BOLOGNA, Italy, May 16 /PRNewswire-FirstCall/ -- The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) approved today the financial results for the first quarter ended March 31, 2006. Revenues for the first quarter of 2006 were Euro 78.2 million, down 4.5% compared to Euro 81.9 million in the same period in 2005. This was due to a reduction in motorcycle sales, offset by a positive product mix, increased sales in accessories, as well as a positive exchange rate effect. 7,337 units were sold in the period. Revenues from motorcycles for the period decreased 8.6% to Euro 60.2 million against the same period last year and accounted for 77.0% of total revenues. Motorcycle-related products, including spare parts, accessories and apparel, amounted to Euro 16.9 million, up 9.9% on the first quarter of 2005. Gross margin for the period amounted to Euro 24.2 million or 31.0% of revenues versus Euro 17.9 million or 21.8% over the same period last year, due to a positive product mix, increased accessories sales, as well as a positive exchange rate effect. EBITDA was Euro 11.3 million for the period and accounted for 14.5% of revenues, versus 9.6% in the same period last year. Operating result (EBIT) was a profit of Euro 6.0 million versus a Euro 2.1 million profit for the same period in 2005, due to the above-mentioned factors. At EBT level, the result was a profit of Euro 5.3 million versus a loss of Euro 0.4 million in the same period in 2005. Net result for the first quarter 2006 was a profit of Euro 1.5 million compared to a loss of Euro 2.6 million in the first quarter of 2005. Company net debt as of March 31, 2006 was Euro 141.2 million, an improvement compared to Euro 159.2 million on March 31, 2005 and an improvement of Euro 4.2 million versus December 31, 2005, which is in line with the seasonality of sales. As of March 31, 2006, the Company's net assets were Euro 122.0 million. For the first quarter of 2006, unofficial Ducati registrations were up 3.3% on the same period of last year. Registrations in Japan were up by 30%, in the US by 19%, in the non-subsidiary countries by 18%, and in Germany by 3%, while they were down in France (-3%), Italy (-6%), Benelux (-25%) and the UK (-32%). "2006 is off to a strong start, both in terms of financial results as well as on the racetrack. The transition from TPG to InvestIndustrial as the controlling shareholders has been successfully completed and the Company refinancing has seen positive input from the banks, headed by UniCredit," announced Federico Minoli, Ducati's Chairman and Chief Executive Officer. "The Company has the financial resources and renewed enthusiasm to face future challenges with passion and confidence." Enrico D'Onofrio, Chief Financial Officer for Ducati, added, "Thanks to a favourable product and geographic mix, the first quarter of 2006 sees a return to profit and an improved net financial position on last year. However, year-end forecast remains prudent and our main objective for 2006 is to reduce stock in our dealer network and improve structural costs." As of March 31, 2006 the Company did not hold any treasury shares. Founded in 1926, Ducati develops racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The Company produces motorcycles in six market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring, Multistrada and Sport Classic. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. Ducati has won thirteen of the last fifteen World Superbike Championship titles and more individual victories than the competition put together. For more information about the Company, please visit our web site at http://www.ducati.com/ This press release is not an offer to invest in Italy, according to Art. 1, letter (t) of the Italian legislative Decree no. 58 of February 24th, 1998, or in any other country. This press release cannot be transmitted or distributed to any persons in the United States or in any country where its distribution is not allowed without the express approval from the relevant authorities. This press release contains statements that are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, as described in documents previously filed by the Company with CONSOB and with the U.S. Securities and Exchange Commission. For further information, please contact: Federico Strano Director, Investor Relations Ducati Motor Holding S.p.A. Via Cavalieri Ducati, 3 Bologna 40132 Italy e-mail: Main Tel: +39-051-6413-111 Direct Tel: +39-051-6413-213 01/01/06-31/03/06 01/01/05-31/03/05 Var% Revenues 78.2 81.9 -4.5% EBITDA 11.3 7.9 43.4% Net result 1.5 (2.6) Net Debt (141.2) (159.2) -11.3% (Million Euro) Ducati Motor Holding S.p.A. and Subsidiaries Net Sales and Shipment Data Three Months Ended Three Months Ended March, 31 March, 31 March, 31 March, 31 2006 2005 2006 2005 Net Revenues (Euro