Impregilo Group

Progress, our greatest work

The value of a Group stems in part from its history and origins.

Although the Impregilo Group was created in the early 1990s, its origins date much further back, because Impregilo is in fact the heir to Girola, Lodigiani, Impresit, and Cogefar, four distinguished Italian players whose work has been setting civil engineering standards all over the world since the early 20th century.

Active in five continents, the companies that merged into the Impregilo Group were involved inthe construction of the roads, railways and hydroelectric plants that fuelled the development of Italy and IMPREGILO GROUP many other countries in the world, helping to strengthen and consolidate Italy’s international profile. Interim Financial Report This great history of success and tradition is the foundation on which Impregilo, now listed on the Italian stock exchange, has established a positioning as Italy’s leading General Contractor and one of the world’s Interim Financial Report 30 June 2008 Report 30 June Interim Financial 30 June 2008 top construction groups.

With more than 10,000 highly qualified employees and extraordinary technical know-how, the Impregilo Group is a worldwide name in the construction of infrastructures, the planning and realisation of projects of great architectural significance, plant engineering and environmental services, and a major international player in the concessions sector, notably motorway networks, power production from renewable sources and energy transportation.

Dams, hydroelectric power plants, motorways, railroads, underground railways, tunnels, bridges and viaducts, desalination plants, waste-to-energy facilities and flue gas treatment plants: extensive experience throughout Italy and the world accompanied by a constant commitment to meeting contract deadlines, respect for the environment and technological innovation. IMPREGILO GROUP

A forward-looking, responsible Group, sensitive to the expectations of all its stakeholders, in more than one hundred years of activity Impregilo has successfully understood and anticipated market trends.

By leveraging its wide range of entrepreneurial and organisational talents, technical and financialknow-how, Impregilo boasts outstanding professional resources that make it a high-profile role model in meeting the need for new infrastructures, public and cargo transportation, and environmental protection services, a leading player at the cutting edge of Italian and international growth.

IMPREGILO S.P.A. _ Viale Italia, 1 _ Sesto S. Giovanni (MI) _ Italy - Tel. +39 02 24422 111 Fax +39 02 24422 2 - e-mail: [email protected] www.impregilo.it WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Progress, our greatest work

The value of a Group stems in part from its history and origins.

Impregilo S.p.A. Fully paid-up share capital Euro 718,364,456.72 - Registered office in Sesto S. Giovanni (MI), Viale Italia 1 Tax code and Milan Company Registration no. 00830660155 R.E.A. no. 525502 - VAT no. 02895590962

This document is available at: www.impregilo.it WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 TABLE OF CONTENTS Page 3 General information Page 4 Company officers

Page 5 Impregilo Group structure

Page 13 Group highlights Page 14 Introduction Page 15 Financial highlights

Page 19 Interim Directors’ report - Part I Page 20 Analysis of Impregilo group’s financial position and results of operations for the six months

Page 28 Interim Directors’ report - Part II Page 29 Performance by business segment Page 32 - Corporate Page 33 - Construction Page 44 - Engineering & plant construction Page 48 - Concessions Page 51 - Imprepar - Impregilo Partecipazioni S.p.A. (in liquidation) Page 52 Impregilo group risk management Page 53 Non-current assets classified as held for sale and discontinued operations

Page 63 Human resources and organisation

Page 65 Significant subsequent events

Page 65 Outlook

Page 66 Other information

Page 69 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Page 115 Consolidation area

Page 125 Attestation on the condensed interim consolidated financial statements pursuant to article 154-bis of Legislative decree no. 58/98 and subsequent amendments and integrations

Page 129 Auditors’ report on the review of the consolidated Condensed interim financial statements for the six months Ended 30 june 2008 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 GENERAL INFORMATION 3

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 COMPANY OFFICERS Board of directors (i) Chairman Massimo Ponzellini Deputy chairmen Giovanni Castellucci Antonio Talarico Chief Executive Officer Alberto Rubegni Directors Carlo Buora Alfredo Cavanenghi Claudio Cominelli Nicola Fallica Beniamino Gavio Marcello Gavio Giancarlo Guenzi Maurizio Maresca Andrea Novarese Giuseppe Piaggio Alberto Sacchi Executive committee Chairman Alberto Rubegni Giovanni Castellucci Antonio Talarico Beniamino Gavio Andrea Novarese Giuseppe Piaggio Internal control committee Alfredo Cavanenghi Nicola Fallica Maurizio Maresca Remuneration committee Massimo Ponzellini Carlo Buora Alfredo Cavanenghi Claudio Cominelli Maurizio Maresca Board of statutory auditors (i) Chairman Giuseppe Levi Standing statutory auditors Giorgio Oldoini Alessandro Trotter Substitute statutory auditors Vittorio Amadio Michela Zeme Independent auditors PricewaterhouseCoopers S.p.A.

(i) appointed by the shareholders on 7 May 2008; in office until approval of the financial statements as at and for the year ending 31 December 2010. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 IMPREGILO GROUP STRUCTURE 5

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 IMPREGILO GROUP STRUCTURE 30 JUNE 2008

ENGINEERING & CONSTRUCTION PLANT CONST.

IMPREGILO S.p.A. 100 FISIA ITALIMPIANTI S.p.A. 100

Bocoge S.p.A. 100 Fisia Babcock Environment Gmbh 100 CIGLA S.A. 100 Steinmuller International Gmbh 100 CSC Impresa Costruzioni S.A. 100 Gestione Napoli S.p.A. (in liq.) 99 Impregilo Healy Joint Venture 100 - Fisia Italimpianti S.p.A. 54 - Impregilo S.p.A. 15 - Impregilo S.p.A. 24 - Healy S.A. 85 - Fisia Babcock Gmbh 21 S.A. Healy Company 100 Castalia Ecolmar S.c.p.a. 49.9 S.G.F. - I.N.C. S.p.A. 100 OTHER 9 COMPANIES S.I.P.E.M. S.p.A. (in liq.) 100 Suropca C.A. 100 - Impregilo S.p.A. 99 - CSC S.A. 1 Consorzio Frana di Spriana S.c.r.l. (in liq.) 100 PGH Ltd 100 Vegas Tunnel Constructors 100 - Impregilo S.p.A. 40 - Healy S.A. 60 Consorzio Torre 94.6 Emp. Const. Costanera Norte Ltda 77.78 Consorzio C.A.V.E.T. 75.98 Consorzio C.A.V.TO.MI. 74.69 Consorcio Impregilo - Ingco 70 Constructora Mazar 70 Rivigo J.V. L.t.d. 7 0 - PGH L.t.d. 70 Consorcio Impregilo Yarull 70 Consorcio Acueducto Oriental 67 Consorzio Venice Link 61 Joint Venture Igl. S.p.A. - Empedos 60 Nathpa Jhakri J.V. 60 Ghazi-Barotha Contractors J.V. 57.8 Consorzio Scilla 51 Reggio Calabria - Scilla S.c.p.a. 51 Salerno-Reggio Calabria S.c.p.a. 51 Impresit Bakolori Plc 50.71 Eurolink S.c.p.a. 45 Passante di Mestre S.c.p.A. 42

OTHER 133 COMPANIES

TOTAL 363 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 CONCESSIONS OTHER

IMPREPAR S.p.A. IMPREGILO INTERNATIONAL FIBE INFRASTRUCTURES N.V. 100 IN LIQUIDATION 100

Impregilo Parking Glasgow Ltd 100 Fibe Campania S.p.A. 99.994 Alia S.c.r.l. (in liq.) 100 Impregilo New Cross Ltd 100 - Impregilo S.p.A. 99.973 Consorzio Pielle (in liq.) 100 IGLYS S.A. 100 - Impregilo Intern. Infrastruc. N.V. 0.007 - Imprepar S.p.A. (in liq.) 33.33 - Impregilo Intern. Infrastruc. N.V.98 - Fisia Babcock Gmbh 0.007 - Incave s.r.l. 66.67 - Incave s.r.l. 2 - Fisia Italimpianti S.p.A. 0.007 C.F.T. Duemila S.c.r.l. 100 Caminos de las Sierras S.A. 90.52 Fibe S.p.A. 99.998 - Incave s.r.l. 100 Mercovia S.A. 60 - Impregilo S.p.A. 99.989 Edilizia Militare R.C. S.c.r.l. (in liq.) 100 Shangai Pucheng T.P.E. Co. L.t.d. 50 - Impregilo Intern. Infrastruc. N.V. 0.003 - Imprepar S.p.A. (in liq.) 85 Consorcio Agua Azul S.A. 25.5 - Fisia Babcock Gmbh 0.003 - Sapin S.r.l. (in liq.) 15 Aguas del Gran B. Aires S.A. (in liq.) 42.59 - Fisia Italimpianti S.p.A. 0.003 Engeco France S.a.r.l. 100 - Impregilo Intern. - Imprepar S.p.A. (in liq.) 99.67 Infrastruc. N.V. 23.73 - Incave s.r.l. 0.33 - Impregilo S.p.A. 16.5 Entreprises et Travaux de Co. S.A. (in liq.) 100 - Iglys S.A. 2.36 Eurotechno S.r.l. (in liq.) 100 Ochre Solutions Holding L.t.d. 40 Imprefeal S.p.A. 100 Primav Ecorodovias S.A. 35 Impregilo U.K. Ltd (in liq.) 100 Puentes del Litoral S.A. 26 7 Impresa Castelli S.r.l. (in liq.) 100 - Impregilo S.p.A. 22 Impresit del Pacifico S.A. 100 - Iglys S.A. 4 INCAVE S.r.l. 100 Yacylec S.A. 18.67 San Martino Prefabbricati S.p.A. (in liq.) 100

OTHER 25 COMPANIES - Impresa Castelli Sr.l. (in liq.) 100 Savico S.c.r.l. (in liq.) 100 - Imprepar S.p.A. (in liq.) 81 - Sapin S.r.l. (in liq.) 19 SAPIN S.r.l. (in liq.) 100 Watis Bau GmbH (in liq.) 100 S. Leonardo S.c.r.l. (in liq.) 99.99 Cogefar Cameroun S.A. (in liq.) 99.97 BATA S.r.l. (in liq.) 50.69

OTHER 123 COMPANIES

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 IMPREGILO 1906-2008 A CENTURY OF INFRASTRUCTURES ALL OVER THE WORLD

8 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 9 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 IMPREGILO IN THE WORLD OUR CURRENT PRESENCE

10 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 11 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 GROUP HIGHLIGHTS 13

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Group highlights

INTRODUCTION

Impregilo group achieved new, important results in the first half of 2008, by developing its activities in its strategic business segments (Construction, Concessions and Engineering & Plant Construction) and in different geographical segments. It attained these results despite the judicial issues related to the Campania projects and the weak international economy, as shown, inter alia, by the considerable rise in interest rates and raw material prices, especially for oil, together with a general slowdown in industrial production. The group’s policies enabled it to maintain a balanced financial position and to concurrently develop its activities. This led to the acquisition of important contracts during the six months. With respect to the USW Campania projects, on 7 August 2008, the Review Court enforced the decision taken by the United Chambers of the Supreme Court in its hearing of 27 March 2008 and ordered the cancellation in full of the precautionary seizure measure. At the date of this judgement, cash of euro 124.8 million was under precautionary seizure. The group recorded revenue for the first half of 2008 of euro 1,322.2 million, up 3.1% on the same period of 2007 (euro 1,282.7 million). Operating revenue alone came to euro 1,291.0 million (euro 1,237.8 million), up 4.3% on the first half of 2007. The group’s operating profit (EBIT) amounted to euro 97.0 million (euro 50.7 million), with a return on sales of 7.3% (4.0%). The operating profit for the first half of 2007 included the non-recurring euro 50.0 million accrual for the USW Campania projects. The Construction and 14 Concessions segments contributed positively to this result with euro 92.2 million (R.o.S. of 12.1%) and euro 24.4 million (R.o.S. of 29.2%), respectively. The Engineering & Plant Construction segment had already encountered difficulties related to certain desalination projects in the second half of 2007 which led to an overall decrease in profitability of certain contracts in the first half of 2008 resulting in an operating loss of euro 1.1 million, partly due to the hike in raw material prices and strong appreciation of the Euro against the dollar and related currencies. Financing income (costs) and gains (losses) on investments came to a positive euro 37.8 million compared to a negative euro 5.7 million in the first half of 2007. Specifically, net gains on investments included the gain realised on the sale of the group’s investment in the Brazilian associate Ponte de Pedra S.A. (euro 67.5 million). Profits from discontinued operations amounted to euro 40.6 million (losses of euro 0.7 million) and include the results of the appraisal carried out by an international, independent advisor in July 2008. The appraisal covered certain clauses included in the agreements for the sale of the Chilean concession company Costanera Norte, entered into in 2006. The profit for the six months is euro 149.7 million (euro 5.3 million for the first half of 2007). It includes the gain on the sale of the group’s investment in the Brazilian associate Ponte de Pedra S.A. (euro 67.5 million) and the profits from discontinued operations (as above). The group’s net financial position at 30 June 2008 is a negative euro 57.4 million compared to a negative euro 53.7 million at 31 December 2007. The group acquired new contracts worth euro 1,761 million during the six months. At period end, the group’s order backlog amounts to euro 16.8 billion, including euro 9.1 billion brought in by the Construction and Engineering & Plant Construction segments and euro 7.7 billion related to the residual Concessions segment order backlog. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 FINANCIAL HIGHLIGHTS (in millions of Euros) Impregilo group The paragraph “Alternative performance indicators” in the “Other information” section gives a definition of the financial statements indicators used to present the group’s highlights.

1,322.2

1,282.7

97.0 149.7 50.7

Revenue 5.3 EBIT 1st half 2007 1st half 2008 Profit

873.0

729.9 815.6

676.2

(53.7) (57.4) Equity

Net invested capital Net financial position

December 2007 June 2008

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Group highlights

CONSOLIDATED INCOME STATEMENT

(in millions of euros) 1st Half 2008 1st Half 2007 Revenue 1,322.2 1,282.7 Operating Costs (1,194.0) (1,199.9) Gross Operating profit (loss) - EBITDA 128.2 82.9 EBITDA % 9.7% 6.5% Operating Profit (loss) - EBIT 97.0 50.7 R.o.S. 7.3% 4.0% Financing profit (loss) (30.9) (18.5) Gains (losses) on investments 68.7 12.7 Profit (loss) before tax 134.8 45.0 Income tax expenses (27.9) (39.1) Gain (losses) on continuing operations 106.9 5.8 Gains (losses) on discontinued operations 40.6 (0.7) 16 Profit (loss) for the period 149.7 5.3

RECLASSIFIED CONSOLIDATED BALANCE SHEET

(in millions of euros) 30 June 2008 31 December 2007 Fixed Assets 555.2 495.5 Assets classified as held for sale 395.2 442.8 Provisions for risks and charges and Post-employment benefits (221.7) (235.0) Other non-current assets (liabilities) 72.6 61.4 Tax Assets (liabilities) 262.2 271.8 Working Capital (190.5) (306.6) Net invested capital 873.0 729.9 Equity 815.6 676.2 Net Financl Position (57.4) (53.7) Debt/Equity 0.07 0.08 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 ORDER BACKLOG

Construction, Engineering & Plant Construction

June 2008 December 2007 (Euro 9,062 million) (Euro 9,202 million)

17% 22%

83% 78%

Construction Engineering & plant construction Construction Engineering & plant construction

Concessions

June 2008 December 2007 (Euro 7,727 million) (Euro 7,742 million)

11% 8% 0% 0% 78% 86% 3% 14%

Motorways Energy Aqueducts Hospitals Motorways Energy Aqueducts Hospitals

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Group highlights

ORDER BACKLOG BY GEOGRAPHICAL AREA

Construction, Engineering & Plant Construction, Concessions

June 2008 December 2007 (Euro 16,789 million) (Euro 16,944 million)

47% 46%

53% 54%

Italy Abroad WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 INTERIM DIRECTORS’ REPORT 19 PART I

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part I

ANALYSIS OF IMPREGILO GROUP’S FINANCIAL POSITION AND RESULTS OF OPERATIONS FOR THE SIX MONTHS

This section includes the group’s reclassified income statements and balance sheets, as well as its financial position at 30 June 2008. It also includes a summary of the main changes in the consolidated income statement, compared to that for the six months ended 30 June 2007, and in the balance sheet, in comparison with the related figures at 31 December 2007. Unless indicated otherwise, figures are provided in millions of Euros and those shown in brackets relate to the corresponding period of the previous year. The paragraph “Alternative performance indicators” in the “Other information” section gives a definition of the financial statements indicators used to present the group’s financial position and results of operations for the six months.

GENERAL CONSIDERATIONS In order to give a complete picture of changes in the group’s results of operations and financial position during the first half of 2008, a brief overview at the macro economic situation of the key markets in which the group operates is set out below. It covers the different business segments and the group’s specific position on the Italian market. The worldwide slowdown in industrial production continued in the first half of 2008 compared to previous periods. Prices of the main energy sources continued to rise, especially for oil, which more than doubled on the first half of 2007. Raw material prices also rose, 20 particularly for copper and iron, and this directly affected the related semi-finished products made from these materials. The property market crisis seen in the US has not improved significantly and the general expectations at macroeconomic level do not foresee a change for this year. This adverse climate is worsened by the rise in inflation rates which, especially in Italy, have returned to 2001-2002 levels, and the steady appreciation of the Euro against the dollar and related currencies. This has not been helped by the generalised rise in interest rates, with the three month Euribor going from 3.8% at the start of January 2007 to 5.00% at 30 June 2008. As described in the directors’ report to the 2007 annual financial statements, the group’s diversification into three core businesses and different geographical segments continues to represent a strong strategic advantage, lessening the above effects and allowing it to maintain a stable financial position and results, assisting future development despite the complex macroeconomic situation. As a result, the group’s turnover increased compared to the same six months of 2007, resulting in stable operating profit before non-recurring items. However, the combined pressure of the depreciation of the dollar and rise in raw material and semi-finished product prices, such as ferrous and non-ferrous metals and related derivatives, negatively affected profitability. In fact, certain Engineering & Plant Construction contracts recorded a reduction in their results during the six months compared to the same period of 2007, despite the upturn in this segment’s production output of roughly 17%. Developments in the Construction and Concessions segments countered this situation and were important factors in containing the above cyclical effects. The Construction segment continued its activities as forecast notwithstanding the adverse conditions on both the foreign and domestic markets. The latter market in particular showed modest signs of recovery due to the well-known lack of infrastructure and the group exploited such recovery with its acquisition of the contract for construction of the first lot of the Pedemontana Lombarda motorway and the appointment as Promoter with pre-emptive rights to the contract for the connector road to the Ancona port. New orders acquired by this segment amount to euro 1,117.1 million. The segment’s turnover decreased on the previous year, mainly as a result of progress on the high speed/capacity projects, which are nearing completion. Turnover generated in South America grew less than forecast, principally caused by the temporary credit squeeze which has affected this area since the second half of 2007 and, in particular, slowed down commencement of new contracts acquired in previous years. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 GROUP PERFORMANCE Reclassified consolidated income statement of Impregilo group

(Euro/000) Note (*) 1st half 2008 1st half 2007 Change Operating revenue 1,290,954 1,237,804 53,150 Other revenue 31,251 44,940 (13,689) Total revenue 11 1,322,205 1,282,744 39,461 Costs 12 (1,194,017) (1,199,881) 5,864 of which provision for USW Campania projects - (50,000) 50,000 Gross operating profit - EBITDA (**) 128,188 82,863 45,325 EBITDA % (**) 9.7% 6.5% Amortisation and depreciation 12 (31,196) (32,150) 954 Operating profit - EBIT (**) 96,992 50,713 46,279 Return on Sales (**) 7.3% 4.0% 21 Financing income (costs) and gains (losses) on investments Financial income 33,836 37,144 (3,308) Financial expense (60,480) (53,203) (7,277) Net exchange rate losses (4,284) (2,421) (1,863) Net financing costs 13 (30,928) (18,480) (12,448) Net gains on investments 13 68,726 12,738 55,988 Net financing costs and net gains on investments 37,798 (5,742) 43,540 Profit before tax - EBT 134,790 44,971 89,819 Income tax 14 (27,916) (39,139) 11,223 Profit from continuing operations 106,874 5,832 101,042 Profits (losses) from discontinued operations 15 40,635 (691) 41,326 Profit for the period 147,509 5,141 142,368 Minority interests 2,151 174 1,977 Profit attributable to shareholders of the parent 149,660 5,315 144,345

(*) The note numbers refer to the notes to the condensed interim consolidated financial statements where the items are analysed in detail. (**)The paragraph in the section on "Other information" of this report gives a definition of these indicators

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part I

Revenue The group recorded revenue for the first half of 2008 of euro 1,322.2 million (euro 1,282.7 million), up roughly 3.1% on the same period of 2007. Operating revenue was euro 1,291.0 million (euro 1,237.8 million), showing a 4.3% increase on the first half of 2007. The rise in business volumes of the Engineering & Plant Construction and Concessions segments countered the reduction in volumes of the Construction segment. This situation was mainly due to economic factors caused by specific large projects, for which production is expected to increase in the second half of this year.

Operating profit (EBIT) The group’s operating profit was euro 97.0 million (euro 50.7 million) for a return on sales of 7.3% (4.0%). The operating profit for the first half of 2007 included the non-recurring accrual of euro 50.0 million made for the proceedings with the Court of Naples for the USW Campania projects. The Construction and Concessions segments made a positive contribution to this result: euro 92.2 million (R.o.S. of 12.1%) and euro 24.4 million (R.o.S. of 29.2%), respectively. The Engineering & Plant Construction segment had encountered difficulties in the second half of the 22 previous year in relation to its desalination projects. This led to an overall reduction in their profitability compared to the first half of 2007 and resulted in a small operating loss. The group’s other activities substantially broke even, while the corporate structure’s net costs approximated euro 18.4 million.

Financing income (costs) and gains (losses) on investments The group recorded net financing costs of euro 30.9 million (euro 18.5 million) while gains on investments amounted to euro 68.7 million (euro 12.7 million). The difference in the net financing costs is mainly due to the following: • the euro 6.7 million increase in total net financial expense, primarily due to the average rise in market interest rates, as commented earlier; • recognition of gains of approximately euro 10.2 million (euro 16.6 million), mainly following payments for contract work in progress by customers in currencies other than those established in the related contracts, recognised as “financial income”. Net exchange rate losses amounted to euro 4.3 million compared to euro 2.4 million for the first half of 2007. With respect to gains (losses) on investments, the group recorded a gain of euro 67.5 million on the sale of its investment in the Brazilian associate Ponte de Pedra S.A. during the six months.

Profits (losses) from discontinued operations This caption shows a net profit of euro 40.6 million (net loss of euro 0.7 million), mainly due to certain contractual clauses agreed during 2006 related to the sale by Impregilo International Infrastructures of the Chilean concession company Costanera Norte S.A. which were to be assessed after the sale, These items related to: a) measurement of the deferred price for attainment of results better than those included in the 2006-2009 business plan used for the sale by the Chilean concession company. This component amounts to euro 8.2 million, net of the related tax effect. At the sale date, only the certain, identifiable consideration had been determined as a minimum guaranteed euro 2.5 million. The positive euro WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 5.7 million difference was, therefore, recognised entirely in these six months on the basis of the concession company’s actual 2006 and 2007 results and forecast 2008 and 2009 results, the latter identified in advance based on an appraisal carried out by an independent third party in July 2008; b) measurement of the right to subscribe 10% of the buyer’s share capital at its nominal amount, which was estimated at euro 34.9 million by an independent expert in July 2008. These amounts had already been provided for in the contract during negotiations for the sale of the investment in the Chilean concession company and recognised in accordance with IRFS 5 at the time of sale. They also comply with the ruling legal requirements governing related party transactions. In this case, the relationship is between the directors.

Minority interests Minority interests in the subsidiaries contributed positively to the profit for the year attributable to the shareholders of the parent (euro 2.2 million). The 2007 contribution was a positive euro 0.2 million.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part I

THE GROUP’S FINANCIAL POSITION

Reclassified consolidated balance sheet of Impregilo group

(Euro/000) Note (*) 30 June 2008 31 December 2007 Change Non-current assets, net 1 555,216 495,487 59,729 Assets classified as held for sale, net 2 395,226 442,789 (47,563) Provision for risks 3 (189,058) (198,538) 9,480 Post employment benefits 4 (32,623) (36,417) 3,794 Other non-current assets, net 5 72,571 61,373 11,198 Net tax assets 6 262,155 271,814 (9,659) Inventories 60,241 59,459 782 Contract work in progress 593,875 472,159 121,716 Advances on contract work in progress (695,788) (776,588) 80,800 24 Receivables 934,155 1,023,364 (89,209) Payables (1,154,753) (1,089,279) (65,474) Other current assets 372,499 295,511 76,988 Other current liabilities (300,765) (291,228) (9,537) Working capital 7 (190,536) (306,602) 116,066 Net invested capital 872,951 729,906 143,045 Equity attributable to shareholders of the parent 822,661 681,392 141,269 Minority interests (7,081) (5,197) (1,884) Equity 8 815,580 676,195 139,385 Net financial indebtedness 9 (57,371) (53,711) (3,660) Total financial resources 872,951 729,906 143,045

(*) The note numbers refer to the notes to the condensed interim consolidated financial statements where the items are analysed in detail. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Net invested capital This caption increased by euro 143.0 million on the previous year end to euro 873.0 million due to the factors listed below. • the euro 59.7 million increase in net non-current assets, mainly due to the acquisition by Primav Ecorodovias of 100% of the Brazilian concession company Rodovias das Cataratas, which was also consolidated on a proportionate basis, and continuation of technical investments for certain foreign contracts that were fully rolled out during the six months;

• the euro 116.1 million increase in working capital, due to a number of ordinary factors directly tied to the group’s operations, and non- recurring factors, the key ones of which are:

a) increase in production for certain foreign contracts of the Construction and Engineering & Plant Construction segments, for which the related progress billings will be issued after 30 June 2008 and which led to an increase in net working capital (including use of the related advances, when provided for, of euro 202.5 million);

b) decrease in trade receivables following collections by the Construction and Engineering & Plant Construction segments and concurrent rise in trade payables in line with operating developments, which will be settled in the second half of the year. The combined effect of these two components decreased working capital by euro 154.7 million compared to the previous year end; 25 c) increase in other current assets net of current liabilities of euro 67.5 million, mainly as a result of:

- measurement of the remaining financial items in conjunction with the sale of the Chilean concession company Costanera Norte S.A., recognised as profits from discontinued operations (euro 40.6 million);

- early payment of insurance premiums for the Lake Mead (US) contract, which cover the entire project;

- payment of advances to suppliers for certain new Engineering & Plant Construction segment contracts;

• decrease in assets (liabilities) classified as held for sale following sale of the associate Ponte de Pedra, net of investments made during the six months for the USW Campania projects to finish the Acerra waste-to-energy plant.

Net financial indebtedness Net financial indebtedness at 30 June 2008 amounts to euro 57.4 million compared to euro 53.7 million at the end of 2007, a net increase of euro 3.7 million. Collection of the consideration for the sale of the group’s investment in Ponte de Pedra S.A. almost entirely covered both the rise in financial payables related to acquisition of Rodovias das Cataratas and the temporary increase in working capital. This enabled the group to maintain a stable financial position in line with its related objectives. As described in more detail in the section on the USW Campania projects, during the previous year, certain of the group’s financial assets (including cash with Italian banks of approximately euro 124.8 million held by Impregilo S.p.A., FISIA, FIBE and FIBE Campania) were seized following the precautionary measure as part of the proceedings before the Court of Naples and as ruled by the relevant judicial authorities. On 27 March 2008, the Supreme Court ruled that this measure be cancelled and referred the proceeding to the Naples Review Court for its re-issue. Following the hearing of 22 July 2008, this Court ordered the cancellation of the measure and released the above amounts from seizure on 7 August 2008.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part I

Impregilo gave guarantees of euro 17.7 million in favour of unconsolidated group companies for loans granted by banks. This amount decreased by euro 2.1 million over the 2007 year-end figure, mainly due to repayments made by such unconsolidated group companies. The group’s net financial indebtedness at 30 June 2008 is summarised in the following table.

