The Board of Directors of Fiat S.p.A. met today under the chairmanship of Luca Cordero di Montezemolo to: approve the consolidated financial statements for the Group for the year ended December 31, 2006, confirming net income of € 1,151 million as announced on January 25, 2007; approve the stand-alone statutory accounts of Fiat S.p.A., subject to shareholders’ approval, which showed net income for the year ended December 31, 2006 of € 2.343 million; recommend a cumulative dividend of € 275.6 million (to be voted by shareholders at their next Annual Meeting); and convene the Annual Meeting of shareholders for April 3, 4 and 5, 2007.

The stand-alone Statutory Accounts of Fiat S.p.A. at December 31, 2006, the first prepared in accordance with International Financial Reporting Standards (IFRS), report a net income of €2,343 million, as compared to an income of €1,117 million recorded in 2005, pursuant to IFRS.

Return to profitability of Fiat Group Automobiles S.p.A and the improved performance of CNH and Iveco resulted in €2,099 million reversals of impairment losses on equity investments, net of other write-downs.
 

Dividends recorded in the amount of €362 million, partially offset by financial and operating charges, have additionally contributed to the performance. The Board of Directors resolved to propose to the Annual Stockholders Meeting the payment of a dividend equal to €0.93 to savings shares (of which €0.31 pertaining to 2006 and €0.62 pertaining to the two preceding years, as required by the Articles of 1 Association), €0.31 to preference shares and €0.155 to ordinary shares, for a total pay-out of €275.6 million. The dividend will be paid on May 24, and stocks will be ex-dividend from May 21.

The Board of Directors also approved the Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS). As already announced on January 25, 2007, net income for the year (Group and Minority Interests) was €1,151 million, compared with an income of €1,420 million in 2005. Excluding net unusual items, net income would improve by €1,417 million. Stockholders’ equity (Group and Minority Interests) was €10,036 million compared with €9,413 million at December 31, 2005.

Finally, the Board convened a Stockholders Meeting for April 3, 4 and 5, 2007 to approve the Statutory Accounts, authorize the purchase of treasury stock, approve the incentive plan announced on November 3, 2006 and approve the amendments to the Articles of Association due to the new Italian Law on investors protection, particularly the list vote for the appointment of Directors and proposal to determine in 1% the minimum participation to the stock capital for the presentation of a list of candidates.