BS Private Equity acquires Tiscali International Network

Cagliari, Milano February 3rd 2009

Tiscali and BS Private Equity SpA and BS Investimenti SGR announce to have agreed the acquisition by the latter of the activities held by Tiscali International Network BV, subsidiary of Tiscali SpA, for a total Enterprise Value of ca EUR 47 million, including a potential EUR 7 million earn-out. Closing is conditional upon signing of the final agreement and approval of the relevant antitrust authorities.

TiNet offers to customers world-wide wholesale IP-MPLS connectivity through a global network covering 3 continents and with over 100 points of presence.

In 2008 TiNet had a turnover of over EUR 35 million – compared with a turnover of ca EUR 28 million with the same perimeter - and an EBITDA of ca EUR 10 million (corresponding to an EBITDA margin of 28%).

Following the acquisition, TiNet will continue to offer IP services to the Tiscali Group.