ANNUAL REPORT 2007

With reference to the proposai presented by the promoter to Anas in connection with the link of the Campogalhano Sassuolo motorway, your company appealed to TAR, following the non issuance of the declaration of public interest, with a positive result; Anas subsequently presented recourse to the State Council, but the result for the moment is stili unknown.
During the past year, your company, together with other companies, replied to the cali for a bid in the region of Venice, that was looking for better offers compared with the one received from the current concessionary of the A-4 (Brescia - Padova motorway), for the project work, construction and management of the so-called system of the Venetian ring roads.
On 3rd Aprii 2008, the Venice region announced that the awarding commission had chosen your company's proposal. On 26l May 2008, the committee of the Venice region declared that the above mentioned proposai was declared as being of public interest and commenced the procedures relating to the pre-emption. The same A,T,I, replied to an indicative notice of the Venice region for the execution of a project financing of the link road called "Gardesana" The process of the selection of a promoter is stili under way.
Also, your company took part in an ATI whose promoter proposai for the execution of a project financing relating to the motorway portion to the toh between the A-14 and the port of Ancona, was considered to be feasible by the grantor, Anas, subsequent to specific bidding procedures. The mentioned events witness the evolution towards a core business mainly aimed at concessions, as opposed to the traditional market of public contraets that continues to be characterized by persistenti competitive tension, completely out of context as regards real cost dynamics, The procedure that is under way is coherent with the policy indicated by the shareholders ar/d is aimed at a research for "normal" market segments in which to compete on coherent basis with a correct evaluation of the risks and benefits.
It is hoped that the competent institutions will provide for appropriate regulations aimed at making new the mechanisms that adjust contractual prices to the real cost dynamics of the costs of raw materials, whose abnormal trend systematically collides with the modest theoretical margins of traditional contracts.