in thousands, US$ in thousands) Motorcycles EUR 60,162 EUR 65,791 $ 72,821 $ 79,633 Spare Parts, Accessories, Apparel 16,912 15,389 20,470 18,627 Other 1,104 702 1,336 850 Total Net Revenues EUR 78,178 EUR 81,882 $ 94,627 $ 99,110 Ducati Units Motorcycle shipments: % Change North America 2,502 1,710 46.3% Main European market 2,845 4,997 (43.1%) Japan 555 513 8.2% Rest of World 1,435 1,745 (17.8%) Total 7,337 8,965 (18.2%) Motorcycle product mix: % Change Superbike 1,147 2,120 (45.9%) Supersport 176 259 (32.0%) Sport Naked 3,933 4,174 (5.8%) Sport Touring 550 389 41.4% Multistrada 666 2,023 (67.1%) Sport Classic 865 0 n.a. Total 7,337 8,965 (18.2%) Unofficial Motorcycle Registrations: % Change North America 1,670 1,404 18.9% Main European market 4,382 4,755 (7.8%) Japan 640 494 29.6% Rest of World 1,473 1,253 17.6% Total 8,165 7,906 3.3% Ducati Motor Holding Group Profit & Loss (Euro in thousands, US$ in thousands, except for shares) Three Months Ended Three Months Ended March, 31 March, 31 March, 31 March, 31 Percent 2006 2005 2006 2005 Change Revenues (net) EUR 78,178 EUR 81,882 $ 94,627 $ 99,110 (4.5%) Cost of goods sold (53,954) (64,004) (65,306) (77,470) Gross Margin 24,224 17,878 29,321 21,640 35.5% Other operating revenues 7,036 8,333 8,516 10,086 SG&A expenses (25,193) (23,737) (30,494) (28,731) Other operating income and expenses (68) (400) (82) (484) Operating result 5,999 2,074 7,261 2,511 189.2% Financing expense, net (666) (2,494) (806) (3,019) Profit/(loss)before income taxes and min.interest 5,333 (420) 6,455 (508)(1369.8%) Income Tax (3,800) (2,206) (4,600) (2,670) 72.3% Net Result including minority interests 1,533 (2,626) 1,855 (3,178) (158.4%) Minority Interests (3) (1) (4) (1) 200.0% Net Result for the Group 1,530 (2,627) 1,851 (3,179) (158.2%) Shares outstanding 159,360,037 158,826,407 159,360,037 158,826,407 Percent Other Financial Change Data Motorcycles Produced (Units) 9,068 9,616 (5.7%) Motorcycles Sold (Units) 7,337 8,965 (18.2%) Unofficial Registrations (Units) 8,165 7,906 3.3% EBITDA 11,300 7,881 13,678 9,538 43.4% EBITDA Margin 14.5% 9.6% Note: On March 31, 2006 US$1 = 0,8262 Euros Ducati Motor Holding S.p.A. Consolidated Statements of Operations Data (Euro in thousands, except per share and share amounts) Period Period ended ended 31.03.2006 31.12.2005 EUR 000 % EUR 000 % Current assets Cash and cash equivalents 40,701 53,017 Trade receivables, net 110,227 102,232 Inventories 94,333 81,380 Other current assets 10,259 9,217 Total current assets 255,520 54.0% 245,846 53.1% Non current assets Property, plant and equipment -net 64,765 66,556 Goodwill and intangible assets with indefinite useful lives 86,050 86,050 Other intangible fixed assets net 43,314 39,665 Equity investments 20 20 Deferred tax assets 22,709 24,662 Other long-term assets 373 386 Total non current assets 217,231 46.0% 217,339 46.9% Total assets 472,751 100% 463,185 100% Current liabilities Short-term bank borrowings 57,647 64,148 Accounts payable - trade 94,626 85,203 Income and other taxes payables 6,762 5,537 Other current liabilities 24,511 20,202 Provisions for risks and charges - current portion 17,295 18,621 Total current liabilities 200,841 42.5% 193,711 41.8% Long-term liabilities Long-term debt, net of current portion 124,230 125,824 Employee benefits 9,596 9,669 Deferred income taxes 14,529 13,697 Provision for risks and charges - long term portion 1,501 1,525 Total long-term liabilities 149,856 31.7% 150,715 32.5% Total liabilities 350,697 74.2% 344,426 74.4% Shareholders' equity Capital stock 82,867 82,867 Other reserves 77,321 75,559 Retained earnings (losses) (39,684) 1,780 Results for the period 1,530 (41,464) Total Group Shareholders' equity 122,034 25.8% 118,742 25.6% Minority interests 20 17 Total liabilities and shareholders' equity 472,751 100% 463,185 100% Ducati Motor Holding S.p.A. Consolidated Statements of Operations Data (US$ in thousands, except per share and share amounts) Period ended Period ended 31.03.2006 31.12.2005 $ 000 % $ 000 % Current assets Cash and cash equivalents 49,264 64,172 Trade receivables 133,419 123,742 Inventories 114,181 98,502 Other current assets 12,417 11,156 Total current assets 309,281 54.0% 297,572 53.1% Non-current assets Property, plant and equipment - net 78,392 80,559 Goodwill and intangible assets with 104,155 104,155 indefinite useful lives Other intangible fixed assets - net 52,427 48,011 Equity investments 24 24 Deferred tax assets 27,487 29,851 Other long-term assets 451 467 Total non-current assets 262,936 46.0% 263,067 46.9% Total assets 572,217 100% 560,639 100% Current liabilities Short-term bank borrowings 69,776 77,645 Accounts payable - trade 114,535 103,130 Income and other taxes payables 8,185 6,702 Other current liabilities 29,668 24,452 Provisions for risks and charges - 20,934 