Natuzzi SpA Third Quarter and First Nine Months 2008 Consolidated Financial Results

The Board of Directors of Natuzzi S.p.A. (NYSE: NTZ) (‘Natuzzi’, ‘the Company’ or ‘the Group’), Italy's largest furniture manufacturer and one of the world’s leading makers of leather-upholstered furniture, today presented consolidated financial results for the third quarter and first nine months of 2008.

Aldo Uva, Chief Executive Officer of the Natuzzi Group, commented: "Despite the 5.8% growth of our net sales reported in the first nine months of 2008, a highly positive performance in a singularly downbeat shopping environment, our profitability was by no means satisfactory. Our operating profitability suffered from unfavorable exchange rates, with a net impact of nearly EUR 20 million, and from excessively high operational costs. The improvement of our gross margin is one of the top strategic priorities of our three-year plan, and we are continuing to see abundant signs that this business plan is built on the right assumptions. We are aware that there is a lot of work ahead of us, but we are confident that we will recover profitability within the next few quarters.”

Mr. Uva added: "In the past few weeks, beyond the finalization of our business plan, we have considerably strengthened our managerial base with the arrival of seasoned professionals as Mariano Domingo, Chief Financial Officer & IT/Lean, and Umberto Bedini, SVP Operations, who will put their vast international experience behind the delivery of our targets. For full year 2008, we are expecting the growth in total sales to be roughly in line with the level achieved in the first nine months, while our operating loss should be in the range of EUR 35 to 40 million, as compared to a loss of EUR 49.1 million reported for full year 2007.”

CONSOLIDATED FINANCIAL RESULTS

NET SALES

In the third quarter ended September 30, 2008, total net sales of the Natuzzi Group amounted to EUR 142.3 million, up slightly from EUR 141.3 million reported for the third quarter of 2007. Third quarter units sold increased by 3.8% compared to the same quarter of the previous year.

In the first nine months ended September 30, 2008, total net sales of the Natuzzi Group amounted to EUR 483.9 million, up 5.8% from EUR 457.5 million reported for the same period of 2007. During the first nine months of 2008, units sold increased by 7.5% compared to the same period of the previous year.

In the third quarter of 2008, sales of seats under the Natuzzi brand decreased by 8.5% reflecting decreases of 9.8% in the Americas and 11.0% in Europe, whereas unit sales in the Rest of the World rose by 11.4%. During the same period sales of seats under the Italsofa brand increased by 12.2% thanks to positive results in the Americas (+32.4%) and in the Rest of the World (+35.0%), partly off set by a 11.8% decrease in Europe.

In the first nine months of 2008, sales of seats under the Natuzzi brand decreased by 1.5%, reflecting increases of 0.2% in the Americas and 13.1% in the Rest of the World, offset by a 5.7% decrease in Europe. During the same period, sales of seats under the Italsofa brand rose by 15.1%, achieving positive results in the Americas (+20.0%), Europe (+5.9%) and in the Rest of the World (+53.4%).

During the third quarter, five new Natuzzi stores were opened (one each in The Netherlands, the US, Russia, Italy and Qatar), whereas three Natuzzi stores were closed (one each in Portugal, Switzerland and Russia), bringing the total number of Natuzzi points of sales to 314 at the end of September 2008. Furthermore, in the quarter, two new Italsofa stores were opened in China, bringing the total number of Italsofa stores to 12. Finally, two new concessions were opened in the UK, bringing the total number of concessions operated by the Group to 17. The total number of Natuzzi Galleries worldwide was 420 at September 30, 2008.

GROSS PROFIT AND OPERATING RESULTS

During third quarter 2008, Gross Profit amounted to EUR 36.7 million (or EUR 40.5 million at constant exchange rates), as compared to a Gross Profit of EUR 38.6 million in third quarter 2007.

For the third quarter of 2008, the Group reported an operating loss of EUR 12.2 million, as compared to an operating loss of EUR 11.0 million in the third quarter of 2007. On a constant exchange rate basis, the Group would have reported an operating loss for the third quarter of 2008 of EUR 9.8 million.

During the first nine months of 2008, Gross Profit amounted to EUR 128.9 million (or EUR 147.8 million at constant exchange rates), as compared to a Gross Profit of EUR 130.6 million reported for the same period in 2007.

