Immsi - First half 2007

Meeting of the Board of Directors todayIMMSI: FIRST HALF 2007NET SALES € 1,033.3 MLN (+9.2% YoY)EBITDA € 141.2 MLN, 13.7% RETURN ON NET SALES (+7.9% YoY)NET PROFIT € 23.6 MLN (+21.6% YoY)NET DEBT € 417.5 MLN (down € 45.1 mln from 31.03.07)PARENT COMPANY IMMSI S.P.A.:NET PROFIT € 7.4 MLN Milan, 12 September 2007 – At a meeting today in Milan chaired by Roberto Colaninno, the Board of Directors of IMMSI S.p.A. examined and approved the Group’s results for the first six months of 2007.  The IMMSI Group posted improvements in its half-year income, equity and financial results compared with the first six months of 2006, with:net sales of € 1,033.3 million, up 9.2% EBITDA of € 141.2 million, up 7.9% net profit of € 23.6 million, up 21.6% • net debt of € 417.5 million, down by € 45.1 million from 31 March 2007.  IMMSI Group 2007 half-year consolidated net sales totalled € 1,033.3 million, rising by more than € 87 million (+9.2%) from the year-earlier first half (€ 946.0 million). This included Piaggio Group net sales of € 968.6 million, a YoY improvement of 7.2% reflecting growth in both the Two-Wheeler business (+6.9%) and the Light Transport Vehicles business (+5.9%). Net sales in the shipbuilding sector (Rodriquez Cantieri Navali Group) amounted to € 62.3 million, up 54.6% on the first half of 2006, as a result of completion and delivery of previous orders and production progress on orders acquired during the previous financial year.   The Rodriquez Group order book stood at approximately € 450 million at 30 June 2007.   In the property sector, the project for the Is Molas tourist complex was completed and presented to the authorities for the necessary licences, expected to be granted by the end of the year.   EBITDA amounted to € 141.2 million, for a 13.7% return on net sales, an improvement of 7.9% on the result in the year-earlier first half (€ 130.8 million). The contribution of the Piaggio Group was € 145.9 million, up approximately 8.1% on the year-earlier first half.   After depreciation and amortisation for € 41.7 million, EBIT was € 99.4 million, or 9.6% of net sales, an improvement of 15.5% on the year-earlier first half (€ 86.1 million).   First-half profit before tax gained 14.2% to reach € 80.4 million, equivalent to 7.8% of net sales, compared with € 70.4 million (7.4% of net sales) in the first half to 30 June 2006.   The half-year net profit was € 23.6 million, an increase of 21.6% on € 19.4 million in the first half of 2006.   Group net debt at 30 June 2007 amounted to € 417.5 million, from € 462.6 million at 31 March 2007 and € 414.3 million at 31 December 2006. The positive performance in operating cash flow in the half year (€ 64 million) was offset in part by dividend payouts (€ 10.3 million), payment of Group company dividends to minority shareholders (€ 5.3 million), own-share buybacks at Piaggio & C. S.p.A. (€ 16.8 million), and enabled the Group to finance gross investments for the period totalling € 43.4 million.   The net financial position at 30 June 2006 was € 426.6 million.   IMMSI Group total shareholders' equity at 30 June 2007 was € 671.9 million, compared with € 646.5 million at 31 March 2007. Shareholders' equity at 31 December 2006 was € 645.6 million.   Significant events after 30 June 2007 In July and August Piaggio & C. S.p.A. continued to purchase own shares to service the Piaggio 2007-2009 stock option plan. At 31 August it held 7,190,000 own shares, for an average purchase price of € 3.666.   Outlook Based on its 2007 half-year results, the IMMSI Group expects to post a profit for the full year.   IMMSI S.p.A.   In the first half of 2007, the Parent Company reported net sales of € 2.1 million, negative EBITDA of € 0.6 million and a net profit of € 7.4 million, after recognising dividends collected from Piaggio for approximately € 6.5 million and other net finance income for approximately € 1.2 million. For more information:IMMSI Press OfficeVia Vivaio, 6 - 20122 MilanMassimiliano Levi Tel. +39 0276212620 Fax. +39 0276212629 massimiliano.levi@immsi.it www.immsi.it  The Independent Auditors have not yet published their opinion.