Consolidated net financial position

(Euro/000) Note (*) 30 June 2008 31 December 2007 Change Non-current financial assets 9.1 25,210 115 25,095 Derivatives 9.2 4,365 3,339 1,026 Other current financial assets 9.3 117,849 99,811 18,038 Cash and cash equivalents 9.4 997,360 875,627 121,733 Total cash and other financial assets 1,144,784 978,892 165,892 Medium/long-term bank and other loans 9.5 (356,257) (353,256) (3,001) Bonds 9.6 (69,844) (64,049) (5,795) 26 Financial lease payables 9.7 - (219) 219 Total medium/long-term indebtedness (426,101) (417,524) (8,577) Current portion of bank loans and current account facilities 9.5 (770,135) (608,235) (161,900) Current portion of bonds 9.6 (2,252) (3,144) 892 Current portion of finance lease payables 9.7 (130) (765) 635 Derivatives 9.2 (3,537) (2,935) (602) Total short-term indebtedness (776,054) (615,079) (160,975) Net financial indebtedness - continuing operations (57,371) (53,711) (3,660) Total net financial position of discontinued operations - - - Net financial indebtedness including discontinued operations (57,371) (53,711) (3,660)

(*) The note numbers refer to the notes to the condensed interim consolidated financial statements where the items are analysed in detai WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 INTERIM DIRECTORS’ REPORT PART II WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 PERFORMANCE BY BUSINESS SEGMENT

This section provides an analysis of the main results and most significant events that affected the operations of the group and its companies during the six months, broken down by business segment. Corporate, coordination and supervision of Impregilo S.p.A.’s main investments; this is carried out by a central unit forming part of the parent; Construction, business headed by Impregilo S.p.A.; Engineering & Plant Construction, business headed by FISIA Italimpianti and its subsidiary FISIA Babcock Environment (Germany); Concessions, business coordinated by Impregilo International Infrastructures (the Netherlands) and carried out through subsidiaries and associates; Imprepar, slated for disposal, headed by Imprepar S.p.A. in liquidation. The tables on the following pages highlight the contribution of the individual business segments to the consolidated results, and provide a breakdown of net invested capital by business segment. Waste disposal activities in the Campania region (“USW Campania projects”) are discussed in a separate section of this report.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Performance in the period by business segment (Euro/m) Construction Engineering & Plant Const. Impregilo of which: Fisia Construction Revenue 738.7 738.7 468.1 Other revenue 22.4 22.4 5.6 Total revenue 761.1 761.1 473.7 Purchases, subcontracts and other operating expenses (555.5) (549.6) (439.1) Personnel expenses (118.4) (105.9) (32.5) Provisions and impairment losses 5.2 5.2 (2.6) Gross operating profit (EBITDA) (*) 92.4 110.8 (0.5) 12.1% 14.6% n.a Amortisation and depreciation (18.6) (18.6) (0.6) Operating profit - (EBIT) (*) 73.8 92.2 (1.1) Return on sales (*) 9.7% 12.1% n.a Profits (losses) from discontinued operations 30 (*) The paragraph in the section on "Other information" of the directors' report gives a definition of these indicators.

Reclassified consolidated balance sheet as at 30 June 2008 by business segment (Euro/m) Impregilo Engineering & Plant Const. Fisia

Non-current assets, net 312.1 16.9 Goodwill (eliminated on consolidation) - 211.4 Total non-current assets 312.1 228.3 Assets (liabilities) classified as held for sale - - Provision for contingencies, Post-employment benefits and Other non-current assets (liabilities) (117.0) (11.5) Tax assets (liabilities) Working capital 22.0 (259.3) Intra-segment trade receivables (payables) (28.1) 255.5 Total working capital (6.1) (3.8) Net invested capital 189.0 213.0 Equity Net financial position Total financial resources WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Concessions USW Campania Imprepar in Total consolidation Total projects liquidation adjustments Impregilo Intern. Infras. 81.0 - 4.5 (1.4) 1,290.9 2.5 0.1 2.2 (1.5) 31.3 83.5 0.1 6.7 (2.9) 1,322.2 (36.6) (1.5) (3.5) 2.5 (1,033.7) (10.9) (0.4) - 0.3 (161.9) - - (1.1) 0.1 1.6 36.0 (1.8) 2.1 - 128.2 43.1% n.a 31.3% 9.7% (11.6) (0.2) (0.2) - (31.2) 24.4 (2.0) 1.9 - 97.0 29.2% n.a 28.4% 7.3% 40.6 40.6 31

Concessions USW Campania Imprepar in Total consolidation Total projects liquidation adjustments Impregilo Intern. Infras. 336.3 2.2 11.1 (123.4) 555.2 - - - (211.4) - 336.3 2.2 11.1 (334.8) 555.2 - 412.7 - (17.5) 395.2 (5.4) (33.4) 22.9 (4.7) (149.1) 262.2 26.0 (4.2) 25.8 (0.8) (190.5) (2.0) (238.5) (4.4) 17.5 - 24.0 (242.7) 21.4 16.7 (190.5) 354.9 138.8 55.4 (340.3) 873.0 815.6 (57.4) 873.0

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

CORPORATE

Corporate activities are centralised within the parent Impregilo S.p.A. and mainly relate to the following: • coordination, control and strategic planning of the group’s activities; • centralised planning and management of human and financial resources; • management of administrative, tax, legal/corporate and reporting requirements; • administrative, tax and management support to group companies. The net cost of corporate activities amounts to euro 18.4 million (euro 21.2 million).

32 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 CONSTRUCTION

Impregilo S.p.A. heads the Construction business segment, which encompasses all projects relating to the construction of large-scale infrastructure, such as dams, hydroelectric plants, motorways, railways, underground railways, underground works, bridges and similar works. The business segment recorded revenue of euro 761.1 million (euro 800.5 million) with an operating profit of euro 92.2 million (euro 75.9 million) and a R.o.S. of 12.1% for the period. The development of work on certain foreign projects offset the downturn in business volumes of the Italian operations, partly due to the stagnant domestic large-scale infrastructure market, compared to the same period of 2007. During the period, the Construction segment continued to manage many projects relating to the construction of large-scale infrastructure. In particular, the most significant events that affected the period in relation to certain significant contracts, broken down by geographical segment, are the following.

Italy 33 High-speed/capacity Turin-Novara-Milan Railway Project This project includes two main railway lines, one running between Turin and Novara and the other between Novara and Milan, and is being carried out by a consortium in which Impregilo holds a 74.69% share, the C.A.V.TO.MI. consortium. In December 2006, the Main Test Certificate was issued for all the line and related work and almost all off-line work for the Turin-Novara line, approved by R.F.I. on 21 December 2007. Activities still to be performed principally relate to work outside the railway line. The Final Test Certificate is expected to be issued during the current year. Work continued at full capacity on the entire Novara-Milan line during the period. At 30 June 2008, work on the Novara-Milan line was 77.9% complete.

High-speed/capacity Bologna-Florence Railway Project The project is being carried out by the C.A.V.E.T. consortium, 75.98% owned by Impregilo. The tunnel digging work was completed in 2007 and work continued on the railway superstructure, technological systems and work for safety requirements during the six months as well as the environmental clean-up of the sites where work was carried out. As part of the negotiations with the customer in respect of the August 2005 instructions related to the work for the “Tunnel Safety Variation”, the consortium and customer signed the contract addition in February 2007 modifying the contractual revenue and establishing a deadline for completion of 30 June 2009. The project was 89.1% complete at 30 June 2008.

Mestre Motorway Connector Project This project covers the design, project management and construction of the motorway connector in Mestre. Impregilo has a 42% investment in the work. On 6 August 2007, the first section of the connector road was opened consisting of 5 km of motorway and 3 km of junctions and feeder roads. Construction work continued regularly along the route during the period and project was 61.5% complete at 30 June 2008.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Salerno - Reggio Calabria Motorway Project: Lots 5 and 6 This project relates to the improvement and upgrading of the last section of the Salerno-Reggio Calabria motorway, between Gioia Tauro and Scilla (Lot 5) and between Scilla and Reggio Calabria (Lot 6). Impregilo’s share of the contract is 51%. Work continued on Lot 5 during the period. Following approval by ANAS (Italian national roads authority) of the first variation appraisal, the related Additional Act was signed on 20 March 2008 which set the contractual fee adjustment at approximately euro 17.9 million. Discussions are currently underway with the customer on its failure to recognise the significant delay with which the work was delivered due to its slowness in approving the executive plan. The group is working to remedy the situation by implementing the procedure provided for under article 31-bis of Law no. 109/1994 for the recognition of the related claims. Work was 39.8% complete on this lot at 30 June 2008. Part of the areas was delivered by project management for Lot 6 during the period and work has started. ANAS and the local administrative bodies are carrying out an investigation for the section from Villa San Giovanni to Reggio Calabria to identify a solution to the traffic interruptions caused by the work. As a result, ANAS ordered the works be halted on 27 June 2008. Work was 6.8% complete on this lot at 30 June 2008. 34

New offices of the Lombardy Regional Authorities The contract, awarded in 2006, is for the works to be performed for the new offices of the Lombardy Regional Authorities in Milan on behalf of Infrastrutture Lombarde S.p.A.. The new offices will be located between Via Melchiorre Gioia and Via Restelli on an area of 33,700 square metres as part of the project to redevelop the Garibaldi-Repubblica area. The contract involves the construction of a complex consisting of four modern buildings with a sinusoidal shape and a 160-metre high central tower, surrounded by a square covered by a transparent roof. Construction work commenced in the last few months of 2006 and the project was 23.4% complete at 30 June 2008.

Bridge crossing the Messina Strait and roadway and railway connectors on the side of Calabria and Sicily In March 2006, as representative of the joint venture created for this project, Impregilo signed a contract with Stretto di Messina S.p.A. for its engagement as general contractor for the definitive project, executive plans and construction of the Strait of Messina Bridge and related roadway and railway connectors. This contract is worth a total of euro 3,900 million. A bank syndicate also signed the financial documentation required in the General Specifications after the joint venture won the tender, for the concession of credit lines of euro 250 million earmarked for this project. The customer was also given performance bonds of euro 239 million, as provided for in the contract. The joint venture headed by Impregilo S.p.A. (with a 45% share) also includes Spain-based Sacyr S.A. (18.70%), Società Italiana per Condotte d’Acqua S.p.A. (15%), Cooperativa Muratori & Cementisti-C.M.C. of Ravenna (13%), Japan’s Ishikawajima – Harima Heavy Industries CO Ltd (6.30%) and Consorzio Stabile A.C.I. S.c.p.A. (2%). In 2006, as provided for by contract, a special purpose vehicle named “Eurolink S.c.p.A.” was set up for this project. As project leader, Impregilo holds 45% thereof. The customer has not yet issued the Initial Works Order. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 High-speed/capacity Milan-Genoa Railway Project The project for the construction of this railway line was assigned to Consorzio CO.C.I.V. as general contractor with the TAV (as concession grantor on behalf of Ferrovie dello Stato)/COCIV agreement of 16 March 1992. Impregilo is the project leader. Following enactment of Law decree no. 7/2007, subsequently converted into Law no. 40 of 2 April 2007, the F.S./TAV concession was cancelled affecting the agreement between TAV and the general contractor. Before enactment of the aforesaid Law decree, the consortium had commenced an arbitration proceeding as per the original contract for the contractual non-compliance of the customer. In April, it appealed to the Lazio Regional Administrative Court against the measures adopted in compliance with the above law. On 12 July 2007, the Lazio Regional Administrative Court allowed the appeal made by CO.C.I.V. against the measures of the Ministry for Transportation and R.F.I. S.p.A., which had ordered the cancellation of the agreement for the high speed/capacity Milan - Genoa railway line, pursuant to Law no. 40/2007. The Court authorised suspension of the law, deferring the related decision to the European Court of Justice. With its order of 9 October 2007, the Council of State both confirmed the deferral of the ruling to the European Court of Justice and allowed the appeal made by R.F.I. and TAV against the suspension ordered by the Lazio Regional Administrative Court. However, in June, Law decree no. 112/2008 annulled the regulations set out in the implementing law no. 40/2007 which cancelled the F.S./TAV concessions, including 35 that for the CO.C.I.V. project. Following this measure, the court deferred the hearing originally set for 22 July 2008 to 10 September 2008 in order to examine developments in this law. Given the complexity of the matter, it is not currently possible to foresee its outcome with any reasonable certainty.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Abroad

Venezuela - Caracas - Tuy Medio Railway Project The project consists of the civil and electromechanical works for the approximately 42-km long railway line between Caracas and the Tuy industrial area. The civil works have been entrusted to the consortium Contuy A, in which Impregilo holds 36.4%, while the supply of rails and railway materials and the installation of electrification and control systems have been entrusted to the consortium Contuy C (Impregilo share: 100%). The first stage of the work was completed on 15 October 2006 with the inauguration of the project and works should be delivered to the customer during the second half of 2008. This project was 98.4% complete at 30 June 2008.

Venezuela - Puerto Cabello - La Encrucijada Railway Project This project consists of the construction of civil works of the railway line along approximately 110 km, connecting Puerto Cabello and La Encrucijada. 36 The activities presently underway relate to the preparation of the executive plan, digging and tunnel lining work, construction of the understructure and laying of the viaduct foundations. At 30 June 2008, work was 41.8% complete. Work is slated to be completed by April 2013, as per the recently updated programme. An additional contract was signed in June 2006 for works on the railway superstructures of seven stations, two logistics centres and two car parks as well as the maintenance of railway materials for euro 664 million. The executive plan is currently being drawn up.

Venezuela - San Juan de los Morros – San Fernando de Apure Railway and Chaguaramas – Cabruta Railway Project On 5 June 2006, an Italian joint venture, comprising Impregilo S.p.A., Astaldi S.p.A. and Ghella S.p.A., each with equal shares of 33.33%, signed two contracts with the Independent Railroad Institute of the Bolivarian Republic of Venezuela (IAFE). The contracts relate to the construction of two new railway lines, “San Juan de los Morros- San Fernando de Apure” (252 km) and “Chaguaramas - Las Mercedes- Cabruta” (201 km). The projects are scheduled for completion within 76 months of work start-up and include the laying of 453 km of new lines (including 15 km in tunnels and 12 km on bridges and viaducts). They also include the design and installation of a railway superstructure, with the construction of 11 stations and nine logistics centres. The official initial works order was signed on 15 January 2007 for the “San Juan de los Morros - San Fernando de Apure” line. The executive plan is currently being drawn up while the building site has been set up. Digging and work on the embankment have commenced. The contractually-agreed advance was received during the first half of 2007 and the project was 5.4% complete at 30 June 2008. The official initial works order for the Chagauramas - Cabruta line was signed on 17 November 2006. Preparation of the executive plans has been completed and work has started on the first 10 km of the embankment for the railway platform, the workforce is being put together and the detail engineering work is continuing. This project was 10% complete at 30 June 2008. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Iceland - Karahnjukar Hydroelectric Plant Project This project consists of the construction of a dam in a rock embankment, spanning 8.5 million cubic metres, with a height of 198 metres and a length of 800 metres. The upstream facing and hydraulic tunnels will be covered in concrete, as well as the related access tunnels, for a total length of approximately 60 km. The customer is Iceland’s National Body for Electrical Energy. The project is substantially completed. The filling work started in 2006 as programmed and the drain was tested in December 2006. The main tunnel was completed and delivered to the customer in October 2007 when hydraulic testing commenced leading to full capacity generation of electricity at the end of November 2007. The last feeding tunnel has been completed during the period and the building sites are being dismantled. At 30 June 2008, 99.1% of the work was complete.

Greece - Athens - Assomaton - Egaleo Underground Railway Project This project consists of extending Line 3 of the Athens underground, along the line from Assomaton to Egaleo, for a distance of 4.4 km, all underground.

The work includes the construction of six ventilation and access shafts and three stations, partly cut and cover and partly underground. 37 The work was entrusted to the joint venture Aktor-Impregilo, in which Impregilo has a 50% share, and has almost been completed. The project will be delivered during 2008.

Greece - Acheloos River Deviation Tunnel Project This project relates to the construction of a 17.4-km long hydraulic tunnel with an underground diameter of 7.1 metres and the construction of related works, such as roads and access tunnels. The joint venture Impregilo-Empedos, in which Impregilo has a 60% share, is carrying out the work.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

The tunnel excavation process was severely slowed due to geological difficulties that necessitated laborious and expensive clean-up and strengthening work. These delays are entirely due to a geological situation completely different to that shown in the contractual documentation which was made available by the customer. This situation had a negative impact on production levels. Negotiations commenced with the customer to remedy this situation led to the suspension of the work in the first quarter of 2007. The outcome was approval of the changes to the designs and technical characteristics of the contract which allowed recommencement of digging. At 30 June 2008, 85.8% of the work was complete.

Greece - Thessalonica Underground Railway Project This project relates to the construction of the automated underground railway in Thessalonica. The contract was signed in 2006 and Impregilo is involved in the civil works together with the Greek construction company Aegek S.A. and Seli S.p.A.. The project entails the construction of an automated light underground railway with the excavation of two 9.5-km tunnels and 13 new underground stations. To date, work is behind schedule due to a dispute with the customer about the design and delay in delivery of areas by it. Delivery of the areas commenced in March 2007 and continued in the second half of 2007 when construction work started. 38 At 30 June 2008, 9.5% of the work was complete.

Remaining activities of the Building segment Following the merger of Impregilo Edilizia e Servizi into Impregilo in 2007 and given the limited materiality of its remaining order backlog, the Building segment has been included in the Construction segment. No significant events took place during the six months that need to be commented. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Order backlog The order backlog at 30 June 2008 for the Construction segment is as follows:

(Impregilo's share of these amounts shown in millions of Euros) Area/country Project Residual backlog Percentage Percentage at 30 June 2008 of total of completion High speed railways 783.9 10% Italy Bridge over Messina Strait 1,733.6 23% 0.6% Italy Mestre connnetor road 102.9 1% 61.5% Italy Salerno-Reggio di Calabria motorway, Lot 5 257.6 3% 39.8% Italy Salerno-Reggio di Calabria motorway, Lot 6 235.8 3% 6.8% General Contracting 2,329.9 31% Italy GTB 8.0 - 81.2% Italy Genoa underground 15.2 - 61.2% Italy Nuovo Dolonne 1.0 - 99.0% Italy State road 36/Milan motorway connector 143.2 - 4.1% Italy Frana Spriana 1.3 - 95.0% Italy Consorzio Torre 138.5 2% 23.4% Italy Pedemontana Veneta 633.3 8% - Italy Work to complete Ravedis tank 19.0 - 0.7% Italy Pedemontana Lombarda - Lot 1 296.1 4% - 39 Italy Riviera Scarl 10.2 - - Italy SGF 1.7 - Italy Former Building projects 0.4 - Other work in Italy 1,267.9 17% Total Italy 4,381.7 58% Greece Athens underground - New section 29.0 - 23.1% Greece Achelos river deviation tunnel 12.9 - 85.8% Greece Thessalonica underground 262.5 3% 9.5% Greece Egaleo underground 0.2 - 99.8% Switzerland Transalp Tunnel 83.7 1% 66.9% Iceland Karahnjukar hydroelectric project 6.7 - 99.1% Switzerland CSC 153.3 2% Europe Former Building projects 1.5 - Europe 549.8 7% Dominican Republic Consorzio Acquedotto Oriental 8.0 - 95.1% Dominican Republic Guaigui hydraulic plant 34.5 - 2.3% Venezuela Puerto Cabello - Contuy Ferrocarriles 548.2 7% 40.4% Venezuela Puerto Cabello - Contuy Ferrocarriles stations 253.2 3% 1.8% Venezuela Caracas - Tuy Medio C railway 10.7 - 95.7% Venezuela Caracas - Tuy Medio A railway 6.6 - 98.4% Venezuela Chaguaramas railway 263.1 3% 10.0% Venezuela San Juan de Los Morros railway 653.2 9% 5.4% Venezuela OIV Tocoma 263.5 3% 15.8% Venezuela VIT Caroni Tocoma 3.2 - 77.7% Ecuador Mazar 39.8 1% 72.9% Brazil Estreito - Rio Tocantins 118.4 2% 9.3% Brazil Serra Do Mar 19.9 - 26.7% USA Vegas Tunnel - Lake Mead 278.2 4% 2.0% America SGF 0.2 - The Americas 2,500.6 33% Africa River state contractors 52.7 1% 44.8% Africa Rivigo Flyover 21.5 - - Africa Chouchi 23.5 - 10.1% Africa Bakolori 0.7 - Africa SGF 12.8 - Africa 111.0 1% Total Abroad 3,161.4 42% Total Construction 7,543.1 100%

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

The Construction segment’s order backlog increased by euro 341 million on the end of 2007. Foreign contracts grew by 9.7% on 31 December 2007, with a foreign order backlog that rose from euro 2,883.1 million at 31 December 2007 to euro 3,161.4 million at 30 June 2008.

Acquisition of new contracts United States - Lake Mead tunnel On 25 March 2008, Impregilo won the international tender called by the Southern Nevada Water Authority (SNWA) for the construction of an articulated water extraction and transportation system from Lake Mead to the Las Vegas (Nevada) area to increase water supplies for drinking and domestic use. Lake Mead is one of the biggest reservoirs in the US and lies roughly 30 km south east of Las Vegas. The contract is worth US$ 447 million. The project is technically very complex and involves construction of a water intake on the lake bed, at a depth of circa 100 metres, and of a roughly 5-km long tunnel and the excavation of an access shaft of roughly 200 metres. Work started during the period to be completed in the second half of 2012.

40 Italy – Pedemontana Lombarda motorway Lot 1 On 29 April 2008, as leader and representative with a stake of 47% in the joint venture, Impregilo won the tender for the design and construction of the first lot of the Pedemontana Lombarda motorway. The joint venture includes Astaldi (24%), Pizzarotti (18%) and Itinera (11%). The contract, entrusted to the general contractor, is worth approximately euro 630 million and includes the definitive project, executive plan and construction of the first section of the Como and Varese ring roads and the connector road between the A8 and the A9 motorways (from Cassano Magnago to Lomazzo). It involves roughly 47 km of motorway and secondary roads, approximately 13 km of tunnels and the construction of bridges and viaducts for a total length of approximately 1.7 km. Construction is planned to start in 2010 to be completed after about three years. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Risk areas Hydroelectric plant in Kali Gandaki - Nepal The issue dates back to July 2004, when Impregilo began arbitration proceedings before the International Court of Arbitration (I.C.C.) against its customer Nepal Electricity Authority (N.E.A.) and the kingdom of Nepal. The arbitration proceedings are aimed at obtaining payment of a claim that currently amounts to US$ 21 million, plus interest and monetary revaluations, related to the construction of the Kali Gandaki hydroelectric plant.

The amount claimed by Impregilo mainly relates to work performed and approved, but not yet paid for, in addition to extension of the contractual period, additional claims, interest and damages.

Given the difficulty of relationships and in calculating how long it will take to collect the receivables, Impregilo made specific accruals to the provisions for risks and bad debts in previous years.

On 21 March 2007, the International Court of Arbitration issued its award on the arbitration with the customer NEA. This award ordered the customer to pay more than US$ 21 million, plus interest, expense reimbursement and arbitration costs. Moreover, explicit reference was made to the bank guarantees and dispute with the Nepal tax authorities. Specifically: 41 • the ICC ruled that NEA does not have the right to payment of the bank guarantees and has ordered that they be returned;

• it ordered the customer to take all measures necessary so that Impregilo is not required to pay any Nepalese income tax on the amount due to it for the contract and award. NEA was also ordered to do all that is in its power to ensure the tax clearance certificate is issued.

In May 2007, NEA appealed against the ruling to the Patan (Nepal) Court of Appeals. Impregilo concurrently lodged its motion for enforcement of the award with the Kathmandu District Court. At the date of preparation of this report, the two courts had not yet notified the parties of commencement of the proceedings.

As part of the main dispute, and on a collateral basis, in February 2005, the customer obtained a summary judgement against the Italian bank that issued the guarantee to enforce contractual guarantees (performance bond and retention money totalling euro 17 million). The bank contested this action and requested that the measure be revoked, while Impregilo appeared before the court to confirm the bank’s reasons for voiding the summary judgement. This revocation was also requested in the arbitration proceedings and already obtained at the end of 2005.

The hearing for the interim enforcement of the summary judgement with the Civil Court of Milan was deferred again in May 2007 to a date yet to be decided. The judge has the right to make the necessary assessments based on the documentation generated by the arbitration proceedings. On 28 January 2008, the judge rejected the motion for the interim enforcement of the summary judgement and set the hearing for the summing up.

Lastly, also in relation to the above project, a dispute is pending with the Nepalese Tax Authorities. This dispute is due to the fact that, when the project began, local tax legislation provided for taxation of project activities upon completion of the work. However, this legislation changed while the work was being carried out and, in June 2005, the Nepalese Tax Authorities requested Impregilo pay a total of euro 7.3 million for local taxes. Moreover, the amount requested does not consider the counterclaims deposited by Impregilo since July 2005.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Hydroelectric plant in Nathpa Jhakri – India This project was carried out by a joint venture headed by Impregilo. It was completed in previous years. The plant was delivered to the customer and is currently operating. However, disputes are still pending in relation to the recovery of receivables and to claims made by the customer for compensation and counterclaims.

Arbitration with the customer Arbitration hearings are currently ongoing for a total value of euro 30 million (at current exchange rates). These include the requests for extending the contractual term (over euro 22.5 million) and for recognition of price adjustments (over euro 3.3 million). The relevant arbitration bodies (Dispute Review Board, Additional Dispute Review Board and Claim Review Panel) have already ruled favourably on most of the disputes. The customer has appealed against the rulings of the above bodies, presenting claims for damage from the joint venture for a total amount of approximately euro 27 million. In consideration of the above, the directors had impaired the residual receivables recognised in the financial statements by the same 42 amount, and recognised an accrual to cover any further risks in previous years.

Contractual guarantees and additional customer claims In addition to the above claims, in July 2003, the customer began enforcement proceedings on contractual guarantees for euro 21.2 million. However, the enforcement proceedings were suspended following the first level judgement of the local court, which ordered the customer to suspend enforcement until the final outcome of the arbitration proceedings. The customer agreed for the guarantees to be extended until October 2008. These guarantees are first-demand enforceable, but, based on the opinion of its legal advisors, the company believes that the risk of their enforcement is remote. Supporting this assessment, the local supreme court issued a judgement in relation to a similar attempt by the same customer to enforce guarantees against another contractor, definitively denying the claims for compensation made by the customer. In line with the considerations made at the end of the previous year and the fact that the situation has not changed significantly, the related risk of enforcement of the guarantees and additional claims by the customer is considered to be remote.

Proceedings with the Court of Florence - C.A.V.E.T. As part of a number of disputes that the Tuscan judiciary authorities had raised against C.A.V.E.T. and certain directors and managers of the consortium, penal proceedings no. 10221/99 and 4923/00 RGNR were commenced in previous years followed by other related proceedings. The main charges raised against the consortium included, inter alia: • water theft from the water bed during excavation of the tunnels and subsequent use of such water during construction;

• impoverishing and damaging of surface and underground water sources;

• illegal traffic of toxic waste during the elimination of soil, rocks and mud which the consortium had treated as if such materials were not “waste”.

The proceedings are currently being assessed at first level. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The consortium has always sustained that it operated in compliance with the law and specifically: • with respect to the alleged water theft, in addition to the fact that the issue is no longer punishable by law, the consortium holds that it acted in compliance with the contractual conditions and design specifications agreed with the customer;

• with respect to the alleged damaging and impoverishing of the water bed, the consortium holds that, as above, it acted in full compliance with the customer’s instructions and diligently and that, therefore, the penal charges made by the prosecutor are ungrounded. As a result, also when the actual damage will have to be calculated during the later stages of the proceeding, it deems that such damage is not attributable to the consortium but to the design specifications and complex characteristics of the works carried out on behalf of the customer. Therefore, the customer should be directly accountable for any consequences;

• with respect to the alleged illegal traffic of waste, classification of materials such as rocks and earth (which the authority considers to be “waste”) complies with the contamination limits set by Law no. 443 of 21 December 2001 for the purposes of their exclusion from the definition as “waste”.

At present and in line with the assessments made in previous periods, the risk of losing the cases at the three court levels is improbable, based also on the opinions of the group’s legal advisors. 43

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

ENGINEERING & PLANT CONSTRUCTION

The Engineering & Plant Construction segment, headed by FISIA Italimpianti and FISIA Babcock Environment (Germany), includes the operations of plants for the desalination of sea water, fume treatment and waste-to-energy processes, as well as environmental services (contamination clean-up), urban solid waste (USW) disposal, sea clean-up activities and coastal protection.

