Pirelli Tire North America to Expand Rome Plant

ATLANTA, Oct. 2, 2008 – Pirelli Tire North America announced today that it will add a new production line to its Rome facility, investing $15 million.

'Pirelli's announcement is just the latest expansion of international companies here in Georgia,' said Georgia Governor Sonny Perdue. 'Georgia has all the advantages that companies are looking for when considering investment in the American market, and our expectation is that we will continue to see new jobs and investment stream to our state.'

Pirelli's expansion will provide an approximately 25 percent boost in manufacturing output and is scheduled to become operational during the first quarter of 2009.

Georgia Governor Sonny Perdue met with senior Pirelli officials in Milan today as part of his economic development mission to Europe. In 2002, Pirelli relocated its U.S. headquarters and manufacturing facility to Rome, where it manufactures high-end tires for the automotive industry. Approximately 250 employees work at Pirelli Tire North America's Rome Headquarters.

'Our expansion of the Georgia-based Modular Integrated Robotized System (MIRS™) facility supports Pirelli's strategic growth plan for the North American market and demonstrates our strategy of investing in its ongoing partnership with the State of Georgia and its office of Economic Development,' said Hugh Pace, CEO and Chairman of Pirelli Tire North America.

'We're delighted that Pirelli has continued to invest in Rome and Floyd County,' said Dr. Jerry Jennings, Floyd County Commission Chairman. 'We appreciate Pirelli's confidence in our workforce, business climate and quality of life, and welcome further expansion from this fine corporate citizen.'

Brooks Mathis, project manager with GDEcD, assisted the company in its expansion.

About the company

Pirelli Tire North America designs, develops, manufactures and markets tires for passenger vehicles, motorcycles and race cars for original equipment and replacement markets. Located in Rome, Georgia, Pirelli's Modular Integrated Robotized System (MIRS™) employs state-of-the-art technology to manufacture tires for both export and domestic markets. For more information please visit www.us.pirelli.com.

The Georgia Department of Economic Development (GDEcD) is the state's sales and marketing arm, the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, locating new markets for Georgia products, attracting tourists to Georgia, and promoting the state as a location for film, music and digital entertainment projects, as well as planning and mobilizing state resources for economic development. For more information, visit www.georgia.org.