Press information

FOR IMMEDIATE RELEASE:

PRYSMIAN CONSOLIDATES ITS PRESENCE IN THE UMBILICALS SECTOR WITH THE INAUGURATION OF A NEW INDUSTRIAL FACILITY IN BRAZIL

Thanks to the new plant, Prysmian will strengthen its position as a global manufacturer of umbilicals for the Oil & Gas industry Milan, 7 February 2007 - Prysmian Cables & Systems, one of world’s leader in power and
telecommunication cables, has brought an industrial plant onstream at Vila Velha (Brazil) for the manufacture of subsea umbilicals, special cables used in offshore oil platform.

Umbilicals are multifunctional tubing systems (in thermoplastic or steel) which in conjunction with a specialized line of accessories, enable subsea wellheads and manifolds to be connected to platforms or FPSO’s. This mechanism to transmit power, data and hydraulic fluids (for the opening and closing of valves), is the method of controlling the oil/gas extraction.

Prysmian has been operating in this field for 20 years with a significant presence that has grown year over year. The decision to build a new plant is in line with the business objective of the Company to expand its market share in the worldwide market of umbilicals. This new manufacturing site at Vila Velha (on the Vittoria channel in Brazil’s Espirito Santo State) will strengthen Prysmian’s position in a high value-added segment such as the Oil and Gas industry.

Because of its higher production capacity, its strategic position and its simplified loading procedure, the new industrial plant will enable Prysmian to meet demand in any part of the world, starting especially with North America, the Gulf of Mexico and the West African coast. The first order for umbilicals to be manufactured in the new plant will be for the Brazilian oil company Petrobas, one of Prysmian’s longeststanding customers.

Thanks to the location of the new manufacturing facility, the umbilicals produced at Vila Velha can be loaded directly onto installation or transport vessels. This will enable Prysmian to produce longer length umbilicals, thus meeting the evolving needs of the industry. The location is also strategic because it is close to Brazil’s major extraction area and to Petrobas’ plants.

The new plant, which is larger with respect to the old one of Santo Andre (which will still be retained as a backup facility), has an occupancy of more than 6.500 square metres in a total area of 20.000 square metres and it will employ about 110 people. Its production capacity will be between 200 and 400 Km/yr, depending upon the type and length of product. The longer length capability of the plant will result either in reels of up to 300 tons and 9m in diameter being deployed, or a rotating platform capable of loading an umbilical up to 8000 tons directly on to an installation vessel.

"Although we have been producing subsea umbilicals for more than 20 years, Vila Velha enables us to deliver our capability and experience to a wider customer base. The commissioning of our new, state of the art, quayside located facility will enable us to conveniently supply a full portfolio of technologically advanced Umbilical solutions to the global market" said Llyr Roberts, director of Prysmian’s global Industrial Market business.

In Brazil, Prysmian has four production plants employing a total of 900 people. Among other applications,
these plants produce high, medium and low voltage power cables, special cables for the Oil&Gas, maritime
and car industries, as well as communications copper and fibre cables.

For further information:
Communication Department - Press Office
Lorenzo Caruso, tel +39 02 6449 51534, mob +39 349 766 8006, email: lorenzo.caruso@prysmian.com

Marketing Department
Paolo Perazzi, tel, +39 02 6449 5072, email: paolo.perazzi@prysmian.com