The business segment’s revenue amounted to euro 473.7 million for the period (euro 404.2 million) and the operating loss totalled euro 1.1 million (profit of euro 23.8 million). As noted in the first part of this report, the Euro’s appreciation against the dollar and related currencies together with the significant hike in prices of ferrous and other non-ferrous metals and related derivatives had a negative effect on this segment’s profitability in the six months, despite the increase in business volumes compared to the same period of 2007 (+17%).

The segment encountered difficulties in the second part of 2007 in relation to its desalination projects. The profitability of certain contracts decreased during the period compared to the first half of 2007 giving a small operating loss as shown above. 44 The status of the main contracts of FISIA Italimpianti is as follows:

• Jebel Ali L2 desalination plant (Dubai - U.A.E.). This contract was awarded in May 2005 and provides for the construction of four desalination units for a total of 55 million gallon/day to be delivered in 2008. The electromechanical assembling work and work to start up the plant were completed during the period. The contract was 94.6% complete at 30 June 2008;

• Jebel Ali L1 desalination plant (Dubai): production, calculated using the cost to cost method, equalled euro 3.2 million; the contract was 98.1% complete at 30 June 2008;

• Al Taweelah B desalination plant (Abu Dhabi – U.A.E). This is a desalination plant of four units that process a total of 70 million gallon/day. Work started in September 2005 and the assembly work was almost completed during the period. Distilled water production started in February and March in evaporators 3 and 4. The first part of the plant (group 1) was delivered to the customer on 27 May. At 30 June 2008, the contract was 95.7% complete;

• Ras Abu Fontas B2 desalination plant (Doha-Qatar). Work commenced on this combined 30 million gallon/day desalination plant/600 MW electricity generation plant in October 2005 to be completed in 21 months as part of a consortium with General Electric (supplier of the electricity generation plant). Negotiations are in place with the customer and the partner for their responsibility for the delays which had led to the extension of the contract term compared to the originally agreed dates. FISIA has already provided for this situation in 2007. At 30 June 2008, the contract was 93.0% complete;

• Jebel Ali M desalination plant (Dubai – U.A.E.): this contract was awarded in March 2007 and subsequently integrated with two variations in May 2007 for a total of 140 million gallon/day to be delivered before June 2010. Procurement of the supplies and agreement of the main tender contracts continued during the six months. Concurrently, the civil works were continued and the company started to construct the distillers. At 30 June 2008, the contract was 39.8% complete; WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 • Ras Abu Fontas A1 desalination plant (Qatar). The contract was signed in May 2007 for construction of a 45 million gallon/day plant in 23 months. Procurement of the supplies and agreement of the main tender contracts continued during the six months. At 30 June 2008, the contract was 39.5% complete;

• Shuaiba desalination plant (Kuwait). The contract was signed in July 2007 for construction of a 45 million gallon/day plant in 34 months. Procurement of the supplies and agreement of the main tender contracts continued during the six months. At 30 June 2008, the contract was 14.7% complete;

The subsidiary FISIA Babcock, active in the fume treatment and waste-to-energy sectors, continued to increase its output during the period (+18% compared to the same period of 2007). Most of its production (68%) relates to the construction of waste treatment plants with the remainder (28%) relating to fume treatment plants.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Order backlog The Engineering & Plant Construction order backlog at 30 June 2008 is as follows:

(in millions of Euros) Area/country Project Residual backlog Percentage Percentage at 30 June 2008 of total of completion Fisia Italimpianti Dubai Jebel Ali L2 10.5 1% 94.6% U.A.E Taweelah B 13.3 1% 95.7% Qatar Ras Abu Fontas B 14.2 1% 93.0% Asia Jebel Ali M 414.6 27% 39.8% Asia Ras Abu Fontanas A1 185.9 12% 39.5% Asia Shuaiba North 267.0 18% 14.7% Asia Other 14.1 1% Desalination 919.5 61% Italy Acerra waste-to-energy plant 19.3 1% 89.4% 46 Italy Other 2.6 Treatment of residue solids and fumes 21.9 1% Italy Porto Marghera 121.3 8% 46.3% Italy Other 5.2 0% Clean-ups, management and other 126.5 8% Total Fisia Italimpianti 1,067.9 70% Fisia Babcock Saudi Arabia Shuaibah FGD 8.7 1% 72.0% Germany Datteln REA 29.5 2% 9.0% Germany Neurath ESP 31.1 2% 14.0% Netherlands Amer 9 SCR 8.8 1% 80.0% Germany Moorburg - ESP 31.7 2% 2.0% Germany Karlsruhe EDP 11.6 1% 2.0% Italy Acerra 2.5 -72.8% Chile Puerto Coronel FGD 15.5 1% 5.0% Italy Other Italy 3.5 - 86.5% Other abroad 11.2 1% Fume treatment 154.1 10% Germany RZR Herten II WtE 40.7 3% 69.0% Germany Heringen WtE 30.8 2% 49.0% Germany Mönkeloh WtE 30.2 2% 3.0% Germany Krefeld WtE 80.6 5% 4.0% Italy Acerra WtE 23.4 2% 65.0% Norway Kristiansand 53.4 4% 3.0% Other abroad 33.8 2% Waste-to-energy 292.9 19% Other 3.4 Total FISIA Babcock 450.4 30% Total engineering & plant const. 1,518.3 100% WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Risk areas The main risk area for the Engineering & Plant Construction segment relates to FISIA Italimpianti and FISIA Babcock Environment’s positions in respect of the USW Campania projects, and which substantially relates to the construction of the waste-to-energy plant in Acerra (Naples). With respect to the management of refuse-derived fuel (RDF) production plants, FISIA Italimpianti sold its “Gestioni” business unit to the group company FIBE S.p.A. during the period as part of the group’s strategy to discontinue the USW Campania projects.

The directors are reasonably certain that the inventories and receivables relating to the construction of the waste-to-energy plant in Acerra and to outstanding progress billing, along with the receivables arising from management of the RDF plants, are recoverable based on the amounts and negotiations underway with the government commissioner for the waste emergency in Campania.

Reference should be made to the section on “Non-current assets classified as held for sale and discontinued operations” for further details.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

CONCESSIONS

Group activities in this business segment relate to the management of investments in numerous subsidiaries and associates, almost entirely abroad, which hold concessions mainly for the management of motorway networks, plants that generate energy from renewable sources, electricity transmission, integrated cycle water systems and the management of non-medical hospital service activities. Almost all of these investments are centralised within the subsidiary Impregilo International Infrastructures N.V. (the Netherlands), which coordinates them on the basis of specific operating structures and governance agreements on a case-by-case basis. The investments in the Argentine associates Puentes de Litoral S.A. and Aguas del Gran Buenos Aires S.A. (in liquidation) are not currently wholly held directly by Impregilo Inter- national Infrastructures N.V. for reasons relating to their contractual arrangements with the concession grantor. However, these investments do fall within the operations of the Dutch holding company and, for the purposes of this analysis, they are fully included in the Concessions segment. The investment in the associate holding the concession for the Pedemontana Veneta motorway, the construction of which has not yet started, is currently held by Impregilo S.p.A.. The following tables summarise the key figures of the concessions backlog at period end, split by business segment.

48 MOTORWAYS Country Concession % of Total Stage Start End company total Km date date Brazil Primav Ecorodovias 35.00 holding Ecovias Dos Imigrantes 35.00 176 active 1998 2023 Ecovia Caminho Do Mar S.A. 35.00 137 active 2000 2021 Ecosul S.A. 31.50 623 active 2001 2026 Rodovias das Cataratas S.A. 35.00 387 active 2001 2026 Italy Nuova Romea S.p.A. 22.28 promotion Pedemontana Veneta S.p.A. 20.05 90 under construction 2007 2047 Argentina Iglys S.A. 98.00 holding Autopistas Del Sol 19.82 120 active 1993 2020 Caminos de las Sierras S.A. 90.52 395 active 1998 2023 Puentes del Litoral S.A. 26.00 59.6 active 1998 2023 Mercovia S.A. 60.00 18 active 1998 2023

ENERGY FROM RENEWABLE SOURCES Country Concession % of Installed Pop. Stage Start End company total voltage served date date Italy Ecomont S.p.A. 49.00 50 k active 2000 2008 China Shanghai Pucheng Thermal Power Energy Co. Ltd 50.00 17 mw 1.6 m active 2004 2034 Argentina Yacylec S.A. 18.67 T line active 1994 2088 Enecor S.A. 30.00 T line active 1992 2088

INTEGRATED WATER CYCLE Country Concession % of Pop. Stage Start End company total served date date Argentina Aguas del G. Buenos Aires S.A. 42.58 210 k liquidation Italy Mediterranea delle Acque S.p.A 5.11 active unlimited Peru Consorcio Agua Azul S.A 25.50 740 k active 2002 2027 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 HOSPITALS

Country Concession % of No. of Stage Start End company total beds date date UK Impregilo Wolverhampton Ltd 20.00 150 k medical visits active 2002 2032 Ochre Solutions Holdings Ltd 40.00 220 under construction 2005 2038 Impregilo New Cross Ltd. 100.00 holding

CAR PARKS Country Concession % of No. of Stage Start End company total parks date date UK Impregilo Parking Glasgow Ltd 100.00 1,400 active 2004 2034

As illustrated in the table summarising performance by business segment, the operating profit of the Concessions segment amounted to euro 24.4 million (euro 23.9 million), equal to 29.2% of revenue which came in at euro 83.5 million for the six months (euro 69.5 million). 49 With respect to the investment in the Brazilian associate Ponte de Pedra S.A., for which preliminary agreements for the group’s sale of its entire 50% investment therein to third parties were signed at the end of 2007, the conditions precedent provided for in such agreements were met in April 2008. Therefore, the sale was finalised on 30 April 2008. The transaction gave rise to a net gain of approximately euro 67.5 million, including roughly euro 11 million of the accumulated translation reserve at the sale date recognised as gains (losses) on investments in profit or loss. The net proceeds of the transaction approximated euro 109 million, including the contractually provided for price adjustment, calculated on the positive difference in the Brazilian associate’s financial position at the sale date compared to that at 31 December 2007. In accordance with the agreements entered into in 2006 for the sale of the group’s entire investment in the Chilean concession company Costanera Norte S.A. and on the basis of the appraisal prepared by an independent expert in July 2008, the following financial aspects came to light:

• with reference to the price adjustment based on the Chilean company’s performance, which was better than that forecast in the business plan on which the sales consideration was based, Impregilo International Infrastructures identified an approximate net euro 8.2 million during the period for this contractual component based on the above appraisal. The group had prudently recognised a profit from discontinued operations of approximately euro 2.5 million determined at the time of the sale for this price adjustment as the minimum guaranteed amount. At 30 June 2008, there was, therefore, a positive difference of approximately euro 5.7 million;

• with respect to the agreement whereby Impregilo International Infrastructures has the right to subscribe 10% of the buyer’s share capital at its nominal amount and based on the buyer’s parent’s right to repurchase such right, its fair value has been determined to be euro 34.9 million based on the independent appraisal described above.

At 30 June 2008, both amounts were recognised as a profit from discontinued operations under IFRS 5 being components of the sales consideration.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

Acquisition of new concessions

Brazil – Rodovias das Cataratas On 6 February 2008, the jointly controlled subsidiary Primav Ecorodovias (the other partner is the Brazilian company CR Almeida) executed its acquisition of 100% of the Brazilian company Rodovias das Cataratas S.A. which holds a motorway concession in the Paranà state. The investment cost approximately R$ 425 million and was financed by Primav Ecorodovias by taking out a loan. The purchase price allocation (PPA) procedure required by IFRS 3 has not yet been completed. No significant effects are expected to arise from the procedure.

Risk areas The risk areas basically relate to the group’s subsidiaries and associates operating in Argentina. The group carried out specific appraisals of the situation in the past and, to date, no additional, critical issues have come to light that would require amendments or adjustments to the amounts recognised in the consolidated financial statements in previous years. 50 Specifically, the directors decided to maintain the impairment loss on the entire carrying amounts of loans (and related financial receivables) given by Impregilo group to the associates Puentes de Litoral S.A. and Aguas del Gran Buenos Aires S.A.. The partial impairment loss on the net invested capital of the subsidiary Caminos de las Sierras S.A. has also been maintained. As described in previous reports, the continued interruption in the negotiations with the concession grantor (Province of Cordoba) aimed at making the subsidiary’s motorway concession financially viable has obliged the subsidiary to inform the Province of Cordoba of its intention to breach the concession contract attributing the reasons therefor to the provincial body. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 IMPREPAR – IMPREGILO PARTECIPAZIONI S.p.A. (IN LIQUIDATION)

Liquidation of the company continued during the six months in line with the guidelines set out in the plan, updated at the end of 2007. The net invested capital of Imprepar and its subsidiaries, which amounted to euro 53.3 million at 31 December 2007, increased temporarily during the period, coming in at euro 55.4 million at 30 June 2008.

This increase was mainly due to:

• collection of euro 1.5 million following transfer of the deferred portion of the sales price for the investment in the Argentine company Constructora Alicopà to IECSA;

• partial repayment (euro 1.7 million) of the loan to the Salini - Impregilo joint venture, following collection of certain instalments of the rescheduled receivable due from Sudan;

• the approximate euro 5.3 million adjustment made following issue of an arbitration award in favour of the subsidiary Incave, for which provisions for risks had been set up and were now excessive.

The companies headed by Imprepar recorded a profit for the period of euro 3.8 million, mainly due to the interest accrued on the 51 company’s liquidity.

They reported a net financial position for the period of euro 90.2 million, consisting of euro 95.7 million of cash and cash equivalents and euro 5.5 million of bank debt.

Guarantees given to third parties decreased by euro 10.1 million, from euro 81.4 million at 31 December 2007 to euro 71.3 million at 30 June 2008.

Risk areas The company is currently involved in a large number of legal cases and out-of-court disputes for which the total amount claimed by it (including requested amounts and claims) approximates euro 419 million, while the total nominal amount claimed by counterparties totals approximately euro 242 million, largely unchanged from 31 December 2007. As reported in previous years, many of the claims to/by the company relate to the same dispute and should be assessed together as part of the individual project to which they relate. It cannot be excluded that additional events may come to light in the future that are not currently foreseeable despite the attention paid to any changes that might alter the risk profile of each dispute. These may require further adjustments to be made.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

IMPREGILO GROUP RISK MANAGEMENT

Impregilo Group uses its complex and articulated risk management process as an important strategic tool in achieving its objectives in terms of creating utmost value for, and protecting shareholders. The diversification of the group’s operating activities, both in core business sectors and in discontinued operations, means management faces a wide variety of issues, which, in many cases, are difficult to foresee. Depending on the various operating situations and the different resulting risk types that can arise, management has created specific ongoing management and monitoring strategies to limit as far as possible fluctuations in cash flows due to the development of situations that arise. To this end, the risk areas existing currently are described in the sections on each segment’s performance so as to allow comparison with the comments given in the 2007 consolidated financial statements and an analysis of any new situations that have arisen at the date of preparation of this report. These descriptions are integrated by additional general considerations about risks common to the entire group’s operations. The key types of risks identified and monitored by Impregilo are: (i) operating risk being the risk related to performance of contracts and relationships with individual customers; (ii) financial risk, split into the following components: 52 • market risk deriving from the group’s exposure to interest rate fluctuations, exchange rate fluctuations and, with respect to the Engineering & Plant Construction Segment, commodity price volatility; • credit risk deriving from the group’s exposure to potential losses arising from customers’ non-compliance with their obligations; • liquidity risk deriving from the risk that the financial resources necessary to meet obligations may not be available at the agreed terms and deadlines. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS

I. USW CAMPANIA PROJECTS: THE SITUATION AT 30 JUNE 2008 As known, Impregilo group became involved in the urban solid waste disposal projects in the Province of Naples and other provinces in Campania at the end of the 1990’s through its subsidiaries FIBE and FIBE Campania (the “companies”). From 2000 to 2003, the companies completed the construction of the RDF plants, built for them by other Impregilo group companies, namely FISIA Italimpianti and FISIA Babcock Environment (for the electromechanical parts) and Impregilo Edilizia e Servizi (for the civil works) and took the steps necessary to produce RDF and store it temporarily until the waste-to-energy plants were ready. Over the years, the situation began to become increasingly critical due to the following main factors: • non-commencement by the Campania Regional Authorities of the scheduled separated waste collection with the related agreed volumes, an essential factor underpinning the project and service contracts agreed by the companies with the government commissioner; • inadequate landfill areas made available by the government commissioner; • commencement of activities at the Acerra waste-to-energy plant, which should have commenced as per the contract in 2001, only in August 2004 following the extraordinary intervention of more than 450 policemen who cleared the work areas occupied since January 2003 by demonstrators; 53 • the Santa Maria La Fossa waste-to-energy plant only obtained the E.I.V. (environmental impact valuation) in 2007, although activities should have started there concurrently with those at Acerra; • on 12 May 2004, the Naples Public Prosecutor seized the plants with their concurrent release on attachment bond as part of a proceeding which included investigation of the directors of the group companies involved in the project (FIBE, FIBE Campania and FISIA Italimpianti) and top management of the commission; • an increasing number of municipalities, companies and inter-municipality consortia started to not pay the tariffs due to the companies for the treatment of their waste with the result that the companies saw a significant rise in receivables leading to the inevitable financial tension; • given this critical situation, the banks that had granted FIBE project financing to construct the RDF plants and waste-to-energy plant at Acerra suspended all further disbursements (they had granted euro 173.5 million); moreover, the negotiations aimed at agreeing similar funding for the RDF plants and waste-to-energy plant of FIBE Campania (at Santa Maria La Fossa) were interrupted; these circumstances worsened the two companies’ financial positions and that of the entire Impregilo group (as FISIA and Impregilo Edilizia e Servizi were engaged to build the RDF plants and the waste-to energy plants and FISIA also provided plant management services). Given this situation, beginning from early 2005, measures and procedures were adopted at top institutional levels following the direct involvement of the Italian government, including to return the project to its original status and normal operating conditions. Specifically: • the overdue receivables for the waste tariffs through to 31 December 2004 should have been recovered following issue of Law decree no. 14 of 17 February 2005 (converted into Law no. 53 of 15 April 2005) whereby the Cassa Depositi e Prestiti should have ensured payment of the outstanding amounts under a specific procedure of roughly 60 days; • recovery of the receivables overdue after that date should have taken place by the appointment of ad acta commissioners by the extraordinary government commissioner using its powers assigned by the Prime Minister’s order (“OPCM”) no. 3397 of 28 January 2005; • the problems related to the judicial seizure of the plants would have been resolved by implementation of a “Programme for structured and management actions for RDF plants” prepared by the commissioner and subject, for certain aspects, to the approval of the Naples Public Prosecutor, which should have allowed their release from seizure within six months as per the “Conformity Deed” signed by FIBE and FIBE Campania;

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

• with respect to the availability of the landfill areas, the government commissioner issued an order on 7 December 2004 for the Monte Sarchio landfill and another for the Campania landfill on 1 April 2005. These orders substantially established that, upon the closure of the then used landfills, two new sites in the Campania region would be set up and used to ensure at least one year of regular performance of the project and giving rise to the concurrent reasonable belief that the issue of the landfills could be managed positively after that time period. Based on these beliefs, the directors of both FIBE and FIBE Campania approved a business plan for the period of the service on a going concern basis. However, a number of events took place in the following months that significantly negatively altered the beliefs inferred from the legal and administrative measures. Specifically: • the Cassa Depositi e Prestiti had not yet shown any signs of applying the measures set out in Law decree no. 14/2005 (converted into Law no. 53/2005) many months after its issue and, therefore, the receivables overdue at 31 December 2004 were still outstanding with further problems about the collection of those that became due in 2005; • following social-political agreements, the government commissioner had delayed the use of one of the two previously authorised landfills and had not allowed preparation of the second. This implied that, in order not to disrupt services, FIBE and FIBE Campania had to use private 54 landfills outside the region fully bearing the very high and unplanned disposal and transportation costs from April. No feedback from the commissioner was received about their request for reimbursement; • meanwhile, the government commissioner, with a writ of summons of May 2005, took legal action claiming compensation from FIBE, FIBE Campania and FISIA for alleged damage being the costs it incurred in the past to transport waste outside the region (subsequent sections of this report give more information about this dispute); • the banks that had given the first instalment of euro 173.5 million of the project financing agreed with FIBE not only confirmed that they would not provide the rest of the financing but also formally requested that the project financing structure be dismantled as it was no longer considered suitable given the critical situation of the USW Campania project. In this situation, Law decree no. 245 (converted into Law no. 21 of 27 January 2006) was issued on 30 November 2005 and became applicable on 15 December. It: a) terminated the contracts between FIBE S.p.A., FIBE Campania S.p.A. and the extraordinary government commissioner for the Campania Waste Emergency on an ope legis basis “without prejudice to any claims arising from the terminated contracts” (article 1.1); b) required the commissioner to: (i) identify “urgently”, with a “swift EU” procedure, the new parties to which the waste disposal service for Campania should have been awarded, taking over the contracts from FIBE and FIBE Campania (article 1.2); (ii) construct “the landfills ... continue work to build the waste-to-energy plants at Acerra and Santa Maria la Fossa” (article 6.2); c) provided that responsibility for and the cost of managing the USW Campania project be transferred to the commissioner, pending the identification of new providers of the waste treatment service during the transition period, without prejudice to FIBE and FIBE Campania’s obligation to provide the service against their right to claim payment from the commissioner’s office of expenses and costs incurred in this regard (article 1.7, as modified by the aforesaid Law decree no. 263/2006); d) set specific regulations for: (i) “speeding up the procedure to obtain payment” of the waste disposal tariffs (article 2); WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 (ii) “guaranteeing that the separate waste collection objectives are met … and resolution of the current emergency situation” (article 5). In order to assist the tender procedure described in paragraph “b.i”, FIBE and FIBE Campania complied with the commissioner’s request in March 2006 to formalise a sale promise, irrevocable until 30 September 2006 (“statements of promises to sell”). They thus committed themselves to selling the following assets to the commissioner (or parties indicated by it upon the outcome of the tender): • the waste-to-energy plant in Acerra at its carrying amount on 15 December 2005, increased by additional entries made by the current owner FIBE for work carried out and to capitalise financial expense and technical costs in the period between 16 December 2005 and the payment date; • the land on which the waste-to-energy plant of Santa Maria La Fossa is to be constructed, owned by FIBE Campania, for its carrying amount at 15 December 2005; • sundry equipment used to manage the waste treatment plants and RDF stocking sites, owned by FIBE, FIBE Campania and FISIA Italimpianti, at their carrying amount at 15 December 2005; • the RDF stocking sites and related stocked materials of FIBE and FIBE Campania at their carrying amount at 15 December 2005; this amount did not include two stocking sites not recognised by the commissioner; in addition, the promises to sell provided that part thereof may be 55 decreased by a maximum of 15%. The tenders published on 31 March 2006 also provided that the parties would have had to pay FIBE and FIBE Campania for the right to use the RDF plants (which are owned by the government commissioner) the “unamortised costs incurred by the previous providers of the service up until 15 December 2005”. The tender called on 31 March 2006 was not awarded since only two bids were presented, one of which by a non-eligible bidder. With respect to this situation, the public institutions involved showed their intention to begin a new procedure, calling bids from throughout the European Union and committing themselves to conducting the procedure in a significantly shorter time span than the previous one. They asked FIBE and FIBE Campania to renew their “statements of promises to sell” as described above. This request was accepted and the statements were renewed until 31 March 2007. In August 2006, the tender for the allocation of the urban solid waste disposal services for the Campania region was called again. The assets to be sold and the amounts were unchanged from the previous tender. Given the continued critical waste situation in the region, the government issued two law decrees aimed at resolving it. Specifically: a) Law decree no. 263 of 9 October 2006 (converted into Law no. 290 of 6 December 2006) which, inter alia: (i) appointed a new commissioner, the head of the Civil Protection Department, who reported directly to the Prime Minister (article 1.1); (ii) cancelled the tender called in August 2006 (article 3.1); (iii) required the new commissioner to redefine “the conditions for allocation of the waste disposal service in Campania” (article 3.1); (iv) amended Law no. 21/2006 establishing that the current holders of the contract are required to continue to provide the service until the tender is closed, and this “considering the necessary transfer of duties to the new holders, including those related to personnel and any assets and buildings that should be transferred, given their use, age and maintenance” (article 3.1-bis); (v) provided for measures aimed at ensuring the effective separate collection of urban solid waste (article 4); (vi) extended the transition period for the waste emergency situation in Campania until 31 December 2007 (article 1.1);

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

b) Law decree no. 61 of 11 May 2007 (converted into Law no. 87 of 5 July 2007) which, inter alia: (i) opened, “also to avoid new emergency situations”, new sites to be used as landfills (article 1.1); (ii) requested the commissioner to identify “urgently … also by directly engaging parties other than the current service providers ... the best possible solutions for the treatment and disposal of waste and possible disposal of waste bales” (article 2); (iii) requested the commissioner to adopt “a plan for introduction of an integrated waste cycle in Campania” (article 9); On 5 July 2007, concurrently with the issue of the aforesaid legal measure, a new extraordinary commissioner for the waste emergency in Campania was appointed, namely the Naples Prefect. Following specific requests presented by FIBE and FIBE Campania, on 10 August 2007, the commissioner provided for the speeding up of the process aimed at reimbursing the two companies the costs incurred by them to manage the service which they had not yet received and for the direct payment by its office of personnel expenses and subcontracting costs related to the provision of the service by them. In Autumn 2007, the commissioner recommenced the procedures for the preparation of a new tender to identify an USW service operator. To overcome the problems that beset the previous tenders, the commissioner started an in-depth preliminary survey of the actual situation of the plants and equipment as well as the related labour required to provide the service under tender. It was assisted in this by FIBE and 56 FIBE Campania. This survey was based on formats that reflected those underlying the original contracts with FIBE and FIBE Campania that had been terminated: a) geographical: the survey focused on two areas: the Province of Naples and other provinces; b) technical: the existing RDF plants and the Acerra waste-to-energy plant, still under construction. The survey was concluded in December 2007 by the commissioner with its order no. 467 which required preparation of a “Deed acknowledging the remaining obligations of FIBE S.p.A. as of 1 January 2008 and the amounts due to it for the services provided pursuant to Law no. 21/06 that FIBE S.p.A. has already provided or still has to provide ...” (the “Acknowledgment Deed”). This Acknowledgement Deed provides for, inter alia: a) the obligation for FIBE to: (i) “complete .. the work at the Acerra waste-to-energy plant as per the designs drawn up by it”, (ii) “provide for ... the revamping” of the RDF plants; b) FIBE’s right to reimbursement for costs incurred to construct the plants under tender (ie, the Acerra waste-to-energy plant and three RDF plants) and for the activities set out in point “a”. Specifically, the Deed states FIBE’s right to obtain reimbursement of the costs incurred to construct the Acerra waste-to-energy plant up to euro 321,067,280.00 and those incurred to construct the RDF plants in Tufino, Caivano and Giuliano for euro 68,229,419.00; c) the principle whereby the wear and tear of the RDF plants following their use during the period after 16 December 2005 is to be covered by the commissioner; d) confirmation that the works to complete the Acerra waste-to-energy plant are to be concluded; e) recognition that the Deed is not “a settlement of the different positions under dispute” in the pending court cases with respect to the many claims made by the parties. A new tender was called in December 2007 for solely the USW disposal service in the Province of Naples. At the start of the first quarter of 2008, the commissioner received expressions of interest from two major industrial groups active in the waste treatment and energy generation sector. After having requested and obtained an extension of the tender until the end of January 2008, WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 they withdrew from the procedure, communicating their doubts about the existence of both suitable guarantees from the body calling the tender about the availability of landfills for the waste from the RDF processing and suitable certainty about the availability of the benefits provided for under measure “CIP6” for the Acerra waste-to-energy plant under construction for the sale of electricity generated by the plant at favourable tariffs. Given this situation and the further worsening in the waste collection and disposal emergency in the region, the Prime Minister issued orders nos. 3656 and 3657 of 6 February and 20 February 2008, respectively: (i) the first confirmed the benefits provided for by measure “CIP6” for the Acerra waste-to-energy plant: these benefits were confirmed by Law no. 31 of 28 February 2008 whereby, during conversion of the “Milleproroghe decree” “for the plant ... in Acerra ... the government grants and incentives provided for by the Interministerial price committee resolution no. 6 of 29 April 1992 ... are due”; (ii) the second authorised the disposal of the waste treated by the RDF plants in the waste-to-energy plant under construction (both before and after termination of the contracts as per the aforesaid Law no. 21/2006) and currently stored in the region. After issue of these orders, the government intervened again directly enacting significant measures aimed at resolving the existing situation. 57 These measures were: a) Law decree no. 90 of 23 May 2008 and Law decree no. 107 of 17 June 2008, both converted into Law no. 123 of 14 July 2008. The conversion law, inter alia: (i) confirmed FIBE’s obligation to complete the Acerra waste-to-energy plant (see article 6-bis.4); (ii) expressly authorised “use of the Acerra waste-to-energy plant” (see article 5.2) and combustion of the “eco-bales” (see article 5.1); (iii) authorised “construction of the Santa Maria La Fossa waste-to-energy plant” (see article 5.3) and “construction of a waste-to-energy plant in the Naples municipality” (see article 8.1); (iv) provided for the possible allocation of the benefit of the CIP 6 “for the waste-to-energy plants located in the Salerno, Naples and Santa Maria La Fossa municipalities” (see article 8-bis.1); (v) definitively authorised Impregilo group’s exit from the waste disposal business, transferring “title” to the RDF plants “located in their municipalities” to the provincial authorities (see article 6-bis.1) and providing for “the involvement of the Armed Forces for the technical and operating management of the plants” (see article 6-bis.3); (vi) ordered “an assessment of the value” of the RDF plants and Acerra waste-to-energy plant “also for the possible purchase against consideration by the new service operator” and that the assessment of the RDF plants is carried out considering “their effective use, age and maintenance” (see article 6.1); b) Law decree no. 97 of 3 June 2008, converted into Law no. 129 of 2 August 2008 which, inter alia, required the Ministry for Economic Development, together with the Ministry for the Environment, to establish “the methods to provide government incentives, as per resolution no. 6 of 29 April 1992 of the Interministerial price committee, to the waste-to-energy plants located in the municipalities of Salerno, Naples and Caserta”; c) Order of the Prime Minister no. 3685 of 19 June 2008 which provided for, inter alia: (i) transfer of the “operating resources present in each plant” to the municipalities that gain title to the RDF plants; (ii) taking over of the employees of the RDF plants (other than management) by the municipalities using term employment contracts;

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d) Decree no. 3299 of 30 June 2008 and letter no. 1882 of the same date, both issued by the under-secretary of state which, inter alia, included orders related to: (i) completion by FIBE of the Acerra waste-to-energy plant; (ii) transfer of management of the RDF plants to the municipalities. These measures are of fundamental importance given that, in short: a) the Acerra waste-to-energy plant must be completed by FIBE and will be operative within a few months (start of 2009); b) combustion of the “eco-bales” is expressly provided for at this plant; c) an additional two waste-to-energy plants will be built, benefiting from CIP 6, like the Acerra waste-to-energy plant; d) management of the RDF plants has been definitively taken from FIBE and FIBE Campania and title thereto has been transferred to the Campania municipal authorities while they will be managed by the Armed Forces. Immediately after enactment of these measures, FIBE and FIBE Campania took steps to ensure they were fully implemented. Specifically: a) transfer of the RDF plants, related operating resources and personnel to the municipal authorities is being completed; 58 b) FIBE has communicated that for the Acerra waste-to-energy plant, and in order to execute the relevant order, the relevant public administration should make the financial resources necessary to complete the plant available. During July 2008, the relevant authority commenced a preliminary investigation to identify the costs already incurred and not yet paid to third parties for work performed after the contracts had been terminated and the activities currently ongoing and required to complete the roll out of the plant.