For the nine month period ended September 30, 2008, the Group reported an operating loss of EUR 29.5 million, as compared to an operating loss of EUR 28.2 million in the same period of 2007. On a constant exchange rate basis, the Group would have reported an operating loss for the third quarter of 2008 of EUR 16.3 million.

FOREIGN EXCHANGE, NET

During the third quarter of 2008, the Group incurred a net foreign exchange loss of EUR 3.2 million, as compared to a net foreign exchange loss of EUR 5.9 million in the prior year’s comparable quarter. The foreign exchange losses were mainly due to the following:

		Three months ended
		30-Sep-08		30-Sep-07
Gains (Losses) on mark-to-market		(5.2)		(2.6)
Netting figures on domestic currency swaps		0.1		1.0
Other, net*		1.9		(4.3)
Total Foreign Exchange, Net		(3.2)		(5.9)

* deriving from a) the difference between invoice exchange rates and collection/payment exchange rates and b) the remeasurement of accounts receivable and payable at the period-end exchange rates

During the first nine months of 2008 the Group incurred a net foreign exchange loss of EUR 8.1 million, as compared to a net foreign exchange loss of EUR 4.8 million in the prior year’s comparable period. The foreign exchange losses were mainly due to the following:

		Nine Months ended
		30-Sep-08		30-Sep-07
Gains (Losses) on mark-to-market		(3.0)		(5.8)
Netting figures on domestic currency swaps		1.6		6.2
Other, net*		(6.7)		(5.2)
Total Foreign Exchange, Net		(8.1)		(4.8)

* deriving from a) the difference between invoice exchange rates and collection/payment exchange rates and b) the remeasurement of accounts receivable and payable at the period-end exchange rates

OTHER INCOME (LOSS), NET

During the third quarter of 2008 the Group reported a loss EUR 0.9 million as compared to a gain of EUR 0.4 million in 2007.

During the first nine months of 2008 the Group reported a loss EUR 2.1 million as compared to a gain of EUR 3.3 million in 2007. The decrease was mainly attributable to exceptional income such as a refund of tax and write off of a provision for legal action occurred during the first nine months of 2007.

TAXES

For the third quarter of 2008 the Group reported EUR 0.1 million of tax benefits as compared to tax benefits of EUR 1.9 million.

During the first nine months of 2008 the Group recorded income taxes for EUR 2.3 million, as compared to EUR 5.2 million of tax benefits for the same period of 2007.

NET RESULT AND GROUP EARNINGS PER COMPANY’S SHARE

For the quarter ended September 30, 2008, the Group reported a net loss of EUR 16.2 million, or EUR 0.30 per share (ADR), compared to a net loss of EUR 14.1 million, or EUR 0.26 per share, in the third quarter of 2007.

For the first nine months of 2008, the Group reported a net loss of EUR 42.1 million, or EUR 0.77 per share, as compared to a net loss of EUR 23.1 million, or EUR 0.42 per share, for the first nine months of 2007.

TOTAL BACK LOG TREND

Total Back Log		31-Dec-07		30-Jun-08		30-Sep-08		9-Nov-08
€ million		99.5		88.7		109.6		99.1

BALANCE SHEET AND CASH FLOW

Cash and cash equivalents were EUR 57.1 million at September 30, 2008, as compared to EUR 97.7 million at September 30, 2007. The most significant changes in the Group’s cash flows between the first nine months of 2008 and 2007 are described below.

Cash flows used in operating activities were EUR 26.2 million in 2008, as compared to cash flows used by operations of EUR 11.1 million in 2007. This decrease of EUR 15.1 million from 2007 to 2008 resulted principally from the Group’s net loss of EUR 42.1 million in 2008, as compared to a net loss of EUR 23.1 million in 2007. In 2008 working capital was affected by the negative impact of trade receivables, net and accounts payable, partly offset by positive impact generated by inventories.

Cash flows used in investment activities in 2008 decreased EUR 10.7 million to EUR 8.2 million, due to a lower level of investments for the first nine months of 2008 as compared to the same period of prior year.

Cash provided by financing activities in 2008 totaled EUR 2.9 million up from EUR 0.5 million reported one year ago.

