The Fiat Group, through Business Solutions, has reached an agreement with Pirelli RE Facility Management for the sale of the 100 percent interest held in Ingest Facility. The sale will be carried out on the basis of a total value of approximately 50 million euros subject to usual price adjustment clauses and will be finalised after antitrust authorizations have been received. The transaction is part of the Fiat Group's present strategy of focusing on its core business and will entail a capital gain at the consolidated level equivalent to approximately 40 million euros. (The buyer is paying a further 17.3 million euros for the company’s cash reserves). The mentioned amounts are provisional and are subject to future earn-out payments.

The acquisition by Pirelli RE Facility Management (PREFM) includes Ingest Facility, in charge for the facility management business in Italy, and the subsidiaries Ingest Facility Polonia (wholly owned) and Building Services (51 percent owned; the remaining 49 percent of Building Services is owned by Johnson Controls), in addition to the division of Fiat Finance et Services SA that supplies facility management services to Fiat Group companies in France. Ingest Facility operates in all segments of the facility management market, offering integrated solutions for the users of office, industrial and retail properties. The company, which is expected to report consolidated turnover of around €225m for 2006 (including its French business), employs approximately 380 people. It includes a portfolio of high quality customers, including, in addition to the FIAT Group – which accounts for around 50% of turnover – Banca Intesa, Carige, Edison, Global Value (IBM), Mediaworld, TNT and Unicredit. Ingest Facility also has expertise in the health sector, where one of its main customers is the Valduce Hospital in Como.

As a result of the acquisition, PREFM will have annual turnover of over €400m and employ around 1,000 people, further broadening its offering of: 1) building services (management and routine and extraordinary maintenance of buildings and the related plant);

2) space management (space planning and space management, document management and move in-move out services); 3) people-related services (call centre, desk top management, reception, security, environmental services, safety at work and catering); and 4) project management (coordination of executive design, construction planning for new buildings and works supervision). The Company is present throughout the country via its main operating centres in Milan, Ivrea, Turin, Genoa, Padua, Bologna, Rome, Naples, Bari, Catania, Palermo and Cagliari. The closing of the transaction is expected to take place by February 2007, subject to approval from the relevant antitrust authorities.