Agreement Reached for Testing Italian Emissions-Reduction Technology on Beijing Buses

BEIJING – July 11, 2008: The Italian Ministry for the Environment signed an agreement with the Municipality of Beijing to launch a pilot project in the Chinese capital for testing particulate filter technology developed by Pirelli Eco Technology , able to reduce by more than 95% particulate emissions from diesel engines .

The agreement, signed today in Beijing by Shi Hanmin , Director of the Environmental Protection Bureau of Beijing and Corrado Clini , Director General of the Italian Ministry for the Environment, in the presence of Marco Tronchetti Provera , Chairman of the Pirelli Group, calls for installation of Pirelli filter systems on heavy duty vehicles (mainly buses, but also trucks and later snowploughs and tractors) used by the local public transportation company. The first filter systems will be installed before the start of the Olympics, and the rest after the Summer.

This project is part of a wider Sino-Italian Collaboration Program for Environmental Protection - begun in 2000 - which has realized more than 80 projects for elaboration and experimentation of advanced technology solutions for sustainable development in China.

Ahead of the Beijing 2008 Olympics, the Italian Ministry for the Environment has strengthened its cooperation with the Beijing Municipality and has supported the city in its "Green Olympics" Program with numerous projects in mobility and sustainable urban planning, monitoring and control of air and water pollution, prevention of sandstorms, and environmental education.

This new project launches a pilot test in China of Pirelli's particulate filter technology. The filter systems designed in Italy can be installed on vehicles already in circulation (retrofit), and represent a solution that can be applied immediately and inexpensively, which guarantees considerable environmental advantages very quickly. Pirelli particulate filters are currently fitted on public transportation vehicles, company cars, and private vehicles in various Italian cities. Since 2008, the Company has also started marketing its filter systems in Germany, the Netherlands and Britain. In the second half of this year, in addition, the new factory in Gorj (Romania) will begin production, mainly dedicated to original equipment filters for automobiles. In addition, the joint-venture agreement Pirelli is currently negotiating with Russian Technologies includes the possible start of particulate filter manufacturing in Russia.

The Italian Minister for the Environment, Stefania Prestigiacomo , emphasized that " The agreement represents not only a way of reducing particulate emissions and protecting the environment, but also bears witness to technological innovation in the environmental field realized by Italy and exported to China and around the world. The environmental cooperation with China, one of the most demanding programs of this Ministry, has, in fact, a goal of supporting an effective strategy for global protection of the environment, inserting itself positively into the rapid evolution of Chinese environmental policy, and placing itself as an example of Italian excellence in public-private cooperation. "

" The theme of air quality " - commented Marco Tronchetti Provera , chairman of the Pirelli Group - is by now vital to all the main cities around the world, due to traffic congestion. We are finding, in Italy as in Europe and in other countries around the world, growing attention by public administration authorities to policies and technologies that can help reduce polluting emissions. We are pleased that the city of Beijing has decided to test our solution and we hope that this pilot project will be the first step on a long journey together. We are also very pleased with the fruitful collaboration with the Ministry for the Environment, a demonstration of the importance for our country of the union between the public sector's skill in systemic response, and the technology and know-how of the private sector ".