FIRST NINE MONTHS AND THIRD QUARTER 2008 CONFERENCE CALL

Aldo Uva, Chief Executive Officer, and Mariano Domingo, Chief Financial Officer, will discuss financial results, followed by a question and answer session, in a teleconference at 10:00 a.m. New York time (3:00 p.m. London time – 4:00 p.m. Italian time) on Thursday November 20, 2008. Interested participants should contact the Company’s Investor Relations Department at investor_relations@natuzzi.com, or natuzzi@gavinanderson.co.uk for dial-in details. A copy of the transcript of the conference can be requested at the above mentioned e-mail addresses.

INVESTOR AND ANALYST PRESENTATIONS

The Company’s Senior Management will meet investors and analysts in early December to discuss its 2009-2011 Business Plan, outlook and results. Investors and analysts wishing to meet management representatives should contact the Investor Relation department, or, alternatively, the following:

Natalie Biasin: +44 20 7554 1400

Angela Tucciarone: +1 212 515 1900

or send an e-mail to: natuzzi@gavinanderson.co.uk

ABOUT NATUZZI S.P.A.

Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With 2007 consolidated revenues of EUR 634.4 million on, Natuzzi is Italy's largest furniture manufacturer.

The Natuzzi group exports its innovative high-quality sofas and armchairs to 123 markets on five continents under two brands, Natuzzi and Italsofa.

Cutting-edge design, superior Italian craftsmanship, and advanced, vertically integrated manufacturing operations underpin the Company's market leadership.

Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001 certified.

___________________________________________________________________

FORWARD-LOOKING STATEMENTS

Statements in this press release other than statements of historical fact are "forward-looking statements”. Forward–looking statements are based on management’s current expectations and beliefs and therefore you should not place undue reliance on them. These statements are subject to a number of risks and uncertainties, including risks that may not be subject to the Group’s control, that could cause actual results to differ materially from those contained in any forward-looking statement. These risks include, but are not limited to, fluctuations in exchange rates, economic and weather factors affecting consumer spending, competitive and regulatory environment, as well as other political, economical and technological factors, and other risks identified from time to time in the Group’s filings with the Securities and Exchange Commission, particularly in the Group’s annual report on Form 20-F. Forward looking statements speak as of the date they were made, and the Group undertakes no obligation to update publicly any of them in light of new information or future events.

NATUZZI S.P.A. AND SUBSIDIARIES Unaudited Consolidated Statement of Earnings for the quarters ended on September 30, 2008 and 2007 on the basis of Italian GAAP (Expressed in millions of EUR except per share data)
		3Q08
		Actual			% on sales			constant fx*			% on sales			3Q07			% on sales
Upholstery net sales		125.1			87.9	%		130.6			88.3	%		125.3			88.7	%
Other sales		17.2			12.1	%		17.2			11.6	%		16.0			11.3	%
Total Net Sales		142.3			100.0	%		147.8			100.0	%		141.3			100.0	%
Purchases		(71.7	)		(50.4	)%		(73.1	)		(49.5	)%		(65.0	)		(46.0	)%
Labor		(21.7	)		(15.2	)%		(21.9	)		(14.8	)%		(21.9	)		(15.5	)%
Third-party Manufacturers		(4.2	)		(3.0	)%		(4.2	)		(2.8	)%		(3.3	)		(2.3	)%
Manufacturing Costs		(10.5	)		(7.4	)%		(10.5	)		(7.1	)%		(9.9	)		(7.0	)%
Inventories, net		2.5			1.8	%		2.4			1.6	%		(2.6	)		(1.8	)%
Cost of Sales		(105.6	)		(74.2	)%		(107.3	)		(72.6	)%		(102.7	)		(72.7	)%
Gross Profit		36.7			25.8	%		40.5			27.4	%		38.6			27.3	%
Selling Expenses		(36.7	)		(25.8	)%		(38.0	)		(25.7	)%		(38.3	)		(27.1	)%
General and Administrative Expenses		(12.2	)		(8.6	)%		(12.3	)		(8.3	)%		(11.3	)		(8.0	)%
Operating Income (Loss)		(12.2	)		(8.6	)%		(9.8	)		(6.6	)%		(11.0	)		(7.8	)%
Interest Income, net		(0.1	)		(0.1	)%								0.4			0.3	%
Foreign Exchange, net		(3.2	)		(2.2	)%								(5.9	)		(4.2	)%
Other Income, net		(0.9	)		(0.6	)%								0.4			0.3	%
Earnings (Losses) before taxes and minority interest		(16.4	)		(11.5	)%								(16.1	)		(11.4	)%
Income taxes		0.1			0.1	%								1.9			1.3	%
Earnings (Losses) before minority interest		(16.3	)		(11.5	)%								(14.2	)		(10.0	)%
Minority Interest		(0.1	)											(0.1	)
Net Earnings (Losses)		(16.2	)		(11.4	)%								(14.1	)		(10.0	)%
Earnings (Losses) Per Share		(0.30	)											(0.26	)
Average Number of Shares Outstanding		54,853,045												54,824,227
* at 3Q07 exchange rates
Key Figures in U.S. dollars (millions)		3Q08												3Q07
Total Net Sales		213.9												194.2
Gross Profit		55.2												53.1
Operating Income (Loss)		(18.3	)											(15.1	)
Net Earnings (Losses)		(24.3	)											(19.4	)
Earnings (Losses) per Share		(0.45	)											(0.36	)
Average exchange rate (U.S. dollar per Euro)		1.5030												1.3746

