The Board of Directors approves the quarterly report as at June 30th, 2007 - Growth in consolidated revenue (+24,2%) and in EBIT (+34,1%)

27 September 2007

During the first quarter of 2007, Reply – a company listed on the STAR segment [REY.MI] – has achieved a growth in consolidated revenue (+24,2%) and EBIT (+34,1%). Today the Board of Directors, chaired by Mr. Mario Rizzante, approved the quarterly report during the meeting held in Turin.

As at June 30th, 2007 the consolidated revenue amounted to 135,9 million Euros, reporting an increase of 24,2% compared to 1H 2006, EBITDA amounted to 19,0 million Euros (+ 32,3%), and EBIT to 17,1 million Euros (+34,1%).

The positive trend is also proved by the income before taxes that achieved 17,0 million Euros with an increase of 24,7% compared to June 30th, 2006.

The 1H 2007 unequivocally shows the ability of the Group to generate cash flow, with a positive Net Financial Position of 13,1 million Euros as at June 30th, 2007 compared to the 11,2 million Euros as at March 31st, 2007 and the 6,7 million Euros as at December 31st, 2006.

Reply can boast very positive results also in Germany: syskoplan achieved, over the first six months of the year, revenues worth 27,7 million Euros (+23,0%) with an EBITDA of 2,7 million Euros (+7,0%) and operating cash flow of 13,7 million Euros.

“The two first quarters of this year – explained Mario Rizzante, Reply President – showed a very positive trend, with an outstanding growth achieved in the Italian market as well as in the German one. Most important, this growth has proved to be extremely solid, because based on the continuous consolidation of the relationships with our major customers who appreciate our capability to deliver leading-edge paradigms in terms of technology, business models and processes”.

“We have been among the first – concluded Mario Rizzante – to explore the new frontiers of the Service Oriented Architectures (SOAs) and of the Web-Service-based models opening them to our customers. Today, we are witnessing the discovery, made by the Business world, of the great potentials that the emergent Web 2.0 provides with new tools, like social networking, blog, forum, social commerce, feedback systems, on line applications. Our goal is to become a key reference for the businesses with regard to this new way of considering the Net, more and more based on the human relationships”.

During the same session of the meeting, the Reply Board of Directors also has also deliberated the allocation of 6,000 stock options to an employee recipient, within the “2006 Stock Option Plan" approved during the meeting held on June 15th, 2006.

These options include the right to subscribe an equivalent number of Reply S.p.A. newly-issued regular shares. The exercise price is calculated basing on the average of the share prices in the month prior the offer date.