It has been confirmed this morning that the Fiat Group will raise its stake in CNH Global from 84 to 90 pct upon conversion of the Series A Preference Shares into Common Shares. The effective date of this automatic conversion of the Series A Preference Shares will be today. The conversion rate is 12.5 newly issued common shares per Series A Preference Share, and, accordingly, an aggregate of 100 million new common shares will be issued upon the conversion.

CNH (Case New Holland) is a world leader in the agricultural and construction equipment businesses. Supported by more than 10,500 dealers in 160 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations.

STATEMENT BY THE FIAT GROUP - 23.03.2006

Fiat informs that CNH Global announced yesterday that the condition was met for the automatic conversion into common shares of its 8 million outstanding Series A Preference Shares. The effective date of this automatic conversion will be today.
 

Fiat, which is the sole owner of the Series A Preference Shares, will receive upon conversion 100 million newly issued common shares of CNH, thereby increasing its ownership in CNH from approximately 84% to approximately 90%. This conversion will not give rise to any gain or loss in Fiat’s consolidated accounts, but Fiat’s consolidation of CNH’s income will increase to 90%.

Pursuant to their terms, the CNH Series A Preference Shares issued in April 2003 automatically convert into common shares, at a conversion price of US$20.00 per share, if the average of the closing prices per share of CNH common shares on the New York Stock Exchange for each US24.00. For the period of 30 consecutive trading days ending on Wednesday, March 22, 2006, such average was US$24.01.

Upon conversion CNH will have approximately 235.4 million common shares outstanding. CNH’s total Shareholders’ equity will be unaffected by the conversion. The new 100 million common shares will be eligible for the CNH’s proposed US0.25 per share dividend, subject to approval at the Annual General Meeting of shareholders, which will be held on April 7, 2006. There will be no preferred dividend, as no preference shares will remain outstanding.