II. THE LITIGATION CURRENTLY PENDING FOR THE USW CAMPANIA PROJECTS

II.1 The administrative litigation 1. In October 2006, FIBE and FIBE Campania took legal action before the Lazio Regional Administrative Court censuring the commissioner’s failure to comply with its obligations under Law decree no. 245/2005 (converted into Law no. 21/2006), namely (i) recovery of amounts due by municipalities for waste disposal services outstanding at the date of termination of the contracts (15 December 2005) and (ii) identification of landfills for organic waste and stockpiles generated by the RDF plant and preparation and implementation of a plant maintenance plan. After accepting the precautionary motion presented by FIBE and FIBE Campania (in its ruling of 11 October 2006, confirmed by the Council of State on 7 November 2006), in its decision no. 3790 filed on 27 April 2007, the Court found that: (i) FIBE and FIBE Campania effectively provided the waste disposal service under the 2000 and 2001 contracts up until 15 December 2005; (ii) due to the ope legis termination of the service contracts, FIBE and FIBE Campania “with effect from 15 December 2005 merely provided the service on behalf of the commissioner [waste disposal] and had definitively lost title thereto”; (iii) the commission should complete the procedure aimed at meeting the companies’ requests within 45 days; (iv) an ad acta commissioner to take the necessary measures within a further 45 days, should the local administrative bodies not fulfil their obligations, would be appointed. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The commissioner appealed against this ruling with the Council of State. Ruling no. 6057 of 28 November 2007 rejected the appeal, fully confirming the ruling of the Lazio Regional Administrative Court. 2. The Lazio Regional Administrative Court recently confirmed the findings of its ruling no. 3790/2007 in its ruling no. 7280 of 23 July 2008.

II.2 The civil litigation The government commissioner presented a writ of summons in May 2005 requesting compensation from FIBE, FIBE Campania and FISIA Italimpianti for alleged damage of approximately euro 43 million. During the hearing, the commissioner increased its claims to approximately euro 700 million, further to the additional claim for damage to its reputation, calculated to be euro 1 billion. The companies appeared before the court to dispute the claims made by the government commissioner and lodged a counterclaim requesting compensation for damage and sundry charges determined before the court of first instance for a total of euro 667.5 million, plus another claim for damage to their reputation of euro 1.5 billion. They also complained about the significant delay (compared to that provided for in the 2000 and 2001 contracts) in the release of the authorisations required to construct the waste-to-energy plants and the related delay in 59 the construction of such plants. Delays that have led to both the lengthening of the temporary stocking periods of the produced “eco-bales” and an increase in the stocked “eco-bales” with the related need to find bigger stocking areas: circumstances that led to the incurring of greater costs by FIBE and FIBE Campania. In the same proceeding, the credit institutions that issued FIBE and FIBE Campania’s performance bonds to the government commissioner, also requested that the commissioner’s claim be rejected. In addition, they requested to be held harmless by Impregilo from the commissioner’s claims. Impregilo appeared before the court and disputed the banks’ requests. The ruling is still at a preliminary stage and has been deferred to the hearing of 20 January 2009 when the counter appeal’s correctness will be verified. Based on the opinions of the lawyers assisting the companies in the litigation, the commissioner’s claims are reasonably refutable. Therefore, it would appear unlikely that the companies will lose the case.

II.3 The penal litigation In September 2006, the Public Prosecutor at the Court of Naples served Impregilo S.p.A., Impregilo International Infrastructures N.V., FIBE S.p.A., FIBE Campania S.p.A., FISIA Italimpianti S.p.A. and Gestione Napoli S.p.A. in liquidation with a “Notice of the conclusion of the preliminary investigations about the administrative liability of companies” related to the alleged administrative crime pursuant to article 24 of Legislative decree no. 231/2001 as part of a criminal case against several directors and employees of the above companies, investigated for the crimes as per article 640.1.1/2 of the Penal Code in relation to the tenders for management of the urban solid waste disposal cycle in Campania. Following the preliminary hearing of 29 February 2008, the Judge for the Preliminary Hearing at the Court of Naples accepted the request for a hearing made by the Public Prosecutor. The first hearing for the merits of the case was held on 14 May 2008. The Public Prosecutor requested the following precautionary measures relating to: • “assets”, pursuant to article 19 of Legislative decree no. 231/2001 (seizure: of the RDF production plants and Acerra waste-to-energy plant; approximately euro 43 million belonging to the Impregilo group companies; receivables of approximately euro 109 million due to FIBE and

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

FIBE Campania from municipalities in the Campania region); and • “interdiction”, pursuant to article 9 of Legislative decree no. 231/2001 (or, as an alternative: ban on negotiating with the public bodies; exclusion from subsidies, loans and similar assistance, ban on advertising goods and services). In its ruling of 26 June 2007, the Judge for the Preliminary Investigation ordered the preventive seizure of the profit from the alleged crime, estimated to approximate euro 750 million; specifically, the judge ordered the preventive seizure of: • euro 53,000,000.00, equal to the amount advanced by the commissioner to construct the plants in provinces other than Naples; • the total amount of euro 301,641,238.98 for the regularly collected waste tariffs; • certain, liquid and due receivables due from the municipalities and not yet collected of euro 141,701,456.56; • the expense incurred by the commissioner related to disposal of the USW and related processing at the RDF plants of euro 99,092,457.23; • euro 51,645,689.90 being the missing guarantee deposit, payment of which had been agreed to guarantee correct compliance with contractual obligations; • amounts received as premiums for the collection service performed on behalf of the commissioner and municipalities to be determined 60 upon enforcement; • euro 103,404,000.00 being the value of the works carried out to build the Acerra waste-to-energy plant up to 31 December 2005. The Judge for the Preliminary Investigation also ordered that the companies are banned from contracting with the public bodies for one year with respect to waste disposal, treatment and waste-to-energy activities as an interdiction measure; this finished in June 2008. The precautionary measures ordered by the Judge for the Preliminary Investigation do not imply the expropriation of the assets but their “blocking” as they continue to be owned by the parties to which they “belong” and can only be expropriated after the relevant rulings have been issued by the Court of Naples, the Court of Appeals and the Supreme Court. However, the precautionary measure was partly executed with the seizure of liquidity of approximately euro 124.8 million deposited by Impregilo, FISIA Italimpianti, FIBE and FIBE Campania with Italian banks as well as receivables of approximately euro 190 million of FIBE and FIBE Campania from local administrative bodies for activities performed prior to 15 December 2005. The precautionary seizure measure was appealed against on 7 July 2007. The Review Court however rejected the appeal on 24 July 2007. The precautionary seizure measure, confirmed by the Review Court, was appealed against with the Supreme Court on 5 November 2007. The Second Chamber of the Supreme Court, charged to hear the appeal, referred the relevant ruling to the United Chambers on 23 January 2008. On 27 March 2008, the United Chambers cancelled and deferred the seizure measure: a) on one side, confirming the principle whereby “the profit from the crime ... is the direct and immediate economic benefit of the crime and can be accurately calculated net of the effective use obtained by the damaged party, as part of the bilateral relationship with the body”; b) on the other, noting that neither the Judge for the Preliminary Investigation nor the Naples Review Court correctly applied this principle. Specifically, as the United Chambers stated: “the reasoning on which [the Review Court’s decision] is based, while considering the factual issues of the events examined, leads to partial and simplistic legal considerations with respect to the concept of “profit”, it does not take into account the notion as specifically set out above and, based solely on the serious breach of contract by the service providers, ends by identifying the assets that can be seized in an abstract manner, without properly checking the relationship between the illegal act and the advantage obtained”. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The Supreme Court also analysed the individual items subject to the precautionary seizure in detail, concluding that: (i) all of the above items, except for the tariff net of VAT, do not constitute “profit from crime”; (ii) the amount of the tariff (net of VAT) that can legitimately be seized is to be determined deducting the value of the services provided by FIBE and FIBE Campania to the benefit of the municipalities from the tariff. In this respect, the following should be emphasised: - the Supreme Court acknowledges that “the service provided” by FIBE and FIBE Campania “was not always characterised by illegality and took place over a long period of time without being formally challenged by the municipalities”; - the Lazio Regional Administrative Court and the Council of State (with the mentioned rulings no. 3790/2007 and 6057/2007) recognised that these companies effectively provided the waste disposal service entrusted to them under the 2000 and 2001 contracts up until 15 December 2005. Following this Supreme Court ruling, an appeal was presented to the Naples Review Court for redetermination of the amounts that can be seized under the principle endorsed by the Supreme Court. In its hearing of 22 July and with its order filed on 7 August 2008, the Review Court ordered that the measure be cancelled and the assets effectively seized be immediately returned. * * * 61 Again during the second quarter of 2008, as part of a new inquiry by the Court of Naples into waste disposal and related activities in the region carried out after the ope legis termination of the contracts (15 December 2005), the Judge for the Preliminary Investigations issued personal preventive seizure measures upon the request of the Public Prosecutor against certain managers and employees of FIBE, FIBE Campania and FISIA Italimpianti and managers of the commissioner’s office. Which within the deeds is described as both a continuation of the inquiry described earlier in this section and an independent one based on new allegations, the fomer server providers and FISIA Italimpianti are again challenged for the administrative liability of companies under Legislative decree no. 231/01. The group companies involved in the new proceeding are fully convinced of the legitimacy of their actions, also because their activities are not only expressly covered by Law no. 21/2006 but were also carried out merely on behalf of the commissioner (see the rulings of the Lazio Regional Administrative Court and Council of State in paragraph II.1).

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

III. THE DIRECTORS’ CONSIDERATIONS ABOUT THE SITUATION AT 30 JUNE 2008 The group’s situation with respect to the USW Campania projects at the end of the six months continues to be extremely complex and uncertain in some cases (as can be seen from the wealth of the above information). It also contains new elements that would seem to be very significant for the resolution of the existing critical issues. In fact, as mentioned above: a) at a legislative level, important measures were adopted (see above, section I footnote), thanks to which: (i) the Acerra waste-to-energy plant must be finished by FIBE; (ii) combustion of the “eco-bales” is expressly provided for; (iii) an additional two waste-to-energy plants will be built, benefiting from CIP 6, like the Acerra waste-to-energy plant; (iv) management of the RDF plants has been definitively taken from FIBE and FIBE Campania and title thereto has been transferred to the Campania municipal authorities while they will be managed by the Armed Forces; (v) the Acerra waste-to-energy plant and RDF plants will be assessed “also for the purposes of their possible purchase against consideration by the new service operators”; 62 b) at a judicial level: (i) the Naples Review Court cancelled in full the seizure ordered by the Naples Judge for the Preliminary Investigation on 26 July 2007 implementing the decision of the United Chambers of the Supreme Court; (ii) two rulings of the administrative courts (see paragraph II.1) expressly recognised that FIBE and FIBE Campania had effectively provided the waste disposal service assigned to them under the 2000 and 2001 contracts up until 15 December 2005. Notwithstanding this improved legislative and judicial situation, although the group’s legal advisors agree with it that developments in the ongoing litigation will show the correctness of the group’s activities and considering the different civil suits presented by local bodies and third parties in the penal cases, also with respect to alleged environmental damage, Impregilo intends to further analyse both the Review Court’s order (which has only recently been communicated to the group and which could be further appealed against with the Supreme Court) and developments in the litigation which, as noted, still presents uncertainties. Therefore, the group has maintained both the impairment losses recognised at the end of 2007 on the net assets classified as held for sale relating to the USW Campania projects and the accruals to the provisions for risks made at that date. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 HUMAN RESOURCES AND ORGANISATION

The group continued its activities, commenced in previous years, aimed at creating an organisational model based on a streamlined structure and by rationalising structural costs during the period.

The key events of the period are described below.

Lay-off programme pursuant to articles 4 and 24 of Law no. 223/1991 FIBE S.p.A. - Following the decision to cease all business activities, in its letter dated 17 June 2008, FIBE S.p.A. commenced a lay-off procedure pursuant to articles 24 and 4 of Law no. 223/1991 to reduce its workforce availing of the “mobilità” scheme due to the ceasing of business activities (555 employees, 505 of which with a metal and mechanical national labour contract and 50 with a building national labour contract) at the different production sites in the five provinces of Campania.

Following the joint request received from the trade unions to examine the case, minutes of two meetings which gave rise to interim results were signed on 30 June 2008. The parties subsequently agreed to continue the examination on 21 July 2008 when they agreed to meet again on 31 July 2008. On this date, they signed a report stating that they had not come to an agreement. This concluded the joint trade union examination. In order to finalise the entire lay-off procedure, an additional exam needs to be carried out at administrative level before the relevant bodies of the Campania Regional Authorities. This last stage cannot last more than 30 days from the date of the company’s application for the additional exam. 63

Head office employment figures - At 30 June 2008, head office employees numbered 312, as detailed below:

Managers Junior managers White collars Blue collars Total Impregilo S.p.A 73 66 160 3 302 S.G.F.-I.N.C. S.p.A. 3-7-10 Total at 30 June 76 66 167 3 312

Normal activities continued with the trade unions in terms of operating personnel management with respect to the laying-off of personnel taken on for projects commenced in previous years (CAVET, BOCOGE S.p.A. Costruzioni Generali and CAVTOMI). Specifically:

CAVET – On 11 October 2007, a new lay-off programme was commenced pursuant to articles 24 and 4 of Law no. 223/91, finalised on 3 December 2007 with the signing of the related agreement with the trade unions. At 30 June 2008, the company had let 284 employees go (31 white collars and 253 blue collars).

Bocoge S.p.A. Construction Generali, Arcavacata di Rende (CS) building site - The company commenced a second procedure with a letter of 3 September 2007 involving 49 employees, including seven white collars and 42 blue collars. The related agreement was signed on 16 October 2007 and the company had let 30 employees go at 30 June 2008.

C.A.V.TO.MI. - On 7 January 2008, C.A.V.TO.MI commenced the second lay-off programme pursuant to articles 24 and 4 of Law no. 223/1991 whereby 485 workers hired to construct the railway line from 85.576 km to 124.673 km are redundant (including 104 white collars and junior managers and 381 blue collars). This programme is necessary as the works are nearing completion.

The procedure was wound up on 4 February 2008 with the signing of an agreement in the offices of the Ministry for Labour. At 30 June 2008, 138 workers had left.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

At 30 June 2008, group employees totalled 12,002, as detailed below:

Corporate Construction Concessions FIBE and FIBE Engineering & Total Campania Plant Construction Managers 25 151 24 3 39 242 White collars 138 2,450 1,268 137 551 4,544 Blue collars - 6,599 170 418 29 7,216 Total 163 9,200 1,462 558 619 12,002 Italy 2,847 Abroad 9,155 Total 12,002

The following table gives the average number of employees for the first half of 2008 by business segment:

Corporate Construction Concessions FIBE and FIBE Engineering & Total 64 Campania Plant Construction Managers 26 149 26 3 41 245 White collars 136 2,245 1,302 117 570 4,370 Blue collars - 5,593 169 350 92 6,204 Total 162 7,987 1,497 470 703 10,819 Italy 2,964 Abroad 7,855 Total 10,819

As well as professional refresher courses, training included institutional training, mainly aimed at the group’s junior managers about the new Organisation, management and control model and the new Code of Conduct adopted following the extension of the crimes covered by Legislative decree no. 231/2001. The group decided successfully to use the E-learning method for the 235 junior managers who took part in the course from different locations around the world. Renewal of the building sector national employment agreement of June 2008 - The remuneration and regulatory portions of the national employment agreement for the building and related sectors was renewed on 18 June 2008, effective from 1 June 2008. The regulatory portion is effective through to 31 December 2011 while the remuneration portion expires on 31 December 2009. Changes include the increase in monthly minimum pay slips and wages in two instalments applicable from 1 June 2008 and 1 January 2009. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 SIGNIFICANT SUBSEQUENT EVENTS

Reference should be made to the section on “Non-current assets classified as held for sale and discontinued operations - USW Campania projects” for details on the events that have taken place since 30 June 2008 with respect to the USW Campania projects. In early July, following authorisation from the Libyan government, the contracts between Impregilo Lidco (company consisting of Impregilo - 60% and Libyan Development Investment Co) and ODAC (Organisation for Development of the Administrative Centers) for the design and construction of university centres in Libya were formalised. Initial authorisation for the start of works was given for an amount of approximately euro 400 million. Work is scheduled to start in the next few months to be completed in 2011.

OUTLOOK The group’s order backlog, results for the six months, important new contracts acquired and under negotiation all represent a solid base that can be used to develop its programmes and strategies during the year. The group’s financial stability is an additional strength upon which its development strategies are hinged. The complex operating and legal situation in which the Group finds itself in connection with the USW Campania projects continues to be critical 65 for its operations. Given the very complicated nature of the ongoing legal proceeding, which has involved the state, regional, provincial and local authorities in Campania, and the early stages of the related court proceedings, the group cannot exclude that events may take place in the future that are not currently foreseeable which would require changes to be made to the valuations made to date. At present and not considering any events or circumstances that cannot currently be foreseen, the group does not expect to encounter difficulties in achieving its objectives for the year communicated to the market.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Interim Directors’ report - Part II

OTHER INFORMATION

Treasury shares At the date this report was prepared, the parent did not hold any treasury shares either directly or indirectly.

Company bodies In their meeting of 7 May 2008, the shareholders appointed new boards of directors and statutory auditors for the parent. They have a term of office of three years, ie until approval of the financial statements at 31 December 2010. The members of the new boards are presented in the section entitled “Company officers”.

Judicial investigations - Court of Monza Following the proceedings initiated by the Public Prosecutor before the Court of Monza for crimes pursuant to articles 81 and 110 of the Penal Code and articles 2621 and 2637 of the Italian Civil Code, in which the former chairman of the board of directors and the former managing director of Impregilo at the time of the alleged crimes are under investigation, Impregilo S.p.A. and Imprepar in liquidation were subjected to a preliminary investigation relating to an alleged administrative violation in relation to the crimes pursuant to articles 25/ter, letters 66 a) and r), 5 and 44 of Legislative decree no. 231/2001. The Public Prosecutor notified the company of the allegations against its former chairman and former managing director on 13 October 2005. The allegation is that the company “prepared and implemented an organisational model not suitable to prevent the crimes” that the directors under investigation allegedly committed and from which it benefited. On 6 December 2005, Impregilo received notice that the preliminary investigations were completed, in accordance with article 415-bis of the Criminal Procedural Code. Subsequently, it was notified in a registered letter of 21 February 2006 that a preliminary hearing had been set in accordance with article 419 of the Criminal Procedural Code for 3 April 2006. Impregilo disputed the above allegations, lodging an in-depth brief with the court through its lawyer. The brief was prepared with the assistance of technical experts. On 24 April 2006, the Judge for the Preliminary Investigation of the Court of Monza issued a judgement stating that the court did not have territorial jurisdiction for the case and requested that the acts be sent to the Public Prosecutor with the Court of Milan. The Public Prosecutor with the Court of Monza appealed against this judgement with the Supreme Court: the related hearing was fixed for 23 April 2007. The Supreme Court rejected the appeal made by the Monza Public Prosecutor and confirmed the Milan court’s jurisdiction to hear the case. In July 2006, the Judge for the Preliminary Hearing at the Court of Milan communicated the date for the new preliminary hearing which was held on 20 October 2006. During the hearing of 12 January 2007, the Judge denied the jurisdictional pleas. On 21 February 2007, the Judge for the Preliminary Hearing of Milan ruled during the related hearing that the former chairman of the board of directors and former managing director of Impregilo should be committed for trial for all the alleged crimes charged to them and also Impregilo S.p.A. and Imprepar in liquidation pursuant to Legislative decree no. 231/01. The Court of Milan ruled on a preliminary basis in the hearing of 12 July 2007 “the invalidity of the ruling issued by the Judge for the Preliminary Hearing at the Court of Milan on 21 February 2007 in the hearing pursuant to article 416 of the Criminal Procedural Code”, accepting the related exceptions that the defence counsel of the defendants and companies involved in the case had raised since the preliminary hearing. Thus, the Court ordered that the acts were to be returned to the Milan Public Prosecutor’s office. Accordingly, the latter will have to communicate the finalisation of the investigation and request that a date be set for a new preliminary hearing. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Judicial investigations – Court of Naples Reference should be made to the section on “Non-current assets classified as held for sale and discontinued operations - USW Campania projects” for details on the events that have taken place with respect to the USW Campania projects.

Related party transactions Note 16 to the condensed interim consolidated financial statements describes the related party transactions (and amounts) as defined by IAS 24.

Consob resolution no. 16530 of 25 June 2008 Impregilo S.p.A. has complied with the new article 36 of the regulation which implemented Legislative decree no. 58 of 24 February 1998, implemented by this Consob resolution, in terms of procedures and availability of information.

Alternative performance indicators As required by Consob communication no. 6064293 of 28 July 2006, details of the performance ratios used in this report and in the group’s institutional communications are given below. 67

Financial ratios: Debt/equity ratio: this ratio shows net financial position (shown with a minus sign when negative, ie, net financial indebtedness) as the numerator and equity as the denominator. The balance sheet captions making up the financial position are given in the related schedules and highlighted with an asterisk (*). The equity captions are those included in the relevant section of the balance sheet. Equity used for this ratio also includes that attributed to minority interests.

Performance ratios: 1. EBITDA or Gross operating profit: this ratio shows the sum of the following captions included in the income statement: a. Total Revenue b Total costs, less amortisation and depreciation. The breakdown of the caption “Amortisation, depreciation, provisions and impairment losses” of the income statement is given in the notes. This ratio can also be shown as a percentage of EBITDA to total revenue. 2. EBIT or Operating profit: the operating profit given in the income statement, being the sum of total revenue and total costs. 3. Return on sales or R.o.S.: given as a percentage, shows the ratio of EBIT (as calculated above) to total revenue.