NATUZZI S.P.A. AND SUBSIDIARIES Unaudited Consolidated Statement of Earnings for nine months ended September 30, 2008 and 2007 on the basis of Italian GAAP (Expressed in millions of EUR except per share data)
		Nine months ended on
		30-Sep-08												30-Sep-07			% on sales
		Actual			% on sales			constant fx*			% on sales
Upholstery net sales		426.7			88.2	%		450.9			88.7	%		406.3			88.8	%
Other sales		57.2			11.8	%		57.2			11.3	%		51.2			11.2	%
Total Net Sales		483.9			100.0	%		508.1			100.0	%		457.5			100.0	%
Purchases		(227.6	)		(47.0	)%		(232.3	)		(45.7	)%		(223.7	)		(48.9	)%
Labor		(77.0	)		(15.9	)%		(77.5	)		(15.3	)%		(73.3	)		(16.0	)%
Third-party Manufacturers		(13.8	)		(2.9	)%		(13.8	)		(2.7	)%		(11.1	)		(2.4	)%
Manufacturing Costs		(32.9	)		(6.8	)%		(33.0	)		(6.5	)%		(29.0	)		(6.3	)%
Inventories, net		(3.7	)		(0.8	)%		(3.7	)		(0.7	)%		10.2			2.2	%
Cost of Sales		(355.1	)		(73.4	)%		(360.3	)		(70.9	)%		(326.9	)		(71.5	)%
Gross Profit		128.9			26.6	%		147.8			29.1	%		130.6			28.5	%
Selling Expenses		(123.4	)		(25.5	)%		(128.6	)		(25.3	)%		(123.9	)		(27.1	)%
General and Administrative Expenses		(35.0	)		(7.2	)%		(35.5	)		(7.0	)%		(34.9	)		(7.6	)%
Operating Income (Loss)		(29.5	)		(6.1	)%		(16.3	)		(3.2	)%		(28.2	)		(6.2	)%
Interest Income, net		(0.3	)		(0.1	)%								1.2			0.3	%
Foreign Exchange, net		(8.1	)		(1.7	)%								(4.8	)		(1.0	)%
Other Income, net		(2.1	)		(0.4	)%								3.3			0.7	%
Earnings (Losses) before taxes and minority interest		(40.0	)		(8.3	)%								(28.5	)		(6.2	)%
Income taxes		(2.3	)		(0.5	)%								5.2			1.1	%
Earnings (Losses) before minority interest		(42.3	)		(8.7	)%								(23.3	)		(5.1	)%
Minority Interest		(0.2	)											(0.2	)
Net Earnings (Losses)		(42.1	)		(8.7	)%								(23.1	)		(5.0	)%
Earnings (Losses) Per Share		(0.77	)											(0.42	)
Average Number of Shares Outstanding		54,853,045												54,824,227
* average first nine months of 2007
Key Figures in U.S. dollars (millions)		Nine months ended on
		30-Sep-08												30-Sep-07
Total Net Sales		736.7												615.2
Gross Profit		196.2												175.6
Operating Income (Loss)		(44.9	)											(37.9	)
Net Earnings (Losses)		(64.1	)											(31.1	)
Earnings (Losses) per Share		(1.17	)											(0.56	)
Average exchange rate (U.S. dollar per Euro)		1.5223												1.3447

