Pirelli: option offer underway for 4.5 million savings shares which are the object of withdrawal

The shares which are the object of the offer in option, and the options, have not been and will not be registered in the United States of America under the United States Security Act of 1933 and may not be offered or sold in the United States of America in the absence of an exemption. The shares which are the object of the offer in option, and the options, have not been and may not be offered or sold either in the other countries in which the offer in option is not allowed, in the absence of a specific authorization in conformity with the applicable regulations, or in derogation of the same.

Milan, 24 January 2008 - Pirelli & C. SpA makes it known that the offer in option of 4,546,093 savings shares of the company (equal to about 3.37% of the savings share capital), for which the right of withdrawal was exercised following shareholders' meetings approval of the reduction of share capital, will take place from 28 January through 27 February, inclusive.

The shares will be offered at a price of 0.8055 euros per share, corresponding to their liquidation value, to all holders of ordinary shares and to holders of savings shares for which the right of withdrawal was not exercised. For shareholders who so request, a right of first refusal is foreseen for any remaining shares not opted for.

Assigning of the shares will take place before payment of the "extraordinary dividend" of 0.154 euros per share resolved by the shareholders' meetings of the company in December 2007.

The notice to shareholders containing the details of the offer will be published Saturday 26 January 2008 and will be posted on the website www.pirelli.com.