INVESTORS PRESENTATIONINVESTORS PRESENTATION

MILAN 2 MARCH 2006MILAN 2 MARCH 2006

DigitalDigital Technologies for a Technologies for a BetterBetter WorldWorld

2

DISCLAIMERDISCLAIMER

This presentation has been prepared by Eurotech S.p.A. (or “Eurotech”) and has to be read in conjunction with its oral presentation.

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The information in this document and any other material discussed at this presentation is subject to verification, completion and change.

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3

ROBERTO SIAGRI

MASSIMO MAURI

SPEAKERSSPEAKERS

President and Chief Executive Officer

Executive Vice President and Investors Relator

4

STOCK HISTORY & PERFORMANCE

GROUP OVERVIEW

INVESTMENT CASE

CONCLUSION

AGENDAAGENDA

5

STOCK HISTORYSTOCK HISTORY

Outstanding Shares Outstanding Shares

IPO SizeIPO Size

ListingListing

FreeFree--Float SharesFloat Shares

Price Price

7,45 million primary shares

IPO € 3,40 per share

Aprox. 58% of outstanding shares

18,6 million

Italian Stock Exchange – STAR

Raised CapitalRaised Capital € 22,3 million including IPO Fees and Costs

6

STOCK HISTORYSTOCK HISTORY

Friulia (Friulia (IstIst. Inv.) owners. . Inv.) owners.

LockLock--upup

Management ownershipManagement ownership Approx 37%

Approx. 5%

One year for the Management and for Friulia

First Price (30.11.2005)First Price (30.11.2005) € 3,84

30 day Average Price30 day Average Price € 7,86

7

STOCK HISTORY

GROUP OVERVIEW

INVESTMENT CASE

FINANCIAL HIGHLIGHTS

CONCLUSION

AGENDAAGENDA

8

GROUP’S STRUCTUREGROUP’S STRUCTURE

Eurotech SpaEurotech Spa

EthLab SrlItaly

EthLab SrlItaly

Erim Dev. sasFrance

Erim Dev. sasFrance

IPS SrlItaly

IPS SrlItaly

Neuricam SpaItaly

Neuricam SpaItaly

100%99,9% 80%100% 63,59%

Emilab

Inasset

Delos

Associated companies

Emilab srl

Inasset srl

Delos srl40%

24,8%

18,2%

100%

Eurotech OyFinland

Eurotech OyFinland

Parvus CorpUSA

Parvus CorpUSA

9

THE VISION: Digital Technologies for a better WorldTHE VISION: Digital Technologies for a better World

““ The The most profound technologiesmost profound technologiesare those that are those that disappeardisappear. They . They weave themselves into the weave themselves into the fabric fabric of everyday lifeof everyday life until they are until they are indistinguishable from it indistinguishable from it ””

"The Computer for the 21st Century", Scientific American - Vol. 265 No.9, pp. 66-75, 1991

Mark Weiser

10

GROUP’S PORTFOLIOGROUP’S PORTFOLIO

Security & SurveillanceNeuricam

Transportation,Defence

Erim

Parvus

Eurotech

IPS

Ascensit(Eurotech Division)

Automation & Control,Networking

Universities, Research institutesExadron

(Eurotech Division)

NanoPC HPC

11

PRODUCTS & MARKETSPRODUCTS & MARKETS

NanoPC HPC

INDUSTRIAL MARKET

Human Machine Interface

WAN Optimization

Vision Systems &Sensors

DEFENCE MARKET

Multi Function Display

Airborne Computer

Vehicular Computer

TRANSPORTATION MARKET

Train cockpit

AVL-AVM

Advanced Traffic Controller

HPC MARKET

Custom HPC

Standard HPC

MEDICAL MARKET

Computer Modules

12

MAIN CLIENTSMAIN CLIENTS

AlstomAnsaldoBombardierElsagBA SystemsBAEBoeingGalileo AvionicaL3 CommunicationLockheedMBDARockwellThalesGendexLMAVarianImajeSalvagniniSelca

