Tiscali: presentation of 2005-2007 business plan

Cagliari, 13th April 2005 - Tiscali presents its 2005-2007 business plan which, while confirming the key strategic objectives on the one presented in February 2004, accelerates growth in the four key countries – Italy, United Kingdom, Netherlands and Germany. Background Tiscali is a leading European internet provider, with more than 7.4 million active subscribers, of whom over 1.6 million were ADSL subscribers at end-December 2004.

This is before Tiscali, implemented its plan to sell off its assets in certain countries in 2004 and early 2005 Furthermore, the sale of French subsidiary Liberty Surf Group was agreed in April 2005.

The value of the transaction, based on 100% of Liberty Surf Group’s share capital, was around EUR 280 million. The price agreed, based stake held by Tiscali, was approximately EUR 266 million, of which approximately 90% will be cashed in at closing. In 2004, Liberty Surf reported revenues of EUR 224.6 million, with EBITDA around the breakeven mark and more than a million active users.

Completion of the transaction is on the approval of the French competition regulator, which is expected in six-eight weeks.Other assets are to be sold in the first half of 2005, notably the Spanish subsidiary and TiNet.

The financial resources obtained so far allow Tiscali to accelerate growth in Italy, UK, the Netherlands, and Germany. By summer Tiscali will decide whether to maintain its presence in Czech Republic.
We expect that the European ADSL internet market will continue to grow strongly in the next two years. Thanks to its key strengths, Tiscali is now among the five biggest players in each market where it has decided to keep its presence.

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