Pirelli official sponsor of Palmeiras

Milan, July 2nd, 2001 - Pirelli today announced an agreement for a sponsorship deal with one of the most prestigious football teams in Brazil - the San Paolo-based club, Palmeiras.
The sponsorship contract will be valid until December 31st, 2003, with a renewal option to be agreed by both parties.

The " P Lunga" logo is the symbol of a historical brand in Brazil, deeply rooted in the country's social fabric. This logo will now be featured on the players' strips and all the other sportswear and accessories used by the players and technical staff of the various teams within the Sociedade Esportiva Palmeiras. The logo will also appear on all PR and communications materials, as well as featuring prominently on pitch-side hoardings.

The agreement features an innovative incentives system linked to results in both national and international competitions. For all matches involving the San Paolo club, Pirelli have established special performance-related bonuses linked to the achievement of pre-established sporting results.
As Pirelli President, Marco Tronchetti Provera put it: " This should provide a stimulus for the club in terms of the strategic development of the team both technically and professionally. It means the right approach to buying campaigns for both players and technical staff. It will keep up continuous pressure for the achievement of results and for the development of a winning mentality within the team and within the club's management" .

Over the years Pirelli have created inextricable synergies with the world of sport, in the belief that sport and sporting champions provide an ideal vehicle in terms of brand visibility, image consolidation and marketing leverage. Apart from the company's involvement in motor racing - ranging from Formula 1 in the recent past to the World Rally Championship and the Ferrari Challenge today - Pirelli is also present in sailing with its own annual event and the sponsorship of Giovanni Soldini. Fencing is another area of interest thanks to an agreement with the many times Olympic champion, Diana Banchedi.

Since 1995 Pirelli have had a high profile in the world of football: the experience with F.C. Internazionale, of which Pirelli is both sponsor and shareholder, has demonstrated that there is no better vehicle than this sport and its champions.
As the satisfied President of Inter Milan, Massimo Moratti, put it: " The relationship with Palmeiras could provide interesting opportunities for mutual support and collaboration, not least in terms of player exchanges at first and junior team levels. Palmeiras will also take part in the Inter Pirelli Campus Brazil social project" . This latter initiative was launched with the aim of getting children off the streets of the favelas slum areas, providing them with opportunities to study and to play football. A project with purely social aims in a country severely afflicted by this phenomenon, and featuring the passionate personal commitment of Ronaldo as testimonial.

Founded in 1914, Palmeiras is one of the leading names in Brazilian football. The club was set up in San Paolo's Brs quarter - an area once mainly inhabited by our compatriots - by a group of Italian sports enthusiasts, who named the club " Palestra Italia" (" The Italian Gym" ). In 1942 the club changed its name to the modern Palmeiras; the red of the Italian tricolour flag disappeared from the team strip but to this day the stadium has kept the name of " Palestra Italia" .
With more than 12 million fans the San Paolo-based team is represented this year in a variety of competitions: the San Paolo Championship, the Rio Tournament, the Brazilian Cup, the Brazil/J. Havalange Championship and the Coppe Libertadores and Mercosul cup competitions. The club has also been invited to the FIFA World Club Championship.
The Palmeiras trophy room proudly boasts silverware from 4 victories in the Brazilian Championship, three Brazilian Cups, and 21 triumphs in the San Paolo Championship. Its most recent international victories were in the 1998 Mercosud Cup and in the Coppa Libertadores the following year.
A great many champions, old and new, have worn the white and green Palmeiras strip: Djalma Santos, Djalminha, Cafu, Roberto Carlos, Cinesinho, Cesar Sampaio, Flavio Conceiao, Junior Baiano, Leao, Luis Pereira, Mirandinha, Muller, Rincon, Rivaldo, Roque Junior and Vav.

Pirelli have been present in Brazil since 1929, when South America's first cable factory was established, reinforcing the international expansion of the Group.
Today Brazil is one of Pirelli's main markets, with over 7,000 employees and 5 manufacturing facilities, both for tyres (Bahia, San Paolo and Gravata), and for cables (all located in the San Paolo area). In the year 2000 Pirelli recorded sales of 1.9 billion Real in Brazil (over 1 billion $).