ANNUAL REPORT 2007

	Residential Complex in the Tuscan hills, in the province of Florence (18 building units);
	Residential Complex in Parma - Via Traversetolo;
	Multi functional centre in Gallarate (VA);

As regards the project financing in the building sector, it should be highlighted that the activities relating to completion of the procedures subsequent to the appointment of the designated promoter, have been more diffìcult than expected , thereby extending the expected timing. As described above, a convention has been signed with Tuscan hospitals whose work sites will commence during 2008, and currently the following project financing is under way in connection with:

	"Ponte Nord" (Parma);
	"Palaeventi" (Parma);
	Integrated Project relating to Secondigliano (Naples).

As regards prefabricated products, the year 2007 confirmed budget expectations in terms of production, equal to 37 millions of Euro, a decrease compared with 2006, confìrming the expectations that forecasted stagnation in the private market together with a recession in the market dealing with supplies for public works (railway sleepers and manufactured products for roads and railways). The margin obtained was less than expected due to the significant recession of the market the consequence of which has been a decisive reduction in prices in connection with the strong competition encountered. The recession in the private market, especially in the northern area, has not shown any counter-tendency during the year and no improvements are expected in 2008.