Pirelli & C. Real Estate: New stock option plan adopted.

Price sensitive
On 5 June 2002 Italian stock market regulator Consob gave its approval for publication of the prospectus for Pirelli & C. Real Estate S.p.A.'s Public Sale and Subscription Offer and an official stock market listing of the Company's ordinary shares.

The admission to listing of the Company's shares was approved by Borsa Italiana SpA on 29 May further to the approval of the Shareholder Meeting of Pirelli & C. Real Estate received on 2 April 2002.

The listing of the Company's shares will be achieved via a Global Offer - led by Mediobanca, Morgan Stanley and UBM - of a maximum of up to 14,150,000 shares, in part derived (up to 4,050,000 shares) from a capital increase, with exclusion of pre-emption, approved by the Pirelli & C. Real Estate Extraordinary Shareholder Meeting on 2 April, and in part derived from a maximum of up to 10,100,000 shares offered for sale by the majority shareholder Pirelli & C a.p.a..

Further, the granting of a greenshoe option is envisaged by Pirelli & C., to the Joint Bookrunners Mediobanca and Morgan Stanley, for a maximum of up to 2.100.000 shares.

Mediobanca is Sponsor and responsible for the placement of the Public Offering, while Lazard is acting as advisor.

For further information:

Pirelli Press Office Tel. +39/02/8535.4270
www.pirellirealestate.com