Management & Capitali supports the development plans of Tiscali

Cagliari, Milan, 10th August 2007 - Management & Capitali S.p.A. (M&C) has approved today an investment project aimed at supporting the development plans and the opportunities of growth of Tiscali in the markets where it operates.
M&C has in fact agreed with Tiscali to invest from EUR 50 Million to EUR 165 Million in Tiscali UK by way of a convertible debt financing or a capital increase, to reflect the financing requirements to support in particular the integration and the development plan following the recent acquisition of the broadband and voice division of Pipex Plc.
The closing of the investment is expected by the end of 2007.

With the acqusition of Pipex by Tiscali UK, the Tiscali Group consolidates its top-tier positioning in the UK market, becoming one of the top four operators in the broadband and voice arena, with significant growth opportunities and with the potential objective of an IPO in the next three years.

Tommaso Pompei, CEO of Tiscali S.p.A. said: “We are glad of this agreement with Management & Capitali, which follows the recent EUR 650 million financing by Banca Intesa Sanpaolo and JP Morgan and which offers the Tiscali Group additional financial flexibility in pursuing opportunities of growth and to implement its strategic plan”.