Tiscali’s Board of Directors approves 1Q2006 results and new financing

Cagliari, 12th May 2006 - The Board of Directors of Tiscali has approved the results for the quarter ended on 31st March 2006.

• Revenues at EUR 202.7 million, +17% YoY;
• EBITDA at EUR 29.2 million (14% of revenues), +9% YoY;
• 211,000 new ADSL customers in 1Q06, a total of over 1.9 million, of which 435,000 ULL;
• New sources of funding for ca EUR 250 million.

Confirming the positive trend shown in the previous quarters, ADSL subscribers grew also in 1Q06, this being the key factor in the revenue growth and in the improvement of financial results. With 211,000 new subscribers as of 31st March 2006 the Tiscali Group reached over 1.9 million ADSL customers, of which over 435,000 receiving unbundled services, which will determine a meaningful improvement in profitability.

The focus on key markets and the further development of the unbundling network has allowed Tiscali to increase the offer of voice over IP and other value added services. VoIP customers were in fact over 100,000 at the end of March 2006.

In the first quarter of 2006, Tiscali Group consolidated revenues stood at EUR 202.7 million, up 17% vs 1Q05 (EUR 173.8 million). The significant further increase of ADSL subscribers in the UK and the accelerating growth trend of DSL users in Italy have been the key factors explaining the Group’s revenue increase.

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