The Board of Directors of Ducati Motor Holding S.p.A., exercising the powers granted to it by article 7 of the Company's by-laws as amended by the resolution of the extraordinary shareholders' meeting of January 26th, 2006, approved last week a capital increase of up to Euro 80 million, inclusive of premium (if any), through the issuance of ordinary shares to be offered to shareholders by way of subscription rights, with the possibility to offer unsubscribed shares to third parties.

This capital increase must be completed by December 31st, 2006. The decision on the number of new shares to be issued and offered, the relevant issue price and the ratio between shares offered and current outstanding shares, has been postponed to a later Board of Directors meeting which will take place after Consob authorizes the publication of the prospectus relating to the share offer.

As already indicated, the reasons for the above-mentioned capital increase are related to the financing of the Company's three-year relaunch plan, which was also approved last week by the Board of Directors. The plan, in line with previous Company communications forecasts revenues of approximately Euro 310 million in 2006, EBITDA at 10% of revenues and a loss equivalent to approximately 3% of revenues, with a break-even in 2007 and a return to profit in 2008. The key elements of the three-year plan include a concentration on the high end of the market, emphasis on increasing margins, generation of cash-flow and a reduction in fixed costs. Further details of the three-year plan will be disclosed to the market in the coming weeks.
 

As previously communicated on March 1st, 2006, the Company has signed a preliminary contract with UniCredit Banca Mobiliare to establish a syndicate of stand-by underwriters relating to the above-mentioned capital increase. Finally, the Board of Directors passed resolution on the Company governance structure, confirming Federico Minoli as Chairman and CEO of the Company and appointing a management control committee composed of independent Board members Giampiero Paoli, Matteo Tamburini and Roberto Consonni.

Founded in 1926, Ducati develops racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The Company produces motorcycles in six market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring, Multistrada and Sport Classic.

The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. Ducati has won thirteen of the last fifteen World Superbike Championship titles and more individual victories than the competition put together.