MIRA INFORM REPORT

Report Date :

18.12.2007

IDENTIFICATION DETAILS

Name :	Fratelli Mariani S.p.a.
Registered Office :	Via Luigi Cadorna, 34, 20032 - Cormano (MI) -IT-
Country :	Italy
Financials (as on) :	31.12.2006
Date of Incorporation :	13/12/1929
Legal Form :	Joint Stock Company
Line of Business :	Production of various material resulting from wire processing. Manufacturing of sundry metal articles and metal odds and ends (bird-cages, metal filters, oilers).

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	1.139.300 – Eur
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

name & address

Fratelli Mariani S.p.a. Stabilimenti Met allurgici

Via Luigi Cadorna, 34

20032 - Cormano (MI) -IT-

SUMMARY

Legal Form	:	Joint stock company
Start of Activities	:	13/12/1929
Patrimonial Consistence	:	Over 2.500.000 Eur
Turnover Range	:	25.000.000/35.000.000 Eur
Number of Employees	:	From 131 to 150

CREDIT ANALYSIS

CREDIT OPINION	:	1.139.300 – Eur
Score	:	Risk low
Creditworthness Rate	:	(Excellent)
		Financial/patrimonial analysis very good - Credit with very low risk

ACTIVITY

Production of various material resulting from wire processing.

Manufacturing of sundry metal articles and metal odds and ends

(bird-cages, metal filters, oilers).

LEGAL DATA

Legal Form : Joint stock company

Fiscal Code : 00848450151

Foreign Trade Reg. no. : MI114690 since 27/01/1992

Foreign Trade Reg. no. : 561 of Milano

Foreign Trade Reg. no. : 114690 of Milano since 27/01/1992

Foreign Trade Reg. no. : 0000561 of Milano

Chamber of Commerce no. : 11870 of Como

Chamber of Commerce no. : 151589 of Milano since 26/02/1930

Firms' Register : MI146-28896 since 19/02/1996

V.A.T. Code : 00848450151

Foundation Date	: 13/12/1929
Establishment Date	: 13/12/1929
Start of Activities	: 13/12/1929
Legal Duration Date	: 31/12/2030
Nominal Capital	: 1.500.000	Eur
Subscribed Capital	: 1.500.000	Eur
Paid up Capital	: 1.500.000	Eur

MEMBERS

Mariani

Guglielmina

Born in Veleso

(CO)

on 02/02/1927

- Fiscal Code : MRNGLL27B42L715J

Residence :

Corso

Buenos Aires

, 0065

- 20100

Milano

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Director	24/05/2007
Board Chairman	24/05/2007

No Protests registered.

Zanetti

Luca

Born in Milano

(MI)

on 06/10/1975

- Fiscal Code : ZNTLCU75R06F205Y

Residence :

Via

Sant'andrea

, 7

- 20052

Monza

(MB)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	14/07/2006

No Protests registered.

Zanetti

Giovanni

Born in Soresina

(CR)

on 10/01/1944

- Fiscal Code : ZNTGNN44A10I849B

Position	Since	Shares Amount	% Ownership
Director	24/05/2009
Procurator	23/05/1979

No Protests registered.

Zanetti

Marco

Born in Milano

(MI)

on 11/11/1972

- Fiscal Code : ZNTMRC72S11F205X

Residence :

Via

Sant' Andrea

, 7

- 20052

Monza

(MB)

- IT -

Position	Since	Shares Amount	% Ownership
Attorney with special power	13/11/2001

No Protests registered.

Bertuola

Silvano

Born in Rescaldina

(MI)

on 30/03/1961

- Fiscal Code : BRTSVN61C30H240K

Residence :

Via

P. Nenni

, 9/A

- 20027

Rescaldina

(MI)

- IT -

Position	Since	Shares Amount	% Ownership
Procurator	14/11/2002

No Protests registered.

COMPANIES CONNECTED TO MEMBERS *

*checkings have been performed on a national scale.

*In this module are listed the companies in which members hold or held positions.

MARIANI

GUGLIELMINA

Company Style	Legal Seat	Fiscal Code	Position	Position Status	Firm Status
FRATELLI MARIANI - RUBINETTERIE IN LIQUIDAZIONE	Milano (MI) - IT -	01380280154	Procurator	-	Ceased

The indication "REGISTERED" as Firm Status could refere to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

CAPITAL SHAREHOLDERS

Style / Name	Seat / Address	Fiscal Code	Owned Shares	% of Ownership
Zanetti Luca	Monza - IT -	ZNTLCU75R06F205Y	126.000 .Eur	8,40
Zanetti Giovanni		ZNTGNN44A10I849B	375.000 .Eur	25,00
Zanetti Marco	Monza - IT -	ZNTMRC72S11F205X	126.000 .Eur	8,40
MARIANI ANGELA		MRNNGL36M53F205E	249.000 .Eur	16,60
MARIANI FELICITA ENRICA		MRNFCT46M53C933G	624.000 .Eur	41,60

DIRECT PARTICIPATIONS

The Company under review has no participations in other Companies.

