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<title>MARCHI WELCOMES NEW DEALS BETWEEN CANADIAN AND ITALIAN BUSINESSES</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">May 20, 1998 No. 128</font></p>
<p align="CENTER"><font face="Univers" size="+2">MARCHI WELCOMES NEW DEALS BETWEEN </font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADIAN AND ITALIAN BUSINESSES</font></p>
<p><font face="Courier">Minister for International Trade Sergio Marchi today welcomed the signing of a
Memorandum of Understanding (MOU) between Aerospace Industries Association of
Canada and the Association of Italian Aerospace and Defence Industries, along
with a number of other Canadian business deals with Italy. Minister Marchi,
accompanied by Alfonso Gagliano, Minister of Public Works and Government Services
Canada, and 12 parliamentarians, is leading a Canadian business development
mission comprised of 73 companies.</font></p>
<p><font face="Courier">"This is a great opportunity to reaffirm the importance we attach to Canada-Italy
relations," said Mr. Marchi. "And the time is ripe for Canadian business to take
advantage of these strong cultural ties."</font></p>
<p><font face="Courier">The delegation has attended a number of business seminars and working groups with
their Italian counterparts and met up with Prime Minister Jean Chrétien during
his official visit to Italy this week. Minister Marchi and the Information
Communications Technologies group of Canadian participants also met with the
Italian Minister of Communications, Antonio Maccanico, on May 19.</font></p>
<p><font face="Courier">In addition to the MOU between Canadian and Italian aerospace associations, a
number of business agreements were announced during the business sessions today.
The aerospace MOU will provide a general framework for the joint promotion of
Canada-Italy aerospace industry co-operation. The five other business agreements
include: a contract between GE Canada and EH Industries Ltd. of Italy; the
purchase of Italian machinery by Pasta D'Aurum of Saskatchewan to build a pasta
plant in Swift Current; a cross-marketing agreement between Cipher New Media of
Toronto, Ontario, and M3 Milano Multimediale; a joint venture between Advanced
Cultural Technologies Inc. of Vancouver, British Columbia, and Intelfin S.p.A.;
and an agreement between Northern Telecom and Finmeccanica to jointly develop and
manufacture wireless communications technology in the south of Italy; and the
opening of five offices by Italian companies to be represented by CO.DE.CI
Corporation of Montreal, Quebec.</font></p>
<p><font face="Courier">"These deals are a stepping stone for a new commercial relationship between
Canada and Italy," Mr. Marchi said. "Ours is a relationship based on cultural
roots, but enhanced by our complementary needs and international trade focus."</font></p>
<p><font face="Courier">The Canadian business development mission will participate in a number of
business activities in Milan, May 21 to 23.</font></p>
<p><font face="Courier">Minister Marchi's participation in this mission follows his bilateral visit to
Northern Italy from May 15 to 18, where he met with local officials and business
leaders and addressed an automotive conference in Turin. On May 18 and 19, Mr.
Marchi participated in the World Trade Organization Ministerial meeting and
celebration of the 50th anniversary of the General Agreement on Tariffs and Trade
in Geneva.</font></p>
<p align="CENTER"><font face="Courier">- 30 -</font></p>
<p><font face="Courier">A backgrounder is attached.</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
<p align="CENTER"><font face="Arial" size="+1">Backgrounder</font></p>
<p align="CENTER"><font face="Arial" size="+1">CANADA-ITALY BUSINESS AGREEMENTS</font></p>
<p><font face="Courier"></font><font face="Courier"><strong>GE Canada Inc.</strong></font></p>
<p><font face="Courier">GE Aircraft Engines (GEAE) Canada signed a $60 million contract with European
Helicopter (EH) Industries to supply its T700 engine, jointly manufactured with
Fiat Avio, as part of the Comorant helicopter project.</font></p>
<p><font face="Courier"><strong>Pasta D'Aurum</strong></font></p>
<p><font face="Courier">Pasta D'Aurum of Swift Current, Saskatchewan has purchased $40 million worth of
machinery from Braibanti Golfetto S.p.A. for the creation of its pasta plant.
When finished, the plant is expected to create more than 200 new jobs and will be
the largest pasta producing plant in North America.</font></p>
<p><font face="Courier"><strong>Cipher New Media</strong></font></p>
<p><font face="Courier">Cipher New Media of Toronto, Ontario has signed a cross-marketing agreement with
M3 Milano Multimediale. This agreement, valued at $60,000 will allow M3 Milano
Multimediale to market and distribute Cipher New Media's electronic commerce
products in Italy. Cipher New Media will market and distribute M3 Milano
Multimediale's products in North America.</font></p>
<p><font face="Courier"><strong>Advanced Cultural Technologies</strong></font></p>
<p><font face="Courier">Advanced Cultural Technologies of Vancouver, British Columbia, has signed a joint
venture agreement worth $500,000 with Intelfin S.p.A. for the adaptation and
deployment of the ACT Cinemage multimedia client/server system and the
NetXchequer subscription and royalty revenue management system.</font></p>
<p><font face="Courier"><strong>Northern Telecom (Nortel)</strong></font></p>
<p><font face="Courier">Northern Telecom has signed an agreement with Finmeccanica whereby Nortel and
Ansaldo Signal (a Finmeccanica subsidiary) will jointly develop and manufacture
GSMR wireless railway communications and signalling systems; and Nortel and
Alenia Aerospazio (a Finmeccanica subsidiary) will jointly develop and
manufacture interactive multimedia satellite services and terminals for the
Euroskyway project. These initiatives, brought about by Nortel's participation
with TELON in the competition for Italy's third mobile licence, will bring jobs,
significant investment and US$6 billion in export potential to the South of
Italy.</font></p>
<p><font face="Courier"><strong>CO.DE.CI Consulting Group</strong></font></p>
<p><font face="Courier">The CO.DE.CI Corporation of Montreal, Quebec, announced the permanent
establishment in Canada of five Italian companies. The companies are: OMG -
Officine Meccaniche Galileo; Modenplast-Brabor; Euroelettra; A.C.C. - FEMA
Costruzioni Meccaniche; and Gamma Meccanica. CO.DE.CI is currently negotiating
co-production and co-marketing partnerships with Canadian companies located in
the Montreal area, on behalf of the five companies. </font></p>
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