DUCATI FIRST HALF RESULTS
August 6 2004. First half 2004 revenues for Ducati were Euro 221.0 million, up 6.9% excluding forex effects, (or up 5.6% including forex effects) versus first half 2003. Revenues from motorcycles for the period increased 0.9% to Euro 175.4 million and represented 79.4% of revenues. Motorcycle-related products, including spare parts, technical accessories and apparel, increased 21.3% to Euro 42.3 million over the comparable period in the previous year.

Gross margin was 35.9% versus 34.3% last year, thanks to product cost reduction and operational efficiencies partly offset by negative forex effect. EBITDA was Euro 28.0 million, or 12.7% of revenues, up 16.4% excluding forex effects (or up 8.5% including forex effects), versus Euro 25.8 million, or 12.3% of revenues in first half 2003.

At EBT level, the result was a profit of Euro 3.5 million versus a loss of Euro 1.6 million in first half 2003 thanks to a Euro 2.2 million increase in EBITDA and a Euro 3.5 million one-off restructuring cost accrued in 2003.

The Company's net debt at June 30, 2004 was Euro 100.4 million, down versus the Euro 112.2 million at the same date a year earlier and down versus Euro 117.2 million at December 31, 2003. The company's gearing ratio was 62% at June 30, 2004 versus 71% at the same date a year earlier and versus 74% at December 31, 2003.

In first half 2004 unofficial Ducati worldwide registrations, were up 2% versus last year, in a flat market, with the US up 33%, non-subsidiary countries up 6%, France up 5% and Italy up 3%, while the UK was down 4%, Germany down 13%, the Benelux Countries down 13% and Japan down 14%.

"In a difficult environment, where the two-wheeled market remains weak, Ducati continues to grow by focusing on its niche strategy", said Federico Minoli, President and CEO of Ducati Motor Holding. "First half financial results showed significant improvements across the board, and in particular a reduction of our net debt position. Though, the second quarter was weaker than 2003, following the excellent results of the first quarter".

"Our cost control and cash management efforts are bearing fruit and drove first half financial results, with return to profit and improvement of the Debt/Equity ratio", said Enrico D'Onofrio, Chief Financial Officer of Ducati. "We will continue to pay particular attention to these issues for the rest of 2004, as we pave the way for the growth of sales expected in 2005".

As for the second quarter, revenues were Euro 120,7 million, down 5.5% excluding forex effects, (or down 5.7% including forex effects) over the same period in 2003, due to lower bike sales.

Gross margin was 35.8% of revenues, versus 32.6% in the same period a year ago, thanks to product costs and operational efficiencies. EBITDA was Euro 15.7 million, down 4.3% excluding forex (or down 7.0% including forex effects), versus Euro 16.8 million of 2003, representing 13.0% of revenues in line with the same period year ago.

In the second quarter of 2004, earnings before tax were Euro 2.7 million versus Euro 4.6 million last year. The decrease was mainly due to lower EBITDA and higher financial charges.

By the end of June 2004, the Company had re-purchased 1,260,096 shares, equivalent to Euro 1,840,351 or 0.79% of its stock capital.


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