STRUCTURE AND COMPANY ACTIVITY

In order to carry out its activities the firm uses the following locations:

-

Legal and operative seat

in :

Via

Luigi Cadorna

, 34

- 20032 -

Cormano

(MI)

- IT -

-

Branch

(Factory )

since 01/01/1959

in :

Via

Giuseppe Bologna

, 0017

- 20091 -

Bresso

(MI)

- IT -

PHONE

: 02/6100304

Employees

: 136

Fittings and Equipment

for a value of 3.599.500

Eur

Stocks

for a value of 7.739.500

Eur

Furniture and fittings

for a value of 216.911

Eur

Vehicles

for a value of 273.722

Eur

The firm operates abroad as importer / exporter.

To purchase foreign products the firm uses the following channels :

- national or foreign important buyers

- distributors

- direct orders to foreign companies

Export represents up to 20% of the global turnover.

Products abroad are placed by :

- national or foreign important buyers

- importers

- trading companies

- its own agents

- direct orders from foreign companies

HISTORICAL INFORMATION AND/OR FIRM'S

STATUS

Ex-Members / Ex-Positions

Mariani

Guglielmina

Born in Veleso

on 02/02/1927

- Fiscal Code : MRNGLL27B42L715J

Residence :

Corso

Buenos Aires

, 0065

- 20100

Milano

(MI)

- IT -

Position

Sole Director

Ghislandi

Fausto

Born in MILANO

on 29/11/1940

- Fiscal Code : GHSFST40S29F205H

Residence :

Via

COLA DI RIENZO

, 12

- 20100

Milano

(MI)

- IT -

Position

Temporary Auditor

Zanetti

Giovanni

on 10/01/1944

Position

Procurator

Zanetti

Giovanni

Born in Soresina

on 10/01/1944

- Fiscal Code : ZNTGNN44A10I849B

Position

Managing Director

Former seats

-

Branch

(Warehouse )

since 01/01/1959

until 01/07/1995

Via

PERGOLESI

- 20124

- MILANO

(MI)

- IT -

-

Branch

(Factory )

since 15/12/1929

until 29/08/2003

- 22025

- LEZZENO

(CO)

- IT -

PAYMENTS ANALYSIS

The average term of debts to suppliers is shorter than the sector one.

PAYMENTS SCORE : - No insolvency

CREDIT REVOLVING

During last Year, the subject of inquiry has not been monitored by our company.

PROTESTS

Protests checking on the subject firm has given a negative result.

LEGAL PROCEDURES

None reported, standing to the last received edition of the Official Publications.

IMMOVABLES *

*No specific (mortgage/cadastrial registrations) inspections have been requested.

Immovable Type	Value
Real estates	431.535 .Eur

NB.: For Capital Companies the value of the Immovables is the one reported in the last available financial documents.

FINANCIAL AND ECONOMICAL ANALYSIS

Subject is active since 1929

During the last years, it achieved profits (r.o.e. 1,2% on 2006) and with an upward trend in turnover trend during the last financial year (+19,26% in 2006).

The operating result in 2006 was positive (3,31%) and reflects the field's average.

Very good financial situation: shareholder's equity covers short-terms debts with an indebtedness level equal to 0,26 but slighlty increasing.

Bank exsposure is limited and the suppliers' credit is modest too, 78,66 gg. is the payment average period below the sector's average.

The management determines a good range of liquidity.

FINANCIAL DATA

Complete balance-sheet for the year as at

31/12/2006

(in Eur

x 1 )

Item Type	Amount	Source
Sales	25.023.813	filed balance sheet
Profit (Loss) for the period	193.566	filed balance sheet

Complete balance-sheet for the year as at

31/12/2005

(in Eur

x 1 )

Item Type	Amount	Source
Sales	20.981.894	filed balance sheet
Profit (Loss) for the period	97.851	filed balance sheet

Complete balance-sheet for the year as at

31/12/2004

(in Eur

x 1 )

Item Type	Amount	Source
Sales	21.780.018	filed balance sheet
Profit (Loss) for the period	828.232	filed balance sheet

Complete balance-sheet for the year as at

31/12/2003

(in Eur

x 1 )

Item Type	Amount	Source
Sales	20.741.238	filed balance sheet
Profit (Loss) for the period	534.988	filed balance sheet

Complete balance-sheet for the year as at

31/12/2002

(in Eur

x 1 )

Item Type	Amount	Source
Sales	21.300.054	filed balance sheet
Profit (Loss) for the period	1.628.506	filed balance sheet

BALANCE SHEETS

From our constant monitoring of the Public Administration, actually, no more recent balance sheets result to be filed.

Balance Sheet as at 31/12/2006 - Months 12 - Currency Eur - Amounts x 1

Balance Sheet as at 31/12/2005 - Months 12 - Currency Eur - Amounts x 1

Years		2006	2005
	BALANCE SHEET ACCOUNTS
.
ASSETS
CREDITS TO SHAREHOLDERS
FIXED ASSETS ( NET )		5.332.276	5.168.983
. Intangible assets		187.484	171.299
. Tangible fixed assets		4.536.991	4.383.738
. . Land and buildings		431.535	463.295
. . Plants, Equipm.and Machinery		3.599.583	3.526.709
. Long-term Investments		607.801	613.946
. . Financial loans		246.296	252.441
. . Own shares
CURRENT ASSETS		16.832.424	15.670.409
. Stock		7.739.359	8.053.126
. Credits		8.471.670	6.547.837
. . Credits to clients		7.947.056	6.076.398
. . Other credits		524.614	471.439
. Short-term financial assets			499.456
. Liquid assets		621.395	569.990
ACCRUED INCOME-DEFERR. ASSETS		1.468.021	1.771.337
TOTAL ASSETS		23.632.721	22.610.729
.
LIABILITIES
NET WORTH		16.116.480	15.922.912
. Company's capital		1.500.000	1.500.000
. Reserves		14.422.914	14.325.061
. Reserves company's own shares
. Retained profits (losses)
. Profit (loss)		193.566	97.851
PROVISION CHARGES ACCOUNTS		281.698	452.744
STAFF TERM INDEMNITY		1.814.324	1.864.845
DEBTS		5.369.543	4.322.847
. Financial M/L terms		516.457	516.457
. . Financial M/L term banks
. . Financial M/L bonds		516.457	516.457
. . Other financial M/L debts
. Financial short-term debts		86.262
. . Financial short-term banks		86.262
. . Financial short-term bonds
. . Other financial short-term debts
. M/L term debts to suppliers
. Short-term debts to suppliers		3.923.082	3.209.819
. Sundry M/L debts			9.520
. Sundry short-term debts		843.742	587.051
ACCRUED COSTS DEFERR. LIABILITIES		50.676	47.381
TOTAL LIABILITIES		23.632.721	22.610.729
.
	PROFIT AND LOSS ACCOUNTS
OUTPUT VALUE		25.580.953	22.074.173
. Revenues from sales/services		25.023.813	20.981.894
. Change of stock (products)		18.506	133.642
OPERATING EXPENSES		24.798.384	21.621.544
. Purchasing expenses		12.745.812	10.225.270
. Change of stock (raw material)		-7.190	-250.581
. Expenses from services		3.357.179	3.163.744
. Expenses from leasing		1.849.886	1.953.614
. General expenses/sundry charges		80.077	81.473
. Staff expenses		5.791.268	5.451.239
. Depreciation/Devaluation costs		981.352	996.785
FINANCIAL REVENUES (CHARGES)		-57.406	-161.657
. Financial charges		-65.156	-175.531
. Financial revenues		7.750	13.874
FINANCIAL ASSETS CORRECTION
EXTRAORDINARY FINANCIAL REVENUES (CHARGES)		-12.813	94.912
PROFIT (LOSS) FOR THE PERIOD		712.350	385.884
TAX		518.784	288.033
CORRECT./ALLOCAT. FISCAL RULE
NET PROFIT (LOSS)		193.566	97.851

RATIOS	Item	O.V.	O.V.	as at 31/12/2006	as at 31/12/2005	Sector Average
Fixed assets ratio	Units	=> 1	l	3,45	3,54	1,70
Net Short-term indebtedness	Units	- 1	l	0,26	0,20	2,40
Current ratio	Units	=> 1	l	3,46	4,12	1,28
Acid Test Ratio-Liquidity Ratio	Units	=> 1	l	1,87	2,00	0,91
Return on Sales	%		l	4,69	5,21	4,20
Average stock waiting period	dd		l	111,31	138,16	60,87
Credits to clients average term	dd		l	114,30	104,25	127,42
Debts to suppliers average term	dd		l	78,66	75,31	146,23
Net financial revenues/ charges incidence	%		l	- 0,22	- 0,77	- 1,03
Labour cost incidence	%		l	23,14	25,98	19,34

O.V. = Optimal Value. When not present refer to the sector's.

A coloured item indicates the opinion of the rate during the last financial year

(green=good; orange=not optimal; red=insufficient; n.c.=not computable)

CREDIT OPINION

On the basis of the above mentioned, and the sales volume obtained, we deem that the maximum exposure for short and medium term transactions ( 90 - 120 days ) could be of:

1.139.300 .Eur.

MARKET / TERRITORY DATA

Population living in the province	:	3.839.216
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expenses average in the region (in Eur.) :

- per food products	:	460
- per non food products	:	2.090
- per energy consume	:	114

SECTOR DATA

The values are calculated on a base of 1.713 significant companies.

The companies cash their credits on an average of 127 dd.

The average duration of suppliers debts is about 146 dd.

The sector's profitability is on an average of 4,20%.

The labour cost affects the turnover in the measure of 19,34%.

Goods are held in stock in a range of 60 dd.

The difference between the sales volume and the resources used to realize it is about 1,13.

The employees costs represent the 19,65% of the production costs.

STATISTICAL DETRIMENTAL DATA

Statistically the trade activity shows periods of crisis.

The area is statistically considered lowly risky.

In the region 50.886 protested subjects are found; in the province they count to 24.765.

The insolvency index for the region is 0,55, while for the province it is 0,66.

Total Bankrupt companies in the province : 22.523.

Total Bankrupt companies in the region : 39.612.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions