SOGEFI: DESPITE RISING COSTS OF RAW MATERIALS 2004 CLOSES WITH SIGNIFICANT UPTURN FOLLOWING IMPROVED PROFITABILITY IN LAST QUARTER

Results for last quarter of 2004
Turnover € 246.6 million (+7%)
EBITDA € 34.6 million (+0.4%)
EBIT € 22.2 million (+1.8%)
Net Profit € 11.7 million (+ 104%)

Preliminary results for the financial year 2004 Turnover € 966 million (+7%)
EBITDA € 138 million (+ 6%)
EBIT € 85.7 million (+ 9%)
Net Profit € 37.9 million (+ 33.1%)
Net Borrowing € 190.5 million (- 11%)

Approval of stock option plan for Group management

The Board of Directors of SOGEFI SpA met today in Milan under the Chairmanship of Mr. Carlo De Benedetti and considered the financial results of the Group for the last quarter of 2004 and the preliminary results for the whole of the financial year 2004.

In the last part of the year too, the SOGEFI Group achieved significant growth in turnover and improved results compared with the same quarter in 2003.

Consolidated turnover for the quarter was 246.6 million Euros, an increase of 7% over the figure of 230.5 million for the last quarter of 2003, assisted by a significant upturn in sales in the suspension components sector over the period (+ 13.3%).

Moreover, profits in this sector of the industry have been particularly affected by a further increase in the prices of raw materials, and these have so far only partly been recovered in sales prices.

Consolidated Gross Operating Margin (EBITDA) for the last quarter of 2004 are showing at 34.6 million Euros, essentially unchanged compared with the figure for the same period in 2003 (34.5 million), while Consolidated Operating Profit (EBIT) has increased by 1.8%, showing at 22.2 million Euros as against 21.8 million in the last three months of 2003.

Pre-tax profits for the same period were 16.6 million Euros as against 10.9 million for the same period in 2003 (+52.7%).
These results take account of a capital gain of 7.2 million Euros on the sale of an industrial building and of new funds in the sum of 10.1 million Euros for costs of restructuring, which is to be carried out in 2005, mainly in the United Kingdom and Italy. Overall, in the last quarter of 2004 the net impact of non-recurring income and costs was 6.5 million Euros less than that for the same period in 2003.

The Consolidated net profit for the last quarter of 2004 was 11.7 million Euros compared with 5.7 for the last three months of 2003 (+104%).

Net borrowing as at 31 December 2004 fell to 190.5 million Euros as against 213.4 million as at 31 December 2003 and 219.1 million as at 30 September 2004.

PRELIMINARY RESULTS FOR THE FINANCIAL YEAR 2004

The Consolidated turnover of the SOGEFI Group for the entire financial year 2004 was 966 million Euros, an increase of about 7% over 2003 (902.4 million).

Despite the noticeable increase in prices of metal materials, profitability has significantly improved at all levels: the EBITDA rose to 138 million Euros compared with 130.1 million (+ 6% compared with 2003); the EBIT was 85.7 million Euros compared with 78.6 million in 2003 (+9%); and consolidated net profit is showing at 37.9 million Euros, 33.1% up compared with 28.5 million for 2003.

The Board of Directors of SOGEFI will consider the civil law accounts and the consolidated accounts of the Group for the 2004 financial and accounting year on 28 February next.

Expectations for 2005 are for a moderately upward trend in world automotive markets, enabling the SOGEFI group to strengthen its sales levels. Moreover in the current first quarter the price of steel is continuing to rise, so that a further adjustment to sales prices will be necessary.

Finally, the Board of Directors used the mandate given on 19 April 2001 to pass a resolution in favour of an increase in capital amounting to a total of 1,930,000 shares at a price of 3.87 Euros per share, to service a stock option plan for employees of SOGEFI SpA and its subsidiaries.

Milan, 14 February 2005

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