Prysmian Cables & Systems invests in China

Prysmian (formerly Pirelli Cables), the world leader in the Energy and Telecommunications cables and systems industry, has signed an agreement with Tianjin Hi -Tech Industry Park for the company's development in the region.

Prysmian targets growth in this strategic market - three year investment plan of 203.0 mio RMB (20 mil Euro) in China.

Prysmian aims to double the current turnover of 995 mil RMB (approx 100.0 mil Euro) and achieve leadership in the China 's Special Cables market.

Milan (Italy) - Tianjin (China) September 2006. Prysmian Cables & Systems (the name acquired by Pirelli Cables after it came under the control of Goldman Sachs in 2005) announces that it has finalized the acquisition of all the cable business activities of the Tianjin Angel Group Co. Ltd, one of China's leading manufacturers of specialized cables for Industrial and OEM applications, having two factories in Tianjin with approximately 300 employees.

The deal was announced in Tianjin on the occasion of the visit of Italian Premier Romano Prodi, during a meeting related to major projects of Italian companies investing in the Tianjin area.

The acquisition of Angel's activities represents a significant step forward in Prysmian's expansion strategy in China, which is considered a strategic market, through targeted investments in high value added business sectors. Prysmian's objective in China is to achieve the leadership in the Special Cables market (cables for application in the most strategic Industrial sectors, such as transportation, automotive, Oil & Gas, wind farms, nuclear power plants), which is worth an estimated 7.36 billion RMB per year (722 million Euro), leveraging on a 203.0 mil RMB (20 mil Euro) three years investment plan, including Angel's acquisition, in addition to 56.4 mil RMB (5.5 mil Euro) already invested in China in the last three years. Thanks to the acquisition of Angel, Prysmian can further strengthen its position in the Chinese market and aims to double the current turnover (special cables, power distribution cables, telecom cables) of 995.0 mil RMB (approx 100 mil Euro) within the next few years.

Prysmian is well placed in China to benefit from the growing domestic demand for cables and for the higher technology products and services that are increasingly required by both domestic customers and multinational customers who are now moving to China. The Group has already invested to expand its existing Special Cables business in China and Angel will complement the current Prysmian capability. Angel's wide product portfolio and technical competence will reinforce the Group's already strong presence with the major national and international Industrial customers.

Angel is a reputable high quality manufacturer supplying special cables for a variety of different high technology applications, including Oil & Gas, railway signaling systems, nuclear power plants, information technology equipment, geological monitoring systems and aerospace. With over 14 years of experience, Angel brings an outstanding customer reference list as well as approvals and certification from both National and International bodies.