in the First Half of 2003 98th Fiscal Year - FIAT SpA

Sector 22 (24 in 2002), various companies of CNH Global N.V. 1 (12 in 2002), Atlanet S.p.A. 12 (13 in 2002), mark-to-market of the
equity investments of the Toro Assicurazioni Group 54 (100 in 2002), and writedowns of other equity investments 14 (38 in 2002).
17 Extraordinary income and expenses
(in millions of euros) 1st half 2003 1st half 2002
Extraordinary income
Gains on disposals of investments and other fixed assets 559 757
Other income:
Prior period income and other income 39 30
Total Other income 39 30
Total Extraordinary income 598 787
Extraordinary expenses
Losses on disposal of investments and other fixed assets (36) (36)
Other expenses:
48 Fiat Group Consolidated Financial Statements and Notes at June 30, 2003
Extraordinary provisions to reserves (70) (45)
Prior period expenses and other expenses (229) (189)
Total Other expenses (299) (234)
Total Extraordinary expenses (335) (270)
Total Extraordinary income and expenses 263 517
In the first half of 2003, Gains on disposals of investments and other fixed assets totaled 559 million euros. They include the gains on
the following sales (in millions of euros): sale of the Toro Assicurazioni Group 427 (390 net of costs and provisions to reserves
connected with the sale that were posted as other extraordinary expenses); disposal of the retail financing activities in Brazil of the
Automobiles Sector 108 (107 net of 1 million euros for costs connected with the transaction); disposal of the 55.95% equity
investment in IPI S.p.A. 15; disposal of 50.1% of IN ACTION S.r.l. 8, and other minor items 1.
In the first half of 2002, Gains on disposals of investments and other fixed assets totaled 757 million euros and referred to the
following disposals: sale of 34% of Ferrari S.p.A. (for 714 million euros, or 671 million euros net of transaction costs that were
classified as extraordinary expenses), sale of the Magneti Marelli After Market business (26 million euros), and other lesser disposals
for 17 million euros.
Prior period income and other income of 39 million euros (30 million euros in the first half of 2002) refer to nonrecurring income
of the individual companies of the Group mainly for the release of reserves, extraordinary in nature, that proved in excess of
requirements.
In the first half of 2003 Losses on disposal of investments and other fixed assets amounted to 36 million euros. They include losses
on the following sales (in million of euros): sale of Fraikin Group 25 and other minor companies 11.
In the first half of 2002, Losses on disposal of investments and other fixed assets (36 million euros) referred to the sale of the Magneti
Marelli Electronic Systems business.
Other extraordinary expenses of 299 million euros in the first half of 2003 refer engine to (in millions of euros): provisions for risks in
relation to corporate restructuring transactions 86, flood damage at the Termoli engine plant 49, bank commissions for extension of
the stock market placement of 34% of Ferrari S.p.A. 16, costs and other provisions connected with the sale of the Toro Assicurazioni
Group 37, other prior period expenses and various other operating costs 111.
In the first half of 2002 Other extraordinary expenses amounted to 234 million euros and referred to (in millions of euros): provisions
for risks in relation to corporate restructuring transactions 64, provisions to reserves for future charges connected with the sale of 34%
di Ferrari S.p.A. 23, expenses connected with the Ferrari transaction 20; other prior period expenses and various other extraordinary
expenses 127.