Press information

FOR IMMEDIATE RELEASE:

Prysmian signs new telecom cables supply agreement with Telstra

Milan, 2 October 2007 - Prysmian Cables & Systems, a worldwide leading player in the cable industry, today announced a three year agreement to continue the supply of both fibre optic and metallic communication cables to Telstra, the largest telecommunications service provider in Australia. The contract, based on a pre-existing agreement, has been secured by Prysmian Telecom Cables and Systems Australia Pty Limited.

Having competed in a global tender process for this supply contract, the largest of its kind in Oceania, Prysmian successfully demonstrated competitiveness in price, product innovation and supply capabilities to maintain its long term commercial partnership with Telstra. The win also acknowledges Prysmian’s effectiveness in fulfilling the Telstra partnership during the past two years and extends the long-term relationship that has seen Prysmian as the only contracted supplier of communications cable, since 1998, when the company operated as Pirelli Telecom Cables and Systems Australia Pty Limited.

Prysmian’s Chief Executive Officer in Australia, Mr Paul Atkinson, believes that the agreement will assist in ensuring Telstra’s competitiveness as the country’s number one carrier, due to the effective product and service evolution programs that have been implemented by Prysmian. “In order to guarantee that Prysmian can adequately service Telstra’s increasing cable requirements under all circumstances, we plan to double the capacity of our Dee Why manufacturing facility in New South Wales. This investment will afford us the highest levels of service irrespective of Telstra’s level of demand,” Mr Atkinson said.

In acknowledging Prysmian’s award of a further contractual term, Telstra’s Executive Director of Procurement, Mr Ian Wheatley, said that Telstra looked forward to further developing its commercial partnership with Prysmian. “We are confident that Prysmian is ideally placed to meet Telstra’s demands for quality, cycle time improvements and ongoing focus on costs to give us a surety of supply. This contract is further evidence that Telstra is ready, willing and able to roll out high-speed broadband to Australian homes and businesses should the regulatory hurdles be removed. We have a plan and we have the contracts in place to execute it,” Ian Wheatley said. The investment in the increased manufacturing capacity at Dee Why, to be completed by early next year, provides Prysmian with the opportunity to offer greater flexibility of supply and to develop supply chain efficiencies for Telstra. Furthermore, the Director of Prysmian’s global telecom cable and optical fibre business, Mr Giovanni B Scotti stated: “Prysmian’s intention to invest locally in the manufacture of telecommunication cable demonstrates our Company’s commitment to Australia and our belief that the ongoing relationship with Telstra will continue to contribute to future company growth and success.”

Prysmian is the only company in Australian and New Zealand producing a full range of communication cables and associated connectivity systems including optical fibre, Sirocco Blown Fibre systems, FTTP (Fibre to the Premises) solutions, metallic and premises/data cables.

For further information: