Intek : The Interim Report on Operations at March 31,2015 of INTEK Group SpA is approved

Registered office: 20121 Milan - Foro Buonaparte, 44

Share capital EUR 314,225,009.80 fully paid-up

Tax Code and Milan Companies Register no. 00931330583 www.itkgroup.it

PRESS RELEASE THEINTERIMREPORT ONOPERATIONS AS AT31 MARCH2015 OFINTEK GROUPSPA

HAS BEEN APPROVED

THE DEBT STRUCTURE HAS BEEN OPTIMISED DURING THE QUARTER:
- NEW2015-2020 BOND ISSUE- RATE5% - FOR A TOTAL OF EUR101.7 MILLION;
- EARLY REPAYMENT, ALSO THROUGH A PUBLIC EXCHANGE OFFER WITH NEWSFP 2012-2017 SECURITIES AND2012-2017 BONDS- RATE8% - FOR A TOTAL OF EUR59.9 MILLION;
- NET CASH FLOW(LESS INTEREST PAYMENT) OF EUR38.0 MILLION.
INTEK, ALSO THROUGH THE SUBSIDIARYKME PARTECIPAZIONI, HAS EUR83.3 MILLION IN CASH.
INTEK GROUP'S FINANCIAL STRUCTURE IS SOLID. NET EQUITY COMES TO EUR445.3 MILLION
(EUR1.13 PER SHARE).
THE COMPANY'S INVESTMENTS AS AT31 MARCH2015 AMOUNT TO EUR461.6 MILLION, OF WHICH86% IN THE'COPPER' SECTOR AND14% IN'FINANCIAL AND REAL ESTATE ASSETS'.

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Group Corporate Structure

The Group's corporate structure is as follows:

INTEK Group

SpA

'Copper'

KME A.G.

100%

'Financial and real estate assets'

Private Equity

Notes:

Real Estate

Listed company

Non performing loans and tax receivables

ErgyCapital

SpA

49.04%

The investment sectors of INTEK Group SpA (hereinafter referred to as the 'Intek Group' or the 'Company') are: the traditional one of 'copper', which includes the production and marketing of copper and copper-alloy semi-finished products by German subsidiary KME AG; and the sector of 'financial and real estate assets', including the private equity business that is mainly carried out through the closed-end investment fund I2 Capital Partners (the 'Fund'), the management of receivables (tax and non-performing receivables and those arising from insolvency procedures), real estate assets and the investment in ErgyCapital.
As for 'financial and real estate assets', the Company continued with its programmes to accelerate the gradual sale of the assets held.
As for the 'private equity' investments, the future programmes focus on maximizing the value of the interests held by the Fund, whose investment period ended in late July 2012.
ErgyCapital intends to continue its research and valuation of extraordinary transactions both for the Company overall as well as for the individual business units, aimed at creating value for the
shareholders.

* * *

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Main transactions of the period

The most significant event of the period was the financial transaction enabling the debt structure to be optimized, both in terms of duration and of cost, as well as finding new financial resources usable for additional development of the Group's investments. The Company's Board of Directors on 2 December 2014 approved:

the promotion of a voluntary public exchange offer of all of the 22,655,247 'Intek Group SpA 2012 - 2017' bonds in circulation and of all of the 115,863,263 'Intek Group S.p.A. 2012 - 2017 Participatory Debt Financial Instruments', with compensation represented by new bonds issued by the Intek Group for an amount no greater than EUR 61.7 million (the 'Exchange Offer'), offering a premium of nearly three percentage points on par value to the holders of the old bonds;

the contemporaneous promotion of the offer of a public bond issue, for a total of EUR