On behalf of the Board of Directors

Chairman

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 CONDENSED INTERIM CONSOLIDATED 69 FINANCIAL STATEMENTS AS AT AND FOR THE SIX MONTHS ENDED 30 JUNE 2008

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

CONSOLIDATED BALANCE SHEET (Euro/000) 30 June 2007 ASSETS Note 30 June 2008 31 December 2007 Non-current assets 147,427 Property, plant and equipment 1.1 151,149 154,904 189,308 Freely transferable assets 1.2 254,249 187,222 55,573 Intangible assets 1.3 51,518 52,999 58,890 Goodwill 1.4 58,890 58,890 101,168 Investments 1.5 39,410 41,472 118 Non-current financial assets (*) 9.1 25,210 115 13,316 Non-current receivables due from associates 5 18,896 19,210 71,952 Other non-current assets 5 68,181 64,084 97,253 Deferred tax assets 6-14 66,935 74,893 735,005 Total non-current assets 734,438 653,789 Current assets 73,392 Inventories 7.1 60,241 59,459 319,558 Contract work in progress 7.2 593,875 472,159 70 945,250 Trade receivables 7.4 771,529 866,159 - of which: related parties 16 426 823 152,253 Current receivables due from associates 7.6 162,626 157,205 104,607 Derivatives and other current financial assets (*) 9.2 - 9.3 122,214 103,150 264,537 Current tax receivables 6.1 259,298 261,744 243,397 Other current assets 7.7 372,499 295,511 - of which: related parties 16 39,400 - 851,536 Cash and cash equivalents (*) 9.4 997,360 875,627 2,954,530 Total current assets 3,339,642 3,091,014 402,097 Non-current assets classified as held for sale 2 395,226 442,789 4,091,632 Total assets 4,469,306 4,187,592

(*) Items included in net financial position WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 (Euro/000) 30 June 2007 EQUITY AND LIABILITIES Note 30 June 2008 31 December 2007 Equity 716,614 Share capital 718,364 716,614 13,310 Share premium reserve 1,222 13,310 31,325 Other reserves 5,333 14,185 (103,476) Losses carried forward (51,918) (103,476) 5,315 Profit for the period/year 149,660 40,759 663,088 Total equity attributable to the shareholders of the parent 822,661 681,392 (5,102) Minority interests (7,081) (5,197) 657,986 Total equity 8 815,580 676,195 Non-current liabilities 490,227 Bank and other loans (*) 9.5 356,257 353,256 61,721 Bonds (*) 9.6 69,844 64,049 667 Finance lease payables (*) 9.7 - 219 39,187 Post-employment benefits 4 32,623 36,417 71 265 Non-current payables to associates 5 - - 14,485 Deferred tax liabilities 6-14 14,356 10,706 198,931 Provisions for risks and charges 3 189,058 198,538 22,529 Other non-current liabilities 5 14,506 21,921 828,012 Total non-current liabilities 676,644 685,106 Current liabilities 453,813 Bank overdrafts and current portion of loans (*) 9.5 770,135 608,235 4,297 Current portion of bonds (*) 9.6 2,252 3,144 1,809 Current portion of finance lease payables (*) 9.7 130 765 2,017 Derivatives (*) 9.2 3,537 2,935 828,587 Advances on contract work in progress 7.3 695,788 776,588 871,726 Trade payables 7.5 1,070,256 1,000,515 30,328 of which: related parties 16 12,584 27,878 72,928 Current payables to associates 7.6 84,497 88,764 76,293 Current tax liabilities 6.2 49,722 54,117 293,197 Other current liabilities 7.8 300,765 291,228 17,667 of which: related parties 16 17,667 17,667 2,604,667 Total current liabilities 2,977,082 2,826,291 Liabilities directly associated with assets 967 classified as held for sale 2 - - 4,091,632 Total equity and liabilities 4,469,306 4,187,592

(*) Items included in net financial position.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

CONSOLIDATED INCOME STATEMENT (Euro/000) Note 1st half 2008 1st half 2007 Revenue Revenue 11 1,290,954 1,237,804 Other revenue 11 31,251 44,940 Total revenue 1,322,205 1,282,744 Costs Raw materials and consumables 12.1 (373,409) (273,369) Subcontracts 12.2 (279,230) (317,153) Other operating expenses 12.3 (381,027) (396,562) Personnel expenses 12.4 (161,923) (171,158) Amortisation, depreciation, provisions and impairment losses 12.5 (29,624) (73,789) of which: provision for USW Campania projects 17 - (50,000) of which: related parties (*) 16 (7,616) (33,372) Total costs (1,225,213) (1,232,031) Operating profit 96,992 50,713 72 Net financing income (costs) and gains (losses) on investments Financial income 13.1 33,836 37,144 Financial expense 13.2 (60,480) (53,203) Net exchange rate losses 13.3 (4,284) (2,421) Net financing costs (30,928) (18,480) Net gains on investments 13.4 68,726 12,738 Net financing costs and gains on investments 37,798 (5,742) Profit before tax 134,790 44,971 Income tax 14 (27,916) (39,139) Profit from continuing operations 106,874 5,832 Profits (losses) from discontinued operations 15 40,635 (691) of which: related parties 16 40,635 - Profit for the period/year 147,509 5,141 Minority interests 8 2,151 174 Profit attributable to the shareholders of the parent 149,660 5,315 Earnings per share 19 From continuing and discontinued operations Basic 0.37 0.01 Diluted 0.37 0.01 From continuing operations Basic 0.27 0.01 Diluted 0.27 0.01

(*) Related to subocontracts and other operating expenses WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 CONSOLIDATED CASH FLOW STATEMENT (Euro/000) Note 1st half 2008 1st half 2007 Cash and cash equivalents 9.4 875,627 918,513 Current account facilities 9.5 (91,426) (88,867) Total cash and cash equivalents at the beginnning of the period 784,201 829,646 Operating activities Profit for the period 147,509 5,141 of which: profits (losses) from discontinued operations 40,635 (691) Amortisation 12.5 1,773 2,746 Depreciation 12.5 29,423 29,404 Net impairment losses and provisions 12.5 (1,587) 43,171 Accrual for post-employment benefits 12.4 9,435 5,464 Net gains on the sale of assets 11-12.3-13.4 (73,296) (13,019) Deferred taxes 14 11,584 7,695 Share of profit or loss of associates 1.5 (982) (4,909) Other non-monetary items 28,019 (3,860) Total income statement 151,878 71,833 Decrease (increase) in inventories (121,760) 89,930 Decrease (increase) in trade receivables 90,893 (98,432) 73 (Decrease) increase in advances from customers (80,800) 62,534 (Decrease) increase in trade payables 67,556 (47,337) (Decrease) increase in other assets and liabilities (98,103) (72,424) of which: relating to related parties 16 (23,335) (28,929) Total operarating cash flows (142,214) (65,729) Cash flows from operating activities 9,664 6,104 Investing activities Net investments in intangible assets 13 (289) (746) Investments in property, plant and equipment and freely transferable assets 1.1-1.2 (96,222) (75,662) of which: relating to assets classified as held for sale (USW Campania projects) 2 (5,566) (37,947) Proceeds from the sale of or reimbursement value of property, plant and equipment 10,866 10,612 Investments in non-current financial assets 1.5 (1,006) - Dividends and capital repayments from associates 1.5 2,090 - Proceeds from the sale of or reimbursement value of non-current financial assets 104,039 1,095 of which: relating to related parties - - Cash flows from (used in) investing activities 19,478 (64,701) Financing activities Share capital increase 8 2,972 12,938 Increase in bank and other loans 9 126,767 211,062 Repayment of bank and other loans 9 (32,598) (261,586) Change in other financial assets/liabilities (44,518) (10,602) of which: relating to assets classified as held for sale - - Cash flows from (used in) financing activities 52,623 (48,188) Change in consolidation scope 2,345 13,776 Exchange rate gains (losses) on cash and cash equivalents (1,855) 358 Increase (decrease) in cash and cash equivalents 82,255 (92,651) Cash and cash equivalents 9.4 997,360 851,547 Current account facilities 9.5 (130,904) (114,552) Total cash and cash equivalents at the end of the period 866,456 736,995 Other information Income taxes paid during the period 10,152 1,934 Net interest paid during the period 40,116 22,213

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

Other reserves (Euro/000) Share Share Revaluation Legal Translation Stock capital premium reserve reserve reserve option reserve reserve

As at 31 December 2006 708,996 7,990 1,104 23,559 14,726 4,805 Share capital increase 7,618 5,320 - - - - Allocation of 2006 profit and reserves - - - 162 - - Assignment of stock options - - - - - 210 Fair value gains (losses) ------Minority interests in profit or loss ------Other changes including exchange rate gains or losses - - - - 8,014 - Profit for the period ------As at 30 June 2007 716,614 13,310 1,104 23,721 22,740 5,015

74 As at 31 December 2007 716,614 13,310 1,108 23,721 15,624 5,013 Share capital increase 1,750 1,222 - - - - Allocation of 2007 profit and reserves - (13,310) - (17,870) - (5,013) Assignment of stock options ------Fair value gains (losses) ------Minority interests in profit or loss ------Other changes including exchange rate gains or losses - - - - (10,008) - Profit for the period ------As at 30 June 2008 718,364 1,222 1,108 5,851 5,616 - WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Other reserves Hedging Fair value Consolidation Capital Total Retained Profit (loss) Equity Share capital TOTAL reserve reserve reserve increase other earnings for the attributable and reserves related reserves (losses) year/ to the attributable charges carried period shareholders to minority forward of the parent interests (116) - 1,375 (25,394) 20,059 (244,778) 141,464 633,731 (5,210) 628,521 ------12,938 - 12,938 - - - - 162 141,302 (141,464) ------210 - - 210 - 210 2,880 - - - 2,880 - - 2,880 - 2,880 ------(174) (174) - - - - 8,014 - - 8,014 282 8,296 ------5,315 5,315 - 5,315 2,764 - 1,375 (25,394) 31,325 (103,476) 5,315 663,088 (5,102) 657,986

(1,285) (5,977) 1,375 (25,394) 14,185 (103,476) 40,759 681,392 (5,197) 676,195 75 ------2,972 - 2,972 - - - 25,394 2,511 51,558 (40,759) ------107 (1,462) - - (1,355) - - (1,355) - (1,355) ------(2,151) (2,151) - - - - (10,008) - - (10,008) 267 (9,741) ------149,660 149,660 - 149,660 (1,178) (7,439) 1,375 - 5,333 (51,918) 149,660 822,661 (7,081) 815,580

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

SEGMENT REPORTING

Disclosures on the group’s performance by business segment are set out in the section on “Performance” in the directors’ report. The interim consolidated financial statements figures are summarised below by business segment.

Performance in the period by business segment

(Euro/m) Construction Engineering & Plant Const. Impregilo of which: Fisia Construction Revenue 738.7 738.7 468.1 Other revenue 22.4 22.4 5.6 Total revenue 761.1 761.1 473.7 Purchases, subcontracts and other operating expenses (555.5) (549.6) (439.1) Personnel expenses (118.4) (105.9) (32.5) Provisions and impairment losses 5.2 5.2 (2.6) Gross operating profit (EBITDA) (*) 92.4 110.8 (0.5) 12.1% 14.6% n.a Amortisation and depreciation (18.6) (18.6) (0.6) 76 Operating profit - (EBIT) (*) 73.8 92.2 (1.1) Return on sales (*) 9.7% 12.1% n.a Profits (losses) from discontinued operations

(*) The paragraph in the section on "Other information" of the directors' report gives a definition of these indicators.

Consolidated balance sheet as at 30 June 2008 by business segment:

(Euro/m) Impregilo Engineering & Plant Const. Fisia

Non-current assets, net 312.1 16.9 Goodwill (eliminated on consolidation) - 211.4 Total non-current assets 312.1 228.3 Assets (liabilities) classified as held for sale - - Provision for contingencies, post-employment benefits and other non-current assets (liabilities) (117.0) (11.5) Tax assets (liabilities) Working capital 22.0 (259.3) Intra-segment trade receivables (payables) (28.1) 255.5 Total working capital (6.1) (3.8) Net invested capital 189.0 213.0 Equity Net financial position Total financial resources Other information Increase in non-current assets 16.5 0.9 Increase in non-current assets classified as held for sale Amortisation and depreciation (18.6) (0.6) Impairment losses taken to income statement WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Concessions USW Campania Imprepar in Total consolidation Total projects liquidation adjustments Impregilo Intern. Infras. 81.0 - 4.5 (1.4) 1,290.9 2.5 0.1 2.2 (1.5) 31.3 83.5 0.1 6.7 (2.9) 1,322.2 (36.6) (1.5) (3.5) 2.5 (1,033.7) (10.9) (0.4) - 0.3 (161.9) - - (1.1) 0.1 1.6 36.0 (1.8) 2.1 - 128.2 43.1% n.a 31.3% 9.7% (11.6) (0.2) (0.2) - (31.2) 77 24.4 (2.0) 1.9 - 97.0 29.2% n.a 28.4% 7.3% 40.6 40.6

67.0 84.3 5.6 5.6 (11.6) (0.2) (0.2) (31.2) 0.1 0.1

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Consolidated income statement for the six months ended 30 June 2007 by business segment:

(Euro/m) Construction Engineering & Plant Const. Impregilo of which: Fisia Construction Revenue 763.4 763.4 399.8 Other revenue 37.1 37.1 4.4 Total revenue 800.5 800.5 404.2 Purchases, subcontracts and other operating expenses (604.3) (591.6) (345.3) Personnel expenses (128.2) (119.7) (33.4) Provisions and impairment losses (41.3) 8.7 (0.7) Gross operating profit (EBITDA) (*) 26.7 97.9 24.8 3.3% 12.2% 6.1% Amortisation and depreciation (22.0) (22.0) (1.0) Operating profit - (EBIT) (*) 4.7 75.9 23.8 Return on sales (*) 0.6% 9.5% 5.9% 78

(*) The paragraph in the section on "Other information" of the directors' report gives a definition of these indicators.

Consolidated balance sheet as at 31 December 2007 by business segment:

(Euro/m) Impregilo Engineering & Plant Const. Fisia

Non-current assets, net 313.0 16.9 Goodwill (eliminated on consolidation) - 211.4 Total non-current assets 313.0 228.3 Assets (liabilities) classified as held for sale - 1.9 Provision for contingencies, post-employment benefits and other non-current assets (liabilities) (163.5) (11.5) Tax assets (liabilities) Working capital (26.2) (293.5) Intra-segment trade receivables (payables) (31.3) 263.8 Total working capital (57.5) (29.7) Net invested capital 92.0 189.0 Equity Net financial position Total financial resources Other information Increase in non-current assets 60.6 2.0 Increase in non-current assets classified as held for sale Amortisation and depreciation (42.5) (2.0) Impairment losses taken to income statement WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Concessions USW Campania Imprepar in Total consolidation Total projects liquidation adjustments Impregilo Intern. Infras. 69.4 - 6.0 (0.8) 1,237.8 0.1 0.6 4.3 (1.6) 44.9 69.5 0.6 10.3 (2.4) 1,282.7 (27.8) (2.3) (9.6) 2.2 (987.1) (9.3) 0.1 (0.6) 0.2 (171.2) 0.2 - 0.2 - (41.6) 32.6 (1.6) 0.3 - 82.8 46.9% n.a 2.9% 6.5% (8.7) (0.1) (0.3) - (32.1) 23.9 (1.7) - - 50.7 34.4% n.a - 4.0% 79

Concessions USW Campania Imprepar in Total consolidation Total projects liquidation adjustments Impregilo Intern. Infras. 273.2 2.2 11.3 (121.1) 495.5 - - - (211.4) - 273.2 2.2 11.3 (332.5) 495.5 52.4 401.5 - (13.0) 442.8 (8.8) (31.7) 19.3 22.6 (173.6) 271.8 (8.0) (20.1) 27.0 14.2 (306.6) (1.5) (226.7) (4.3) - - (9.5) (246.8) 22.7 14.2 (306.6) 307.3 125.2 53.3 (308.7) 729.9 676.2 (53.7) 729.9

25.1 0.2 87.9 58.0 58.0 (18.0) (0.3) (0.4) (63.2) (0.4) (0.4)

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

PREPARATION CRITERIA Impregilo group has prepared its condensed interim consolidated financial statements at 30 June 2008 on a going concern basis and in line with the measurement criteria established by the International Financial Reporting Standards (IFRS). The format and content of these condensed interim consolidated financial statements comply with the disclosure requirements of IAS 34 “Interim Financial Reporting” and article 154-ter of the Consolidated Finance Act. The recognition and measurement criteria comply with those issued by the International Accounting Standards Board (IASB) and endorsed by the European Union as required by article 81 of the Issuer Regulation no. 11971, issued by Consob on 14 May 1999, and subsequent modifications and integrations. The condensed interim consolidated financial statements have been prepared using the historic cost principle except for derivative financial instruments and available-for-sale financial assets, which are recognised at fair value, and financial liabilities that are recognised at amortised cost. The carrying amount of assets and liabilities, hedged with transactions which qualify for hedge accounting is adjusted to reflect changes in fair value related to the hedged risks.

The accounting policies and measurement criteria adopted to draw up these condensed interim consolidated financial statements at 30 June 2008 are consistent with those used to prepare the 2007 annual consolidated financial statements.

80 The European Union endorsed IFRC 11 “IFRS 2 – Group and Treasury Share Transactions”, which the group shall apply from 1 January 2008. However, this interpretation did not have any impact on the group’s condensed interim financial statements at 30 June 2008.

Based on information that came to light after preparing the 2005 consolidated financial statements and in accordance with the group’s consultants, the group decided that the conditions for application of IFRS 5 “Non-current assets classified as held for sale and discontinued operations” continue to exist, as in the 2007 financial statements. Therefore, it has recognised the USW Campania project net assets and operations separately in the consolidated balance sheet and income statement.

Due to reasons outside Impregilo’s control, the period for completion of the sale has extended beyond the one year period allowed by IFRS 5. Despite this, the group’s commitment to finalising the sale as described in the directors’ report remains unchanged. Therefore, the directors have not deemed it necessary to change the accounting treatment of the assets in question as provided for in IFRS 5.9.

The group executed the agreement for the sale of its investment in the Brazilian associate Ponte de Pedra to Suez Energy Brazil S.A.. Execution of the transaction was subject to authorisation from the concession grantor, the national electricity agency (ANEEL), and the lending banks. The conditions precedent were met during the first half of 2008 and, hence, the sales arrangements were fully enforced. The transaction was therefore recognised in the condensed interim consolidated financial statements at 30 June 2008. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 BALANCE SHEET

Net invested capital

1. Net non-current assets Net non-current assets are as follows:

(Euro/000) Note 30 June 2008 31 December 2007 Change Property, plant and equipment 1.1 151,149 154,904 (3,755) Freely trasferable assets 1.2 254,249 187,222 67,027 Intangible assets 1.3 51,518 52,999 (1.481) Goodwill 1.4 58,890 58,890 - Investments 1.5 39,410 41,472 (2,062) Total 555,216 495,487 59,729

1.1 Property, plant and equipment 81 Property, plant and equipment amount to euro 151.1 million, down from the 31 December 2007 figure of euro 3.8 million. The gross and net carrying amounts are given in the following table:

(Euro/000) 30 June 2008 31 December 2007 Cost Acc. Net carrying Cost Acc. Net carrying depreciation amount depreciation amount Land 3,348 - 3,348 3,907 - 3,907 Buildings 16,688 (2,437) 14,251 15,927 (1,809) 14,118 Plant and machinery 199,657 (109,301) 90,356 212,355 (118,158) 94,197 Industrial and commercial equipment 41,888 (34,216) 7,672 46,411 (39,061) 7,350 Other assets 94,596 (63,014) 31,582 100,212 (65,663) 34,549 Assets under constr. and payments on account 3,940 - 3,940 783 - 783 Total 360,117 (208,968) 151,149 379,595 (224,691) 154,904

Changes during the period are summarised below:

(Euro/000) 31 December Increases DepreciationReclassifications Disposals Exchange 30 June 2007 rate gains 2008 (losses) Land 3,907 - - (2) (621) 64 3,348 Buildings 14,118 - (187) 228 (63) 155 14,251 Plant and machinery 94,197 12,288 (12,051) (259) (3,391) (428) 90,356 Industrial and commercial equipment 7,350 2,078 (1,721) 372 (353) (54) 7,672 Other assets 34,549 3,045 (4,887) (148) (644) (333) 31,582 Assets under constr. and payments on account 783 3,125 - - - 32 3,940 Total 154,904 20,536 (18,846) 191 (5,072) (564) 151,149

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

The most significant changes include: • increases of euro 20.5 million, mainly due to investments made for the foreign contracts of the Construction segment; • depreciation for the period of euro 18.8 million; • disposals of euro 5.1 million, euro 4.7 million of which relating to the disposal of assets related to contracts of the Construction segment being wound up. No items of property, plant and equipment were revalued or impaired during the six months.

1.2 Freely transferable assets Freely transferable assets increased euro 67.0 million to euro 254.2 million compared to 31 December 2007. The gross and net carrying amounts are given in the following table:

(Euro/000) 30 June 2008 31 December 2007 Cost Acc. Net carrying Cost Acc. Net carrying 82 depreciation amount depreciation amount Freely transferable assets 390,318 (136,069) 254,249 298,643 (111,421) 187,222

The change for the period principally relates to the Brazilian company Primav Ecorodovias, which has recognised, on a preliminary basis as allowed by IFRS 3, the difference between the price paid in February 2008 for the acquisition of the concession company Rodovias das Cataratas and the fair value of the acquired assets and liabilities. The process will be finalised upon completion of the assessment which is currently being carried out. Changes of the period are detailed in the following table:

(Euro/000) 31 December Increases Depreciation Other Exchange Change in 30 June 2007 revaluations/ rate gains consolidation 2008 impairment (losses) scope losses Caminos de Las Sierras 14,170 77 (513) 76 (467) - 13,343 Parking Glasgow 12,783 - (218) - (947) - 11,618 Parcheggio Arezzo 10,154 - (203) - - - 9,951 Mercovia - Argentina 2,210 - (68) - (61) - 2,081 Primav Ecorodovias - Brazil 147,905 63,410 (9,575) - 4,245 11,271 217,256 Total 187,222 63,487 (10,577) 76 2,770 11,271 254,249

The carrying amount of assets under concession held by the Argentine company Caminos de Las Sierras is shown net of impairment losses recognised in 2005 and 2006 in accordance with IAS 36. Based on management estimates, past experience and forecasts, no significant evidence arose during the six months such that would require the assessments made at 31 December 2007 to be revised, despite the request for termination of the concession contract due to default of the grantor. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 1.3 Intangible assets Intangible assets amount to euro 51.5 million, slightly down from the 31 December 2007 figure. The gross and net carrying amounts are given in the following table:

(Euro/000) 30 June 2008 31 December 2007 Cost Acc. Net carrying Cost Acc. Net carrying amortisation amount amortisation amount Industrial patents 891 (842) 49 394 (341) 53 Software 1,486 (972) 514 1,442 (1,108) 334 Contract acquisition costs 107,018 (56,223) 50,795 107,018 (54,598) 52,420 Other 2,963 (2,803) 160 2,954 (2,762) 192 Total 112,358 (60,840) 51,518 111,808 (58,809) 52,999

Changes during the period are set out below:

83 (Euro/000) 31 December Increases Amortisation Exchange rate 30 June 2007 gains (losses) 2008 Industrial patents 53 - (4) - 49 Software 334 280 (103) 3 514 Contract acquisition costs 52,420 - (1,625) - 50,795 Other 192 9 (41) - 160 Total 52,999 289 (1,773) 3 51,518

Contract acquisition costs include considerations paid by the parent to purchase the railway high speed/capacity business units in previous years. These assets have a finite life and are amortised in line with the stage of completion of the related contracts. The balance is as follows:

(Euro/000) 31 December 2007 Amortisation 30 June 2008 Cavet (Florence - Bologna railway line) 517 (144) 373 Cavtomi (Turin - Milan railway line) 5,429 (1,481) 3,948 Cociv (Milan-Genoa railway line) 46,474 - 46,474 Total 52,420 (1,625) 50,795

Amortisation of the contract acquisition costs for the high speed business units is calculated using the stage of completion method of the contracts based on the cost to cost method and considering the related purchase dates. Amortisation of the acquisition costs for the Milan-Genoa railway line has not yet started as the related works have not commenced. Assets recognised at period end are deemed to be recoverable either through the arbitration proceeding for the contractual non-compliance of the customer or commencement of the related works. Reference should be made to the second part of the directors’ report for more information on the specific position of the Cociv consortium.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

1.4 Goodwill Goodwill amounts to euro 58.9 million, substantially unchanged from 31 December 2007. There was no evidence to suggest that such goodwill could have been impaired during the period and, therefore, the impairment tests, slated for performance once a year, were not updated.

1.5 Investments Investments in associates and other companies decreased euro 0.6 million to euro 24.4 million. Available-for-sale financial assets amount to euro 15.0 million, down euro 1.5 million from 31 December 2007.

(Euro/000) 30 June 2008 31 December 2007 Change Investments in associates and other companies 24,366 24,966 (600) Available-for-sale financial assets 15,044 16,506 (1,462) Total 39,410 41,472 (2,062)

84 The group’s share of profit or loss of equity-accounted investees totals euro 1.4 million. Taking into account the figures shown in note 3, detailing the changes in the provision for risks on investments, the overall amount decreases to euro 1.0 million. This is described in note 13.4. The key figures of equity-accounted investees are set out below:

(Euro) IFRS Segment Investee Country Business % Equity Total Net Equity Revenue Profit (local gaap) assets financial position Concessions Cons. Agua Azul S.A. Peru Water 25,50% 4,582,964 9,066,907 (3,286,122) 4,582,609 985,739 174,523 Concessions Impregilo Wolverhampton Ltd. Great Britain Hospitals 20.00% (685,615) 4,621,892 (2,860,924) (685,615) 476,250 80,906 Concessions Enecor S.A. Argentina Energy 30.00% 1,023,162 1,162,596 870,038 1,023,162 123,542 9,378 Concessions Yacylec S.A. Argentina Energy 18.67% 2,384,685 2,565,836 235,726 2,384,685 1,445,235 668,159 Construction Coincar Argentina Concessions 35.00% 3,614,342 8,350,487 (4,638,318) 3,614,342 509,226 116,764

No significant events occurred during the six months with reference to the Argentine associates Puentes de Litoral and Aguas del Gran Buenos Aires such as to require revision of the assessments made in previous years, which are described in the notes to the 2007 annual financial statements. Information on the term of the concession agreements is set out in the directors’ report, in the section on the relevant business segment. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 “Available-for-sale financial assets” relate to the investment in the listed company Mediterranea delle Acque which is measured at fair value at euro 15.0 million (euro 16.5 million at 31 December 2007). The euro 1.5 million loss has been recognised in the related equity reserve. The June 2008 average market price has been used to calculate the fair value of this asset.

2. Assets (liabilities) classified as held for sale Net non-current assets classified as held for sale may be analysed as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Non-current assets classified as held for sale 395,226 442,789 (47,563) Assets (liabilities) classified as held for sale 395,226 442,789 (47,563)

The following table summarises the assets and liabilities classified as held for sale:

30 June 2008 31 December 2007 85 USW Total USW Ponte de Pedra Total Change (Euro/000) Campania proj. Campania proj. Assets classified as held for sale Non-current assets 395,226 395,226 389,660 - 389,660 5,566 Equity investments - - 52,428 52,428 (52,428) Current assets - - 701 - 701 (701) Cash and cash equivalents ------Total assets classified as held for sale 395,226 395,226 390,361 52,428 442,789 (47,563) Total net assets classified as held for sale 395,226 395,226 390,361 52,428 442,789 (47,563)

Changes during the period in assets held for sale are summarised below:

(Euro/000) 31 December 2007 Increase Decrease 30 June 2008 USW Campania projects 389,660 5,566 - 395,226 Investments in Ponte de Pedra 52,428 - (52,428) - Total 442,088 5,566 (52,428) 395,226

The increase in the USW Campania projects is due to continuation of works at the Acerra waste-to-energy plant. During the period, the group executed the sale of the investment in the Brazilian concession company Ponte de Pedra S.A., which had already been classified as held for sale at 31 December 2007 as required by IFRS 5. The net consideration of euro 109.0 million led to a gain for the Group of euro 67.5 million, which has been recognised in profit or loss under “Gains (losses) on investments”. The consideration was collected during the period, except for a residual euro 5.4 million, which was cashed after period end.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

3. Provisions for risks and charges The provisions for risks and charges amount to euro 189.1 million at period end, as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Provisions for risks on investments 11,500 11,020 480 Other provisions 177,558 187,518 (9,960) Total 189,058 198,538 (9,480)

The provisions for risks on investments relate to expected impairment losses on investments in associates for the part that exceeds their carrying amount. Changes in these provisions are detailed below:

Share of profit or loss of equity-accounted investees 450 Other changes, including change in translation reserve 30 Total changes 480

86 Other provisions are comprised as follows:

(Euro/000) 30 June 2008 31 December 2007 Change USW Campania projects 86,375 85,958 417 Provisions set up by Imprepar and its subsidiaries 24,471 27,679 (3,208) Contract completion losses 15,758 16,268 (510) Ongoing litigation 23,606 30,654 (7,048) Building and Services segment litigation 14,236 16,429 (2,193) Environmental risks 2,939 1,344 1,595 Other 10,173 9,186 987 Total 177,558 187,518 (9,960)

The euro 10 million decrease over 31 December 2007 is summarised in the following table:

(Euro/000) 31 December Accrual Utilisation Change in Exchange Other 30 June 2007 consolidation rate gains changes 2008 scope (losses) Total other provisions 187,518 4,799 (14,956) 460 (534) 271 177,558

Changes of the period comprise: (i) accruals of euro 4.8 million including euro 1.8 million relating to Imprepar and euro 2.6 million to the Engineering & Plant Construction segment; (ii) utilisations of euro 15.0 million, including euro 7.3 million used against the risks for which they had been accrued and euro 7.6 million for accruals made in excess in previous years. This item mainly relates to contracts of the Construction segment (euro 9.7 million) and ongoing litigation on old contracts of Imprepar (euro 4.7 million). WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The provisions for the USW Campania projects principally include the estimated costs for environmental clean-up to be borne by group companies and a prudent estimate of the risks relating to pending litigation based on information currently available. Reference should be made to the relevant section of the directors’ report for additional information. The provisions set up by Imprepar and its subsidiaries include accruals made for probable future charges related to the closing of contracts and effects of ongoing litigation. The provision for ongoing litigation refers to disputes involving Impregilo and certain of its subsidiaries. The provision for environmental risks, set up by FISIA Italimpianti and FISIA Babcock, mainly relates to the management of the Fossano landfill for future charges related to the closing and post-closing activities. “Other” comprises accruals for sundry litigation, including of a tax nature, relating to both Italian and foreign investments.

4. Post-employment benefits At 30 June 2008, the group’s liability due to all its employees determined using the criteria set out in IAS 19 is euro 32.6 million. An independent actuary performed the actuarial valuation of the provision. 87

Changes in the provision are as follows:

(Euro/000) 31 December Accrual Payments Contributions paid 30 June 2007 to INPS treasury 2008 and other funds Post-employment benefits 36,417 9,435 (4,478) (8,751) 32,623

The actuarial valuation was based on the following rates: - turnover rate 8%; - discount rate 4.5%; - advance payment rate 2%; - inflation rate 2%.

