• Pre-tax income equalled euro 2.3 million, showing a rising trend against the first quarter of the 2005/2006 fiscal. Consolidated net income totalled euro 1.7 million, dropping from euro 4.4 million.
• The Group net equity as of September 30, 2006 totalled euro 126 million against euro 121.9 million as of September 30, 2005.
• The year’s result is expected to be above the figure of the preceding fiscal 2005/2006.

Milan, November 13, 2006 – At today’s meeting, Sopaf SpA Board of Directors approved the consolidated quarterly report as of September 30, 2006 (first quarter of the fiscal year).

Consolidated Results*

EBITDA, equal to euro 1.8 million, rose 49% against the first quarter of the preceding fiscal, when it registered euro 1.2 million. 
Total revenues increased by 6%, up from euro 6.2 million to euro 6.6 million and, in particular, they include euro 2.5 million of proceeds deriving from the reduction in third party equity due to the higher value (against the cost borne by Sopaf Group during the quarter) of the LM & Partners Sca consolidated net equity.  Costs for the period, equal to euro 4.8 million, dropped 5% against euro 5.0 million of the first quarter of the previous fiscal, including labor costs for euro 0.8 million (euro 0.4 million in the corresponding quarter of the 2005/2006 fiscal). 
EBIT, equal to euro 1.8 million, rose 94% against euro 0.9 million of the first quarter of the preceding fiscal, which discounted euro 0.2 million in the risks and depreciation fund provision.   
Investments, valued in compliance with the equity method, totalled euro 1.3 million, a drop of euro 1.0 million against the corresponding quarter of the previous fiscal.  Financial charges equalled euro 0.8 million, against euro 2.1 million of net financial proceeds  from the first quarter of the preceding fiscal.  It should be noted that financial proceeds of the first quarter of 2005/2006 comprised euro 2.8 million of dividends from Five Star SA, which was consolidated according to the line-by-line method.  In the quarter under examination, Five Star SA was consolidated in compliance with the equity method and, as a result, dividends paid out were included in the pro quota income, equal to euro 0.5 million, itemized as “Quota of result from investments valued according to the equity method”. 
Pre-tax income, equal to euro 2.3 million, rose 11% against euro 2.0 million of the first quarter of the 2005/2006 fiscal. Third party result relative to the quarter closed as of September 30, 2006 showed a negative figure for the Sopaf Group corresponding to euro 0.3 million (in the same quarter closed as of September 30, 2005 third party result was euro +2.4 million) due to the fact that LM IS Sarl did not accrue performance commissions correlated to LM&Partners Sca’s rising NAV, which, in the quarter of reference, did not increase vis-à-vis the preceding year. Consolidated net income for the first quarter equalled euro 1.7 million against euro 4.4 million for the first quarter of the preceding year.
Sopaf Group total assets as of September 30, 2006 equalled euro 382.8 million (euro 379.9 million as of September 30, 2005). Consolidated net equity as of September 30, 2006 totalled euro 177.3 million (against euro 198.6 million as of September 30, 2005), of which euro 51.3 million in third party investments (euro 76.7 million as of September 30, 2005). As a result, the Group’s net equity reached euro 126 million against euro 121.9 million as of September 30, 2005. The consolidated net financial position made for euro 162.3 million (euro 83 million as of September 30, 2005); the difference in debt is due to the increase in investments as well as to the increased real estate activity.

Events of the quarter

• On July 7, Beven Finance Sarl underwrote the capital increase of Management & Capitali Spa for euro 13.2 million, keeping a shareholding of approximately 5%;
• In September, Sopaf established China Opportunity Sicar, a company dedicated to investments in Chinese businesses;
• In September, the Banco Popolare di Verona e Novara Group exercised a call on 10% of Delta SpA’s capital, owned by Sopaf; the transaction was completed in October.

Subsequent Events

• On October 3, Sopaf formalized an agreement for the acquisition of 70% of Cartesio Alternative Investments SGR Spa (this operation is currently under examination by the vigilance authority);
• On October 4, LM & Partners Sca acquired 24.72% of Res Renergys Holding AG, a company operating in the sector of renewable energy, with a euro 6.2 million investment;
• On October 20, Sopaf formalized the acquisition of 66.6% of PWM Sgr Spa, a company specialized in speculative management;
• On October 10, LM Real Estate underwrote a euro 10.4 million capital increase in Omniapartecipazioni, for the purpose of the underwriting of IMMSI SpA’s capital increase.

Possible Evolution

As resolved upon by the meeting of last November 10, Sopaf has shifted the closure of the fiscal year to December 31 of each year. As a result, this fiscal will only cover 6 months and shall close as of December 31, 2006. The company’s result for this period is expected to be above the figure corresponding to the same period of the preceding 2005/2006 year.   
* * *
For additional information
Maria Antonietta Barelli                                          Claudia Caracausi 
Sopaf Spa                                                                  Twister communications group
Tel 02 72142429                                                       Tel 02 438114.212 – 338 4476613
mabarelli@sopafgroup.it                                          ccaracausi@twistergroup.it

Attached are the tables referring to the income statement, balance sheet and financial position of the first quarter 2006/2007. Data included in the tables was not certified by the independent auditors nor verified by the Board of Auditors.