Pirelli to evaluate tire division

Feb. 15, 2006

Pirelli & Cie SpA has resolved "to undertake procedures aimed at arriving at a better valuation of the activities of its tire division -- including a possible listing on the Milan Stock Exchange -- while continuing to maintain the majority stake" in the tire unit, say Pirelli officials.

"The conditions of the main markets and segments in which the (company's) tire sector is active continue to be favourable, especially in the high performance segment where the Pirelli brand is recognized as a world leader.

"This constitutes the basis for further growth compared with that registered by Pirelli Tyres in recent years."

Pirelli's board has charged Chairman Marco Tronchetti Provera and Managing Director Carlo Buora with the job of identifying "the best possible solutions for the realization of the above-mentioned operations."