40 million, which the company may increase up to approximately EUR 101.7 million, depending on the level of participation in the Exchange Offer.
Upon conclusion of the transaction, 4,708,507 new bonds were issued at a unit value of EUR
21.60, for a total value of EUR 101.7 million, listed on the Borsa Italiana's electronic bond market (MOT). The duration of the bonds is from 2015 to 2020, with an interest rate of 5%, against the 8% of the 2012 - 2017 Intek Group bond issue and the Participatory Debt Financial Instruments from the Exchange Offer and mandatory repaid to all of those who did not participate in the offer.
This was the first issue to take place directly on the MOT, by a non-banking business, without a distributor. It closed with a notable success. The subscription applications for the new bond issue amounted to over EUR 177 million (EUR 40 million offered initially).
The new bonds were issued on 20 February 2015. On the same date, the exchange of the securities from the Exchange Offer, also took place. On 20 March, the holders of the old bonds, who did not participate in the exchange offer, were repaid.
Upon the conclusion of the issue, Intek, also through its subsidiary KME Partecipazioni SpA, as at 31 March 2015 held EUR 83.3 million in cash. A portion, EUR 20.5 million, of this cash is currently invested in flexible instruments that are easily turned back into cash. The remainder is
temporarily deposited in bank accounts.

* * *

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The main data of the Intek Group Spa

The main equity data of the Intek Group can be summarised as follows:

Condensed separate statement of financial position

(in thousands of Euro) 31 Mar. 2015 31 Dec. 2014

Copper	395,008	85.57%	393,997	86.02%
Financial and real estate assets
Private Equity	8,354	8,288
Non operating assets	4,348	4,554
Real Estate/Others	28,080	27,204
ErgyCapital/Other Services	20,893	20,243
Total financial and real estate assets	61,675	13.36%	60,289	13.16%
Other assets/liabilities	4,928	1.07%	3,766	0.82%
Net investments	461,611	100.00%	458,052	100.00%
SPF and outstanding bond (*)	(102,247)	(61,962)
Available funds/(net debt) to third parties	37,600	1,387
Net financial debts due to third parties Intek Group	(64,647)	(60,575)
Net financial debts due to third parties KME Partecipazioni	48,375	49,933
Holding company financial debts due to third parties	(16,272)	3.53%	(10,642)	2.32%
Total shareholders' equity	445,339	96.47%	447,410	97.68%

* * *

Annexed is the 'Interim report on operations as at 31 March 2015'to be referred to for points on the Company and Group outlook.

* * *

The Financial Reporting Manager, Giuseppe Mazza, hereby declares that, pursuant to art. 154- bis, paragraph 2 of the Consolidated Law on Finance, (Italian Legislative Decree no. 58/1998), the accounting information contained in this press release, corresponds to the company's documents, books, and accounting records.

This press release is available on the company website www.itkgroup.it, where it is possible to request information directly from the company (telephone [phone]; e.mail:[e-mail])and on the authorized storage system 1INFO operated by Computershare SpA atwww.1info.it

Milan, 12 May 2015 The Board of Directors

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INTERMEDIATE REPORT ON OPERATIONS AS AT 31 MARCH 2015 (1st QUARTER 2015)

Board of Directors of 12 May 2015

Intek Group SpA

Registered and Administrative Office:

20121 Milan - Foro Buonaparte, 44

Paid-up share capital € 314,225,009.80

Tax Code and Business Register of Milan no. 00931330583

www.itkgroup.it

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Contents

Company Bodies ....................................................................................................................... 3 Intermediate Report on Operations for the first quarter 2015............................................ 4

Performance in the various investment sectors .................................................................... 12

Copper sector ................................................................................................................... 12

Sector of financial and real estate assets ......................................................................... 15

Group results ........................................................................................................................ 17

Other information: ................................................................................................................ 20

Parent Company and shareholding structure .................................................................. 20

Transactions with related parties..................................................................................... 20

Business outlook ............................................................................................................... 20

Significant events after 31 March 2015 ........................................................................... 20

Accounting statements regarding the Interim Director's Report as at 31 March 2015 ........ 21

Consolidated Balance Sheet ............................................................................................. 22

