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Saipem acquires Snamprogetti: a world leader in the engineering and oilfield services for the Oil industry has been created

 February 24, 2006; h 18:35

San Donato Milanese, 24 February 2006 - Saipem has agreed with Eni the purchase of 100% of the
equity of Snamprogetti for €680m in cash; the closing of the transaction will take place by March, 31
2006.

Snamprogetti is one of the leading engineering and construction companies, active in the international
market for the design and execution of large scale onshore plants for the production and treatment of
hydrocarbons and the monetization of natural gas.

Saipem is a leading company in the design and execution of large scale offshore projects for the
production and transportation of hydrocarbons, and has distinctive construction capabilities for the
realization of onshore projects.

As a consequence of the transaction, Saipem will have a position of primacy at the high end of the
market for the provision of Engineering, Procurement, Project Management and Construction services
for the Oil & Gas Industry, with a strong bias towards especially challenging activities in deepwater
and remote areas; with significant technological competence such as gas monetization and heavy oil
exploitation. The new Group will operate globally but with a strong local presence in the most strategic
regions of West Africa, Middle East, Central Asia, and South East Asia.

The business portfolio of the new Group allows a superior balance between capital intensive (offshore)
and less capital intensive (onshore) activities, along with increased resilience thanks to the intrinsically
complementary nature of Upstream and Downstream business cycles.

The range and nature of the clients’ profile of the new Group is broader and deeper, serving both the
largest international oil companies that are the traditional clients of Saipem, and the national oil
companies with whom Snamprogetti generally contracts.

The integration of Saipem and Snamprogetti will be uniquely facilitated by the strong industrial
relationships developed on many common endeavours, by a natural affinity and culture deriving from
common roots within the Eni Group, and the sharing of the same information systems.

The capabilities of the two companies are both highly complementary and strongly synergistic: the
amplification of the technological content and engineering & project management competence will
facilitate new business, while the group-wide exploitation of the ability to operate in the toughest
environments will increase efficiency.

As of December 2005, Snamprogetti’s backlog was around €4,400m. Revenues for 2006 are expected
to be around €2,800m, operating income before G&A around €90m, and net income around €30m.
Saipem believes that, through the integration with Snamprogetti, the new Group could achieve cost
synergies of €5m in 2006, €15m in 2007, and €30m in 2008. Therefore, Saipem expects that the
acquisition of Snamprogetti can have a positive effect on net income from the first year.

The acquisition will be financed through credit lines available to Saipem and supplied by Eni’s
financial companies. Snamprogetti estimates net cash position at the end of 2005 being around €390m,
almost half of which being derived from advances from customers.

UBS provided the Board of Directors of Saipem with an opinion as the fairness from a financial point
of view of the purchase price.

Pietro Franco Tali will present in detail the contents of the transaction during the conference call on
Saipem’s 2005 Results. The conference call is scheduled for Monday the 27th of February at 17.30
(CET), and can be attended in webcasting on the website www.saipem.eni-it/ir.asp.


Website: www.saipem.it
Switchboard: +39-025201
Shareholder Information:
Saipem S.p.A., Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI), Italy
Relations with institutional investors and financial analysts:
Mr Giulio Bozzini
Mr Salvatore Colli

Tel.: +39-02520.34653
Fax:
+39-02520.54295
E-mail: investor.relations@Saipem.eni.it