Ducati Motor Holding Announces Record 1999 First-Half Results / First-Half Net Income Rises to Lit. 11.8 Billion (US$6.3 million) / EBITDA Increases 36.5% to Li

BOLOGNA, Italy (PROTEXT) - Ducati Locks in 1999 WorldSuperbike Championship Ducati Motor Holding S.p.A. (NYSE: DMH; Borsa ItalianaS.p.A:), a leading manufacturer of high performance motorcycles,today announced record financial results for the six months endedJune 30, 1999, with net income at an all-time high of Lit. 11.8billion (US$6.3 million). As previously reported, the Company announced six-monthconsolidated sales of Lit.330.9 billion (US$176.5 million), a23.0% increase over the Lit. 268.9 billion (US$143.4 million) forthe first half of last year. For the first six months, gross margin increased to 38.7% from37.7% as robust sales of high-margin accessories and apparel andstronger distribution efficiencies offset pressure on averagemotorcycle margins resulting from the continuing success of theMonster family which carries a lower-than-average margin. First-half EBITDA (earnings before interest, tax, depreciation andamortization) increased 36.5% to Lit. 64.7 billion (US$34.5million) from Lit. 47.4 billion (US$25.3 million) in thecomparable period last year. EBITDA as a percent of salesincreased to 19.5% from 17.6%, making Ducati's margin one of thehighest EBITDA margins in the industry. Net income for the six months was Lit.11.8 billion (US$6.3million) compared to Lit. 0.5 billion (US$0.2 million) in theprior year period. The Company noted that net income for thefirst half of 1999 was impacted by foreign exchange lossesequivalent to Lit. 4.6 billion pre-tax (US$2.5 million) due to adecision in the fall of 1998 to sell forward U.S. Dollars andPound Sterling to avoid currency risk. Net income for the firsthalf of 1998 was affected by non-recurring charges equal to Lit.17.5 billion pre-tax (US$9.3 million). "We are extremely pleased with our record first-half results.The growing awareness of the Ducati brand, particularly in keymarkets, drove strong top-line gains that validate the sustainedgrowth pattern that we achieved over the past three years sincethe 1996 acquisition," said Carlo Di Biagio, Ducati ChiefFinancial Officer. "Our brand-building efforts have allowed us toinclude younger Ducatisti while at the same time maintaining ourstronghold with discriminating enthusiasts, all the whilepreserving the integrity of the Ducati brand. Additionally, weare proving that our strategy of assuming control over ourdistribution networks ensures a strong Ducati presence at thelocal level and generates greater profitability. We remainpleased with our success to date and are confident that ourstrategies position us correctly for sustained future growth." Ducati has experienced a significant rise in registrations, ameasure of retail sales, in those regions where the Company hasgreater control over its distribution network. While finalofficial data are not yet available, during the first six monthsof 1999, unofficial registrations grew 17% on a global basis,including approximately 37% in the U.S., 26% in Japan and Italy,23% in Germany, and 38% in the Benelux region. Ducati's net debt decreased to Lit.186 billion (US$99 million)at June 30, 1999 from Lit.290 billion (US$154.7 million) atDecember 31, 1998. The Company's net debt to total netcapitalization ratio was 42.7% as of June 30, 1999. Finally, on Sunday, September 12, at the Hockenheim racetrackin Germany, Ducati locked in the 1999 World SuperbikeChampionship in both the riders' and manufacturers' categorieswith a stunning year-long performance by Ducati lead rider CarlFogarty, who won his fourth World Superbike title. Founded in 1926, Ducati builds racing-inspired motorcyclescharacterized by unique engine features, innovative design,advanced engineering and overall technical excellence. Ducati haswon eight of the last ten World Superbike Championship titles andmore individual victories than the competition put together. TheCompany produces motorcycles in four market segments which varyin their technical and design features and intended customers:Superbike, Supersport, Monster and SportTouring. The Company'smotorcycles are sold in more than 40 countries worldwide, with aprimary focus in the Western European and North American markets.For more information about the Company, please visit our web siteat http://www.Ducati.com. This press release contains statements that are forward-looking and are subject to a number of risks and uncertaintiesthat could cause actual results to differ materially from thoseanticipated, as described in the Company's prospectus dated March23, 1999.

Ducati Motor Holding S.p.A.

Consolidated Statements of Operations Data (Lire in millions, US$ in thousands, except per share andshare amounts)

Six Months Ended

Six Months Ended

June 30,

June 30,

June 30, June 30,Percent

1999

1998

1999

1998Change Net sales Lit. 330,918 Lit. 268,938 US$176,510 US$143,450+23.0% Cost of

goods sold (202,829) (167,557) (108,188) (89,374) Gross profit 128,089 101,381

68,322

54,076+26.3% Other operating

revenues

3,901

1,237

2,081

660 SG&A expenses (68,710) (54,934) (36,650) (29,302) Other operating

income

1,293

--

690

-- Depreciation &

amortization (21,956) (17,803) (11,711) (9,496) Operating

income/(loss) 42,617 29,881

22,732

15,938+42.6% Financing

expense, net (17,642) (11,744) (9,410) (6,264) Other non-

operating

income/

(expense),

net(1)

148 (17,789)

79

(9,488) Profit/(loss)

before income

taxes and min.

interest

25,123

348

13,401

186 Income taxes (12,996)

246

(6,932)

131 Minority

interest

(289)

(138)

(155)

(74) Net profit/

(loss)

Lit.11,838 Lit.456 US$6,314 US$243 Earnings per

share

Lit.74.94 Lit.3.26

US$0.04 US$0.00 Shares

outstanding157,962,963 140,000,000 157,962,963 140,000,000

Percent Other Financial Data

Change Motorcycles

Produced

(Units)

19,006 14,270

+33.2% Motorcycles

Sold (Units) 20,073 16,704

+20.2% Unofficial

Registrations 19,200 16,442

+16.8%

(Units) EBITDA

64,721 47,398 34,522

25,282 +36.5% EBITDA Margin 19.5% 17.6% (1) Extraordinary item in 1998 principally related to non-recurring expenses for the cash settled warrant rights granted tothe credit institutions that arranged financing prior to theCompany's initial public offering and the write-off of debtissuance costs.

