New venture for Pirelli

A four-year investment plan of 150 billion liras for companies wanting to outsource information systems and e-business activities

Milan, December 14, 2000 - Pirelli, EdisonTel (Gruppo Edison) and Gruppo Intesa, with Bain Cuneo and Gruppo Camozzi, have reached an agreement for the creation of a new information services and consulting company dedicated to small and medium-sized companies wanting to outsource their information systems and Internet activities.

The new company will operate as a Full Service Provider offering connection, housing, hosting, development and management of application systems, also in ASP mode, and consulting aimed at supporting companies' entrance into the "net economy". The company will leverage on specific experiences and expertise of all partners: EdisonTel will provide the connection and ISP - both basic and value-added - services; Pirelli will provide its experience in integration services ERP and in ASP, database and groupware services, along with Gruppo Camozzi. Gruppo Intesa will offer financial products and support commercial activity, while Bain Cuneo will offer consulting services.

Quotes in the venture are so composed: Pirelli 30,3%, EdisonTel (Gruppo Edison) 30,3%, Gruppo Intesa 25%, Bain Cuneo via the Bain Lab incubator 10%, Camozzi 4,4%.

According to the partners' forecasts, the potential customer base in Italy is about 150,000 (among the over 3.5 million small and medium-sized companies). But the company is also considering a global approach, with focus on Spain, Brazil and Turkey, where also local partners could participate.

In Italy, activity will begin next year with the creation of data centers first in Milan and then in Rome and a four-year investment plan of 150 billion liras. Within 18 to 24 months of the launch, the group will also consider widening the shareholder base and a listing on the Nuovo Mercato. The agreement is subject to the attainment of all eventual necessary authorizations.