Set up jv with Calyon to invest in NPls in Europe

Pirelli RE, a leading player in the Italian real estatemarket, and Calyon, the Corporate and Investment Bank of the Crédit AgricoleGroup, have signed a binding agreement to form a joint venture that will invest innon performing loans in Europe. Under the agreement non performing loanportfolios will be acquired, in which Pirelli RE, consistent with its business model, isto hold a 33% interest and Calyon 67%.