Preliminary information Notice of Annual General Meeting Corporate officers Consolidated financial highlights Profile of the Group and its business model Message from the CEO

Report on operations Real estate market in 2007 The European real estate market The Italian real estate market Pirelli RE in 2007 Financial highlights Review of operating results Review of the balance sheet and financial position Performance of the main business segments in 2007 Investment & Asset Management - Co-investment activities Investment & Asset Management - Service activities Specialized services Subsequent events Business outlook Reconciliation between the parent company’s results and equity and those of the Group Results of the parent company Pirelli & C. Real Estate S.p.A. Other information Corporate Governance Equity interests held by Directors, Statutory Auditors and General Managers Stock Option plans Treasury shares Group tax election Personal data and privacy protection Resolutions

Pirelli & C. Real Estate Group Consolidated Balance Sheet Consolidated Income Statement Consolidated Cash Flow Statement Consolidated statement of recognized income and expenses in net equity Notes to the consolidated financial statements Accounting standards and policies Standards and interpretations effective from January 1st, 2007 New international accounting standards or interpretations not yet effective Reporting formats Consolidation area Consolidation methods Accounting policies Financial risk management policies Capital management policy Accounting estimates and assumptions Information on the Balance Sheet and Income Statement Transactions with related parties Transactions with related parties Other information Supplementary tables to the consolidated financial statements Annex 1: Consolidation area Remuneration paid to directors, statutory auditors and general managers Condensed income statement Certification of consolidated financial statements pursuant to art. 81-ter of CONSOB Regulation no. 11971 of May 14th, 1999 and subsequent amendments and additions Independent Auditors’ report

Consolidated financial highlights

(euro/million)	2007	2006	2005
Income statement highlights
Pro-rata aggregate revenues	1,543.1	1,560.0	1,386.8
EBIT including net income from investments	236.5	214.4	186.1
Consolidated net income after minority interests	151.1	159.5	145.4
Balance sheet highlights
Net equity	720.1	708.7	552.1
of which group net equity	715.7	700.3	535.4
Net financial position	289.7	96.4	30.5
Net financial position excluding shareholder loans	816.1	430.5	292.5
Ratios
ROE calculated on the average of opening and closing group net equity (2)	21%	26%	28%
Gearing excluding shareholder loan	1.13	0.61	0.53
Other information
Shares (number) (3)	42,597,232	42,597,232	42,074,982
Treasury shares (number)	1,299,522	237,698	1,777,212
% treasury shares of total shares	3.1%	0.6%	4.2%
Stock price at December 31st	25.13	51.99	46.09
Basic earnings per share (euro) (4)	3.55	3.74	3.46
Employees (5)	2,956	1,848	1,596

(1) The amount at December 2007 is reported net of the sale of DGAG properties at cost through the disposal of shares to the joint ventures with RREEF and MSREF for 1,295.6 million euro.

(2) The return on equity (ROE) is calculated as the ratio between consolidated net income after minority interests and the average of opening and closing group net equity.

(3) The number of shares reported (issued and certified) refers to the date of December 31st.

(4 Ratio between consolidated net income after minority interests and the total number of shares outstanding at December 31st.

(5) The amount at the end of 2007 includes 298 staff at the German platform of BauBeCon, whose 100% purchase by the joint venture with RREEF will be completed in 2008, as agreed by contract.
Including temporary staff, the figure rises to 2,980.