Piaggio Group approves new business plan for 2008-2010

Major focus on technological innovation and sustainable mobility. Development of operations on asian markets. Start-up vietnamese factory in 2009. Consolidated Net Sales growth to approximately € 1,950 mln in 201. 2010 EBITDA Margin 13.5%. 2010 Dabt/EBITDA ratio close to 1.

Piaggio & C. S.p.A. chairman and chief executive officer Roberto Colaninno presented the Piaggio Group 2008-2010 Business Plan to the Board of Directors last night.

Over the next three years the Piaggio Group will be concentrating on the challenges presented by the international light mobility market, with a special focus on technological innovation, to compete on world markets as an innovator sensitive to fuel consumption and the environment. The 2008-2010 Plan guidelines are based on:

an investment focus on technological innovation geared to the environmental sustainability of Group products and to guarantee lower urban transport costs;

international growth in terms of industrial and commercial expansion on the main world markets as well as improved Group efficiency in R&D, engineering and procurements. Specifically, the Group will be developing its operations on Asian markets;

extension of the product portfolio in the scooter, motorcycle and commercial vehicle businesses;

an innovative Group management organisation, involving all engineering, sales, communication and marketing areas;

enhancement of the image of the Group and its individual brands to strengthen perception of Group products as unique on global markets.

In the 2008-2010 period, the Piaggio Group will be aiming to:

consolidate its leadership in the European scooter business;

expand its motorcycle business in terms of segments/engines and international positioning, with parallel enhancement of its racing activities, especially for Aprilia (entry into the Superbike world championship) and Derbi;

expand its position in the commercial vehicles business in Europe, India and South-East Asia;

develop innovative engines with low environmental impact, by focusing on hybrid technology to cut fuel consumption and emissions;

broaden its presence on the Asia-Pacific market;

start up the production facility in Vietnam in 2009;

develop operations on the Chinese market;

broaden the product range and brand visibility on the American market.

At the end of the three-year period (2010) the Piaggio Group projects consolidated net sales of around € 1,950 million, an EBITDA margin of 13.5% and an EBITDA/net debt ratio close to 1, after capital expenditure of more than € 300 million during the three years.