Prysmian S.p.A. ("Prysmian") has received today a letter from Taihan Electric Wire Co. Ltd ("Taihan") .

Prysmian S.p.A. ("Prysmian") has received today a letter from Taihan Electric Wire Co. Ltd ("Taihan") in which Taihan states that its wholly owned subsidiary Taihan Global Luxembourg Investment S.à r.l. has made an irrevocable and unconditional offer (the "Offer") to Prysmian's 54% shareholder, Prysmian (Lux) II S.à r.l. ("Prysmian Lux"), for the purchase of 17,820,000 shares, equivalent to 9.9% of the share capital of Prysmian. Prysmian Lux has just publicly announced that it has accepted the Offer.

Taihan's letter also indicates that, in light of Taihan Group's activities in the same fields as the Prysmian Group, it is prepared to undertake vis-à-vis Prysmian not to increase its shareholding and not to exercise its voting rights in excess of 10% and not to present any candidates for appointment as directors and statutory auditors of Prysmian.

These undertakings - which if accepted by Prysmian, will be subject to preliminary regulatory verifications - will last for the shorter of two years or for so long as the Taihan Group exercises activities in the same fields as those of the Prysmian Group. In addition, the undertakings shall not apply with respect to shares acquired by Taihan under a public bid as a result of which Taihan will hold more than 50% of Prysmian's voting capital.

Taihan's proposal will be submitted in the next days to Prysmian Board of Directors for any appropriate assessment.

Valerio Battista, CEO of Prysmian S.p.A. said: "We welcome Taihan in the share capital of Prysmian S.p.A., and see this transaction as an important first step towards possible future cooperation between the two companies in one of the world's highest growth regions for the cable market".

In addition, Prysmian has been informed that Prysmian Lux is planning to sell up to 22,180,000 shares representing a total of up to 12.3% of the share capital of Prysmian in an accelerated bookbuilt offering, with book building to commence immediately.


Prysmian
A leading player in the industry of high-technology cables and systems for energy and telecommunication, the Prysmian Group is a truly global company with sales exceeding 5 billion euro in 2006 and a strong position in higher-added value market segments. With its two business, Energy Cables & Systems (submarine and underground cables for power transmission and distribution, for industrial applications and for the distribution of electricity to residential and commercial buildings) and Telecom Cables & Systems (optical cables and fibres and copper cables for video, data and voice transmission), Prysmian boasts a global presence with subsidiaries in 35 countries, 54 plants in 21 countries, 7 Research & Development Centres in Europe, USA and South America, and over 12,000 employees. Specialising in the development of products and systems designed to meet clients' specific requirements, Prysmian's key strengths include: a focus on Research & Development, the capacity to innovative on products and production processes, and the use of advanced proprietary technologies. Prysmian is listed on the Milan Stock Exchange Blue Chip index.