August 1, 2008

Prysmian Raises Prices of Its Optical Cable Products in North-America, in Response to Increased Costs and Growing Demand

Prysmian Communications Cables & Systems, USA, one of the leading North American producers of cable into both the Energy and Telecom sectors, has confirmed that it has increased the prices of its optical cable products. Prices have been increased by up to 6% as a result of ongoing increases in the costs of energy and essential materials. Earlier this month existing customers were informed directly about the increases which have now taken effect.

Many of the materials used in the cable industry such as jacketing compounds and water blocking gels are direct by-products of the oil industry and as such are subject to substantial price increases. The increased price of oil has also had a direct adverse impact upon the manufacturing and transportation costs of optical cable. Additionally, other materials used in cables such as protective steel tapes are subject to the commodity price increases in the metals sector.

Vice President and General Manager of Prysmian Communications Cables & Systems, USA, Mr. Brian Di Lascia says, "Whilst demand for optical cable continues to grow, so too do the costs of essential raw materials and we must now pass these cost increases on to our customers. We are doing this in an open and transparent manner whilst at the same time continuously and aggressively pursuing every opportunity to secure internal efficiencies and maintain our cost leadership position in the North American Optical Cable market."

The Prysmian Group

A leading player in the industry of high-technology cables and systems for energy and telecommunication, the Prysmian Group is a truly global company with sales exceeding 5 billion euro in 2007 and a strong position in higher-added value market segments. With its two business, Energy Cables & Systems (submarine and underground cables for power transmission and distribution, for industrial applications and for the distribution of electricity to residential and commercial buildings) and Telecom Cables & Systems (optical cables and fibres and copper cables for video, data and voice transmission), Prysmian boasts a global presence with subsidiaries in 36 countries, 54 plants in 21 countries, 7 Research & Development Centres in Europe, USA and South America, and over 12,000 employees. Specialising in the development of products and systems designed to meet clients' specific requirements, Prysmian's key strengths include: a focus on Research & Development, the capacity to innovative on products and production processes, and the use of advanced proprietary technologies. Prysmian is listed on the Milan Stock Exchange Blue Chip index.