5. Other non-current assets (liabilities) Other non-current assets and liabilities include:

(Euro/000) 30 June 2008 31 December 2007 Change Non-current receivables due from associates 18,896 19,210 (314) Other non-current assets 68,181 64,084 4,097 Other non-current liabilities (14,506) (21,921) 7,415 Total 72,571 61,373 11,198

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Non-current receivables due from associates at period end (euro 18.9 million) are substantially in line with the previous period. They relate to amounts due from associates, including the English Ochre Holding (Concessions segment) of euro 7.6 million, the Swiss consortium CMC 851 (Construction segment) of euro 3.9 million and the joint venture Iris Terna (in which Impregilo holds an investment through its Greek branch) of euro 3.7 million. Other non-current assets amount to euro 68.2 million, up euro 4.1 million on the 31 December 2007 balance. The item mainly consists of financial and other receivables of the Imprepar segment as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Imprepar 55,596 55,596 - Caminos 2,858 3,019 (161) Primav 1,905 1,186 719 Vegas Tunnel 2,762 - 2,762 Other 5,060 4,283 777 Total 68,181 64,084 4,097

88 The balance relating to Imprepar includes work in progress, receivables from customers and other receivables which should be collected after one year based on the liquidation plan. The items relate to both Italian and foreign customers. The main change compared to the 2007 year end relates to guarantee deposits paid to insurance companies for the joint venture Vegas Tunnel. Other non-current liabilities amount to euro 14.5 million, down euro 7.4 million on 31 December 2007 balance, as shown in the following table:

(Euro/000) 30 June 2008 31 December 2007 Change Other non-current payables to third parties 10,525 18,139 (7,614) Financial payables to third parties 509 511 (2) Payables to employees 1,103 894 209 Payables to state bodies 2,369 2,377 (8) Total 14,506 21,921 (7,415)

The other non-current payables to third parties of euro 10.5 million mainly relate to the payable due by Primav Ecorodovias group companies to the concession grantors.

6. Net tax assets Net tax assets total euro 262.2 million at 30 June 2008, down euro 9.7 million on 31 December 2007, as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Deferred tax assets 66,935 74,893 (7,958) Current tax assets 259,298 261,744 (2,446) Deferred tax liabilities (14,356) (10,706) (3,650) Current tax liabilities (49,722) (54,117) 4,395 Total 262,155 271,814 (9,659) WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Deferred tax assets, net of deferred tax liabilities when offsetting is permitted, total euro 66.9 million, down euro 8.0 million on 31 December 2007. Deferred tax liabilities amount to euro 14.4 million, up euro 3.6 million on the previous year end. Details on the related changes are given in note 14.

Current tax assets decreased by euro 2.4 million to euro 259.3 million at 30 June 2008 as follows:

(Euro/000) 30 June 2008 31 December 2007 Change VAT 130,438 130,654 (216) Other Italian indirect taxes 1,944 1,947 (3) Foreign indirect taxes 9,060 3,696 5,364 Direct taxes 83,603 72,549 11,054 IRAP 4,437 4,877 (440) Other Italian direct taxes 247 14,783 (14,536) Foreign direct taxes 14,266 18,400 (4,134) Tax credits and withholdings 15,029 14,482 547 89 Other 274 356 (82) Total 259,298 261,744 (2,446)

Impregilo group factored part of its VAT and IRPEG receivables with recourse to leading factoring companies. The factored amount totalled euro 101.4 million (including VAT and IREPG receivables of euro 61.3 million and euro 40.1 million, respectively).

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Current tax liabilities of euro 49.7 million decreased euro 4.4 million over 31 December 2007. They may be analysed as follows:

(Euro/000) 30 June 2008 31 December 2007 Change IRES 16,064 2,364 13,700 IRAP 3,600 3,462 138 Foreign taxes 10,393 32,172 (21,779) Withholdings 379 884 (505) VAT 12,025 7,720 4,305 Foreign indirect taxes 655 651 4 Withholdings applied in Italy 4,397 5,224 (827) Other 2,209 1,640 569 Total 49,722 54,117 (4,395)

90 7. Working capital The working capital at 30 June 2008 is negative by euro 190.5 million (31 December 2007: euro 306.6 million) and is made up as follows:

(Euro/000) Note 30 June 2008 31 December 2007 Change Inventories 7.1 60,241 59,459 782 Contract work in progress 7.2 593,875 472,159 121,716 Advances on contract work in progress 7.3 (695,788) (776,588) 80,800 Trade receivables 7.4 771,529 866,159 (94,630) Trade payables 7.5 (1,070,256) (1,000,515) (69,741) Net receivables due from associates 7.6 78,129 68,441 9,688 Other current assets 7.7 372,499 295,511 76,988 Other current liabilities 7.8 (300,765) (291,228) (9,537) Total (190,536) (306,602) 116,066

7.1 Inventories Inventories amount to euro 60.2 million at 30 June 2008, as shown in the following table:

30 June 2008 31 December 2007 (Euro/000) Gross carrying Provision Net carrying Gross carrying Provision Net carrying Change amount amount amount amount Real estate projects 21,789 (7,772) 14,017 21,800 (7,772) 14,028 (11) Finished products and goods 4,761 - 4,761 4,914 - 4,914 (153) Raw materials, consumables and supplies 40,907 (401) 40,506 40,842 (428) 40,414 92 Work in progress and semi-finished products 957 - 957 103 - 103 854 Total 68,414 (8,173) 60,241 67,659 (8,200) 59,459 782 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 7.1.1 Real estate projects Real estate projects amount to euro 14.0 million, substantially unchanged from 31 December 2007. The period-end balance mainly relates to the real estate project of euro 11.5 million (net of the related provision of euro 7.8 million) for the construction of a factory outlet. This project has been delayed since the relevant municipality has not yet implemented the measures necessary to start the works, as mentioned in the notes to the 2007 consolidated financial statements.

7.1.2 Finished products and goods and raw materials, consumables and supplies The net balance of these items total euro 4.8 million and euro 40.5 million, respectively, and mainly relates to goods to be used for the railway high speed/capacity contracts in Italy and for a number of foreign contracts, including those in Iceland, Nigeria and Venezuela.

7.2 Contract work in progress Current assets include contract work in progress which totals euro 593.9 million at 30 June 2008, up by euro 121.7 million on the 31 December 2007 balance. The following table shows contracts in progress calculated using the stage of completion method net of losses realised or estimated at the reporting date and progress billings: 91

(Euro/000) 30 June 2008 31 December 2007 Change Contract work in progress 7,372,008 8,874,223 (1,502,215) Advances received (on approved work) (6,778,133) (8,402,064) 1,623,931 Total 593,875 472,159 121,716

The key contracts making up contract work in progress at period end are summarised below:

Contract work in progress (Euro/000) 30 June 2008 31 December 2007 Change High speed/capacity 94,100 102,360 (8,260) Iceland 15,162 32,173 (17,011) Venezuela 136,892 59,200 77,692 Salerno - Reggio Calabria 41,916 28,067 13,849 Engineering & Plant Construction 232,674 172,689 59,985 Imprepar 19,712 16,186 3,526 Other 53,419 61,484 (8,065) Total 593,875 472,159 121,716

The contribution to work performed on the most significant contracts during the six months is set out below:

(Euro/000) Work performed during the period High speed/capacity 285,560 Iceland 35,453 Venezuela 104,370 Salerno - Reggio Calabria 60,459 Engineering & Plant Construction 399,408

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

7.3 Advances on contract work in progress The item “Advances on contract work in progress” included in “Current liabilities” amounts to euro 695.8 million, down by euro 80.8 million on the figure at 31 December 2007. It comprises:

(Euro/000) 30 June 2008 31 December 2007 Change Contract work in progress (5,340,028) (5,564,353) 224,325 Advances received (on approved work) 5,701,061 5,973,677 (272,616) Contractual advances 334,755 367,264 (32,509) Total 695,788 776,588 (80,800)

Contract work in progress recognised under liabilities (negative WIP) is the negative net balance, for each contract, of work performed to date, the provision for contractual risks and progress billings.

The following table shows the contribution by contract: 92

30 June 2008 31 December 2007 (Euro/000) Negative WIP Advances Total Negative WIP Advances Total High speed/capacity 122,573 138,754 261,327 191,800 159,519 351,319 Vegas Tunnel 25,236 - 25,236 - - - Venezuela 6,164 51,352 57,516 6,694 47,437 54,131 Engineering & Plant Construction 180,676 95,881 276,557 194,563 109,099 303,662 Imprepar 192 6,234 6,426 192 6,306 6,498 Other 26,192 42,534 68,726 16,075 44,903 60,978 Total 361,033 334,755 695,788 409,324 367,264 776,588

“Other” mainly includes the negative WIP and advances relating to Ecuadorian and Nigerian contracts, as well as certain Italian direct contracts.

7.4 Trade receivables At 30 June 2008, trade receivables show a net decrease of euro 94.6 million at euro 771.5 million. They may be broken down as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Trade receivables 879,303 975,450 (96,147) Provision for bad debts (107,774) (109,291) 1,517 Total 771,529 866,159 (94,630)

The balance relates to amounts due from customers for invoices issued and for work performed and approved by customers but still to be invoiced. The decrease is due to collections by the Construction (euro 56.3 million) and Engineering & Plant Construction (euro 39.4 million) segments. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The provision for bad debts decreased by euro 1.5 million to euro 107.8 million during the period, as follows:

(Euro/000) 31 December Accrual Utilisation Change in Exchange 30 June 2007 consolidation rate gains 2008 scope (losses) Provision for bad debts 49,129 1,467 (216) (2,314) (501) 47,565 Provision for default interest 60,162 47 - - - 60,209 Total 109,291 1,514 (216) (2,314) (501) 107,774

7.5 Trade payables Trade payables amount to euro 1,070.3 million at period end, with an increase of euro 69.7 million on 31 December 2007. They are made up as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Trade payables 1,070,256 1,000,515 69,741 93

The main item of the trade payables consists of euro 459.7 million due to suppliers of the Construction segment, which rose euro 39.0 million over the previous year end, and euro 437.5 million due to those of the Engineering & Plant Construction segment, up by euro 50.0 million.

7.6 Net receivables due from associates The net intragroup balance at period end is a positive euro 78.1 million, up by euro 9.7 million over 31 December 2007. It is analysed in the following table:

(Euro/000) 30 June 2008 31 December 2007 Change Receivables 162,626 157,205 5,421 Payables (84,497) (88,764) 4,267 Net balance 78,129 68,441 9,688

This item mainly relates to trading and financial relationships among equity-accounted investees.

7.7 Other current assets Other assets of euro 372.5 million show an increase of euro 77.0 million on the previous year end and may be analysed as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Financial receivables 53,744 12,750 40,994 Advances to suppliers 150,424 143,621 6,803 Other receivables 112,375 110,294 2,081 Prepayments and accrued income 55,956 28,846 27,110 Total 372,499 295,511 76,988

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Financial receivables amount to euro 53.7 million, showing a euro 41.0 million rise on 31 December 2007, mainly due to the recognition of the assets arising from the valuation of financial items covered by the contract signed in 2006 in connection with the sale by Impregilo International Infrastructures of the Chilean concession company Costanera Norte S.A. which were to be measured after the sale. Such items related to: a) measurement of the deferred price for attainment of results better than those included in the 2006-2009 business plan used for the sale. This component amounts to euro 8.2 million, net of the related tax effect. At the sale date, only the certain, identifiable consideration had been determined as a minimum guaranteed euro 2.5 million. The positive euro 5.7 million difference was, therefore, recognised entirely in these six months on the basis of the concession company’s actual 2006 and 2007 results and forecast 2008 and 2009 results, the latter identified in advance based on an appraisal carried out by an independent third party in July 2008; b) measurement of the right to subscribe 10% of the buyer’s share capital at its nominal amount, which was estimated at euro 34.9 million by an independent expert in July 2008. Since they had already been provided for in the contract for the sale of the investment in the Chilean concession company, such amounts have been recognised in accordance with IFRS 5, in line with the methods used upon the sale. Advances to suppliers rose euro 6.8 million over 31 December 2007 mainly due to the Engineering & Plant Construction segment’s start of new contracts, net of the decrease of the Construction segment. A breakdown by segment is set out in the following table: 94 (Euro/000) 30 June 2008 31 December 2007 Change Construction 42,769 46,620 (3,851) Engineering & Plant Construction 106,235 96,319 9,916 Concessions 1,158 594 564 FIBE 75 - 75 Imprepar 187 88 99 Total 150,424 143,621 6,803

Other receivables amount to euro 112.4 million, up euro 2.1 million on the 2007 year end. The increase is due to amounts due from partners in consortia and joint ventures. Prepayments and accrued income of euro 56.0 million show an increase of euro 27.1 million on 31 December 2007. The rise is mainly due to commissions on sureties and other costs related to the Vega Tunnel and Venezuelan contracts which will be recognised in profit or loss in future periods based on the stage of completion of the related contracts. They are broken down in the following table:

(Euro/000) 30 June 2008 31 December 2007 Change Accrued income: - Other 4,916 296 4,620 Total accrued income 4,916 296 4,620 Prepayments: - Insurance 19,835 11,596 8,239 - Commissions on sureties 20,108 4,226 15,882 - Leases 121 671 (550) - Costs recognised in line with stage of completion of contracts 10,976 8,423 2,553 - Other - 3,634 (3,634) Total prepayments 51,040 28,550 22,490 Total 55,956 28,846 27,110 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 7.8 Other current liabilities Other current liabilities of euro 300.8 million (euro 291.2 million at 31 December 2007) are as follows:

(Euro/000) 30 June 2008 31 December 2007 Change Social security institutions 13,078 14,357 (1,279) Personnel 32,255 28,537 3,718 Compensation and compulsory purchases 34,444 35,954 (1,510) State bodies 116,245 116,245 - Other payables 78,473 71,569 6,904 Accrued expenses and deferred income 24,602 22,990 1,612 Provisions for risks and charges 1,668 1,576 92 Total 300,765 291,228 9,537

They comprise: 95 • payables due to personnel for matured holiday pay; • payables due to state bodies (euro 116.2 million) related to the USW Campania projects, specifically, relationships with the commissioner, provinces and municipalities in Campania; • payables for compensation and compulsory purchases related to the high speed/capacity railway contracts (decrease of euro 1.5 million); • other payables of euro 78.5 million (euro 71.6 million at 31 December 2007) mainly related to sums due for the acquisition of business units and to partners in foreign joint ventures. • accrued expenses and deferred income of euro 24.6 million, which relate to the following items:

(Euro/000) 30 June 2008 31 December 2007 Change Accrued expenses: - Commissions on sureties 6,815 5,340 1,475 - Ten-year liability insurance 7,906 7,898 8 - Insurance 1,257 571 686 - Other accrued expenses 3,173 3,540 (367) Total accrued expenses 19,151 17,349 1,802 Deferred income: - Other deferred income 5,451 5,641 (190) Total deferred income 5,451 5,641 (190) Total 24,602 22,990 1,612

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

8. Equity Equity attributable to the shareholders of the parent increased to euro 815.6 million at 30 June 2008 from euro 676.2 million at the end of 2007. Changes of the period in the different equity items are summarised in the relevant schedule. For a better understanding of changes in consolidated equity, a breakdown of equity of Impregilo S.p.A. at 31 December 2007 is set out below:

(euro) Share capital 716,614,496 Reserves to be used to cover losses, including: Legal reserve 23,721,420 Share premium reserve 13,310,015 Stock option reserve 5,013,388 Negative goodwill 5,068,362 Total 47,113,185 Unavailable hedging reserve 2,200,055 Negative components: Share capital increase related costs (25,394,224) 96 Losses carried forward (13,987,660) Total (39,381,885) Loss for the year (1,880,487)

In their meeting held on second call on 7 May 2008, the shareholders of Impregilo S.p.A. resolved to cover the loss for the year of euro 1.9 million and the other negative components of euro 39.4 million, giving a total of euro 41.3 million, by: • using the entire negative goodwill of euro 5.1 million; • using the entire stock option reserve of euro 5.0 million; • using the entire share premium reserve of euro 13.3 million; • using part of the legal reserve for euro 17.9 million. Disclosures about the individual items are set out below.

Share capital The parent’s share capital of euro 718.4 million increased by euro 1.7 million over 31 December 2007 due to a share capital increase carried out for the purposes of the stock option plan, as detailed below:

(Euro/000) Share capital 31 December 2007 716,614 Share capital increase 1,750 30 June 2008 718,364

A statement of capital increase to euro 718,364,456.72 was filed with the Milan Company Registrar on 9 May 2008, following the subscription of newly-issued shares by those benefiting from the stock option plan approved by the shareholders of Impregilo S.p.A. in the extraordinary meeting of 26 September 2005. As a result, the parent’s share capital amounts to euro 718,364,456.72 at 30 June 2008, split into 404,073,428 shares, including 402,457,937 ordinary shares and 1,615,491 savings shares. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Share premium reserve This reserve underwent the following changes:

(Euro/000) Share premium reserve 31 December 2007 13,310 Coverage of losses (13,310) Share capital increase 1,222 30 June 2008 1,222

The use of the entire reserve available at 31 December 2007 is due to the shareholders’ resolution of 7 May 2008 mentioned above. The rise in this reserve is due to the share capital increase carried out during the period for the purposes of the stock option plan, following the exercise by the related beneficiaries of their options.

Other reserves 97 This item is broken down in the following table:

(Euro/000) 30 June 2008 31 December 2007 Change Revaluation reserve 1,108 1,108 - Legal reserve 5,851 23,721 (17,870) Translation reserve 5,616 15,624 (10,008) Stock option reserve - 5,013 (5,013) Hedging reserve (1,178) (1,285) 107 Fair value reserve (7,439) (5,977) (1,462) Consolidation reserve 1,375 1,375 - Capital increase related charges - (25,394) 25,394 Total 5,333 14,185 (8,852)

Share capital and reserves attributable to minority interests Share capital and reserves attributable to minority interests are as follows:

(Euro/000) Share capital Profit Total minority and reserves (loss) interests 31 December 2007 (4,565) (632) (5,197) 2007 profit (632) 632 - Profit for the period - (2,151) (2,151) Change in translation reserve 267 - 267 30 June 2008 (4,930) (2,151) (7,081)

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

9. Net financial position The group’s net financial indebtedness amounts to euro 57.4 million compared to euro 53.7 million at the previous year end. It may be broken down as follows:

(Euro/000) Note 30 June 2008 31 December 2007 Change Non-current financial assets 9.1 25,210 115 25,095 Derivatives 9.2 4,365 3,339 1,026 Other current financial assets 9.3 117,849 99,811 18,038 Cash and cash equivalents 9.4 997,360 875,627 121,733 Total cash and other financial assets 1,144,784 978,892 165,892 Medium/long-term bank and other loans 9.5 (356,257) (353,256) (3,001) Bonds 9.6 (69,844) (64,049) (5,795) Financial lease payables 9.7 - (219) 219 Total medium/long-term financial indebtedness (426,101) (417,524) (8,577) Current portion of bank loans and current account facilities 9.5 (770,135) (608,235) (161,900) 98 Current portion of bonds 9.6 (2,252) (3,144) 892 Current portion of finance lease payables 9.7 (130) (765) 635 Derivatives 9.2 (3,537) (2,935) (602) Total short-term financial indebtedness (776,054) (615,079) (160,975) Net financial indebtedness - continuing operations (57,371) (53,711) (3,660) Total net financial position of discontinued operations - - - Net financial indebtedness including discontinued operations (57,371) (53,711) (3,660)

There are no financial receivables/payables due from/to related parties at period end.

9.1 Non-current financial assets Non-current financial assets increased by euro 25.1 million to euro 25.2 million. The rise mainly relates to the Passante di Mestre contract and includes the contract receivables pledged to secure the loan described in note 9.5.

9.2 Derivatives These items show the fair value of the agreements hedging currency and interest rate risks at the balance sheet date. They may be broken down as follows:

30 June 2008 31 December 2007 (Euro/000) Assets Liabilities Assets Liabilities Interest rate swaps - cash flow hedges 3,082 3,530 2,200 2,809 Interest rate swaps - FVTPL 1,125 - 976 - Currency swaps - FVTPL 158 7 163 126 Total 4,365 3,537 3,339 2,935 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Moreover, Impregilo group entered into the following derivatives during the first half of 2008, hedging fair value changes in working capital items:

30 June 2008 31 December 2007 (Euro/000) Assets Liabilities Assets Liabilities Commodity swaps - fair value hedges - 3 - 11,809 Currency swaps - fair value hedges 8,991 - 18,038 - Total 8,991 3 18,038 11,809

Details of the derivatives existing at period end are given below:

Interest rate derivatives – cash flow hedges The parent has agreed two interest rate swaps with two banks hedging cash flows against interest rate fluctuations on medium/long- term loans. 99 The total notional amount of such contracts is euro 114.0 million and their fair value gains for the period total euro 3.1 million. Thanks to these contracts, the interest rate on the hedged portion of the related loans is fixed at 3.62%. Impregilo Parking Glasgow Ltd. has two interest rate swaps hedging cash flows against interest rate fluctuations and inflation (overall notional amount: £ 9.3 million), relating to the loan granted by a leading British bank. These recorded a fair value loss of euro 3.5 million during the period. Thanks to these contracts, the interest rate on the related loan is fixed at 5.7%. The above derivatives show effectiveness during the period.

Interest rate derivatives – at fair value through profit or loss The consortium company Passante di Mestre S.c.p.a., in which Impregilo has a 42% stake, has agreed three derivative contracts with a notional amount of euro 60.0 million to hedge interest rate risks on the loan taken out from the three syndicate banks. Impregilo’s share of their fair value gain of the period totals euro 0.5 million. The consortium company Salerno Reggio Calabria S.c.p.a. (Impregilo interest: 51%) has a contract to hedge interest rate risks at period end with a notional amount of euro 180.0 million. It relates to a loan and Impregilo’s share of its fair value gain of the period totals euro 0.2 million. The consortium company Reggio Calabria - Scilla S.c.p.a. (Impregilo interest: 51%) has a contract to hedge interest rate risks at period end with a notional amount of euro 117.0 million. It relates to a loan and Impregilo’s share of its fair value gain of the period totals euro 0.5 million. The subsidiary FISIA Italimpianti has a contract to hedge interest rate risks with a notional amount of euro 9.5 million, the fair value of which at the balance sheet date is positive by euro 37 thousand. At inception, this contract was not designated as a hedge under hedge accounting. Therefore, the related fair value gains or losses are recognised in profit or loss as financial items.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Exchange rate derivatives – at fair value through profit or loss The parent Impregilo has currency swaps in place to hedge exchange rate risks for a total notional amount of US$ 33.8 million. The subsidiary FISIA Italimpianti has currency swaps to hedge exchange rate risks for a total notional amount of US$ 2.0 million. The related fair value gains or losses recognised during the six months were fully taken to profit or loss as financing income (costs) as the requirements for application of hedge accounting were not fully met.

Commodity and exchange rate derivatives – fair value hedges The subsidiaries FISIA and FISIA Babcock entered into commodity (copper, zinc and nickel) and currency (Swedish krona) derivative contracts, with a view to hedging the profit margins of the contracts to which they relate against the risk of fluctuations in raw material prices and foreign currency contract revenue.

9.3 Other current financial assets Other current financial assets are as follows: 100 (Euro/000) 30 June 2008 31 December 2007 Change Other current financial assets 117,849 99,811 18,038

This item includes the group companies’ investments of liquidity in treasury bonds and mutual funds. Specifically, the following have been classified as “Held-to-maturity financial investments”: • investments of the subsidiary FISIA Babcock Environment GmbH in short-term German securities bearing market interest rates. Their carrying amount at the balance sheet date is euro 38.6 million (euro 15.5 million at 31 December 2007), which is in line with market value; • securities held by the C.A.V.TO.MI consortium totalling euro 76.4 million, issued by an Italian leading insurer. They were originally pledged to secure the surety given to the customer TAV against the contractual advance for the Novara-Milan line; • other securities totalling euro 2.9 million, including investments in treasury bonds made principally by group companies in liquidation. Their carrying amount is in line with market value.

9.4 Cash and cash equivalents At 30 June 2008, cash and cash equivalents amount to euro 997.4 million, up by euro 121.7 million, as shown below:

(Euro/000) 30 June 2008 31 December 2007 Change Cash and cash equivalents 997,360 875,627 121,733

The consolidated cash flow statement shows the reasons for this increase and changes in current account facilities (note 9.5). The restrictions on cash and cash equivalents include Impregilo S.p.A.’s deposits of euro 22.8 million which are tied up for specific projects. Moreover, the obtaining of funds by the members of consortia (in which Impregilo is involved) is subject to approval by all the consortium members in order to protect the financial requirements of the related contracts. As described in the directors’ report, on 3 August 2007 and as part of the prosecution before the Court of Naples, the precautionary asset measure ruled by the relevant judicial authorities was partly enforced with the seizure of cash of Impregilo, FISIA Italimpianti, FIBE and FIBE WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Campania deposited with Italian banks (euro 124.8 million). With the order filed on 7 August 2008, the Review Court cancelled the measure and ordered immediate release of the previously seized cash. Reference should be made to the directors’ report for information on the overall situation of the USW Campania projects.

9.5 Bank and other loans Bank and other loans increased euro 164.9 million over 31 December 2007 to euro 1,126.4 million at period end, as summarised below:

(Euro/000) 30 June 2008 31 December 2007 Change Medium to long-term loans 356,257 353,256 3,001 Current portion of bank and other loans 770,135 608,235 161,900 Total 1,126,392 961,491 164,901

The group’s financial indebtedness is broken down by loan type in the following table:

(Euro/000) Non-current Current Total Bank corporate loans 211,677 444,083 655,760 101 Bank project financing 100,471 19,484 119,955 Concession financing 28,949 69,922 98,871 Financing and mortgage loans of companies in liquidiation 3,960 543 4,503 Other loans 11,200 3,761 14,961 Factoring of tax receivables - 101,438 101,438 Current account facilities - 130,904 130,904 Total 356,257 770,135 1,126,392

Bank corporate loans Bank corporate loans relate to the loans granted to the parent Impregilo (euro 545.0 million) and the subsidiary FISIA Italimpianti (euro 110.7 million). They were granted by leading banks and their repayment plans provide for payment of the last instalments in 2012, bearing Euribor interest rates plus spreads ranging from 65 to 190 basis points. All loan agreements disclosed in this section include certain covenants, ie, maintaining certain financial ratios, and the disposals of non- current assets. At the reporting date, no indications of non-compliance with such covenants were noted. As described in note 9.2, interest rate hedges have been agreed against some of the existing loans.

Bank project financing Project financing mainly includes the financial debt for Impregilo’s Greek branch projects (euro 3.0 million), the Passante di Mestre contract (euro 23.5 million) and the Salerno Reggio Calabria contract (euro 90.5 million). The medium/long-term repayment of the Greek branch’s loan is tied to the completion of the related works. The Passante di Mestre loan has been renegotiated during the half year and repayment rescheduled in the medium term, in line with the deadlines of the work completion stages to which it refers. The consortium companies Salerno - Reggio Calabria and Passante di Mestre have two agreements providing for the financing of their building site start-up activities and the subsequent factoring with recourse of the receivables arising from their construction activities.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Concession financing The foreign group companies have the following loans: • loans totalling euro 75.5 million, granted by Brazilian banks to Primav Ecorodovias and its subsidiaries. With respect to the 2007 year end, a new loan approximating euro 62 million has been taken out for the acquisition of the concession company Rodovias das Cataratas S.A.; • loan of euro 10.8 million for the Impregilo Parking Glasgow contract; • loan of euro 12.5 million taken out by Caminos de la Sierras as part of its debt restructuring programme completed in 2006. The first two loans are included in the project financing category and are secured by the revenue flows arising from the activities carried out under the related concessions. Caminos de Las Sierras’ loan has been guaranteed by the parent. The Impregilo Parking Glasgow loan is subject to compliance with certain financial ratios, which were fully met by the concession company at 30 June 2008.

Financing and mortgage loans of companies in liquidation 102 This category includes the loans obtained by Imprepar and its subsidiaries. The related repayment plans are linked to the liquidation procedures of the companies to which the loans refer.

