Tiscali: Executed capital increase for EUR 50 million

Cagliari, 30th December 2004 - Following yesterdays’ announcement, Société Générale has subscribed 18.4 million of new Tiscali’s shares for a total value of EUR 50 million.

The subscription price is EUR 2.7210 per share, corresponding to approximately 95.94 per cent of the reference price on the Italian Nuovo Mercato on December 28th (“Prezzo di Riferimento”).This capital increase gives execution to the resolution approved last June by Tiscali’s shareholders at a price which is significantly higher than the minimum price indicated in the June 2004 shareholders’ resolution.

This capital injection runs in parallel with the ongoing disposal plan of non-core assets and brings total new funds raised by the Tiscali Group to date - since announcement of the refinancing plan last August - to over EUR 150 million. This will help the Company meet its financial deadlines and further support growth.