Approved the draft 2006 consolidated accounts and the proposal of a stock options plan

Cagliari, 20th March 2007 - The Board of Directors approves the draft 2006 consolidated accounts and the proposal of a stock options plan.

•   Revenues: EUR 678.5 million, up 28% as compared to financial year 2005
  
  
• Gross operating result: EUR 100.4 million (15% of revenues), up 44% as compared to financial year 2005
  
  
• Active users: 3.5 million, over 1.8 million ADSL subscribers (of which 584,000 ULL). Over 618,000 new customers in the financial year
  
  
• Stock option plan to be approved by the extraordinary shareholders’
  meeting

Financial year ended as at 31 December 2006 has seen the concentration of the Tiscali Group in Italy and in the United Kingdom, where product and infrastructure investments have also been focused. This follows the announcement of the disposal of the subsidiaries in Germany, The Netherlands and Czech Republic, and the completion of disposal of the residual Spanish activities. On the UK market Tiscali also concluded the acquisition of Video Networks, consolidated starting as of September 2006 consistently with the intent to expand in the UK market and to develop a triple pay offer with IPTV.

Financial year 2006 also features a substantial change in the Group’s financial
situation, with repayment of all existing bonds towards the market and with the
replacement of the structured financing provided by Silver Point Finance with an EUR 280 million credit line granted by Banca Intesa SanPaolo. This credit line, with terms and conditions significantly more favourable for the Group, is an indication of a renewed trust by the banking system in Tiscali’s industrial plan and its growth potential.

Today the Board of Directors of Tiscali S.p.A. (the “Company”) has moreover resolved to submit to the approval of the Shareholders’ Meeting a stock option plan concerning the Chief Executive Officer and the Tiscali Group management in Italy.

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