Piaggio Aero Industries S.p.A., one of the world’s leading aerospace companies, today announced that Mubadala Development, a principal investment company wholly owned by the Government of the Emirates of Abu Dhabi, had acquired 35% of the equity of Piaggio Aero.

The transaction is founded on a shared belief by the two parties that the business aviation segment will continue to expand significantly over the foreseeable future. The share capital resulting from the deal positions Piaggio Aero to harness that opportunity. Piaggio Aero Industries is the only company in the world to be active in all aspects of aircraft manufacture and maintenance – aircraft, aero-engines and aerostructures. Since 1998, the company has grown its order book from one plane to its current order book of over 100 planes.

“We have had extraordinary success in both the European and North American business aviation markets.” Said Mr Piero Ferrari Chairman of Piaggio Aero S.p.A.. “This deal places us in a position to further grow our position in those markets whilst beginning to explore new markets, including the Middle East, Far East and South America, each of which offers high potential for sales.” He added.

Commenting on the deal, HE Khaldoon Khalifa Al Mubarak, CEO of Mubadala Development said: “For us this investment makes commercial sense on two levels. As a straight investment opportunity Piaggio Aero has a remarkable performance track record. Importantly, the transaction also offers the opportunity to explore potential synergies that both Piaggio and Mubadala can leverage”.

We are very excited about our new partner and the confidence Mubadala has placed in Piaggio Aero” said Josè di Mase CEO of Piaggio Aero. “This partnership provides a platform for growth and the future expansion of the Piaggio Aero brand”.

Mubadala Development’s investment involves the purchase of existing shares and new shares. Piaggio Aero’s primary shareholders are the Ferrari and di Mase families. As a result of the transaction they will now hold 55% of the share capital of the Company. Together with Mubadala’s 35% stake, this accounts for 90% of the share capital of the Company. The other ten percent is held by a mixture of banks and other shareholders.

As part of the transaction, Mubadala will receive three Board seats of Piaggio, out of a total of seven, including the post of Vice-Chairman. Mubadala will also receive one of the three seats on the Company’s Executive Management Committee. Financial terms of the transaction were not disclosed.

Piaggio Aero has shipped almost 110 planes to customers around the world including private owners, corporations, governments, military institutions and fractional ownership companies. In 2006, the Company plans to deliver 24 of its signature P180 Avanti II planes. As Piaggio Aero’s flagship the P 180 Avanti II is the fastest and most efficient turboprop aircraft in the World, competing successfully in the light jet segment.

Piaggio Aero S.p.A.:

Piaggio Aero Industries was established in November 1998 when a group of shareholders, headed by Josè di Mase and Piero Ferrari acquired the assets of the aerospace business formerly known as Rinaldo Piaggio S.p.A..

Piaggio Aero Industries is the only company in the world to be active in the areas of aircraft, aero-engines and aerostructures manufacturing. Piaggio Aero designs, develops, constructs and maintains aircraft, engines and aircraft structural components.

The Company has facilities in Genoa, Finale Ligure and Naples (Italy) and subsidiaries in Nice F (Piaggio France) and in West Palm Beach, FL. U.S.A. (Piaggio America INC.).

Technology and commitment in research and development, along with innovative design solutions, are the drivers for Piaggio Aero Industries’ current and planned future programs. The current core product for Piaggio Aero Industries is the P 180 Avanti II twin turboprop pusher business/utility aircraft.

Piaggio Aero has significant links with the Ferrari automotive company. The Chairman of Piaggio Aero Mr Piero Ferrari is also the Vice-Chairman of Ferrari S.p.A.. The “Scuderia Ferrari” (The Ferrari racing team) has utilised the Piaggio Aero P180 Avanti since 2000. Piaggio Aero is also the personal sponsor of the seven times World Champion Michael Schumacher and of new Ferrari driver Felipe Massa. Both drivers carry the Piaggio Aero logo when competing at F1 Grand Prix around the world.

Mubadala Development:

Mubadala Development is a Public Joint Stock company, established and wholly owned by the Government of the Emirate Abu Dhabi. Its mission is to invest in commercially-viable, strategic, industrial and commercial partnerships.

Mubadala is comprised of six business units: Acquisitions, Energy & Industry, Health & Technology, Properties Development, Public-Private Partnerships, and Finance & Corporate Affairs. The company manages a diversified portfolio of local, regional, and international investments.

International investments include the Dutch fleet management giant LeasePlan Corporation (25% stake), and a stake in nine oil exploration blocks in Libya. Mubadala was also able to win the Algerian Hadjret En-Nous IPP along with SNC-Lavalin Inc. Stakes are also held in the Italian luxury car manufacturer Ferrari (5%) and Spyker (17%).

In the United Arab Emirates and wider Gulf region, Mubadala Development has invested in, and developed, a number of leading projects including the first GCC cross-border natural gas project, Dolphin Energy (51% majority stake), Aldar Properties, National Central Cooling Company, Abu Dhabi Ship Building, Imperial College London Diabetes Center in Abu Dhabi, Injazat Data Systems, The Mukhaizna Oil Field developments in Oman and Tanqia.

Mubadala Development is also leading the development of the UAE University’s new campus in Al Ain City through a public-private partnership initiative.

Mubadala Development also prides itself on the creation of numerous strategic alliances and associated projects. Current alliance partners include Dubai Aluminum Company (DUBAL), Rolls-Royce and Shell.

For further information contact:

Italy:
Enrico Sgarbi
Tel: +39 010/6481218
e-mail: esgarbi@piaggioaero.it
web site: http://www.piaggioaero.com

UK:
Alison Chambers
Tel: +44 1962736600 or +44 7721882939
e-mail: alison@emeralmedia.co.uk

USA:
Brett Turner
Tel: +1 8642723014
e-mail: brett.turner@jdsouth.com

Middle East:
Abdulla Khouri
Tel: +971 2 6160100
E-mail: akhouri@mubadala.ae