Tiscali's Board of Directors approves results as of 31 December 2005

Cagliari, 13th February 2006 - The Board of Directors of  Tiscali has approved today the Group’s fourth quarter results as of 31 December 2005.

• Revenue growth: 4Q05 at EUR 200 million (+14% YoY). FY revenues at EUR 740 million, +13% YoY
• ADSL subscribers’ growth: 1.715 million ADSL subscribers, +235,000 new adds in 4Q05, +682,000 in FY05, 365,000 ULL users
• Profitability improvement: 4Q05 Gross Operating Result ( EBITDA) at EUR 32.9 million (16% on revenues). FY result at EUR 116.9 million (16% on revenues), +51% YoY

Tiscali Group’s revenues in 4Q05 stood at EUR 200 million, up 14% compared to 4Q04 (EUR 175.8 million), and up 8% compared to 3Q05 (around EUR 185.7 million). Full year consolidated revenues were around EUR 740 million, up 13% compared to FY04 result (EUR 655.1 million). Such improvement was mainly driven by ADSL revenues growth in particular due to the growth in ADSL users in the UK, confirming the trend of previous quarters.

ADSL revenues in 4Q05 stood at EUR 93.1 million, up 44% compared to 4Q04 (EUR 64.4 million) and +3% compared to 3Q05 (EUR 90.6 million).

Full year ADSL revenues were EUR 330.1 million, 60% on total access revenues, and up 54% on full year 2004 (EUR 214.7 million, 45% on access revenues). The increase was mainly due to the growth of direct access through unbundling infrastructure (ULL), which increased from 15% in full year 2004, to 21% in full year 2005. 4Q05 ADSL net adds were over 235,000, taking total ADSL active users as of 31 December 2005 to over 1.715 million (+16% compared to 30 September 2005) of which 365,000 users were unbundled, reaching the announced FY05 target.

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Tiscali Group’s financial results and historical figures given for comparison purposes in this press release were prepared in accordance with IAS/IFRS international accounting principles, and are shown on a like-for-like basis for the Group’s perimeter, including Italy, UK, Germany, The Netherlands, Czech Republic and TiNet IP.