Pirelli completes the acquisition of BiccGeneral

Milan, August 25, 2000 - Following the agreement that has already been announced on February 10, 2000, and having obtained on July 19 the approval of the Anti-Trust Authority, Pirelli completed on August 25, 2000, the acquisition of the power cable business of BICCGeneral in Italy, the United Kingdom, Africa and Singapore (Transpower).

The acquisition of the remaining Asian operations - which account for about 3% of the total turnover of the activities to acquire - will be completed in the next few months.

At transfer of all the shares by BICCGeneral, Pirelli will pay a total cosideration of US$ 180 million, subject to adjustment based on the closing balance sheets of the companies.

This acquisition will raise the Cables and Systems year turnover in the energy business to about ? 3,500 million. Consistently with the acquisitions policy implemented in the last two years ( Siemens, NKF, Metal Manufactures), the deal closed today will allow a significant strengthening of the energy cables and systems activities, by technological support and synergies coming from their integration in the Pirelli Group. Pirelli's strategy is to compete effectively in the global market, from a world market leader position.