CILEADESYINFNSISSA

TRANSPORTATIONMARKET

DEFENCEMARKET

MEDICALMARKET

INDUSTRIALMARKET

NanoPC

HPC

COMPUTING CENTRES & RESEARCH INSTITUTES

13

INTERNATIONAL PRESENCEINTERNATIONAL PRESENCE

Finland5

USA54

France14

Germany1

Italy80

China1

14

MANAGEMENTMANAGEMENT

President & CEORoberto Siagri

Vice PresidentDino Feragotto

Vice PresidentMassimo Mauri

QualityMarco Polo

FinanceEros Goi

CFO

ETH Lab

Western Europe

Italy & S.C.Europe

Northern Europe & Asia

Parvus Erim Eurotech Neuricam IPS Eurotech Oy

Development Development Research Research Development Mkg & SalesQuality Mkg & Sales Development Development Mkg & Sales AccountingProduction Accounting Quality Mkg & Sales AccountingMkg & Sales Production AccountingAcc. & Finance Mkg & Sales

Acc. & Finance

North America

ResearchGiampietro Tecchiolli

CTO

Strategy & Business Development

Investor Relations& Communication

Industrial Operations & Information Systems

15

STOCK HISTORY & PERFORMANCE

GROUP OVERVIEW

INVESTMENT CASE

FINANCIAL HIGHLIGHTS

CONCLUSION

AGENDAAGENDA

16

A STORY OF GROWTH AND SUCCESSA STORY OF GROWTH AND SUCCESS

1992-1994: THE ORIGINS

1995-2000: FROM LABORATORY TO INDUSTRY

2000-TODAY: AN INTERNATIONAL GROUP2001: Two Private Equity funds (Friulia and Banca

Gesfid ) enter the Eurotech’s capital.

2002: Acquisition of IPS, based in Varese, Italy.

2003: Acquisition of Parvus, based in Salt Lake City (USA).

2004: Acquisition of ERIM (Lyon – France) and of the Finnish start-up Vikerkaar (now Eurotech Oy).

2005: listing on Milan Stock Exchange.

2006: Call option for ARCOM’s acquisition.

1997: first high-performance compactPCI CPU Board

1998: Neuricam is created and based in Trento ( IRST spin-off)

1999: co-operation with INFN (Italian National Institute for Nuclear Physics) for the development of APE supercomputers

1992: foundation of Eurotech

1993-94: first family of PC/104 Embedded PC modules

COMPANY GROWTH

29.800

.000 €

13 –year CAGR 50%

100

1.000

10.000

100.000

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

5-year CAGR ~ 50%

11.7

8.36.4

3.9

0

4.000

8.000

12.000

16.000

20.000

2000 2001 2002 2003 2004

29,8

2005

24.000

28.000

32.000

PRIVATE EQUITY

ListingSTAR

18.8(*)

17

A BUSINESS MODEL propelled by INNOVATIONA BUSINESS MODEL propelled by INNOVATION

Marketing

Development Engineering Production Catalog &Custom

Sales

To

mo

rro

w’s

Mark

ets

Today’s Markets

StrategicPlanning

Research

Universities and Research Centres

Market and Customers

18

EUROTECH: THE INNOVATION MODELEUROTECH: THE INNOVATION MODEL

Time

Pro

du

cts’

Perf

orm

an

ce

NanoPC

HPC

Inspired to Christensen’s innovation model

PDA & m

obile phone te

chnologies

PC tech

nologies

NanoPC

RESEARCH

DEVELOPMENT

STRATEGICPLANNING

High End

Marketabsorption

capacity

Low End

High End

Marketabsorption

capacity

Low End

19

EUROTECH: THE TECHNOLOGICAL EVOLUTIONEUROTECH: THE TECHNOLOGICAL EVOLUTION

Time

Pro

du

cts’

Perf

orm

an

ce

NanoPC

Inspired to Christensen model‘92 ‘02‘97

Custom HPC

Standard HPC (PC based)

Embedded-PC (CompactPCI)

Embedded-PC (PC/104)

Wearable PC

Sensor Networks

PC tech

nologies

PDA & m

obile phone te

chnologies

‘05

RFID te

chnologies

HPC

NanoPC

20

EUROTECH PRODUCTS: EVOLUTION EUROTECH PRODUCTS: EVOLUTION

COMPUTERS will be more MINIATURIZED and INTERCONNECTED through the GRID

They will WEAVE themselves into the ENVIRONMENT of everyday lifeuntil they are indistinguishable from it...

The 3^wave is coming (2005-2015): the beginning of the Pervasive Computer Era

21

"PERVASIVE COMPUTING" & GRID : FUTURE SCENARIOS"PERVASIVE COMPUTING" & GRID : FUTURE SCENARIOS

“It's already beginning to happen …But we'll see even more tremendous growth whenintelligence becomes embedded, when virtually everythingbecomes a computing device”.

“ Someday soon, more than one millionbusinesses will be connectedto more than one billionpeople by one trillion devices”

L.V. Gerstner

HP

CN

an

oP

C

GRID

22

RESEARCH LINKSRESEARCH LINKS

Italian National Institute for Nuclear Physics (INFN) HPC (Supercomputer)

Institute for Scientific Research and Technology of Trento Pervasive Computer (SOC)

INDO/Italian Research Centre Pervasive Computing (GRID)

Omega Consortium HPC (GRID)

Milano-Bicocca University HPC (Bioinformatics)

European Centre for Theoretical and Nuclear Physics of Trento HPC

Udine University – DIEGM Pervasive Computer (Sensor Networks)

INFN HPC (High Speed Interconnections)

Trieste University – Physics Dept. Quantum Computing & Communication

STRATEGIC AGREEMENTS

RESEARCH AGREEMENTS

23

STOCK HISTORY & PERFORMANCE

GROUP OVERVIEW

INVESTMENT CASE

FINANCIAL HIGHLIGHTS

CONCLUSION

AGENDAAGENDA

24

REVENUESREVENUES

OTHER

US

EUROPE+60%

0

5

10

15

30

20

2003 2004 2005

11,7

18,8

REVENUES, YTD 2003-2005 (€ mln)

25

29,9

+59%

GROWTH THROUGH

ACQUISITIONS 10%

ORGANIC GROWTH 50%

ALL ORGANIC GROWTH

03/04 Italian GAAP, 05 IFRS

25

GROSS PROFIT MARGINGROSS PROFIT MARGIN

0

10%

20%

30%

60%

40%

2003 2004 2005

GROSS PROFIT MARGIN, YTD 2003-2005

50%

50% 54% 51%

5,91 10,16 15,29 € Mln

26

EBITDA & EBITEBITDA & EBIT

EBITDA, YTD 2003-2005

€ Mln0,84 1,88 3,30

1

2

3

20052003 2004

4

7,2%

10%

11,1%

0,17 1,02 2,31

1

2

3

20052003 2004

1,4%

5,4%

7,7%

€ Mln

EBIT, YTD 2003-2005

27

NET WORKING CAPITAL, CAPEX, EQUITY AND NET DEBTNET WORKING CAPITAL, CAPEX, EQUITY AND NET DEBT

NWC, YTD 2003-2005

47% ON REV.

EQUITY AND NET DEBT, YTD 2003-2005

SHAREHOLDERS' EQUITY

CASH

INTANGIBLES TANGIBLES

0

1

2

3

4

2003 2004 2005

2,72 2,84 2,83

CAPEX, YTD 2003-2005

* 2004 IFRS ACCOUNT

€ Mln€ Mln

€ Mln

D/E 1,0X

D/E 1,1X

D/E –0,66x

0

10

20

30

2003 2004 2005

0

2

4

6

2003 2004 2005

5,48 5,03 2,24

2,24

27% ON REV.

7,5% ON REV.

21,74CASH

32,99

NET DEBT

28

STOCK HISTORY & PERFORMANCE

GROUP OVERVIEW

INVESTMENT CASE

FINANCIAL HIGHLIGHTS

CONCLUSION

AGENDAAGENDA

29

A CLEAR STRATEGY …A CLEAR STRATEGY …

MAINTAINING OUR TECHNOLOGICAL LEADERSHIP

RAPIDLY INCREASING GROUP DIMENSIONS

BRAND REPUTATION DEVELOPMENT

external growthevolution of the products rangedevelopment of new products exploitation of the commercial synergies resulting from acquisitions T

HR

OU

GH

in miniaturization (small dimensions/low-power consumption)

in computer interconnection(high-speed short-distance/wireless low-power long-range)

a specific research structure:Eth Lab

strategic research agreementsTH

RO

UG

Hpartnership with global/leading clientsadvertising/trade showstechnological leadershipcompany visibility

