Pirelli – Michelin Joint Press Release

Milan - Clermont-Ferrand, 22 February 1999 - Pirelli and Michelin have entered today into a cooperative agreement to further jointly develop Pax System, adding to Michelin's project Pirelli's best technological expertise of Total Mobility and high performance.

After having evaluated together the Pax System, Michelin and Pirelli's common assessment is that a joint development project increases the potential to answer the growing demand for innovative solutions which bring run flat capabilities without compromising on other performances.

To fully exploit this potential, the two companies have already identified several areas of technological improvements to develop leading edge solutions targeted at each market segment. Both companies believe that joining their efforts and innovation capabilities will accelerate this development and as soon as early 2000 will provide vehicle manufacturers and consumers with a broader supplier base.

Pax System technology is an integrated system comprising a new tyre design, a wheel with a flat-base profile, a flexible support ring and a run-flat detector. It provides enhanced performance, improved security and also allows run-flat capabilities to the vehicle, thus eliminating the need for a spare wheel; it finally offers new ways for the design of future vehicles.