Ordinary meeting of shareholders approves share buyback plan

Extraordinary meeting authorizes transaction to merge LM Real Estate S.p.A., Acal S.p.A. and Ida S.r.l. into Sopaf S.p.A.

Marco Stella and Renato Martignoni take positions on the Board of Directors.

Milan, 27 November 2007 – Ordinary and extraordinary meetings of the Sopaf shareholders were held today.

At the ordinary meeting, the shareholders passed resolutions providing for:

• the approval of a share buyback program, which will be used for investing the Company's liquidity and which contemplates purchases through one or more transactions to be effected during a period of 18 months after 27 November 2007, for a maximum of 5,200,000 Sopaf S.p.A. ordinary shares with no par value, and up to a maximum amount of €2.7 million; the foregoing applies without prejudice to the limits set by Article 2357 and the articles thereafter of the Italian Civil Code.  The price to be paid for the shares purchased ranges from a minimum of no less than 5%, to a maximum of no more than 5%, of the average prices of reference recorded by Borsa Italiana's electronic system during the three market sessions preceding any purchase.
  At present, Sopaf does not hold any of its own shares and the subsidiary companies do not hold any shares of the holding company.
• the approval of the addition of two directors to the Board of Directors, so as to provide the Board of Directors with additional skills and expertise in various sectors of interest. The new directors appointed are Marco Stella (previously Lazard Italia and  Deutsche Bank) and Renato Martignoni (a businessman with many years of experience in the real estate business).  The new directors will remain in office until the approval of the financial statements for the year ending 31 December 2009. The curricula vitae of the new directors are available at the Company's registered office.

At the extraordinary meeting, the shareholders passed resolutions providing for:

• the approval of a plan to merge LM Real Estate S.p.A., Acal S.p.A. and Ida S.r.l. into Sopaf S.p.A. on the basis of the balance sheets and financial positions reported at 30 June 2007;
• the approval of several changes to the Company's by-laws, so as to incorporate new provisions introduced by Legislative Decree n. 303 of 29 December 2006 (Articles 17, 22, 26 and 27).

At a separate meeting also held today, the Sopaf bondholders appointed Roberto Zanchi as the Common Representative for the years of 2007, 2008 and 2009 and approved the creation of a fund to cover expenditures necessary to protect the bondholders' common interests. The bondholders also approved the transaction whereby LM Real Estate S.p.A., Acal S.p.A. and Ida S.r.l. will be merged into Sopaf S.p.A.

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For additional information
Maria Antonietta Barelli                          Laura La Ferla
Sopaf S.p.A.                                         PMS- Resp. Sede Milano
Tel: +39-02-7214-2429                         Tel: +39-02-4800-0250
Mobile: +39-335-620-0990                    Mobile: +39-329-470-5000
e-mail: mabarelli@sopafgroup.it             e-mail: l.laferla@pmsgroup.it