Tiscali acquires EUnet strenghtening its position in the Austrian market

Cagliari, 6th May 2003 - Tiscali S.p.A. announces the acquisition of EUnet EDV und Internet Dienstleistungs AG, Austria. The total value of the transaction is €15.9 million to be paid through newly issued Tiscali shares. Considering the cash position of the company which, a of 31st March 2003, was ca. €1.9 million, the cost of the acquisition is €14 million.
The transaction is subject to the approval of the Austrian Cartel Authority.

EUnet, the first commercial ISP operating in Austria since 1991, is, after Telekom Austria, the leading B2B Internet Service Provider offering to its 15.000 customers internet-based products and innovative solutions with high-quality standards.
EUnet offers Internet access through all technologies, hosting and housing, network services (IP-VPNs), security products and value added services.

The company has its headquarters in Vienna and 64 employees. In 2002 EUnet, who formally commenced operations in June 2002 following the exit from the KPNQwest Group, generated an annualized turnover of approximately €18 million, with an estimated annualized EBITDA of €3.3 million and a positive net income and cash flow. Considering the estimated annual synergies of approximately €2.5 million, the acquisition will allow Tiscali to increase the EBITDA of its Austrian subsidiary of an estimated €6 million annually.

Tiscali expects a smooth integration period. The high quality levels of EUnet will be maintained and further extended, with EUnet customers benefiting from the full range of innovative Tiscali services currently on offer.

This acquisition represents for Tiscali a turning point in the Austrian market: with a combined turnover expected to be in the region of €28 million for 2003, Tiscali will be the new leading operator in the field of Internet-based services for corporate and business customers in the Austrian market and will leverage this position to significantly increase its presence in the consumer market.

This press release includes forward-looking statements. These forward-looking statements are based on current expectations and projections about future events. These forward-looking statements are subject to certain risks, uncertainties and assumptions. This press release also contains unaudited proforma figures.
Tiscali undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this press release might not occur. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.