Ansaldo STS: plans approved for merger between Ansaldo Trasporti Sistemi Ferroviari and Ansaldo Segnalamento

The Board of Directors of Ansaldo STS (STS.MI), meeting under the chairmanship of
Alessandro Pansa, approved the plan to merge Ansaldo Segnalamento Ferroviario S.p.A.
into Ansaldo Trasporti Sistemi Ferroviari S.p.A. The merger will be assessed by the Boards
of ATSF and ASF during the first quarter of 2007 based upon the financial statements of the
companies at 31 December 2006.
The merger implements, for the Italian companies of the Group, the international process of
integrating the “Signaling” and “Transport Systems” for the rail and metropolitan businesses.
The Italian new company will operate as a “competency center” for systems activities for all
Group companies and will also be responsible for supporting the other regional companies in
developing this business, which is characterized by current and prospective rates of growth.
Following the merger the new company will be able to make more direct use of the reciprocal
synergies arising from the presence of each of the merged companies in particular countries
and market segments, to implement the strategic coordination of their respective research
and development activities and to reduce transaction times and costs.
The Group will be able to increase its speed and effectiveness in initiating the development
of new businesses, such as security and telecommunications, that meet new market
demands and can which only be tackled by taking an integrated view of the “railway system”.
The aggregated total value of the backlog for the new company estimated at the close of
2006 will be about EUR 2 billion, more than 3 year over the production revenues of Ansaldo
Segnalamento and Ansaldo Trasporti e Sistemi Ferroviari.