UPHOLSTERY NET SALES BREAKDOWN
		Sales*													Seat Units
		Three months ended on										% Over			Three months ended on										% Over
		30-Sep-08					30-Sep-08					(Under)			30-Sep-08					30-Sep-08					(Under)
Americas		51.0		40.8	%		48.7		38.9	%		4.7	%		326,795		52.9	%		287,502		48.3	%		13.7	%
Natuzzi		22.9		18.3	%		26.7		21.3	%		(14.2	%)		115,139		18.6	%		127,692		21.5	%		(9.8	%)
Italsofa		28.1		22.5	%		22.0		17.6	%		27.7	%		211,656		34.3	%		159,810		26.9	%		32.4	%
Europe		60.2		48.1	%		64.6		51.5	%		(6.8	%)		227,741		36.9	%		257,271		43.3	%		(11.5	%)
Natuzzi		33.6		26.9	%		34.9		27.8	%		(3.7	%)		83,888		13.6	%		94,215		15.9	%		(11.0	%)
Italsofa		26.6		21.3	%		29.7		23.7	%		(10.4	%)		143,853		23.3	%		163,056		27.4	%		(11.8	%)
Rest of the world		13.9		11.1	%		12.0		9.6	%		15.8	%		62,848		10.2	%		50,115		8.4	%		25.4	%
Natuzzi		8.2		6.6	%		7.3		5.8	%		12.3	%		22,619		3.7	%		20,313		3.4	%		11.4	%
Italsofa		5.7		4.6	%		4.7		3.8	%		21.3	%		40,229		6.5	%		29,802		5.0	%		35.0	%
TOTAL		125.1		100.0	%		125.3		100.0	%		(0.2	%)		617,384		100.0	%		594,888		100.0	%		3.8	%
Break down by brand		Sales*													Seat Units
		Three months ended on										% Over			Three months ended on										% Over
		30-Sep-08					30-Sep-08					(Under)			30-Sep-08					30-Sep-08					(Under)
Natuzzi		64.7		51.7	%		68.9		55.0	%		(6.1	%)		221,646		35.9	%		242,220		40.7	%		(8.5	%)
Italsofa		60.4		48.3	%		56.4		45.0	%		7.1	%		395,738		64.1	%		352,668		59.3	%		12.2	%
TOTAL		125.1		100.0	%		125.3		100.0	%		(0.2	%)		617,384		100.0	%		594,888		100.0	%		3.8	%
* Expressed in millions of EUR

		Sales*													Seat Units
		Nine months ended on										% Over			Nine months ended on										% Over
		30-Sep-08					30-Sep-07					(Under)			30-Sep-08					30-Sep-07					(Under)
Americas		145.9		34.2	%		144.1		35.5	%		1.2	%		920,085		46.2	%		832,657		45.0	%		10.5	%
Natuzzi		77.9		18.3	%		83.3		20.5	%		(6.5	%)		401,666		20.2	%		400,819		21.7	%		0.2	%
Italsofa		68.0		15.9	%		60.8		15.0	%		11.8	%		518,419		26.0	%		431,838		23.3	%		20.0	%
Europe		239.9		56.2	%		230.2		56.6	%		4.2	%		896,174		45.0	%		888,829		48.0	%		0.8	%
Natuzzi		141.8		33.2	%		139.5		34.3	%		1.6	%		366,188		18.4	%		388,161		21.0	%		(5.7	%)
Italsofa		98.1		23.0	%		90.7		22.3	%		8.2	%		529,986		26.6	%		500,668		27.0	%		5.9	%
Rest of the world		40.9		9.6	%		32.0		7.9	%		27.8	%		173,343		8.8	%		129,902		7.0	%		33.4	%
Natuzzi		25.7		6.0	%		21.8		5.4	%		17.9	%		72,727		3.7	%		64,291		3.5	%		13.1	%
Italsofa		15.2		3.6	%		10.2		2.5	%		49.0	%		100,616		5.1	%		65,611		3.5	%		53.4	%
TOTAL		426.7		100.0	%		406.3		100.0	%		5.0	%		1,989,602		100.0	%		1,851,388		100.0	%		7.5	%
Break down by brand		Sales*													Seat Units
		Nine months ended on										% Over			Nine months ended on										% Over
		30-Sep-08					30-Sep-07					(Under)			30-Sep-08					30-Sep-07					(Under)
Natuzzi		245.4		57.5	%		244.6		60.2	%		0.3	%		840,581		42.2	%		853,271		46.1	%		(1.5	%)
Italsofa		181.3		42.5	%		161.7		39.8	%		12.1	%		1,149,021		57.8	%		998,117		53.9	%		15.1	%
TOTAL		426.7		100.0	%		406.3		100.0	%		5.0	%		1,989,602		100.0	%		1,851,388		100.0	%		7.5	%
* Expressed in millions of EUR

