Tiscali: Disposal of Tiscali Belgium

Cagliari, 29th November 2004 - Tiscali announces to have reached an agreement for the disposal of its Belgian subsidiary, Tiscali N.V., to Scarlet Belgie Holding B.V. for a total consideration of EUR 19 million in cash.

The transaction is subject only to approval of the Belgian Competition Authority, which is expected within 60 days from filing. Payment of the agreed cash consideration is in any case due by year-end 2004.

The disposal of Tiscali Belgium represents another step in the strategic plan
announced by the Tiscali Group aimed at focusing managerial and financial resources in its 5 core markets and brings total proceeds from the disposal plan implemented so far to over EUR 100 million.

As of 30 September 2004, Tiscali Belgium had over 60,000 ADSL customers.