Completed the disposal of Dutch assets to KPN.

Cagliari, 19th June 2007 - Following the clearance of the Dutch Antitrust authority, Tiscali announces the completion of the disposal of the Dutch assets to KPN B.V.. The total consideration is EUR 248.5 million.

Net of the reimbursement of intercompany loans for ca EUR 12.5 million, the final consideration amounts to EUR 236 million. The capital gain following the disposal is over EUR 160 million. As already announced, EUR 130 million have been utilised for the partial reimbursement of the Banca IntesaSanpaolo financing (EUR 280 million in total), thus further reducing indebtedness and strengthening the financial position of the Tiscali Group.