Tiscali’s Board of Directors approves 3Q2006 results

Cagliari, 9thth November 2006 - The Board of Directors of Tiscali has approved today the results of the third quarter 2006, confirming the growth trend of revenues and profitability:

• Revenues* in third quarter at EUR 168.9 million, + 31% YoY
• Gross Operating Result ( EBITDA*) at EUR 26.5 million, more than doubled on a yearly basis. EBITDA margin, increases from 10% to 16% of revenues YoY
• 160,000 new ADSL subscribers in third quarter, totalling over 1.7 million, of which 442,000 ULL customers (+86% YoY)
• New credit line granted by Banca Intesa for EUR 280 million to replace at improved terms the outstanding debt of the Group

In third quarter 2006 the Tiscali Group’s revenues related to operations in Italy, United Kingdom and to some minor investments (among which TINet) stood at EUR 168.9 million, with a 31%increase as compared to the same period of 2005 (EUR 128.6 million). This revenue increase dynamics in third quarter 2006 is mainly due to ADSL access services, bringing revenues in the first nine months of the financial year to EUR 487.0 million (+ 27% as compared to the EUR 382.0 of the first nine months of 2005).

The ADSL user base increased by 160,000 new subscribers in the quarter, as compared to 30th June 2006, while the growth over the nine months recorded over 500,000 units.

To read more, click on Press Release (pdf)

* Data reported reflect changes in the consolidation perimeter, in particular concerning the classification of item ‘Results of discontinued operations and/or assets held for sale’ of the income statement components of subsidiaries operating in the Czech Republic, in Germany and in The Netherlands. The Tiscali Group’s third quarter 2006 revenues pertain therefore to the operations in Italy, United Kingdom and to those of some minor participations.