Income statement .............................................................................................................. 23

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Company Bodies

Board of Directors (office ending with the approval of the 2014 financial statements)

Chairman Vincenzo ManesB

Deputy Chairman Diva Moriani BSalvatore Bragantini EMario d'Urso A,C,DMarcello Gallo Giuseppe Lignana A,C,DJames Macdonald Alberto Pirelli A,C
Luca Ricciardi A,D
Franco Spalla A

A. Independent director

B. Executive director

C. Member of the Remuneration Committee (Chairman: Alberto Pirelli)

D. Member of the Internal Control and Risks Committee (Chairman: Mario d'Urso) E. Appointed by the Shareholders' Meeting of 11 June 2014

Board of Statutory Auditors (office ending with the approval of the 2014 financial statements)

Chairman Marco Lombardi

Statutory Auditors Francesca Marchetti

Alberto Villani

Alternate Auditors Lorenzo Boni

Andrea Zonca

Manager in charge of Financial Reporting Giuseppe Mazza

Independent Auditors KPMG SpA

Common Representative of Saving Shareholders Pietro Greco

Common Representative of the

'2015/2020 Intek Group bond' holders Rossano Bortolotti

Common Representative of the

'Convertendo Intek Group SpA 2012/2017' holders Elena Pagliarani

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Intermediate Report on Operations for the first quarter 2015

This intermediate report on operations is presented, consistent with the separate and consolidated financial statements as at 31 December 2014, by adopting the accounting standards relating to investment entities (amendments made to IFRS 10, 12 and IAS 27) introduced by the EU Regulation 1174/2013 and applied by the Intek Group as from the end of 2014.
As a result of the use of the accounting standards of investment entities, Intek does not carry out the full consolidation of the investments in subsidiaries not in furtherance of the company object, but they are measured at fair value through profit or loss. Therefore, equity investments held for investment - including KME AG, holding company at the head of the KME Group working in the 'copper' sector and FEB - Ernesto Breda SpA - are excluded from the consolidation. These measurement methods are used also in the separate financial statements. It should be noted that in the absence of events of significant impact, measurements of investments and unlisted securities are updated every six months.
The most significant event of the period was the financial operation that allowed to optimise the debt structure, both in terms of duration and cost of funding, as well as to find new financial resources that can be used for further development of investment activities of the Group. The Board of Directors of the Company of 2 December 2014 approved:

the promotion of a voluntary public exchange offer for the totality of 22,655,247 'Intek Group SpA 2012 - 2017' outstanding bonds and of 115,863,263 'Intek Group S.p.A. 2012 - 2017 Participatory Debt Financial Instruments', with consideration represented by new bonds issued by the Intek Group for a maximum amount of Euro

61.7 million (the 'Exchange Offer'), offering a premium of almost three percentage points on the nominal value to the holders of the old bonds;

the promotion at the same time of a public offer for the subscription of a bond loan, totalling approximately Euro 40 million, which can be increased by the Company up to approximately Euro 101.7 million, considering the level of subscription to the Exchange Offer.

At the end of the transaction, 4,708,507 new bonds with a nominal value of Euro 21.60 were issued totalling Euro 101.7 million, listed on the Borsa Italiana's electronic bond market (MOT, Mercato Obbligazionario Telematico). The bonds have a duration from 2015 to 2020 and envisage a fixed interest rate of 5% compared to 8% of the Intek Group 2012 - 2017 Bond and of the Participatory Debt Financial Instruments subject-matter of the Exchange Offer and mandatory repaid to subjects who had not subscribed to the offer.
The issue, which was the first one carried out directly on the MOT without a placement agent by a non-banking company without a distributor, ended with great success. The subscription applications of new bonds totalled more than Euro 177 million compared to the initially offered Euro
40 million.

