The Fiera Milano Group Board examines results for the FY 2007 and approves the agreement with Fiera Roma for a new exhibition

The Board of Directors of Fiera Milano SpA met today under the chairmanship of Michele Perini, has examined, among other things, the updated forecast of the financial year (FY) from 1 January to 31 December 2007 and the framework agreement with Fiera Roma

UPDATED FORECAST FOR FY 2007. With respect to the estimates for the current year, included in the Industrial Plan 2007-2011 approved by the Board of Directors in March 2007, the updated forecast shows improvements in the results of the parent company, Fiera Milano SpA at a faster pace than the expectations built into the Plan and in spite of the decrease in square metres of exhibition space occupied. This was partly due to significant decreases in operating costs - personnel, services and maintenance costs - and depreciation and amortization - pursuant to a review of the investment plan with a view to undertaking only essential works - and partly to increases in the revenue from sales of services provided to organizers and exhibitors.

Still, this improvement only partly offsets the higher losses expected in some Group companies - event organisers - also arising from the debut of new events or cancellation of exhibitions. As a result, Fiera Milano has defined or stepped up the pace of additional actions to recover profitability - partially already foreseen when the Industrial Plan was being drafted - which have made it possible to confirm, as of today, the consolidated gross operating margin (GOM) for the year 2007, essentially at breakeven
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DRAFT AGREEMENT WITH FIERA ROMA. The Board of Directors has also approved the draft agreement with Fiera Roma, conferring a mandate to the chief executive officer to proceed with the signing of a letter of intent. The project involves organisation in the capital city's exhibition complex of a new professional and annual exhibition dedicated to the home that should debut next June and expects to reach approximately 18,000 square metres of exhibition space. The exhibition is strictly reserved to operators in the same sector, for whose management Fiera Milano and Fiera Roma expect to set up a special, parity stake joint venture. The equal standing of the partners would also be applied in the composition of the company bodies and in distribution of managerial roles.

“This is an important initiative, the first operating partnership between the two Italian Fairgrounds,” noted the CEO of Fiera Milano SpA, Claudio Artusi. “Even in a market that has grown exceptionally competitive - as the trade fair market is - it is still possible - even effective - to find opportunities for working together. The time is ripe to move beyond competition toward an intelligent mix of competition and cooperation. This is the model that will help Italy to succeed in the international exhibition race and that we must begin to get used to the situation on our own domestic market. In this case, we have created a shared asset in the wealth of experience of this sector and the potential of the new, dynamic Rome exhibition centre. The market gains the most from the partnership, as it can count on an even more widespread and effective promotion of exceptional, Italian made products."