July 8 2004.

The Malaysian car company Proton and Claudio Castiglioni have signed an investment agreement for Proton to take controling stake in the capital of MV Agusta Group.

The agreement confirms the binding offer approved by Proton's board of directors on the 25 of May, in which Proton will submit a capital increase of 70 mil. euro in MV Agusta, leading to a restructuring of the credits and the exit in bonis of the group from the procedure of "controlled administration".

The objective of the new partnership is to develop the presence and increase the value of the brands Cagiva, Husqvarna and MV Agusta in the international markets by the many industrial and commercial synergies that the two Groups shares.

Proton, a public company listed in the Kuala Lumpur stock exchange, is one of the main Asian car manufacturers. Owner of the Lotus brand, the group is pursuing an expansion in the international markets through industrial alliances with prestigious companies in the automotive industry. The company financials of last year shows revenues for 1.5 billion euro, with a net profit of 114,5 mil. euro and a workforce of over 9,000 employees.

In this deal Proton is assisted by Societe Générale as financial advisor and by the legals White & case, while the Castiglioni family is assisted by Lazard for the financial part and by NTCM for the legal aspects.

Pews release from MV Agusta Group