ANNUAL REPORT 2007

As regards the investment held in "Garboli", which is now totally controlied by your company subsequent to the residuai public purchase offer made in prior year in accordance Consob regulations, we wouìd highlight on the one hand, the works proceeding on a normal basis and on the other, the continuity of the judicial activities that had commenced in prior year.
In connection with the participation of your company and of the subsidiary Garboli in the Cepav 2 consortium we would specify that there have been limited but positive evolutions during 2007 and during the first months of 2008 in connection with the issues already highlighted in the previous fìnancial statements and that had originated in the cancellation of the conventions with TAV that are proceeding, in the various grades of justice, including the pronouncement by the European Court of Justice, made subsequent to the known sentence of the TAR of the Lazio Region. In this substantially unchanged context, the activities relating to arbitration promoted by the Cepav 2 consortium in connection with the acknowledgment of the damages sustained have been carried on.
As a consequence, the judicial inquiries relating to existing arbitrations are in progress; in particular, with reference to arbitration nr, 1, commenced by the Cepav 2 consortium against TAV, the judicial inquiry by the Board is under way for the purpose of quantifying the amount due with the help of technical advice. The technical assistance has commenced its activity which should terminate by next autumn.
As well as the above , it is convenient to remember that as opposed to the requests made by the other consortia affected by the cancellation process of the conventional contracts, the Cepav 2 consortium has requested the making good of the TAV contract on a priority basis. In this regard, the time that has gone by has not been in vain since the project relating to the Treviglio-Brescia sub-portion of the works has completed the authorisation process ("conferenza dei servizi") thereby achieving approvai last spring. As a consequence, in the light of the intentions announced by the new government in the field of infrastmctures, we are hoperul in the renewal of this important contract. At the present moment, on the basis of available information and of recent events that are limited but positive, taking account also of the above considerations, the Board of Directors continue to believe that there