Pirelli: duration of 1 billion euro line of credit extended to 2011

The transaction will allow the Company to further improve its financial structure

Milan, 21 December 2006 - Pirelli & C. SpA announces that the duration of its committed revolving 1 billion euro line of credit, stipulated in 2003 with a pool of international banks and renegotiated in 2005, has been further extended from 2010 to 2011.

The mandated lead arrangers of the loan are Barclays Capital, BNP Paribas, HSBC Bank plc, J.P. Morgan plc and The Royal Bank of Scotland plc.

The extension of the duration of the line of credit, at parity of costs, will allow Pirelli & C. to improve its financial structure.