Shareholders’ Meeting approves 2004 accounts and appoints Board of Directors

Cagliari, 5th May 2005 - Tiscali ordinary Shareholders’ Meeting, held today in Cagliari, approved the annual accounts for the year ending 31 December 2004, confirming the figures approved by the board of directors on 29 March 2005.

2004 consolidated results show a significant improvement in revenues and profitability.

With more than 7.4 million active users (including 1.65 million ADSL users, of whom more than 300,000 receive unbundled services), Tiscali improved its position as a provider of broadband services in Europe, holding a significant market share.

Last year, Tiscali also repositioned itself to focus on the markets with the greatest potential for value generation, as well as concentrating on the development of its unbundled networks in Italy and the Netherlands.

The migration of ADSL customers from wholesale to unbundled services is bringing higher margins, and allows the Group to provide its customers with value-added and Voice Over IP (VoIP) telephone services.

Tiscali’s 2004 performance is summarised as follows:
- Revenues of EUR 1,080.6 million, up 20% on 2003 (+23% on a like-for-likebasis).
- Gross profit of EUR 480.3 million, or 44% of total revenues. This is an increase of 6% on 2003.
- EBITDA at EUR 108.8 million (10% of revenues), up 46% on 2003 (+38% likefor-like).
- EBIT loss of EUR 119.6 million, a 48% decrease on the loss of EUR 228.9
million posted in 2003.

Once again in 2004, access services were the main revenue driver, accounting for 68% of the total revenues. The achievement of a critical mass of broadband users has led to a major change in the access revenues mix, with ADSL now accounting for a greater proportion of the total. The further implementation of an IP network has led to an improvement of its business division too, which saw its revenues grow. This area now accounts for 18% of total revenues.

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