Preliminary FY2000 results

Milan, 9 February 2001 - The Board of Directors of Pirelli SpA has today examined the Group's consolidated financial statements, which are still preliminary and unaudited, for the year ended December 31, 2000.

Consolidated sales revenues amount to approx. 7,460 million ( 6,482 million in 1999) and show an increase of 15% compared to the previous year.

The gross operating profit, with an increase of roughly 22%, has risen from 678 million (10.5% of sales) in 1999 to approx. 820 million (11% of sales) in 2000.

The operating profit, before financial costs and provisions for taxes, shows an even bigger increase, equal to 31%, rising from 331 million (5.1% of sales) in 1999 to approx. 435 million (5.8% of sales) in 2000.

The Pirelli SpA Group net financial position at December 31, 2000 is positive by over 3,500 million, compared to a net debt of 1,017 million at December 31, 1999.

In addition to the positive trend of the operating profit in year 2000, as already communicated, extraordinary items are expected from the Cisco operation, and from the ongoing restructuring and production rationalisation measures as well as from the Corning operation, completed in December, 2000.

The final Pirelli SpA and Group's consolidated financial statements for the year ended December 31, 2000 will be submitted for the approval of the Board of Directors on March 21, 2001.