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The new bonds were issued on 20 February 2015 and the exchange with the bonds that subscribed to the Exchange Offer occurred on the same date. On 20 March, the old bonds were refunded to subjects that had not subscribed to the exchange offer.
Also as the result of this issue, Intek, together with its subsidiary KME Partecipazioni SpA, held a liquidity of Euro 83.3 million as at 31 March 2015. This liquidity is currently invested in flexible instruments readily convertible into cash of Euro 20.5 million and the residual amount is temporarily deposited on bank current accounts.
The corporate structure of the Intek Group is summarised below by indicating the main investment sectors of the Company.

The Group's corporate structure is as follows:

INTEK Group

SpA

'Copper'

KME A.G.

100%

'Financial and real estate assets'

Private Equity

Notes:

Real Estate

Listed company

Non performing loans and tax receivables

ErgyCapital

SpA

49.04%

The percentages indicated above include also the shares classified among current financial assets insofar as ErgyCapital.

The investment sectors of INTEK Group SpA (hereinafter referred to as 'Intek Group' or the 'Company') are: the traditional one of 'copper', which includes the production and marketing of copper and copper-alloy semi-finished products by German subsidiary KME AG; and the sector of 'financial and real estate assets', including the private equity business that is mainly carried out through the closed-end investment fund I2 Capital Partners (the 'Fund'), the management of receivables (tax and non-performing receivables and those arising from insolvency procedures), real estate assets and the investment in ErgyCapital.
As for 'financial and real estate assets', the Company continued with its programmes to accelerate the gradual sale of the assets held.
As for the 'private equity' investments, the future programmes focus on maximizing the value of the interests held by the Fund, whose investment period ended in late July 2012.

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ErgyCapital intends to continue its research and valuation of extraordinary transactions both for the Company overall as well as for the individual business units, aimed at creating value for the shareholders.

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The parent company Intek Group SpA

In the past, Intek Group made investments with medium to long term time horizons by combining its entrepreneurial viewpoint with a sound financial structure. Its strategy aims at a more flexible portfolio, with reduced investment cycles and faster cash generations.
In line with this strategic redefinition, we note that the overall appreciation of the Intek Group's performance must be made by considering, not only the assessment of the economic results for the period, but also and above all the increase in value over time recorded by the individual assets and by their potential capacity to create value for shareholders.
This assessment is at the heart of the choices which management has made for an allocation of financial resources and which will reward only those areas which appear to offer better performance and are more promising, while it will favour the abandonment of sectors which are not in line with the Group's new operating policies in terms of value creation or timeframes. Maximisation of the value of the assets managed will be achieved by carefully defining business strategies and control of the subsidiaries, identification of agreements and/or partnership opportunities, the valorisation of specific assets and the management of extraordinary operations for subsidiaries.
The key balance sheet figures of the Intek Group as at 31 March 2015 and in comparison with
31 December 2014 can be summarised as shown below:

Condensed separate statement of financial position
(in thousands of Euro) 31 Mar. 2015 31 Dec. 2014
Copper 395,008 85.57% 393,997 86.02%
Financial and real estate assets
Private Equity 8,354 8,288
Non operating assets 4,348 4,554
Real Estate/Others 28,080 27,204
ErgyCapital/Other Services 20,893 20,243
Total financial and real estate assets 61,675 13.36% 60,289 13.16%
Other assets/liabilities 4,928 1.07% 3,766 0.82%
Net investments 461,611 100.00% 458,052 100.00%
SFP and outstanding bonds (*) (102,247) (61,962)
Available funds/(Net debt) to third parties 37,600 1,387
Net financial debts due to third parties Intek Group (64,647) (60,575)
Net financial debts due to third parties KME Partecipazioni 48,375 49,933
Holding company financial debts due to third parties	(16,272)	3.53%	(10,642)	2.32%
Total shareholders' equity	445,339	96.47%	447,410	97.68%

Notes

 In the table, investments are expressed net of any financial receivable/payable transactions existing with the Intek Group or KME Partecipazioni.

 (*) including accruing interests.

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