# A Concentration of the core business in Italy and in the United Kingdom

# New positioning, from ISP to full-service provider, delivering telecommunication and media integrated services to the end customer through a full network and service IP model combining product innovation and marketing aggressiveness

# Annual revenue growth of 20%; over EUR 1.4 billion in 2010

# Increase of EBITDA margin from 14% to 26% within the plan time span

# Net profit and cash flow from 2008

# Fully financed plan through asset disposal, with a further decrease of debt in excess of EUR 150 million in the next 12 months

Industrial plan 2007-2010

According to the new strategy the plan involves focusing on the two countries – Italy and United Kingdom – where the Group is already relying on the points of strength outlined below:

* large existing customer base: over 3 millions customers, of which 1.6 million ADSL subscribers;

* high growth rate of the broadband market;

* deep knowledge of the brand;

* strong position of portals with over 10 billions of e-mails exchanged every year and more than 800 millions of web-pages visited;

* a “full-IP” proprietary network, with ULL coverage of over 30% of households in both countries (a market of approximately 15 million lines to conquer);

* a regulatory framework granting new opportunities to infrastructured operators.

Targets

On the basis of the new business plan, the targets set out for 2010 are as follows:

* Revenue growth of 20% totalling over EUR 1.4 billion in 2010

* Increase of the EBITDA margin from 14% to 26% within the plan time-span

* Over 3 million ADSL subscribers, of which approximately 2 millions ULL and about 500,000 triple play

* Net profit and cash flow generation from 2008