The Buzzi and Dyckerhoff Families announce their intent to establish an alliance thru a close partnership, aimed at improving the long-term competitive position of Buzzi Unicem and Dyckerhoff, open new market opportunities for the two Groups and enhance their strategic options vis-a-vis the current trends in the cement world market.

Dyckerhoff management is welcoming the two families’ plan, in the light of the wide array of opportunities that may arise from a possible cooperation between the Groups, both traditionally dedicated to technological excellence and long term strategic vision. Buzzi Unicem expresses full confidence in Dyckerhoff’s management.

It is expected that such an alliance might help both companies’ management efforts toward value creation through profitable growth and continuous operational improvement.

As part of the agreement, Buzzi Unicem is offering to acquire by the end of the year a minority position of about 30-35% of Dyckerhoff AG ordinary shares from the Dyckerhoff Families, Dresdner Bank and R+V Versicherung, subject to the approval of the competition authorities and to the relevant contracts to be finalized. The amount of the transaction is expected to be in the range of € 500/550 million. The Dyckerhoff Families will also be granted the option to sell additional shares to Buzzi Unicem by the end of 2004 and at an equivalent per share price, up to about 30% of ordinary capital.

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Dyckerhoff Group currently operates production facilities in Germany, where it is market leader, in the Czech Republic, Poland, Spain and also in Luxembourg, Russia and Ukraine. Following the acquisition of Lone Star in september ‘99, the Group has also become a prominent cement operator in the USA.

Dyckerhoff Group has a cement production capacity of 28 million tons and a concrete production of about 12 million cubic metres. In the year 2000, Dyckerhoff has had a turnover of € 2.448 million, with a group net income of € 108 million.

Buzzi Unicem Group currently operates production facilities with an estimated market share of 18-20% in Italy, 6% in Mexico and about 4.5% in the USA. Buzzi Unicem Group has a cement capacity of 15 million tons and a concrete production in excess of 8 million cubic metres. In the year 2000, Buzzi Unicem has had a turnover of € 1.334 million with a group net income of € 162 million.

Banca IMI acted as financial advisor to Buzzi Unicem, while Sanpaolo IMI is providing preliminary financial support.