Tiscali's Board of Directors calls an extraordinary meeting to delegate capital increase

Cagliari, 28th July 2007 - Tiscali’s Board of Directors has today resolved to propose to the extraordinary Shareholders’ meeting the granting to the Board of Directors, in compliance with article 2443 of the Italian civil code, the powers to increase the Company’s share capital through the issuance of ordinary shares or a bond convertible in ordinary shares of the Company, to be offered with pre-emption rights for up to an amount, including share premium, of EUR 200 million.

The proposal to the Shareholders’ meeting provides for the capital increase to be performed in one or more tranche within 31 December 2008. The Shareholders’ meeting will be called on 29 August, 30 August and 31 August 2007, respectively on first, second and third call.

Proceeds from the capital increase will be used to partially reimburse the debt
undersigned to buyout the broadband and voice division of Pipex Communications plc, announced to the market on 13th July, as well as for the achievement of further targets of growth and expansion of the Group, in line with the announced growth strategy aimed at achieving the targets of the 2007-2010 business plan, approved by Tiscali last October 2006 with the goal of creating value.