TH

RO

UG

H

30

A CLEAR STRATEGY …A CLEAR STRATEGY …

MAINTAINING OUR TECHNOLOGICAL LEADERSHIP

RAPIDLY INCREASING GROUP DIMENSIONS

BRAND REPUTATION DEVELOPMENT

external growthevolution of the products rangedevelopment of new products exploitation of the commercial synergies resulting from acquisitions T

HR

OU

GH

in miniaturization (small dimensions/low-power consumption)

in computer interconnection(high-speed short-distance/wireless low-power long-range)

a specific research structure:Eth Lab

strategic research agreementsTH

RO

UG

Hpartnership with global/leading clientsadvertising/trade showstechnological leadershipcompany visibility

TH

RO

UG

H

Start of ETH-lab and signature of a LOI for a new Research Agreement

with ITC-IRST with the approval and support of Trento province

Option to purchase from Spectris ARCOM Group

Wearable computers now in evaluation phase

and CONSISTENT DELIVERYand CONSISTENT DELIVERY

3 on going strategic alliances

Company visibility enanched by the success of the IPO

31

EXTERNAL GROWTH: ARCOMEXTERNAL GROWTH: ARCOM

RATIONALE FOR ARCOM ACQUISITIONRATIONALE FOR ARCOM ACQUISITION

Strategic geographical markets positioning (UK and North America)

New End Markets (gas&oil and industrial control)

Profitable company

Experienced management team

Similar business model

Outsourcing

from boards to systems & software

32

ARCOM ACQUISITIONARCOM ACQUISITION

Founded in 1982, part of Spectris Group since 1984

Spectris Plc is listed on the FSTE (600M£ market cap)

Sales 2005: 29,3 M USD

EBITDA 2005: 3,2 M USD

Headquarter : Cambridge (UK)

Subsidiary: Kansas City (USA)

Total Employees: 96

Think Embedded, Think Arcom

33

ARCOM: REVENUESARCOM: REVENUES

+32,2%

0

5

10

15

30

20

2002 2003 2005

16,2

21,4

25

29,3

+19,4%

2004

25,5

+14,9%

REVENUES, YTD 2002-2005

$ Mln

36

ARCOM: ACQUISITION PRICEARCOM: ACQUISITION PRICE

7,5xEV/Ebitda

8,5xEV/Ebitda

24,6 Mln USD 27,8 Mln USD

EUROTECH OFFER:26 mln USD (approx. 21,3 mln €)

EV/EBITDA = 7,9 X

Acquisition price based on EV/EBITDA multiple

The sale of the business will be made on a cash and debt free basis

ARCOM EQUITY VALUE

37

EUROTECH + ARCOM: EUROTECH + ARCOM: INTERNATIONAL PRESENCEINTERNATIONAL PRESENCE

USA29

U.K 67

Finland5

USA54 France

14

Germany1

Italy80

China1

ARCOM

EUROTECH

38

CONT. EUROPEITALY

49%

19%

28%

4%

EUROTECH + ARCOM: REVENUE BREAKDOWNEUROTECH + ARCOM: REVENUE BREAKDOWN

REVENUE BREAKDOWN BY GEOGRAPHICAL AREA, ‘05

USA

EUROTECH ARCOM EUROTECH + ARCOM

13%

9%

55%

23%

16%

7%

11%

25%

41%

UK ROW

39

EUROTECH + ARCOM: REVENUESEUROTECH + ARCOM: REVENUES

0

10

20

30

60

40

2003 2005

30,7

50

2004

AGGREGATE REVENUES, YTD 2003-2005

EUROTECH GROUP

ARCOM

11,7

19,0

18,8

20,6

29,9

24,039,4

53,9

(€ mln)

40

EUROTECH + ARCOM: EBITDAEUROTECH + ARCOM: EBITDA

0

1

2

3

6

4

2003 2005

2,52

5

2004

AGGREGATE EBITDA, YTD 2003-2005

EUROTECH GROUP

ARCOM

0,84

1,68

1,88

1,73

3,30

2,69

3,61

5,99 (€ mln)

41

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

"On résiste à l'invasion des armées; on ne résiste pas à l'invasion des idées.“

Victor Hugo, Paris 1877

"There is one thing stronger than all the armies in the world: it is an idea whose time has come."