Tiscali's Extraordinary Shareholders' Meeting approves capital increase

Cagliari, 22nd June 2006  - Tiscali’s Extraordinary Shareholders’ Meeting has approved today in third call the proposed capital increase with waiver of pre-emption rights for a maximum nominal value of EUR 13,837,517 through the issuance of a maximum 27,675,034 new ordinary shares at EUR 0.50 nominal value each.

The capital increase, corresponding to 6.98% of the existing share capital, is exclusively dedicated to the reimbursement of the “EUR €209,500,000 4.25 per cent  Guaranteed Equity Linked Bonds due 2006”, issued by Tiscali S.p.A’s subsidiary Tiscali Finance SA on September 26th 2003 and expiring on September 26th 2006.

Pursuant to the “soft mandatory” clause provided for in the Bonds, the execution of the capital increase will allow Tiscali Group to reimburse the Bonds, based on the current stock price, partially through new shares. This will allow to convert part of Tiscali’s debt in equity capital while limiting the cash out for the reimbursement and increasing the free float with institutional shareholders.

At today’s share price, the portion of the Bonds to be repaid in shares would amount to ca EUR 65 million, whereas the cash top up would be ca EUR 145 million.

To read more, click on Press Release.pdf