Other loans This category includes the loans granted by leading factoring companies to FISIA Italimpianti for the “Venezia Nuova” contract, already existing at 31 December 2007, and the parent for the Metrogenova contracts, which was taken out in 2008.

Factoring of tax receivables Impregilo group factored tax receivables of euro 101.4 million with recourse, as follows: (i) VAT receivables of euro 12.8 million factored by Impregilo S.p.A. in previous years; (ii) VAT receivables of euro 48.5 million (for Impregilo) factored by the C.A.V.TO.MI. consortium during 2007; (iii) IRPEG receivables of euro 40.1 million factored by the parent during 2007.

Current account facilities Current account facilities rose by euro 39.5 million to euro 130.9 million. This item includes euro 104.0 million relating to the Venezuelan contracts which, in addition to representing an important source of funding for such contracts, is a hedge against local currency exchange rate fluctuations.

9.6 Bonds

(Euro/000) 30 June 2008 31 December 2007 Change Non-current portion 69,844 64,049 5,795 Current portion 2,252 3,144 (892) Total 72,096 67,193 4,903 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The outstanding bonds at 30 June 2008 relate to the Brazilian concession company Primav Ecorodovias, which has been proportionately consolidated since 2007. The Brazilian company’s bond issue was placed on 21 December 2006 in three instalments with a total nominal amount of R$ 450,000 million: the first with a nominal amount of R$ 135,000 million, due in November 2013, and the other two with a nominal amount of R$ 157,500 million each and due on 1 May and 1 November 2014, respectively. The first instalment bears interest at the interbank rate (currently approximately 11%) plus a spread of 4% of such rate paid every six months while the other two instalments bear an annual interest rate of 9.5% indexed to the Brazilian inflation rate. A leading independent body rated the bond issue AA-.

9.7 Finance lease payables Finance lease payables may be broken down as follows at 30 June 2008:

(Euro/000) 30 June 2008 31 December 2007 Change Non-current portion - 219 (219) Current portion 130 765 (635) Total 130 984 (854) 103 This item includes the principal of future lease payments of contracts existing at period end, comprising non-current amounts of euro 0.1 million. It decreased euro 0.6 million from 31 December 2007 following settlement of lease payment falling due during the period. Finance leases relate to plant and machinery. These leases have an average term of between three and five years. The effective average interest rate was 5.89% at period end. Payables for these leases are guaranteed to the lessor via rights on the leased assets.

10. Guarantees and commitments The key guarantees given by the group are set out below: • contractual sureties: these total euro 3,195.0 million and are given to customers as performance bonds, to guarantee advances, withholdings and involvement in tenders for all ongoing contracts. In turn, the group has guarantees given by its subcontractors; • sureties for credit: they amount to euro 17.7 million and relate to the non-consolidated companies; • sureties granted to Sace for export credit of euro 72.7 million; • other personal guarantees of euro 261.1 million consisting of guarantees related to customs and tax obligations; • collateral related to: - liens on shares of the consortium companies Salerno Reggio Calabria S.c.p.a. and Reggio Calabria-Scilla S.c.p.a. given to guarantee a loan of euro 43.3 million; - liens on shares of the consortium company Passante di Mestre S.c.p.a. given to guarantee a loan of euro 21.0 million; - guarantee deposits for shares of Impregilo Wolverhampton Ltd., Impregilo Parking Glasgow Ltd., Yacilec S.A., Caminos de Las Sierras, and Ecovias dos Imigrantes totalling euro 45.3 million. Commitments mainly comprise: • sales commitment given by Impregilo for investments in consortia (euro 21.7 million).

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Income statement

11. Revenue Revenue for the first half of 2008 amounts to euro 1,322.2 million, up 3.1% on the same period of 2007:

(Euro/000) 1st half 2008 1st half 2007 Change Change % Revenue - goods and services 545,831 701,822 (155,991) (22.2%) Change in work in progress, semi-finished products and finished products and real estate projects (1,186) (1,842) 656 (35.6%) Change in contract work in progress 746,309 537,824 208,485 38.8% Total operating revenue 1,290,954 1,237,804 53,150 4.3% Other revenue and income 31,251 44,940 (13,689) (30.5%) Total 1,322,205 1,282,744 39,461 3.1%

The change in contract work in progress includes contractual revenue deriving from production carried out during the six months measured 104 using the cost to cost method. Reference should be made to the note on work in progress for a breakdown of contract work in progress and related changes during the period.

A breakdown of operating revenue by business segment is given in the following table:

(Euro/000) 1st half 2008 1st half 2007 Change Change % Construction 738,719 763,397 (24,678) (3.2%) Engineering & Plant Construction 468,141 399,839 68,302 17.1% Concessions 80,964 69,369 11,595 16.7% Other 3,130 5,199 (2,069) (39.8%) Total 1,290,954 1,237,804 53,150 4.3%

A breakdown of other revenue is given in the following table:

(Euro/000) 1st half 2008 1st half 2007 Change Change % Cost recoveries 8,009 25,225 (17,216) (68.2%) Rent and leases 1,393 814 579 71.1% Gains on disposals of property, plant and equipment 7,366 5,646 1,720 30.5% Prior period income 8,925 8,484 441 5.2% Utilisations of provisions for risks 62 401 (339) (84.5%) Other 5,496 4,370 1,126 25.8% Total 31,251 44,940 (13,689) (30.5%)

The 2007 “Cost recoveries” caption included insurance compensation of approximately euro 12 million. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 12. Costs

12.1 Raw materials and consumables The cost of raw materials and consumables incurred in the first six months of 2008 increased euro 100.0 million to euro 373.4 million compared to the same period of 2007:

(Euro/000) 1st half 2008 % of total 1st half 2007 % of total Change Purchases of raw materials and consumables 372,351 28.2% 280,125 21.8% 92,226 Change in raw materials and consumables 1,058 0.1% (6,756) (0.5%) 7,814 Total 373,409 28.2% 273,369 21.3% 100,040

The rise in costs for raw materials is mainly due to the combined effect of: • the net increase seen for projects carried out by the Engineering & Plant Construction and Concessions segments of euro 123.3 million and euro 7.1 million, respectively; • the net decrease for the Construction segment of euro 29.9 million due to the reduction for certain contracts currently being finalised, partly offset by increases seen for new projects such as the new offices of the Lombardy Regional Authorities, certain contracts in 105 Venezuela and for the upgrading of the Salerno-Reggio Calabria motorway.

12.2 Subcontracts Costs of subcontracts came to euro 279.2 million, down euro 37.9 million on the same period of 2007 as shown in the following table:

(Euro/000) 1st half 2008 % of total 1st half 2007 % of total Change Subcontracts 279,230 21.1% 317,153 24.7% (37,923)

The change is mainly due to the downturn for the Construction and Engineering & Plant Construction segments.

12.3 Other operating expenses At 30 June 2008, other operating expenses amount to euro 381.0 million, down euro 15.5 million on the first half of 2007 as follows:

(Euro/000) 1st half 2008 % of total 1st half 2007 % of total Change Consultancy and technical services 147,452 11.2% 171,928 13.4% (24,476) Fees to directors, statutory auditors and independent auditors 2,539 0.2% 4,703 0.4% (2,164) Maintenance 4,498 0.3% 6,663 0.5% (2,165) Transportation and freight 23,165 1.8% 26,580 2.1% (3,415) Insurance 18,036 1.4% 16,073 1.3% 1,963 Recharges and allocation of costs from consortia and joint ventures 113,839 8.6% 83,604 6.5% 30,235 Rent and leases 22,452 1.7% 28,537 2.2% (6,085) Other operating expenses 42,401 3.2% 49,933 3.9% (7,532) Prior period losses 5,073 0.4% 7,794 0.6% (2,721) Losses on disposal of non-current assets 1,572 0.1% 747 0.1% 825 Total 381,027 28.8% 396,562 30.9% (15,535)

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Consultancy and technical services mainly consist of costs for the design and construction work carried out by the special purpose vehicles. These costs are broken down in the following table:

(Euro/000) 1st half 2008 % of total 1st half 2007 % of total Change Design and engineering services 128,612 9.7% 132,225 10.3% (3,613) Testing 1,043 0.1% 794 0.1% 249 Construction 8,317 0.6% 23,690 1.8% (15,373) Administrative, legal and other services 9,480 0.7% 15,219 1.2% (5,739) Total 147,452 11.2% 171,928 13.4% (24,476)

The reduction is mainly due to the decrease in design and engineering services and construction tied to the new contracts in their start-up stage.

12.4 Personnel expenses Personnel expenses for the first half of 2008 amount to euro 161.9 million, down by euro 9.2 million on the same period of 2007 as follows:

st st 106 (Euro/000) 1 half 2008 % of total 1 half 2007 % of total Change Wages and salaries 103,987 7.9% 115,037 9.0% (11,050) Social security and pension charges 27,650 2.1% 32,934 2.6% (5,284) Accrual to post-employment benefits 9,435 0.7% 5,434 0.4% 4,001 Other personnel expenses 20,851 1.6% 17,753 1.4% 3,098 Total 161,923 12.2% 171,158 13.3% (9,235)

The euro 9.2 million decrease is due to finalisation of work on certain foreign (Iceland, Switzerland and the US) and Italian (high speed) contracts, partly offset by the new projects in Venezuela and contribution of the former Building segment, thanks to the new contracts. Other personnel expenses mainly relate to repayments of travel expenses.

12.5 Amortisation, depreciation, provisions and impairment losses This item of euro 29.6 million shows a decrease on the figure for the first half of 2007 of euro 73.8 million. It may be analysed as follows.

(Euro/000) 1st half 2008 % of total 1st half 2007 % of total Change Accrual to the provision for bad debts 1,467 0.1% 246 - 1,221 Accrual to the provision for risks and charges 4,799 0.4% 58,217 4.5% (53,418) Impaiment losses (292) - (267) - (25) Release of excess provisions (7,546) (0.6%) (16,557) (1.3%) 9,011 Total provisions and impairment losses (1,572) (0.1%) 41,639 3.2% (43,211) Amortisation of intangible assets 1,773 0.1% 2,746 0.2% (973) Depreciation of property, plant and equipment 18,846 1.4% 21,681 1.7% (2,835) Depreciation of freely transferable assets 10,577 0.8% 7,723 0.6% 2,854 Total amortisation and depreciation 31,196 2.4% 32,150 2.5% (954) Total 29,624 2.2% 73,789 5.8% (44,165) WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The previous year balance included a non-recurring euro 50.0 million accrual made for risks related to the ongoing prosecution for the USW Campania projects. Reference should be made to the relevant section of the directors’ report for further information on this issue. “Release of excess provisions” mainly relates to the release of the excess provisions for bad debts and risks compared to estimates or because the risk for which the provision had been made never arose.

13. Financing income (costs) and gains (losses) on investments Financing income (costs) and gains (losses) on investments came to a positive euro 37.8 million in the six months, compared to a negative euro 5.7 million for the same period of 2007.

The item may be analysed as follows:

(Euro/000) 1st half 2008 1st half 2007 Change 107 Financial income 33,836 37,144 (3,308) Financial expense (60,480) (53,203) (7,277) Net exchange rate losses (4,284) (2,421) (1,863) Net financing costs (30,928) (18,480) (12,448) Net gains on investments 68,726 12,738 55,988 Total 37,798 (5,742) 43,540

13.1 Financial income Financial income decreased to euro 33.8 million from euro 37.1 million in the first half of 2007. This item is made up as follows:

(Euro/000) 1st half 2008 1st half 2007 Change Bank interest income 16,639 15,125 1,514 Gains on securities 961 722 239 Interest on financial receivables 757 538 219 Interest on tax assets 1,627 1,732 (105) Gains on the sale of securities 10,218 16,593 (6,375) Financial discounts and allowances 683 112 571 Default interest, net 445 748 (303) Fair value gain on financial instruments 865 514 351 Other financial income 1,641 1,060 581 Total 33,836 37,144 (3,308)

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

13.2 Financial expense Financial expense for the first half of 2008 increased by euro 7.3 million to euro 60.5 million, as follows:

(Euro/000) 1st half 2008 1st half 2007 Change Bank interest 41,032 33,696 7,336 Interest on bond issues 3,465 3,567 (102) Interest on other financial payables 3,769 2,497 1,272 Interest on leases 13 130 (117) Bank charges and commissions 5,628 3,049 2,579 Impairment losses on financial receivables 1,232 872 360 Commissions on sureties 5,069 6,856 (1,787) Fair value loss on financial instruments 159 - 159 Other financial expense 113 2,536 (2,423) Total 60,480 53,203 7,277

108 The increase is due to the combined effect of the rise in market interest rates, compared to the same period of 2007, and developments on investments made.

13.3 Net exchange rate losses Net exchange rate losses amount to euro 4.3 million. The decrease is mainly due to the fluctuations in certain currencies, namely the Venezuelan Bolivar.

13.4 Net gains on investments Net gains on investments amount to euro 68.7 million for the first six months of 2008 compared to euro 12.7 million for the same period of 2007 as follows:

(Euro/000) 1st half 2008 1st half 2007 Change Profit or loss of associates 982 4,909 (3,927) Dividends 242 170 72 Gains on the sale of investments 67,502 7,373 60,129 Other gains on investments and profits of joint ventures - 286 (286) Total 68,726 12,738 55,988

The gains are mainly due to the sale of the group’s investment in the Brazilian concession company Ponte de Pedra S.A., finalised in April 2008, which generated a net gain of euro 67.5 million. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The profit of associates of euro 1.0 million is broken down in the following table:

(Euro/000) 1st half 2008 1st half 2007 Change Yacilec 651 717 (66) Varie Iglys 357 532 (175) Agua Azul 184 260 (76) Ponte de Pedra - 2,403 (2,403) Other (210) 997 (1,207) Total 982 4,909 (3,927)

“Other” mainly relates to investments held by Imprepar.

14. Income tax expense 109 The group’s income tax expense for the period is euro 27.9 million as follows:

(Euro/000) 1st half 2008 1st half 2007 Change Current taxes 17,643 28,197 (10,554) Deferred tax expense (income) 11,584 7,695 3,889 Prior year taxes (4,761) (2,574) (2,187) Total 24,466 33,318 (8,852) Irap 3,450 5,821 (2,371) Total tax expense 27,916 39,139 (11,223)

Taxes are calculated using the tax rate expected to be applied to the annual profit using estimates updated at 30 June.

The net deferred tax expense contributes negatively to the consolidated profit for euro 11.6 million as shown below:

(Euro/000) Deferred tax expense for the period 8,795 Reversal of deferred tax liabilities recognised in previous periods (900) Deferred tax income for the period (1,586) Reversal of deferred tax income recognised in previous periods 5,275 Total 11,584

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

Changes in deferred tax assets and liabilities and the related impact on profit or loss are set out below:

(Euro/000) 31 December Accruals Utilisations Other 30 June 2007 changes 2008 Deferred tax assets: Amortisation and depreciation exceeding tax rates 3,190 - - - 3,190 Provisions for risks and impairment losses 36,496 1,515 (2,187) (337) 35,487 2005 share capital increase related charges 5,228 - (1,042) (1) 4,185 Fisia Hiatus goodwill 40,912 - (1,794) - 39,118 Other 4,763 71 (252) 14 4,596 Total 90,589 1,586 (5,275) (324) 86,576 Offsetting (15,696) - - (3,945) (19,641) (a) Net deferred tax assets 74,893 1,586 (5,275) (4,269) 66,935 Deferred tax liabilities: Unrecognised fiscally-driven amortisation and depreciation (4,670) (140) - (950) (5,760) 110 Other (21,732) (8,655) 900 1,250 (28,237) Total (26,402) (8,795) 900 300 (33,997) Offsetting 15,696 - - 3,945 19,641 (b) Net deferred tax liabiilties (10,706) (8,795) 900 4,245 (14,356) (a)+(b) Net deferred tax expense (7,209) (4,375) (11,584)

Deferred tax assets and liabilities are offset when relating to Italian companies participating in the national consolidation tax system.

15. Profits (losses) from discontinued operations Profits (losses) from discontinued operations for the first half of 2008 and 2007 are analysed below:

(Euro/000) 1st half 2008 1st half 2007 USW Campania Costanera Total Total Change projects Revenue - - - 75,793 (75,793) Costs - - - (76,368) 76,368 Gains (losses) on the disposal of investments and impairment losses - - - (116) 116 Net financing income - 40,635 40,635 - 40,635 Total - 40,635 40,635 (691) 41,326

The net profits from discontinued operations amount to euro 40.6 million (net losses of euro 0.7 million). They mainly derive from the financial components of the agreement defined in 2006 for the sale of the Chilean concession company Costanera Norte S.A. by Impregilo International Infrastructures, which were to be measured after the sale. Note 7.7 and the relevant section of the directors’ report give more information about this. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 16. Related party transactions Impregilo group’s transactions with its associates mainly related to: • trading transactions, namely purchases and procurement of services necessary to carry out work on contracts, contracting and subcontracting; • services (technical, organisational, legal and administrative), carried out at centralised level; • financial transactions, namely loans and joint current accounts as part of cash pooling transactions and guarantees given on behalf of group companies. Transactions are carried out with associates in the interests of Impregilo, aimed at building on existing synergies in the group in terms of production and sales integration, efficient use of existing skills, streamlining of centralised structures and financial resource. These transactions are regulated by specific contracts and carried out on an arm’s length basis.

The key related party transactions, as defined by IAS 24 and group policies, carried out in the first half of 2008 are summarised below:

111 (amount in Euro/000 for Impregilo) 30 June 2008 Receivables Other Payables Other Operating Costs Profits (losses) Cash flows current current revenue from for the assets liabilities discontinued period Related parties operations Impresa Grassetto S.p.A. - 17,667 - - - - Itinera S.p.A. 426 7,941 - 3,857 - (12,522) Interstrade S.p.A. - 337 - 1,500 - (4,870) Satap S.p.A. - 4,306 - 2,259 - (9,746) Autostrade Sud America S.r.l. 34,900 - - 34,900 - Autopista Do Pacifico S.A. 4,500 - - 5,735 3,803 Total 426 39,400 12,584 17,667 - 7,616 40,635 (23,335)

The above related party transactions relate to the following: (i) transactions carried out as part of the high speed/capacity railway contracts; (ii) valuations of the financial components of the agreement defined in 2006 related to the sale of the Chilean concession company Costanera Norte S.A. by Impregilo International Infrastructures, which were to be measured after the sale, as described earlier. The above transactions are governed by specific agreements and carried out on an arm’s length basis. Their effects on the balance sheet and income statement are shown together with the related contract. Their impact on the group’s financial position and results of operations for the first half of 2008 has not been material, except for the net profits from discontinued operations. The fees of the directors and key managers for the first half of 2008 amount to euro 1,574,744 while those of the statutory auditors come to euro 92,962. As required by Consob communication no. DEM/6064293, the effects of the above most significant related party transactions are disclosed in the balance sheet, income statement and cash flow statement.

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Condensed interim consolidated financial statements as at and for the six months ended 30 June 2008

17. Significant non-recurring events and transactions With respect to significant non-recurring events as defined in Consob communication no. DEM/6064293 (1), apart from the net profits from discontinued operations, the group’s financial position and results of operations for the first half of 2008 were not affected by significant non-recurring events and transactions. The first half of 2007 had a significant non-recurring euro 50 million accrual for the prosecution commenced by the Naples Public Prosecutor for the USW Campania projects, as described in the directors’ report.

18. Balances or transactions arising from atypical and/or unusual transactions During the six months, Impregilo group did not carry out any atypical and/or unusual transactions, as defined in the above Consob communication no. DEM/6064293 (2).

19. Earnings per share Earnings per share are disclosed at the foot of the income statement. They have been calculated in accordance with IAS 33, taking into 112 account the dilutive effects of potential shares arising from stock option plans for the first half of 2007.

On behalf of the Board of Directors

Chairman Massimo Ponzellini

(1) Significant non-recurring events and transactions are those that do not frequently occur in the normal course of business. (2) Atypical and/or unusual transactions are those that, due to their significance and relevance, the counterparty, the object of the transaction, exchange pricing and timing, may cast doubts as to the accuracy and completeness of disclosures, conflict of interest, protection of the group’s assets and minority interests. WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 CONSOLIDATION AREA 115

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Consolidation area

CONSOLIDATION AREA

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by CONSTRUCTION Impregilo S.p.A. Italy Euro 718,364,457 100 100 More than one line-by-line Bocoge S.p.A. - Construzioni Generali Italy Euro 1,702,720 100 100 line-by-line Campione S.c.r.l. Italy Euro 11,000 99.9 99.9 line-by-line Consorzio CCTE Italy Euro 41,315 100 60 40 ILIM S.r.l. line-by-line Consorzio Cogefar-Impresit Cariboni per la Frana di Spriana S.c.r.l. Italy Euro 45,900 100 100 line-by-line Consorzio tra le Società Cogefar/Bordin/Coppetti/Icep - CORAV Italy Euro 51,129 96.97 96.97 line-by-line Construtora Impregilo y Associados S.A.-CIGLA S.A. Brazil BRL 7,641,014 100 100 line-by-line CSC Impresa Costruzioni S.A. Switzerland CHF 2,000,000 100 100 line-by-line Effepi - Finanza e Progetti S.r.l. Italy Euro 78,000 100 100 SGF INC S.p.A. line-by-line I.L.IM. - Iniziative Lombarde Immobiliari S.r.l. Italy Euro 3,100,000 100 100 line-by-line Impregilo Engineering CO. Ltd China Euro 140,000 100 100 line-by-line Impregilo Healy Joint Venture USA 100 15 85 Healy S.A. line-by-line Impresit Bakolori Plc Nigeria NGN 100,800,000 50.71 50.71 line-by-line INC - Algerie S.a.r.l. Algeria DZD 57,360,000 99.91 99.91 SGF INC S.p.A. line-by-line Lavori Lingotto S.c.r.l. Italy Euro 25,000 100 100 line-by-line 116 Nuovo Dolonne S.c.r.l. Italy Euro 50,000 100 100 line-by-line PGH Ltd Nigeria NGN 52,000,000 100 100 line-by-line Rivigo J.V. (Nigeria) Ltd Nigeria NGN 25,000,000 70 70 PGH Ltd line-by-line S.A. Healy Company USA USD 11,320,863 100 100 line-by-line S.G.F. - I.N.C. S.p.A. Italy Euro 3,859,680 100 100 line-by-line Società Industriale Prefabbricazione Edilizia del Mediterraneo - S.I.P.E.M. S.p.A. Italy Euro 438,546 100 100 line-by-line Suramericana de Obras Publicas C.A.- Suropca C.A. Venezuela VEB 2,874,118,000 100 99 1 CSC S.A. line-by-line Vegas Tunnel Constructors USA 100 40 60 Healy S.A. line-by-line B.B.A. S.c.r.l. Italy Euro 10,000 80 80 SGF INC S.p.A. proportionate Consorcio Acueducto Oriental Dominican Republic 67 67 proportionate Consorcio Central Hidroelectrica Daule Peripa Division Obras Civiles Ecuador 90 85 5 Imprepar S.p.A. (*) proportionate Consorcio Contuy Medio Grupo A C.I. S.p.A. Ghella Sogene C.A., Otaola C.A. Venezuela 36.4 36.4 proportionate Consorcio Impregilo - Ingco Dominican Republic 70 70 proportionate Consorcio Impregilo Yarull Dominican Republic 70 70 proportionate Consorzio Alta Velocità Torino/Milano - C.A.V.TO.MI. Italy Euro 5,000,000 74.69 74.69 proportionate Consorzio Autosilo Vico Morcote Switzerland 70 70 CSC S.A. proportionate Consorzio C.A.V.E.T. - Consorzio Alta Velocità Emilia/Toscana Italy Euro 5,422,797 75.98 75.98 proportionate Consorzio Camaiore Impianti Italy Euro 25,500 55 55 proportionate Consorzio Caserma Donati Italy Euro 300,000 84.2 84.2 proportionate Consorzio Cociv Italy Euro 516,457 94.5 94.5 proportionate Consorzio Scilla Italy Euro 1,000 51 51 proportionate Consorzio Torre Italy Euro 5,000,000 94.6 94.6 proportionate Consorzio Venice Link Italy Euro 1,000 61 61 proportionate Constructora Mazar Impregilo-Herdoiza Crespo Ecuador 70 70 proportionate Empresa Constructora Costanera Norte Ltda Chile CLP 10,000,000 77.78 77.78 proportionate Eurolink S.c.p.a. Italy Euro 150,000,000 45 45 proportionate Ghazi-Barotha Contractors J.V. Switzerland 57.8 57.8 proportionate Joint Venture Impregilo S.p.A. - Empedos Greece 60 60 proportionate Nathpa Jhakri J.V. India USD 1,000,000 60 60 proportionate Opere Speciali Passante S.c.a.r.l. Italy 10,000 62 62 SGF INC S.p.A. proportionate OR.MA - S.c.r.l. Italy Euro 10,000 55 55 SGF INC S.p.A. proportionate Passante di Mestre S.c.p.A. Italy Euro 50,000,000 42 42 proportionate WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by Reggio Calabria - Scilla S.c.p.a. Italy Euro 35,000,000 51 51 proportionate Salerno-Reggio Calabria S.c.p.a. Italy Euro 50,000,000 51 51 proportionate Val Viola S.c.r.l. Italy Euro 10,200 60 60 proportionate A.T.I. Monte Bianco S.c.r.l. Italy Euro 10,329 33.33 33.33 SGF INC S.p.A. equity Aegek-Impregilo-Aslom J.V. Greece 45.8 45.8 equity Anagnina 2000 S.c.r.l. Italy Euro 10,329 50 50 equity Arbeitsgemeinschaft Tunnel Umfahrung Saas (ATUS) Switzerland 32 32 CSC S.A. equity Arge Haupttunnel Eyholz Switzerland 36 36 CSC S.A. equity Arge Stollen Chatzuhus Switzerland 40 40 CSC S.A. equity Asociacion Costanera Norte Ltda-Igl Chile branch Chile 77.78 77 0.78 Costanera Norte Ltda equity Auditorium Roma S.c.r.l. Italy Euro 90,000 60 60 equity Aurelia 98 S.c.r.l. Italy Euro 10,000 40 40 equity B.O.B.A.C. S.c.a.r.l. Italy Euro 10,200 50 50 SGF INC S.p.A. equity C.B.N. Chiasso consorzio Switzerland 34 34 CSC S.A. equity CASV Consorzio Allargamento Strada Vogorno Switzerland 50 50 CSC S.A. equity CCB Consorzio Centro Balneare Switzerland 40 40 CSC S.A. equity CE.S.I.F. S.c.p.a. Italy Euro 250,000 24.18 24.18 equity 117 Churchill Construction Consortium GB 30 30 Impreg. New Cross Ltd (*) equity Churchill Hospital J.V. GB 50 50 Impreg. New Cross Ltd (*) equity CMC - Consorzio Monte Ceneri lotto 851 Switzerland 40 40 CSC S.A. equity Collegamento Ferroviario Genova-Milano S.p.A. Italy Euro 120,000 60.4 60.4 equity Consorcio Cigla-Sade Brazil 50 50 Cigla S.A. equity Consorcio Contuy Medio Venezuela 29.04 29.04 equity Consorcio Grupo Contuy-Proyectos y Obras de Ferrocarriles Venezuela 33.33 33.33 equity Consorcio Imigrantes Brazil 50 50 Cigla S.A. equity Consorcio Impregilo Cosapi Peru 55 55 equity Consorcio OIV-TOCOMA Venezuela 20 20 equity Consorcio Serra do Mar Brazil 50 25 25 Cigla S.A. equity Consorcio V.I.T. - Tocoma Venezuela 35 35 equity Consorcio V.I.T. Caroni - Tocoma Venezuela 35 35 equity Consorcio V.S.T. Venezuela 35 35 Suropca C.A. equity Consorcio V.S.T. Tocoma Venezuela 30 30 equity Consorzio CECB Switzerland 50 50 CSC S.A. equity Consorzio CPS Pedemontana Veneta Costruttori Progettisti e Servizi Italy Euro 100,000 35 35 equity Consorzio Edile Palazzo Mantegazza Switzerland 45 45 CSC S.A. equity Consorzio FLP Switzerland 30 30 CSC S.A. equity Consorzio FLP II Switzerland 33.33 33.33 CSC S.A. equity Consorzio Galleria Maroggia Switzerland 25 25 CSC S.A. equity Consorzio Galleria Scaglioni CGS Switzerland 50 50 CSC S.A. equity Consorzio Paleuropa Italy Euro 10,000 60 60 equity Consorzio RCPS Nuova Romea Italy Euro 20,000 30.6 30.6 equity Consorcio Rio Tocantins Brazil 50 50 equity Consorzio San Cristoforo Italy Euro 51,645 48 48 equity Consorzio TAT-Tunnel Alp Transit Ticino, Arge Switzerland 25 17.5 7.5 CSC S.A. equity Consorzio Tre Esse Italy Euro 51,646 38 38 SGF INC S.p.A. equity Consorzio Trevi - S.G.F. INC per Napoli Italy Euro 10,000 45 45 SGF INC S.p.A. equity CRA Consorzio Realizzazione Arca Switzerland 40 40 CSC S.A. equity CSLN Consorzio Switzerland 28 28 CSC S.A. equity E.R. Impregilo/Dumez y Asociados para Yaciretê - ERIDAY Argentina USD 539,400 20.75 18.75 2 Iglys S.A. (*) equity Executive J.V. Impregilo S.p.A. Terna S.A. - Iris S.A. Greece 33.33 33.33 equity Fox Valley West Properties JV USA 50 50 Healy S.A. equity

