The Fiat Board met today in Milan at Borsa Italiana under the chairmanship of Luca Cordero di Montezemolo to approve the consolidated financial statements for 2007 and announce a dividend.

The Board of Directors of Fiat S.p.A. met today in Milan at Borsa Italiana S.p.A. under the chairmanship of Luca Cordero di Montezemolo and:

• approved the consolidated financial statements for the Group for the year ended December 31, 2007, confirming net income of €2,054 million as announced on January 24, 2008 (2006, €1,151million);
• approved the stand-alone statutory accounts of Fiat S.p.A., subject to shareholders’ approval, reporting net income for the year ended December 31, 2007 of €2.069 million;
• recommended a cumulative dividend of €522.6 million (€509.4 million excluding the treasury shares currently owned by the Group), to be voted by shareholders at their next Annual Meeting;
• proposed the renewal of the authority to purchase and dispose of treasury shares for a maximum amount of 1.8 billion euros;
• convened the annual meeting of stockholders to be held in Turin, Italy on March 28 and 31, 2008, respectively first and second call. Considering the Company stockholders’ base, it is expected that the stockholders Meeting will be duly convened with a full quorum on March 31.

The stand-alone Statutory Accounts of Fiat S.p.A. at December 31, 2007, report a net income of €2,069 million. The result benefited from a reversal of impairment losses on the investment held in its sub-holding Fiat Partecipazioni S.p.A. for an amount of €1,308 million following the sound performance and the outlook for the subsidiary Fiat Group Automobiles S.p.A.. In 2006, net income amounted to €2,343 million, inclusive of impairment reversals of €2,099 million, of which €1,388 million related to Fiat Group Automobiles S.p.A..

Dividends received in 2007 for an amount of €823 million (€362 million in 2006) were partially offset by financial and other operating items. The Board of Directors resolved to propose to the Annual Stockholders Meeting the payment of a dividend equal to €0.555 to savings shares, €0.40 to preference shares and €0.40 to ordinary shares, for a total pay-out of €522.6 million. It is expected that the dividends will be paid on April 24, for stockholders of record on April 20, 2008.

The Board of Directors also approved the Consolidated Financial Statements. As already announced on January 24, 2008, net income for the year (Group and Minority Interest) was €2,054 million, up 78.5% over the amount of €1,151 million reported in 2006. Excluding the unusual items, net income for 2007 amounted to €2,135 million, more than double 2006 levels. Stockholders’ equity (Group and Minority Interest) was €11,279 million at 2007 end (€10,036 million at 2006 end).

The Board resolved to propose to stockholders meeting the renewal of the authorization to purchase, also through the Group subsidiaries and for a period of eighteen months, and dispose of a maximum number of treasury shares, of all three classes of stock (ordinary, preferred and savings shares) up to an amount not exceeding 10% of the Company’s capital stock and an aggregate maximum amount of 1.8 billion euros. The proposal views the acquisition of its own shares as a sound strategic investment and as one of the best ways to deliver value to its shareholders, while preserving the means to service stock option plans. Purchases of treasury shares may be made in accordance with the terms and procedures allowed by applicable law and regulations and the prices may be directly related to the reference price reported on the Stock Exchange on the preceding day, plus or minus 10%. At the moment Fiat owns 32,906,458 ordinary shares equal to 2,58% of the Company’s capital stock.

At the Stockholders Meeting, the Board of Directors shall also ask for confirmation of René Carron as a Director of the Company. He was co-opted during 2007.