Press release MKT/SL

ARGO REINFORCES ITS HARVESTING POLE

Joint venture between AGCO and Laverda to improve positioning in the markets of Europe, Africa and Middle East

Breganze June 25th, 2007. ARGO, the Italian Industrial Group owner of long tradition and great value brands such as Laverda, Landini, Fella, Gallignani, McCormick, Valpadana, Pegoraro, specialised in the production of agricultural machines and equipment has announced officially today the establishment of a 50% joint venture between Laverda S.p.A., leader of its harvesting pole and owner of Fella and Gallignani shared at 50%, and AGCO Corporation.

Laverda has been operating since 2004 in close partnership with AGCO supplying the Corporation based in Duluth (Georgia) with its top and medium range combines declined in the Massey Ferguson, Fendt and Challenger brands destined to the distribution in the markets of Europe, Africa and Middle East, where they have met a great success thanks to their features of reliability, productivity and profitability.

The very good relationships established and the good results obtained during these years of cooperation have persuaded the two groups to pursue the maximum stability in the partnership with the common aim of taking a leading position in the EAME harvesting business.

The partnership agreement ratified today will allow Laverda, the Breganze Company settled in 1873 and since that date fully dedicated to the manufacturing of agricultural machines and equipments, to associate the expertise acquired in over 50 years of activity in the production of self-propelled combine-harvesters with the knowledge of AGCO, enlarging its offer also in those market segments where it is not present today.

The synergy between Laverda and AGCO in terms of research and development will further increase the rapidity in the response to the demand of the market of the Breganze Company, which has always taken the customers’ needs into the maximum consideration.

Besides Laverda, the joint venture involves also Fella-Werke, Feucht (Germany) dedicated to the production of hay and grass machinery, and Gallignani, Russi (RA), dedicated to the production of balers.

This will allow AGCO, as well as the increase of its volumes in the combine market thanks to the machines manufactured in Breganze, to have a direct access to the remaining products strategic for the completion of the offer in the segment of harvesting machines.

Valerio Morra will be in charge as President of the joint venture. Headquarters of the joint venture will be in Laverda, at the Breganze plant, where the management is confirmed with all its functions.

All strategies and actions in support of the brand will be carried on in the sign of Laverda.

The Company policy related to the marketing, distribution and sales of the combine-harvesters with Laverda brand will remain unchanged.

“This agreement is the best way to grant the development of the manufacturing volumes which can actually be effected by Laverda and Fella, since they have the structure, the organization, the men and the means to sustain an important growth” has declared Valerio Morra, President of ARGO.

For further information:

Simonetta Lambrocco
Responsabile Comunicazione e Pubbliche Relazioni
Laverda S.p.A. – Via F. Laverda, 15/17 – 36042 Breganze (VI)
Tel.: + 39 (0) 445/385305
Fax: + 39 (0) 445/385593
e-mail: simonetta.lambrocco@laverdaworld.com