22,539 current portion Total current liabilities 243,098 42.5% 234,468 41.8% Long-term liabilities Long-term debt, net of current portion 150,368 152,297 Employee benefits 11,615 11,703 Deferred income taxes 17,586 16,579 Provision for risks and charges - 1,816 1,846 long term portion Total long-term liabilities 181,385 31.7% 182,425 32.5% Total liabilities 424,483 74.2% 416,893 74.4% Shareholders' equity Capital stock 100,302 100,302 Other reserves 93,589 91,457 Retained earnings (losses) (48,033) 2,155 Results for the period 1,852 (50,188) Total Group Shareholders' equity 147,710 25.8% 143,726 25.6% Minority interests 24 20 Total liabilities and shareholders' 572,217 100% 560,639 100% equity Ducati Motor Holding S.p.A. Consolidated Statements of Cash Flow (Euro in thousands) Period ended Period ended 31.03.2006 31.03.2005 EUR 000 EUR 000 Cash flow generated by operating activities Net profit (loss) for the year 1,530 (2,627) Change in cumulative translation adjustment (135) 660 Adjustments to reconcile net profit (loss) with the movements of funds generated by (used in) operating activities - Non cash items for stock options 197 231 - Amortisation, depreciation 5,301 5,807 - Taxes paid (50) (134) Change in operating assets and liabilities - Working capital (11,525) (9,070) - Effects of IAS 39 and 32 adoption from 1 January (3,219) 2005 - Other current assets (1,042) (1,158) - Other current liabilities 4,309 3,269 - Due to tax authorities 1,275 1,014 - Deferred tax assets 1,953 1,291 - Deferred tax liabilities 832 54 - Employee benefits (73) 337 - Provisions for risks and charges (16) - - Restructuring reserve (1,334) - Net cash generated by operating activities (A) 1,222 (3,545) Cash flow (used in) generated by investing activities Net change in property, plant and equipment (1,728) (1,317) Net change in intangible fixed assets (5,462) (3,791) Disposal from property, plant and equipment 31 23 Other fixed assets 13 (47) Net cash used in investing activities (B) (7,146) (5,132) Cash flow generated from operating activities, net of cash used in investing activities (A-B) (5,924) (8,677) Cash flow (used in) generated by financing activities Change in short-term and long-term debt (7,903) 1,434 Interests paid (192) (735) Change in minority interests 3 1 Increase in share capital and reserves 1,700 - Change in cash generated by financing (6,392) 700 activities Increase (decrease) in cash on hand, bank deposits and securities (12,316) (7,977) Cash and cash equivalents, beginning of 53,017 49,327 year Cash and cash equivalents, end of period/ 40,701 41,350 year Ducati Motor Holding S.p.A. Consolidated Statements of Cash Flow (Dollar in thousands) Period Period ended ended 31.03.2006 31.03.2005 $ 000 $ 000 Cash flow generated by operating activities Net profit (loss) for the 1,852 (3,180) year Change in cumulative translation adjustment (163) 798 Adjustments to reconcile net profit (loss) with the movements of funds generated by (used in) operating activities - Non cash items for stock options 238 280 - Amortisation, 6,416 7,029 depreciation - Taxes paid (61) (162) Change in operating assets and liabilities - Working capital (13,950) (10,978) - Effects of IAS 39 and 32 adoption from 1 (3,896) January 2005 - Other current assets (1,261) (1,402) - Other current 5,216 3,957 liabilities - Due to tax 1,543 1,227 authorities - Deferred tax assets 2,364 1,563 - Deferred tax 1,007 65 liabilities - Employee benefits (88) 408 - Provisions for risks and charges (19) - - Restructuring reserve (1,615) - Net cash generated by operating activities (A) 1,479 (4,291) Cash flow (used in) generated by investing activities Net change in property, plant and equipment (2,092) (1,594) Net change in intangible fixed assets (6,611) (4,589) Disposal from property, plant and equipment 37 27 Other fixed assets 15 (56) Net cash used in investing activities (B) (8,651) (6,212) Cash flow generated from operating activities, net of cash used in investing activities (A-B) (7,172) (10,503) Cash flow (used in) generated by financing activities Change in short-term and long-term debt (9,566) 1,736 Interests paid (232) (889) Change in minority 4 1 interests Increase in share capital and reserves 2,058 - Change in cash generated by financing (7,736) 848 activities Increase (decrease) in cash on hand, bank deposits and securities (14,908) (9,655) Cash and cash equivalents, beginning of year 64,172 59,705 Cash and cash equivalents, end of period/ year 49,264 50,050 DATASOURCE: Ducati Motor Holding S.p.A. CONTACT: For further information, please contact: Federico Strano, Director, Investor Relations, Ducati Motor Holding S.p.A.. Via Cavalieri Ducati, 3, Bologna 40132, Italy, e-mail: , Main Tel: +39-051-6413-111, Direct Tel: +39-051-6413-213

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