Pirelli & C. SpA press release

Milan, 2 March 2007 -  Pirelli & C. SpA specifies, upon request by Consob, that the contacts with Telefonica for the sale of a minority stake in Olimpia have been temporarily suspended.

Pirelli reiterates, once again, the strategic nature of its holding in Olimpia and, through the latter, in Telecom Italia, and that any transaction will be inspired by the best pursuit of the interests of the shareholders of Olimpia, of Telecom Italia and of their respective shareholders.

In particular, Pirelli ensures that, should any agreement ensue, non interference in the corporate decisions of Telecom Italia will be guaranteed, also in terms of governance.