Note: On June 30, 1999, US$1 = 1,874.78 Italian lire.

On January 1, 1999, the conversion rate was fixed suchthat

Euro 1 = 1,936.27 Italian lire.

Ducati Motor Holding S.p.A.

Reclassified Consolidated Balance Sheet Data

(Lire in millions, except per share and share amounts)

Periods of six months ended

Yearended

6/30/99

6/30/9812/31/98

Lm

%

Lm

%

Lm% Current assets Cash and cash

equivalents

41,044

22,964

15,288 Trade receivables,

net

120,189

103,334

94,936 Inventories

107,375

76,121

111,110 Other current

assets

14,183

20,293

10,824 Total current

assets

282,791 42.2% 222,712 35.6% 232,15838.4% Non current assets Property, plant and

equipment - net 90,574

84,292

87,422 Intangible fixed

assets, net

294,993

282,479

283,407 Equity investments 163

3

163 Other long-term

assets

1,216

35,675

957 Total non current

assets

386,946 57.8% 402,449 64.4% 371,94961.6% Total assets

669,737 100.0% 625,161 100.0% 604,107100.0% Current liabilities Short-term bank

borrowings

10,041

30,289

50,661 Current portion of

long-term debt 11,938

9,437

12,738 Accounts payable

- trade

127,316

104,289

103,513 Income and other

taxes payables 18,095

10,204

5,108 Other current

liabilities

16,309

36,272

8,862 Provisions for risks

and charges -

current portion 14,811

24,999

21,186 Total current

liabilities

198,510 29.6% 215,490 34.5% 202,06833.4% Long-term liabilities Long-term debt,

net of current

portion

204,791

218,504

242,327 Employees' leaving

entitlement

6,558

7,765

8,344 Deferred income

taxes

5,262

604

2,475 Other long-term

liabilities

57

34,534

62 Provisions for risks

and charges -

long-term portion 4,50 4,500 9,096 Total long-term

liabilities

221,168 33.0% 265,907 42.5% 262,30443.4% Total liabilities419,678

481,397

464,372 Total Group

shareholders'

equity

249,170 37.2% 143,223 22.9% 139,05623.0% Minority interests 889

541

679 Total shareholders'

equity

250,059 37.3% 143,764 23.0% 139,73523.1% Total liabilities

and shareholders'

equity

669,737

100% 625,161 100% 604,107100%

Ducati Motor Holding S.p.A.

Reclassified Consolidated Balance Sheet Data

(US$ in thousands, except per share and share amounts)

Year

Periods ended of six monthsended

6/30/99

6/30/9812/31/98

US$

%

US$

%

US$% Current assets Cash and cash

equivalents

21,893

12,249

8,155 Trade receivables,

net

64,108

55,118

50,638 Inventories

57,274

40,603

59,266 Other current

assets

7,565

10,824

5,773 Total current

assets

150,840

42.2% 118,794

35.6% 123,83238.4% Non current assets Property, plant and

equipment - net 48,311

44,961

46,631 Intangible fixed

assets, net

157,348

150,673

151,168 Equity investments

87

1

87 Other long-term

assets

649

19,029

510 Total non current

assets

206,395 57.8% 214,664

64.4% 198,39661.6% Total assets 357,235

100% 333,458

100% 322,228100% Current liabilities Short-term bank

borrowings

5,356

16,156

27,022 Current portion of

long-term debt

6,368

5,034

6,794 Accounts payable -

trade

67,910

55,627

55,213 Income and other

taxes payables

9,652

5,443

2,725 Other current

liabilities

8,699

19,347

4,727 Provisions for risks

and charges -

current portion 7,900

13,334

11,301 Total current

liabilities 105,885

29.6% 114,941

34.5% 107,78233.4% Long-term liabilities Long-term debt,

net of current

portion

109,235

116,549

129,256 Employees' leaving

entitlement

3,498

4,142

4,451 Deferred income

taxes

2,807

322

1,320 Other long-term

liabilities

30

18,421

33 Provisions for risks

and charges -

long-term portion 2,400

2,400

4,852 Total long-term

liabilities

117,970 33.0% 141,834

42.5% 139,91243.4% Total liabilities 223,855

256,775

247,694 Total group

shareholders'

equity

132,906

37.2% 76,394

22.9%

74,17223.0% Minority interests 474

289

362 Total shareholders'

equity

133,380

37.3% 76,683

23.0%

74,53423.1% Total liabilities

and shareholders'

equity

357,235

100% 333,458

100% 322,228100% ots Original Text Service: Ducati Motor Holding S.p.A.Internet: http://www.newsaktuell.de Contact: Investors: LynnMorgen, Carolyn Capaccio, Teresa Kollappallil, 212-850-5600, orJean-Francois Carminati, Caroline Bruel, Catherine Juillard, 33-1-47-03-6810, Media: Michael McMullan, Stacy Roth, 212-850-5600,Madeleine Resener, 33-1-47-03-6810, all of Morgen-WalkeAssociates, for Ducati Motor Holding S.p.A.; or Jason M. Jacobsof Ducati Motor Holding S.p.A., 39-051-6413-222

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