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Consolidation area

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by CONSTRUCTION (continued) G.T.B. S.c.r.l. Italy Euro 51,000 24.17 24.17 equity Groupement Hydrocastoro Algeria DZD 2,000,000 49.5 49.5 INC Algerie Sarl equity Grupo Empresas Italianas - GEI Venezuela VEB 10,000,000 33.33 33.33 equity Healy-Yonkers-Atlas-Gest J.V. USA 45 45 Healy S.A. equity Impregilo - Ebasco-Losinger J.V. USA 75 18.75 56.25 Healy S.A. equity Impregilo - Rizzani de Eccher J.V. Switzerland 67 67 equity Impregilo Lidco Libya Co Libya DL 5,000,000 60 60 equity Impregilo S.p.A.-Iglys S.A.-Hochtief AG-Hochtief C-Roggio-Iecsa-Sideco-Techint, UTE Argentina 26 26 equity Impretech Infraestructura S.A. Mexico PSM 10,050,000 49 49 equity Isibari S.c.r.l. Italy Euro 15,300 55 55 Bocoge S.p.A. equity J.Cartellone C.C. S.A.-Igl S.p.A.-Iglys S.A.-Codi S.A.- EC Delta S.A.-Caruso S.A.- (Casisa UTE) Argentina ARS 10,000 39.1 29.1 10 Iglys S.A. (*) equity Joint Venture Aegek-Impregilo-Ansaldo-Seli-Ansaldobreda Greece 26.71 26.71 equity Joint Venture Aktor Ate - Impregilo S.p.A. (Constantinos) Greece 40 40 equity 118 Joint Venture Aktor S.A. - Impregilo S.p.A. Greece 50 50 equity Joint Venture Terna - Impregilo Greece 45 45 equity Joint Venture Impregilo S.p.A. - Empedos S.A. - Aktor A.T.E. Greece 66 66 equity Line 3 Metro Stations Greece 50 50 equity Metrogenova S.c.r.l. Italy Euro 25,500 35.63 35.63 equity Mohale Dam Contractors (MDC) J.V. Lesotho 50 50 equity Mohale Tunnel Contractors (MTC) J.V. Lesotho 35 35 equity Monte Mario S.c.r.l. Italy Euro 10,328 50 50 Bocoge S.p.A. equity Proyecto La Yesca Mexico PSM 50,000 44.2 44.2 equity Quattro Venti S.c.r.l. Italy Euro 51,000 40 40 equity S. Anna Palermo S.c.r.l. Italy Euro 40,800 71.6 71.6 equity SO.CO.TAU. S.c.r.l. Italy Euro 10,200 20.27 20.27 Bocoge S.p.A. equity Techint S.A.C.I.- Hochtief A.G.- Impregilo S.p.A.-Iglys S.A. UTE Argentina 35 26.25 8.75 Iglys S.A. (*) equity Thessaloniki Metro CW J.V. Greece 42.5 42.5 equity Unicatanzaro S.c.r.l. Italy Euro 15,300 56 56 Bocoge S.p.A. equity VE.CO. S.c.r.l. Italy Euro 10,200 25 25 equity Versilia S.c.r.l. Italy Euro 10,200 34 34 equity Versilia Servizi S.c.a.r.l. Italy Euro 20,000 34 34 equity Yellow River Contractors J.V. China 36.5 36.5 equity ENGINEERING & PLANT CONSTRUCTION FISIA Italimpianti S.p.A. Italy Euro 10,000,000 100 100 line-by-line Fisia Babcock Environment Gmbh Germany Euro 10,000,000 100 100 FISIA Italimpianti S.p.A. line-by-line Gestione Napoli S.p.A. Italy Euro 100,000 99 24 54 FISIA Italimpianti S.p.A. line-by-line 21 FISIA Babcock Gmbh Steinmuller International Gmbh Germany Euro 25,000 100 100 FISIA Babcock Gmbh line-by-line Società Italiana per l’Ecologia Marina Castalia Ecolmar S.c.p.a. Italy Euro 102,000 49.9 49.9 FISIA Italimpianti S.p.A. proportionate Consorzio Agenzia del Mare Italy Lit 300,000,000 25 25 FISIA Italimpianti S.p.A. equity Consorzio Agrital Ricerche Italy Euro 138,405 20 20 FISIA Italimpianti S.p.A. equity Consorzio Macopsissa Ambiente Italy Euro 30,987 45.12 45.12 FISIA Italimpianti S.p.A. equity Nautilus S.c.p.a. Italy Euro 479,880 34.41 34.39 FISIA Italimpianti S.p.A. equity Pertusola Sud S.c.r.l. Italy Euro 10,000 50 50 FISIA Italimpianti S.p.A. equity Villagest S.c.r.l. Italy Euro 13,944 50 50 FISIA Italimpianti S.p.A. equity CONCESSIONS Impregilo International Infrastructures N.V. Netherlands Euro 50,000,000 100 100 line-by-line Caminos de las Sierras S.A. Argentina ARS 120,000,000 90.52 90.52 Impregilo Intern. Infrastruc. N.V. line-by-line WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by IGLYS S.A. Argentina ARS 17,000,000 100 98 Impregilo Intern. Infrastruc. N.V. line-by-line 2 INCAVE S.r.l. (*) Impregilo New Cross Ltd GB GBP 2 100 100 Impregilo Intern. Infrastruc. N.V. line-by-line Impregilo Parking Glasgow Ltd GB GBP 1 100 100 Impregilo Intern. Infrastruc. N.V. line-by-line Mercovia S.A. Argentina ARS 10,000,000 60 60 Impregilo Intern. Infrastruc. N.V. line-by-line Primav Ecorodovias S.A. (*) Brazil BRL 466,699,080 35 35 Impregilo Intern. Infrastruc. N.V. proportionate Shangai Pucheng Thermal Power Energy Co. L.t.d. China RMB 200,000,000 50 50 Impregilo Intern. Infrastruc. N.V. proportionate Aguas del Gran Buenos Aires S.A. Argentina ARS 45,000,000 42.59 16.5 23.73 Impregilo Intern. Infrastruc. N.V. equity 2.36 Iglys S.A. 119 Aguas del Oeste S.A. Argentina ARS 170,000 33.33 33.33 Iglys S.A. equity Coincar S.A. Argentina ARS 40,465,122 35 26.25 8.75 Iglys S.A. equity Concessionaria Ecovia Camino Do Mar S.A. Brazil BRL 15,600,000 35 35 Primav Ecorodovias S.A. equity Concessionaria Ecovias dos Imigrantes S.A. Brazil BRL 302,547,396 35 35 Primav Ecorodovias S.A. equity Consorcio Agua Azul S.A. Peru PEN 69,001,000 25.5 25.5 Impregilo Intern. Infrastruc. N.V. equity Empr.company de Rodovias do Sul S.A. - Ecosul Brazil BRL 17,755,000 31.5 31.5 Primav Ecorodovias S.A. equity Ecologia Montana S.p.A. Italy Euro 548,069 49 49 Impregilo Intern. Infrastruc. N.V. equity Ecopatio Logistica L.t.d.a. Brazil BRL 10,254,366 35 35 Primav Ecorodovias S.A. equity Ecosul Partipacoes L.t.d.a. Brazil BRL 48,285,560 31.5 31.5 Primav Ecorodovias S.A. equity ECSC Participacoes L.t.d.a. Brazil BRL 2,794,926 35 35 Primav Ecorodovias S.A. equity ECSE Centro de Servicos de Engenharia L.t.d.a. Brazil BRL 1,000 34.97 34.97 Primav Ecorodovias S.A. equity Ecopatio Logistica Imigrantes L.t.d.a. Brazil BRL 7,936,720 35 35 Elog Participacoes L.t.d.a. equity Elog Participacoes L.t.d.a. Brazil BRL 7,900,452 35 35 Primav Ecorodovias S.A. equity Enecor S.A. Argentina ARS 20,250,740 30 30 Impregilo Intern. Infrastruc. N.V. equity Iglys SA-Iecsa SA-Dragados Obras y Proyectos SA- Dycasa SA, UTE Argentina 33.33 33.33 Iglys S.A. equity Impregilo Wolverhampton Ltd GB GBP 1,000 20 20 Impregilo Intern. Infrastruc. N.V. equity Nuova Romea S.p.A. Italy Euro 3,800,000 22.28 22.28 Impregilo Intern. Infrastruc. N.V. equity Ochre Solutions Holdings Ltd GB GBP 20,000 40 40 Impregilo Intern. Infrastruc. N.V. equity Puentes del Litoral S.A. Argentina ARS 43,650,000 26 22 4 Iglys S.A. equity Rodoconsult Assessoria L.t.d. Brazil BRL 25,000 20 20 Impregilo Intern. Infrastruc. N.V. equity Rodovia Das Cataratas Brazil BRL 41,849,000 35 35 Primav Ecorodovias S.A. equity Sistranyac S.A. Argentina ARS 12,040,465 20.1 20.1 Impregilo Intern. Infrastruc. N.V. equity Yacylec S.A. Argentina ARS 20,000,000 18.67 18.67 Impregilo Intern. Infrastruc. N.V. equity

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Consolidation area

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by USW CAMPANIA PROJECTS FIBE Campania S.p.A. Italy Euro 2,051,400 99.994 99.973 0.007 Impregilo Intern. Infrastruc. N.V. line-by-line 0.007 FISIA Babcock Gmbh 0.007 FISIA Italimpianti S.p.A. FIBE S.p.A. Italy Euro 3,500,000 99.998 99.989 0.003 Impregilo Intern. Infrastruc. N.V. line-by-line 0.003 FISIA Babcock Gmbh 0.003 FISIA Italimpianti S.p.A. IMPREPAR Imprepar - Impregilo Partecipazioni S.p.A. Italy Euro 3,100,000 100 100 line-by-line Alia S.c.r.l. Italy Euro 10,200 100 100 Imprepar S.p.A. line-by-line BATA S.r.l. Italy Euro 102,000 50.69 50.69 Imprepar S.p.A. line-by-line CIS Divisione Prefabbricati Vibrocesa Scac - C.V.S. S.r.l. Italy Euro 10,000 100 100 INCAVE S.r.l. line-by-line Cogefar Cameroun S.A. Cameroun XAF 1,260,000,000 99.97 99.97 Imprepar S.p.A. line-by-line Congressi 91 S.RC.l. Italy Euro 25,000 100 80 Impresa Castelli S.r.l. line-by-line 20 Bocoge S.p.A. (*) 120 Consorzio Pielle Italy Euro 15,493 100 33.33 Imprepar S.p.A. line-by-line 66.67 Incave S.r.l. Costruzioni Ferroviarie Torinesi Duemila S.c.r.l. Italy Euro 10,328 100 100 INCAVE S.r.l. line-by-line Edilizia Militare Reggio Calabria S.c.r.l. Italy Euro 45,900 100 85 Imprepar S.p.A.. line-by-line 15 Sapin S.r.l. Engeco France S.a.r.l. France Euro 15,470 100 99.67 Imprepar S.p.A. line-by-line 0.33 Incave S.r.l. Entreprises et Travaux de Construction S.A. Switzerland CHF 50,000 100 100 Imprepar S.p.A. line-by-line Eurotechno S.r.l. Italy Euro 26,245 100 100 Imprepar S.p.A. line-by-line Imprefeal S.p.A. Italy Euro 2,580,000 100 100 Imprepar S.p.A. line-by-line Impregilo U.K. Ltd GB GBP 1,500,000 100 100 Imprepar S.p.A. line-by-line Impresa Castelli S.r.l. Italy Euro 10,000 100 100 Imprepar S.p.A. line-by-line Impresit del Pacifico S.A. Peru PEN 35,000 100 100 Imprepar S.p.A. line-by-line INCAVE S.r.l. Italy Euro 90,000 100 100 Imprepar S.p.A. line-by-line S. Leonardo S.c.r.l. Italy Euro 25,500 99.99 99.99 Imprepar S.p.A. line-by-line San Martino Prefabbricati S.p.A. Italy Euro 510,000 100 100 Impresa Castelli S.r.l. line-by-line Savico S.c.r.l. Italy Euro 10,200 100 81 Imprepar S.p.A. line-by-line 19 Sapin S.r.l. Sviluppo Applicazioni Industriali - SAPIN S.r.l. Italy Euro 51,480 100 100 Imprepar S.p.A. line-by-line Watis Bau GmbH Germany Euro 2,046,000 100 100 Imprepar S.p.A. line-by-line Aquilgest S.c.r.l. Italy Euro 10,000 51 51 Imprepar S.p.A. proportionate Aquilpark S.c.r.l. Italy Euro 10,000 51 51 Imprepar S.p.A. proportionate BA.TA. 91 S.c.r.l. Italy Euro 50,000 50.69 50.69 Imprepar S.p.A. proportionate CO. MAR. S.c.r.l. Italy Euro 10,200 84.99 84.99 Imprepar S.p.A. proportionate Consorzio/Vianini lavori/Impresit/Dal Canton/Icis/Siderbeton - VIDIS Italy Euro 25,822 60 60 Imprepar S.p.A. proportionate Constuctora Embalse Casa de Piedra S.A. Argentina ARS 821 72.93 72.93 Imprepar S.p.A. proportionate Gesuati S.c.r.l. Italy Euro 10,300 80 80 Impresa Castelli S.r.l. proportionate La Fenice S.c.r.l. Italy Euro 51,646 57.39 57.39 Imprepar S.p.A. proportionate Librino S.c.r.l. Italy Euro 45,900 66 66 Imprepar S.p.A. proportionate Melito S.c.r.l. Italy Euro 77,400 66.67 66.67 Imprepar S.p.A. proportionate Montenero S.c.r.l. Italy Euro 10,400 61.11 61.11 Imprepar S.p.A. proportionate OS.A.V.E. S.c.r.l. Italy Euro 10,199 66.15 66.15 Imprepar S.p.A. proportionate S. Leonardo Due S.c.r.l. Italy Euro 40,800 60 60 Imprepar S.p.A. proportionate Stelvio 91 S.c.r.l. Italy Euro 45,900 62 62 Imprepar S.p.A. proportionate Trincerone Ferroviario S.c.r.l. Italy Euro 45,900 60 60 Imprepar S.p.A. proportionate WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by Vittoria S.c.r.l. Italy Euro 20,400 58 58 Imprepar S.p.A. proportionate A.T.I. Girola-Romagnoli-Poscio - Domo II S.c.r.l. Italy Euro 10,200 40 40 Imprepar S.p.A. equity Adduttore Ponte Barca S.c.r.l. Italy Euro 45,900 24.33 24.33 Imprepar S.p.A. equity ANBAFER S.c.r.l. Italy Euro 25,500 50 50 Imprepar S.p.A. equity Ancipa S.c.r.l. Italy Euro 10,200 50 50 Imprepar S.p.A. equity Antignano S.c.r.l. Italy Euro 10,200 47.37 47.37 Imprepar S.p.A. equity Associazione Temporanea Priolo Siracusa S.c.r.l. Italy Euro 11,000 20 20 Imprepar S.p.A. equity Borini Prono & Co Ghana Ltd Ghana GHC 95,000 50 50 Imprepar S.p.A. equity Cagliari 89 S.c.r.l. Italy Euro 10,200 49 49 Sapin S.r.l. equity Cannatello S.c.r.l. Italy Euro 20,400 40 40 Imprepar S.p.A. equity Cogefar/C.I.S.A./Icla/Fondedile - Sorrentina S.c.r.l. Italy Euro 46,480 25 25 Imprepar S.p.A. equity Consorcio Federici/Impresit/Ice Cochabamba Bolivia USD 100,000 25 25 Imprepar S.p.A. equity Consorzio Carnia S.c.r.l. Italy Euro 45,900 50 50 Imprepar S.p.A. equity Consorzio CO.RI.TECNO Italy Euro 51,646 50 50 Imprepar S.p.A. equity Consorzio Cogefar/Italstrade/Recchi/CMC - CIRC Italy Euro 51,000 25 25 Imprepar S.p.A. equity Consorzio Consavia S.c.n.c. Italy Euro 20,658 50 50 Imprepar S.p.A. equity Consorzio del Sinni Italy Euro 51,646 43.16 43.16 Imprepar S.p.A. equity 121 Consorzio Ferrofir Italy Euro 30,987 33.33 33.33 Imprepar S.p.A. equity Consorzio Imprese Lavori FF.SS. di Saline - FEIC Italy Euro 15,494 33.33 33.33 Imprepar S.p.A. equity Consorzio Iniziative Ferroviarie - INFER Italy Euro 41,316 35 35 Imprepar S.p.A. equity Consorzio Lavori Interventi Straordinari Palermo - Colispa S.c.r.l. Italy Euro 21,420 29.76 29.76 Imprepar S.p.A. equity Consorzio Metropolitane Italy Lit 100,000,000 25 25 Imprepar S.p.A. equity Consorzio per il Nucleo di Balvano Italy Euro 51,645 40.26 40.26 Imprepar S.p.A. equity Consorzio Sarda Construzioni Generali - SACOGEN Italy Lit 20,000,000 25 25 Sapin S.r.l. equity Consorzio Sardo d’Imprese Italy Euro 103,291 34.38 34.38 Sapin S.r.l. equity Consorzio Suburbia Italy Euro 15,494 33.33 33.33 Impresa Castelli S.r.l. equity Consorzio Volgograd Opere Civili - CONVOLCI S.c.n.c. Italy Euro 5,165 45.26 45.26 Imprepar S.p.A. equity Corso Malta S.c.r.l. Italy Euro 40,800 42.5 42.5 Imprepar S.p.A. equity Costruttori Riuniti per la Valtellina - CORIVALT S.c.r.l. Italy Euro 10,200 42.5 42.5 Imprepar S.p.A. equity Depurazione Palermo S.c.r.l. Italy Lit 20,000,000 50 50 Imprepar S.p.A. equity Diga Ancipa S.c.r.l. Italy Euro 10,200 50 50 Imprepar S.p.A. equity Edificatrice Sarda S.r.l. Italy Euro 10,328 25 25 Sapin S.r.l. equity Edil.Gi. S.c.r.l. Italy Lit 20,000,000 50 50 Imprepar S.p.A. equity Edilizia Giudiziaria S.c.r.l. Italy Euro 10,200 26.66 26.66 Imprepar S.p.A. equity FE.LO.VI. S.c.n.c. Italy Euro 25,822 32.5 32.5 Imprepar S.p.A. equity Fedco J.V. Malta 33.33 33.33 Imprepar S.p.A. equity Galliera 2000 S.c.r.l. Italy Euro 25,500 25 25 Impresa Castelli S.r.l. equity German/Italian/Mosul/Dam - GIMOD J.V. Iraq IQD 150,000,000 20 20 Imprepar S.p.A. equity Gestioni Sanitarie Toscane S.c.r.l. Italy Euro 103,290 30 30 Imprepar S.p.A. equity Grandi Uffizi S.c.r.l. Italy Euro 10,200 31.46 31.46 Imprepar S.p.A. equity Groupement SNCE/Girola S.p.A. Canal T II - Lot 1/B Morocco Lit 3,176,144,444 70 70 Imprepar S.p.A. equity Groupement SNCE/Girola S.p.A. Canal T II - Lot 4 Morocco Lit 3,176,144,444 50 50 Imprepar S.p.A. equity Highlands Water Venture J.V. Lesotho 30 30 Imprepar S.p.A. equity IGL-Stfa - Impregilo Sezai Turkes Feyzi Akkaya J.V. (Bosforo) Turkey USD 1,000,000 50 50 Imprepar S.p.A. equity Impregilo Cogefar New Esna Barrage J.V. Egypt Euro 51,645 100 99 Imprepar S.p.A. equity 1 INCAVE S.r.l. Impregilo - Salini Joint Venture for Kapichira Malawi 50 50 Imprepar S.p.A. equity Impregilo - Salini Joint Venture for Owen Falls Uganda 50 50 Imprepar S.p.A. equity Imprese Riunite Genova Irg S.c.r.l. Italy Euro 25,500 26.3 26.3 Imprepar S.p.A. equity Imprese Riunite Genova Seconda S.c.r.l. Italy Euro 25,000 26.3 26.3 Imprepar S.p.A. equity

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Consolidation area

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed ment by IMPREPAR (continued) Italsagi SP. ZO.O Poland PLN 10,000 33 33 Imprepar S.p.A. equity J.V. Salini Impregilo (Sudan) Sudan USD 20,000 50 50 Imprepar S.p.A. equity Lodigiani-Pgel J.V. Pakistan 100 100 Imprepar S.p.A. equity Matsoku Civil Contractor (MMC) J.V. Lesotho 30 30 Imprepar S.p.A. equity Marsico Nuovo S.c.r.l. Italy Euro 10,200 25 25 Imprepar S.p.A. equity Milano Sviluppo S.p.A. Italy Euro 10,000 33.33 33.33 Impresa Castelli S.r.l. equity Monte Vesuvio S.c.r.l. Italy Euro 45,900 50 50 Imprepar S.p.A. equity Napoli Porto S.c.r.l. Italy Euro 10,329 35 35 Imprepar S.p.A. equity Nuovi Mercati S.c.r.l. Italy Lit 20,000,000 49 30 Imprepar S.p.A. equity 19 Sapin S.r.l. Olbia 90 S.c.r.l. Italy Euro 10,200 24.5 24.5 Sapin S.r.l. equity Paullese S.c.r.l. Italy Euro 25,500 50 50 Impresa Castelli S.r.l. equity Pietrarossa S.c.r.l. Italy Euro 10,200 50 50 Imprepar S.p.A. equity Pisogne S.c.r.l. Italy Euro 25,000 40 40 Imprepar S.p.A. equity Platano S.c.n.c. Italy Euro 30,987 33.33 33.33 Imprepar S.p.A. equity 122 RCCF Nodo di Torino S.c.p.a. Italy Euro 102,000 26 26 INCAVE S.r.l. equity Saces S.r.l. Italy Euro 26,000 37 37 Imprepar S.p.A. equity Salini - Cogefar Impresit Osborne Dam J.V. Zimbabwe 50 50 Imprepar S.p.A. equity Salini - Cogefar Impresit Zhovhe Dam J.V. Zimbabwe 50 50 Imprepar S.p.A. equity San Benedetto S.c.r.l. Italy Euro 25,823 57 57 Imprepar S.p.A. equity San Giorgio Caltagirone S.c.r.l. Italy Euro 25,500 33 33 Imprepar S.p.A. equity Sclafani S.c.r.l. Italy Euro 10,400 41 41 Imprepar S.p.A. equity Sep Eole France FF 10,000 50 50 Imprepar S.p.A. equity Sincat S.c.r.l. Italy Lit 80,000,000 28.57 28.57 Imprepar S.p.A. equity Sistema Sinni S.c.r.l. Italy Euro 30,600 31.25 31.25 Imprepar S.p.A. equity Soingit S.c.r.l. Italy Lit 80,000,000 29.49 29.49 Imprepar S.p.A. equity Songkla Stadium Thai - Italian J.V. Thailand 100 100 Imprepar S.p.A. equity Taormina S.c.r.l. Italy Euro 49,579 33.75 33.75 Imprepar S.p.A. equity Wohnanlage Hohenstaufenstrasse Wiesbaden Germany 62.7 62.7 Imprepar S.p.A. equity

(*) joint control WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 The following companies have been excluded from the consolidation scope compared to 31 December 2007:

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 31.12.2007 subscribed/ ment by paid-up CONSTRUCTION Trevi S.G.F. S.c.r.l. Italy Euro 51,000 45 45 SGF INC S.p.A. equity Castello 99 S.c.r.l. Italy Euro 11,000 60 60 proportionate

CONCESSIONS Ponte de Pedra Energetica S.A. Brazil BRL 219,770,000 50 50 Impregilo Intern. Infrastruc. N.V. equity

IMPREPAR Livorno Due S.c.r.l. Italy Euro 40,800 45 45 Imprepar S.p.A. equity Societê Gestione Depuratore - SOGEDEP S.r.l. Italy Euro 20,400 22.84 22.84 Imprepar S.p.A. equity MS Villa Fiorita S.c.r.l. Italy Euro 35,700 50 33.33 Impresa Castelli S.r.l. equity 16.67 Imprepar S.p.A. Saalp S.c.n.c. Italy Euro 51,600 69.9 69.9 Imprepar S.p.A. proportionate 123 Consorzio Ferrovie Sarde - COFESAR S.c.r.l. Italy Euro 45,900 34 34 Imprepar S.p.A. equity Ripristino Beni Culturali - RIBEC S.c.r.l. Italy Euro 10,200 40 40 Imprepar S.p.A. equity

The following companies have been included in the consolidation scope compared to 31 December 2007:

Name Country Currency Share/quota % % % Indirectly Method capital invest- direct indirect held 30.06.2008 subscribed/ ment by paid-up CONSTRUCTION Proyecto La Yesca Mexico PSM 50,000 44.2 44.2 equity Vegas Tunnel Constructors USA 100 40 60 Healy S.A. equity Arge Haupttunnel Eyholz Switzerland 36 36 CSC S.A. equity CCB Consorzio Centro Balneare Switzerland 40 40 CSC S.A. equity CRA Consorzio Realizzazione Arca Switzerland 40 40 CSC S.A. equity

CONCESSIONS Rodovia Das Cataratas Brazil BRL 41,849,000 35 35 Primav Ecorodovias S.A. equity

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 ATTESTATION ON THE CONDENSED INTERIM 125 CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ARTICLE 154-BIS OF LEGISLATIVE DECREE NO. 58/98 AND SUBSEQUENT AMENDMENTS AND INTEGRATIONS

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Attestation on the condensed interim consolidated financial statements pursuant to article 154-bis of Legislative decree no. 58/98 and subsequent amendments and integrations

1 Alberto Rubegni, as Chief Executive Officer, and Rosario Fiumara, as manager in charge of financial reporting, of Impregilo S.p.A. attest, considering the provisions of article 154-bis.3/4 of Legislative decree no. 58 of 24 February 1998: • the adequacy given the company’s characteristics, and • the effective application of administrative and accounting procedures during the period from 1 January to 30 June 2008 to prepare the condensed interim consolidated financial statements.

2 No significant issues arose.

3 Moreover, they state that:

3.1 the condensed interim consolidated financial statements as at and for the six months ended 30 June 2008: 127 a) have been prepared in accordance with the applicable international financial reporting standards endorsed by the European Community pursuant to EC regulation no. 1606/2002 of the European Parliament and Council of 19 July 2002; b) comply with the accounting records and entries; c) have been prepared in accordance with Legislative decree no. 58 of 24 February 1998 and give a true and fair view of the financial position and results of operations of Impregilo group.

3.2 the directors’ report describes the key events of the period and their impact on the condensed interim consolidated financial statements together with the main risks and uncertainties for the second half of the year. It also discloses information about related party transactions.

Sesto San Giovanni, 28 August 2008

Chief Executive Officer Manager in charge of financial reporting

Alberto Rubegni Rosario Fiumara (signed on the original) (signed on the original)

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 AUDITORS’ REPORT ON THE REVIEW 129 OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2008

Interim Financial Report 30 June 2008 IMPREGILO WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Published by Impregilo October 2008 Project Milano AD S.r.l. Milan WorldReginfo - 7a6255e8-4475-458b-8319-00d1c55d9757 Progress, our greatest work

The value of a Group stems in part from its history and origins.