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21.01.2003  FIAT GROUP OFFICIAL PRESS RELEASES 09-13.01.2003


Fiat

> 13.01.2003  IVECO AGREE TO SELL FRAIKIN TO EURAZEO

Fiat announces that Iveco signed the final agreement to sell 100% of the shares of Fraikin to Eurazeo, an investment company listed at the Paris Stock Exchange.

With estimated sales revenues for the year 2002 of 570 million euro, Fraikin is the leader of the French truck long-term rental market. This transaction, for a total value of 805 million euro, will allow the Fiat Group to improve its net financial position by approximately 400 million euro.

The final closing of the agreement is subject to approval from relevant antitrust authorities.


> 10.01.2003  MEETING WITH TOP MANAGEMENT IN PALERMO

A Fiat delegation, headed by the Chief Executive Officer Mr. Alessandro Barberis met today at Palazzo d’Orleans with the President of the Sicily Region, Mr. Salvatore Cuffaro, and the Vice Minister of Economy, Mr. Gianfranco Micciché. The Mayor of Termini Imerese, Mr. Luigi Purpi, also took part in the meeting.

The summit provided an opportunity for a detailed analysis of the contents of the Framework Agreement signed by the Government and Fiat in December 2002 at Palazzo Chigi at the Presidency of Council of Ministers.

Upon a specific request by Sicily’s President Mr. Cuffaro, Mr. Barberis underlined that the Termini Imerese plant will maintain its mission as an important manufacturing hub of Fiat Auto. 

The meeting was also an occasion to reaffirm that the agreement’s objective is the relaunch of Fiat Auto, to be realized by means of significant investments in the development of other models together with a plan to reduce operating and overhead costs. The reduction of labor costs will be achieved by resorting to social shock absorbers and temporary production shutdowns in certain plants, with the prospect of resuming production within the end of 2003.

In particular, as regards the Fiat Auto plant in Termini Imerese, the Chief Executive Officer of the industrial Group reiterated the company’s firm intention to maintain and improve the production capacity of the plant, and announced investments amounting to 50 million euros in 2003. 

Mr. Barberis confirmed that the plant will resume production on two working shifts for 5 non-consecutive weeks in the first quarter of 2003. Starting from April in coincidence with the temporary production shutdown, a professional training plan will be implemented jointly with the Sicilian region to train workers on the production of the Punto Restyling and the new forms of work organization. 

Mr. Cuffaro and Mr. Miccichè agreed on the need to acknowledge the company’s interest in the future of Termini Imerese, and announced that both the national and the regional governments are willing to implement adequate measures aimed at ensuring the competitiveness of such an important industrial area for Sicily and the entire South of Italy. 

The President of the Sicily Region expressed his appreciation for the outcome of the meeting which he defined as "very fruitful", and did not fail to point out the importance of this absolutely new relationship with the company, to be considered a strategic instrument for Termini Imerese’s future. 

"The start-up of stable relations between the Sicily Region and the Fiat top management will permit the identification of programmatic and financial choices to foster the competitiveness of the Termini Imerese industrial area," explained Mr. Cuffaro.

"Starting from September 2003 – continued Mr. Cuffaro – we have received ample assurance that the capacity of the Punto restyling production line present in the plant will be increased to produce 150 vehicles a day. In this way, the number of employees to be made redundant will be reduced and the employment of the entire workforce will be ensured. At the same time, resumption of production at the local industries linked to car manufacturing will also be ensured and we will pay the necessary attention to this issue in the forthcoming meetings too."


> 09.01.2003  FIAT MEETS WITH ITS LENDING BANKS

At the meeting, the Company’s management reviewed the progress made during the fourth quarter of 2002, focusing on the sharp improvement in its financial position made possible by business divestitures and an increase in cash flow.

The Company has already achieved its predetermined debt reduction objectives.

The progress made in implementing Fiat Auto’s industrial plan was also discussed at the meeting. The plan is designed to relaunch the Sector’s operations through massive investments in the development of new products and the improvement of the distribution network. Recently, General Motors voiced its support for this plan, which is already yielding positive results and has produced a significant reduction in Fiat Auto’s operating loss during the last four months. 

The lending banks acknowledged the positive results achieved thus far and confirmed the effectiveness of the financial plan approved in the first half of 2002. They also indicated their willingness to review with the Company any financial options that may be helpful in implementing the plan.
 


The Fiat Doblo Sandstorm concept at the 2002 Bologna Motor show

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