Pirelli: share placement of 4.5 million savings shares which are the object of withdrawal

Offer period from 18 March to 26 March 2008. The company will buy any shares unsold as of 27 March
Upon conclusion of technical passages, it is expected that the "extraordinary dividend" will be paid on 3 April 2008 (ex dividend 31 March)
Milan, 12 March 2008 - Pirelli & C. SpA communicates that from 18 March to 26 March 2008 inclusive, 4,491,769 savings shares of the company which are the object of withdrawal and were not purchased in the option offer which ended last 27 February, will be offered on the Stock Exchange.

The shares will be put up for sale at a price per share of 0.8055 euros, corresponding to the liquidation value of the shares which are the object of withdrawal, for a total amount of about 3.6 million euros. Pirelli & C. SpA will proceed on 27 March 2008 with the purchase of any shares not bought in the placement, using available reserves.

With this technical passage, the procedure for liquidation of the shares which are the object of withdrawal, following the resolution for reduction of the share capital approved by the shareholders' meeting last December, will be completed.

Once the period for any possible opposition, conceded to creditors by law in share capital reduction transactions, is concluded as well, it is expected that the "extraordinary dividend" of 0.154 euros per share, linked to the above-mentioned share capital reduction, will be paid on 3 April 2008 (ex dividend 31 March 2008).