Prysmian enters into agreement to supply subsea power and communication UMBILICALS for the peregrino project offshore Brazil

The deal will further strengthen Prysmian's position as a leading international player in the OGP market.

Prysmian Cables & Systems, a world leading company in the energy and telecommunication cables and systems industry, has signed a Letter of Intent with affiliates of Norsk Hydro and Anadarko Petroleum Corporation for the supply of subsea power and communication umbilicals for the Peregrino development. The project is being developed by Norsk Hydro and Anadarko and is located offshore Rio de Janeiro, Brazil.

The $19 million deal will consist of 20 km of Dynamic power and communication umbilicals, which will be manufactured in Prysmian's new state of the art factory located at Vila Velha, Brazil. This agreement is in line with the business objective of the Company of expanding its market share in the worldwide market of umbilicals.

"This agreement represents for Prysmian a further step in the successful expansion into the international Umbilical market", said Llyr Roberts, Director of Prysmian's global Industrial Market business. "Supplying subsea power and communication umbilicals for the Peregrino Development allows us to strengthen Prysmian's position in this high value-added sector."

Vila Velha, where the umbilical production is located, is an industrial plant with high production capacity, a strategic location (on the Vitoria channel in Brazil's Espirito Santo State) and a simplified loading procedure, which enables Prysmian to meet customer demands in any part of the world, particularly South America, the Gulf of Mexico and the West African coast.

Thanks to its location, the umbilicals produced at Vila Velha can be loaded directly onto installation or transport vessels. This enables Prysmian to produce longer length umbilicals, thus meeting the evolving needs of the industry. The location is also strategic because it is close to Brazil's major offshore Oil and Gas developments and to Petrobas' operational base.

The Dynamic Power Umbilicals for the Peregrino Development will be designed and manufactured by Prysmian during 2008.