New Prices Effective July 1, 2010

Milan, April 30, 2010 – Due to escalating raw material costs, Pirelli will increase prices 4% on all replacement passenger and light truck tires in the United States of America. This price increase will be effective on July 1, 2010.

20% of overall vehicle consumption is affected by tyres. Tyres, in fact, are one of the most important elements for safety as they are the only contact the vehicle has with the road surface.

The Cinturato P7 guarantees performance both in terms of safety and fuel savings (up to 4.2%), thanks to innovative solutions adopted by Pirelli’s R&D.

Safety and ecology go hand-in-hand in many ways, including with respect to handling. Safe driving not only means reducing tyre wear, but also greater respect for the environment, thanks to lower consumption and consequent reduced noxious emissions.

However, greater safety and respect for the environment need more than a speciallydesigned tyre. During its lifetime the tyre will require regular pressure checks

and drivers need to follow a few rules of “virtuous” conduct:

• Use air conditioning sparingly.
• Remove all accessories like roof racks, bikes and containers that affect the aerodynamics of the vehicle
• Check tyre pressure regularly and always before starting on a long journey. If tyres lack air there is more rolling resistance and the vehicle uses more fuel
• Plan ahead for journeys on unknown routes and always check traffic news before setting off, to reduce the risk of getting lost; this means using less fuel and saves money as well as cutting down on pollution.
• Avoid overloading the car.
• Do not start the engine until you are ready to go and turn it off if you stop for more than three minutes.
• Drive at the legal speed limit.
• Whenever possible use the higher gear
• When not required, turn off all electrical systems like rear de-icers.

Pirelli technology is increasingly oriented to ecology and road safety. Its technology has received awards after undergoing the most severe testing — from the ADAC, the German Automobile Club, which has recognized the safety and reduction in environmental impact guaranteed by the Cinturato P7, the newest member of the Cinturato family, and the first “green” tyre for medium and high-powered cars. The P6 also shone in the German tests for similar reasons. The Scorpion Verde completes the Verde Pirelli line and places the Italian Group at the cutting edge in the sector of technologies that are able to simultaneously contain emissions while increasing safety performance.

Green Performance. Apart from the Scorpion Verde and the Cinturato Line, all the Group’s R&D efforts are focused on green performance and in the next few months numerous developments will be introduced that will be a watershed for the entire industry, just like the radial Cinturato of the 1950s and the lowered shoulder of the 1970s. These developments are part of a global, integrated approach to ecology: from increasingly green tyres in all segments to the use of new, non-petroleum-based materials; from integrated solutions for the automotive industry to production processes with increasing environmental respect, in a process that sees ecology applied to the entire chain, from solutions for producing tyres to the end product.
This is a process with solid roots in a passion for innovation that has been group philosophy for over 130 years, during which time it has become a reference point for the automotive industry, as well as in its R&D department, whose five centres of excellence worldwide (in Italy, Germany, Brazil, the United States and the United Kingdom) employ about one thousand professionals and whose annual expenditure is the highest in the tyre sector (as a percentage of sales). The Cinturato P7 has been developed for more powerful cars and consolidates Pirelli’s position, once again putting the Company on the front line with a tyre that enhances the features of the P4 and P6, launching a challenge never attempted before in the automotive world: a high performance, eco-compatible tyre that sacrifices neither handling nor safety, and even reduces consumption and noxious emissions.

Cinturato P6 and P7 pass the ADAC’s summer tests with flying colours. The characteristics of the Cinturato Pirelli were recognized by the most severe tests in Europe, those organized each year by ADAC, the influential German Automobile Club, as well as by the Swiss Touring Club (TCS), and the Austrian Automobile Club (OEAMTC). The tests, carried out on a total of 36 tyres from various manufacturers, crowned Cinturato P7 and P6 as the best summer tyres in their category due to the balance that they offer between ecological characteristics and performance in terms of safety and handling.

The Cinturato P7, the first ecological tyre developed for medium and high-powered cars, obtained the highest overall evaluation out of 17 different tyre models taken into consideration for the tests. Pirelli’s new “green” tyre stood out in all of the parameters considered (dry, wet, comfort and noise, fuel consumption, wear, and handling), and was particularly notable for its overall performance and braking on wet surfaces, for low consumption, and quietness. Cinturato P7 is “highly recommended,” by the ADAC which noted, “very well balanced summer tyre, good on both wet and dry, low fuel consumption, the tyre with the lowest noise levels.”

The Cinturato P6 was also at the top of the ADAC classifications, which out of 19 tyres considered was chosen as the best in its category, obtaining high scores in all the tests carried out. For the German technicians, the Pirelli tyre is “highly recommended,” especially for its handling on wet surfaces, in particular during braking, as well as for low wear.