NATUZZI S.P.A. AND SUBSIDIARIES Unaudited Consolidated Balance Sheet as of   September 30, 2008 and December 31, 2007  (Expressed in millions of EUR)
		30-Sep-08		31-Dec-07
ASSETS
Current Assets:
Cash and cash equivalents		57.1		87.5
Marketable debt securities		0.0		0.0
Trade receivables, net		111.1		117.7
Other receivables		47.6		47.8
Inventories		103.6		107.3
Unrealized foreign exchange gains		0.0		0.9
Prepaid expenses and accrued income		1.8		1.8
Deferred income taxes		2.0		1.1
Total current assets		323.2		364.1
Non-Current Assets:
Net property, plant and equipment		225.2		235.9
Treasury shares		0.0		0.0
Other assets		13.3		17.3
Deferred income taxes		0.0		0.2
TOTAL ASSETS		561.7		617.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings		8.4		7.6
Current portion of long-term debt		0.5		0.3
Accounts payable-trade		66.0		89.3
Accounts payable-other		29.8		29.2
Accounts payable shareholders for dividends		0.6		0.6
Unrealized foreign exchange losses		2.1		0.0
Income taxes		1.0		1.6
Salaries, wages and related liabilities		18.9		17.5
Total current liabilities		127.3		146.1
Long-Term Liabilities:
Employees’ leaving entitlement		32.5		33.3
Long-term debt		3.4		2.1
Deferred income taxes		0.0		0.0
Deferred income for capital grants		12.3		13.3
Other liabilities		10.7		10.9
Minority Interest		0.9		0.2
Shareholders’ Equity:
Share capital		54.9		54.8
Reserves		42.3		42.3
Additional paid-in capital		8.3		8.3
Retained earnings		269.1		306.2
Total shareholders’ equity		374.6		411.6
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		561.7		617.5

NATUZZI S.P.A. AND SUBSIDIARIES Unaudited Consolidated Statement of Cash Flows for the nine-month period ended September 30, 2008 and 2007 (Expressed in millions of EUR)
		30-Sep-08			30-Sep-07
Cash flows from operating activities:
Net earnings (losses)		(42.1	)		(23.1	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22.5			22.4
Employees' leaving entitlement		(0.8	)		(1.9	)
Deferred income taxes		(0.7	)		(8.5	)
Minority interest		(0.3	)		(0.2	)
(Gain) loss on disposal of assets		1.2			0.1
Unrealized foreign exchange (losses) / gain		3.0			5.8
Deferred income for capital grants		(0.7	)		(0.8	)
Change in assets and liabilities:
Receivables, net		6.6			17.3
Inventories		3.7			(10.2	)
Prepaid expenses and accrued income		0.0			(0.4	)
Other assets		0.3			3.2
Accounts payable		(23.2	)		(12.9	)
Income taxes		(0.6	)		(3.8	)
Salaries, wages and related liabilities		1.3			(1.0	)
Other liabilities		3.6			2.9
Total adjustments		15.9			12.0
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES		(26.2	)		(11.1	)
Cash flows from investing activities:
Property, plant and equipment:
Additions		(10.8	)		(19.2	)
Disposals		0.1			0.4
Government grants received		1.4			0.0
Marketable debt securities:
Proceeds from sales		0.0			0.0
Purchase of business, net of cash acquired		0.0			(0.1	)
Disposal of business		1.1			0.0
NET CASH USED BY INVESTING ACTIVITIES		(8.2	)		(18.9	)
Cash flows from financing activities:
Long term debt:
Proceeds		2.0			0.0
Repayments		(0.5	)		(0.3	)
Short-term borrowings		0.9			0.8
Capital Injection		0.5			0.0
Dividends paid to shareholders		0.0			0.0
Dividends paid to minority shareholders		0.0			0.0
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES		2.9			0.5
Effect of translation adjustments on cash		1.1			(0.9	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(30.4	)		(30.4	)
Cash and cash equivalents, beginning of the year		87.5			128.1
CASH AND CASH EQUIVALENTS, END OF THE PERIOD		57.1			97.7