Something About Ducati Selling The Ducati Corse Brand To Ducati Corse

Something About Ducati Selling The Ducati Corse Brand To Ducati Corse

© 2004, Roadracing World Publishing, Inc.

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From a press release issued by Ducati:

DUCATI MOTOR HOLDING STREAMLINES THE STRUCTURE OF ITS BRANDS

Bologna, Italy – Ducati Motor Holding S.p.A. (NYSE: DMH, Borsa Italiana S.p.A: DMH), a leading manufacturer of high performance motorcycles, announced that its Board of Directors decided yesterday to sell the Ducati Corse brand from Ducati Motor Holding to Ducati Corse S.r.l On the same date Ducati Corse Board of Directors decided to purchase the Ducati Corse brand. The transaction will take place by the end of the year.

The main reason for the transaction is to rationalize management of the “Ducati” and “Ducati Corse” brands, allowing each brand to be developed economically as separate entities.

Ducati Corse S.r.l., fully-owned by Ducati Motor Holding S.p.A.(99% directly and 1% indirectly), is focused on the organization and management of the MotoGP and Superbike racing teams, the development and construction of racing bikes, as well as all related promotional activities which aim to increase the Company’s presence on the international circuits and enhance its brand image.

The Ducati Corse Brand has been valued at Euro 23 million, and has been calculated on a discounted cash flow of Ducati Corse’s brand royalties, related to the use of the brand by licencees and sponsors. The valuation was based on an independent appraisal commissioned by Ducati Motor Holding.

Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won thirteen of the last fifteen World Superbike Championship titles and more individual victories than the competition put together. The Company produces motorcycles in five market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring and Multistrada. The Company’s motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. For more information about the Company, please visit our web site at http://www.ducati.com

This press release contains statements that are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, as described in documents previously filed by the Company with CONSOB and with the U.S. Securities and Exchange Commission.

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