Italian Morning Sight 21 November 2007

Pierrel /Healthcare Pierrel (Accumulate) Accumulate New contract for the production of dental anaesthetics Recommendation unchanged Share price*: EUR 8.40 The facts: Pierrel signed yesterday a contract for the production of dental Target price: EUR 11.60 anaesthetics with the Spanish Diasa. Target Price unchanged The contracts’ total amount is of EUR 3m in three years. Reuters/Bloomberg PRL.MI/PRL IM Our analysis: Although this order has not a considerable impact on company Accounting Standard/Since IFRS/2004 revenues, we believe it is very positive from a strategic point of view as it will allow Market capitalisation (EURm) 87.0 the company to consolidate its position of European leader in the outsourcing No. of shares (m) 10.3 production of dental anaesthetics. Free float 52.7% Lastly, this new contract is a further support element for the demanding industrial Daily avg. no. trad. sh. 12 mth 42,000 plan announced by the company. Daily avg. trad. vol. 12 mth (m) 0.37 Price high 12 mth (EUR) 10.68 Conclusion & Action: Based on this foregoing considerations, we confirm our Price low 12 mth (EUR) 6.19 valuation of EUR 11.6 per share, based on our DCF model. Abs. perf. 1 mth -3.4% Abs. perf. 3 mth -11.0% Abs. perf. 12 mth 33.4%

(EUR) 12/07e 12/08e 12/09 Sales (m) 34 100 EBITDA (m) 413 EBITDA margin 11.2% 13.2% EBIT (m) 39 EBIT margin 8.1% 9.1% Net Profit (adj.)(m) 13 ROCE 3.2% 9.7% Net debt/(cash) (m) 56 59 Debt Equity 187.8% 195.2% Debt/EBITDA 14.7 4.5 Int. cover(EBITDA/Fin. int 3.5 4.7 EV/Sales 4.3 1.5 EV/EBITDA 38.3 11.6 EV/EBITDA (adj.) 38.3 11.6 EV/EBIT 53.1 16.9 P/E (adj.) nm 31.5 P/BV 2.9 3.0 OFCF yield -67.0% -2.0% Dividend yield 0.0% 0.0% EPS (adj.) 0.06 0.27 BVPS 2.87 2.81 DPS 0.00 0.00

11.vvdsvdvsdy 0 10 . 5 10 . 0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07

PIERREL M EX (Rebased) Source: Datastream *closing price as of 20/11/2007 Analyst(s): Paola Saglietti, Banca Akros [email protected] +39 02 4344 4287

Banca 4 Akros

Italian Morning Sight 21 November 2007

Disclaimer

This research has been prepared by Andrea Devita, Marco Cavalleri, Luigi Tramontana, Claudio Giacomiello, Paola Saglietti, Gabriele Gambarova, Dario Michi (all members of AIAF), Francesco Previtera, Francesco Sala and Marcello Renna (ordinary member of SIAT), who are financial analysts with Banca Akros SpA ("Banca Akros"), which is responsible for the preparation of the research. Banca Akros – which is also authorised to perform investment activities pursuant to the of Italy’s ruling dated November 14, 1996, is registered with the Italian banking association under registration n. 5328, is part of the Bipiemme Group (the “Group”) and is duly subject to the management and co-ordination of Banca Popolare di Milano (the “Parent Company”) – has prepared this research for its institutional clients only (“official stock brokers” pursuant to art. 31 of Consob Broker Regulations). This research is being distributed as of 21 November 2007. In compliance with arts. 69 “quater” and “quinquies” of Consob Regulations for Issuers (“notification to the public regarding interest and conflict of interest”) Banca Akros hereby declared that it has a personal interest in some of the companies examined in this research, specifically: 1) Anima SGR, Ansaldo STS, Atlantia, Fiera Milano, Impregilo, Reno De Medici and Viaggi del Ventaglio (in which Banca Akros’ parent group holds more than 2%); 2) Bca Italease (the Parent company is a member of Banca Italease’s syndicate pact; Banca Akros was Joint-Lead Manager in the placement consortium of the non-negotiable bonds in 2006); 3) Banca Ifis, Biesse, Cremonini, Pierrel, Prima Industrie and QF Investietico (for which the Bank is a specialist); 4) Negri Bossi (the Bank is a specialist; the Bank was financial advisor of capital increase organized in 2006); 5) (the Bank was acting as Co-Sponsor and partecipating to the underwriting in the IPO in 2006); 6) Aeffe, Ascopiave, Bialetti, Cape Live, Cobra, Diasorin, Elica, Enia, Gasplus, Landi Renzo, Mid Industry Capital, Omnia Network, Piaggio, Poltrona Frau, Polynt, Pramac, Prismian, RCF, RDB, SAT, Screen Service and Zignago Vetro (the Bank has been a member of the pertinent consortia for the IPO organized in the last twelve months); 7) Bca Pop. Emilia and (the Bank has been a member of pertinent consortia for the placement of the non-negotiable bonds organized in the last twelve months); 8) Premafin (the Bank is a Liquidity Provider); 9) Sopaf (the Bank has been acting as bond trustee and Global Coordinator of the consortium for the placement of convertible bonds organized in 2007). Financial analysts Andrea Devita, Marco Cavalleri, Luigi Tramontana, Claudio Giacomiello, Paola Saglietti, Gabriele Gambarova, Dario Michi (all members of AIAF), Francesco Previtera, Francesco Sala and Marcello Renna (ordinary member of SIAT), who prepared this research, have gained considerable experience with Banca Akros and other authorised brokerage houses. Said financial analysts do not receive a bonus, salary or any other form of remuneration, whether directly or indirectly, from any earnings in any investment banking operation. Said financial analysts and their families do not hold financial instruments issued by the companies under examination nor are they directors, managers or advisors of the companies. Pursuant to Consob rulings to implement art. 14, paragraph 8 of Italian Legislative Decree 58/98 (TUF) and specifically art. 69 “quinquies”, paragraph 2 of the Issuers Regulation, Banca Akros hereby informs its clients that additional information is available at its web site (http://bancaakros.webank.it/akros/sito.nsf/homepage). The information and opinions given in this research are based on sources believed to be reliable. Banca Akros has done its best to check the source of said information and that it has already been made public. However, notwithstanding the said controls Banca Akros does not guarantee nor shall it be held liable if the information supplied herein or used to prepare this research is found to be inaccurate, incomplete, untrue or incorrect. This research is for information purposes only. It shall not be regarded as a proposal for a contract, an offer to sell nor as a solicitation to buy and/or sell financial products nor, in general, to invest. Nor shall it be regarded as advice on investment opportunities. Banca Akros does not guarantee that any of the forecasts and/or estimates supplied in this research are attainable. Moreover, Banca Akros shall not be held liable for any consequences and/or damage that may derive from the use of this research and/or the information contained herein. All the information or opinions contained in this research are subject to change without notice, without detriment to any legal or regulatory requirements. Unless specifically authorised, this research may not be reproduced and/or circulated, whether wholly or in part, directly or indirectly.

Percentage of recommendations by the 30 September 2007 All recommendations Recommendations on stocks under conflict of interest (*)

Sell Sell 1% 6% Hold 34% Accumulate Accumulate 45% 43%

Hold 38%

Buy Buy 20% 13%

(*) Please note that the rate of issuers who are in potential conflict of interests with Banca Akros is equivalent to 20% of all issuers covered

Banca 6 Akros

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