History

Avatar S.p.A. was constituted on the 12th of December 1989, with registered office in Milan and 200-million lira capital.

The 26th of November 1999, the registered office was transferred to Sant’Ilario d’Enza (Reggio Emilia) in via Marconi no. 10.

The 22nd of December 1999, the capital was increased up to 9 million and 116 thousand Euro: the addition was entirely undersigned and paid up by the shareholders.

The 21st of October 2000, the capital was increased up to 155 million Euros: the increase was entirely undersigned and freed by Holos Holding S.A..

The 25th of June 2003, the Assembly deliberated the issuing of bearer convertible debentures for 45 billions and 50 million Euro.

The 17th of December 2003, the capital was increased up to 199 billions Euro, by means of a debenture conversion for 44 billion Euros: the increase was entirely undersigned and freed by Holos Holding S.A..

All the additions in capital were carried out substantially but without formal monetary transactions, in order to avoid useless bank expenditures as well as to exclude any risk of deduction.

The 14th of June 2001, Holos Holding S.A. guaranteed the issue of the first 6 Billion Dhana (the currency of the Republic of the Earth), by pledging shares of Avatar S.p.A. for a nominal value of 150 billion Euros; of the 154.990.884.000 Euro detained capital.

On the 8th of September 2004, in order to avoid useless polemics and actions by part of Consob, Holos Holding S.A. withdraw the shares for a nominal value of 150 billion Euros issued by Avatar S.p.A and pledged, on the 14th of June 2001, as guarantee for the first issue of Dhana, substituting them with others of the same value.

The capitals and assets of Avatar S.p.A. are entirely invested in holdings and in credits towards the holdings.

The assets of Avatar S.p.A., consisting in the real value of its holdings, amount to about 280 billion Euros.

The obligations formalised for the undersigning of forthcoming additions in capital amount to more than 400 billion Euros.