareholders' Pact.

Milan, 28 September 2006 - Pirelli & C SpA, implementing the plan to dispose of financial holdings announced to the market on 14 February, states that it has informed the members of the Shareholders' Pact of Capitalia, through Chairman Mr. Vittorio Ripa di Meana, of the intention to dispose of its stake in the company (approximately 1.92% of share capital), entirely attributed to the Pact.

The offer, for which the members of the Shareholders' Pact of Capitalia have the right of pre-emption at a price of approximately 6.69 euros per share, will be carried out in the manner foreseen in the agreements of  the Pact itself.