Eurotech: Board of Directors approves Euro 109.24 million rights issue

Amaro (Udine), 22 June 2006

The Board of Directors of Eurotech, pursuant to the mandate granted to them by the shareholders of the company at an extraordinary general meeting held on 5 June 2006, today adopted a resolution to increase the company's share capital by means of a rights issue, involving the issue of up to 15,831,488 ordinary shares with no nominal value and ranking for dividends pari passu, to be offered as options to shareholders on the basis of 17 new ordinary shares for every 20 shares held at a price of Euro 6.90 per new share, for an overall consideration of Euro 109.24m.

Notice is hereby given that Consob has granted clearance to publish the executive summary and information prospectus relating to the issue of such options to shareholders and the listing of Eurotech ordinary shares on the market. Such clearance is conditional upon inclusion in the said executive summary and information prospectus of indications regarding the number of shares to be issued, the issue price of said shares and the basis in terms of ratio on which they are being offered, as well as of the overall value of the rights issue as approved by the Board of Directors at today's meeting.

Rights shall be exercised between 26 June 2006 and 14 July 2006 inclusive and may be traded on the market from 26 June 2006 to 7 July 2006 inclusive.
Rights not taken up by 14 July 2006 shall be offered on the stock market by the company, as permitted under Article 2441 paragraph 3 of the Italian Civil Code.

The shareholder-managers of the company, namely Mr Siagri, Mr Feragotto, Mr Mauri and Mr Tecchiolli, along with the other shareholders The S.r.l. and Friulia S.p.A. and the company's other founding partners Mr Chiandussi and Mr Pezzulli, who will sell part of the option rights to which they are entitled, have undertaken to use all proceeds from the said disposal to subscribe to part of the rights issue.

Strengthening the asset base of the company fits with the rationale of providing adequate financial support for the management's strategy, which envisages constant and ongoing growth in size for the group and extension of Eurotech's international reach.

This strategy is already being implemented and involves combining organic growth on the back of ongoing development in the existing product catalogue and introduction of new products with pursuit of strategic alliances and targeted acquisitions, leveraging on opportunities which may arise on the market from time to time.

The issue is being underwritten by Mediobanca - Banca di Credito Finanziario S.p.A.

It is anticipated that the executive summary and information prospectus will be published on Friday 23 June 2006 and made available at the headquarters of Eurotech S.p.A. located at in Via Jacopo Linussio 1, Amaro, province of Udine, North-East Italy, and its website at www.eurotech.com.



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