14 June 2007

Reply S.p.A. Shareholders’ Meeting – company proudly listed at the STAR segment of Borsa Italiana [REY.MI] (the Italian Stock Exchange) - held today in Turin, approved the distribution of a dividend of Euro 0.28 (+40% compared with last year), in payment from 28th June, with coupon detachable from 25th June.

In FY 2006 Reply Group experienced strong growth: consolidated turnover amounted to 230.2 million Euro (+59.1%), with an EBITDA of 31.5 million Euro (+49.7%) and an EBIT of 27.8 million Euro (+48.0%). The Group’s net profit for the year was 10.3 million Euro (+49.7%).

The first months of 2007 have also been positive, with a substantial growth in all the main financial-economic figures. As at 31st March 2007 Reply recorded a consolidated turnover of 67.1 million Euro (+25.7%), an EBITDA of 9.4 million Euro (+28.9 %) and a pre-tax profit of 8.3 million Euro (+16.3%).

"This is the fifth consecutive year that Reply distributes dividends to shareholders – stated the Chairman Mario Rizzante at the end of the Meeting – and thanks to the solid financial situation of the Group, pay out does not erode the resources available to grow and to catch new development opportunities".

Mario Rizzante went on to say "We will remember 2006 as the year Reply faced a very important challenge: it was the year we had to measure ourselves on foreign market. Today, we are already seeing the first positive results in Germany where Reply is recreating its business model around syskoplan, a company acquired in 2006 and where Reply is concentrating initially on the Media and Financial Institutions sectors".

"The solidity achieved in Italy – concluded Mario Rizzante – and the expansion of Reply network in Germany means that, in 2007, the Group can concentrate on further strengthening its offer components and on the search for new growth opportunities on the European market, particularly in Great Britain".

During the same session, the Meeting also approved Reply S.p.A. Financial Statements as at 31st December 2006; it extended the appointment of the Auditing Company Deloitte & Touche S.p.A. for the financial years 2007, 2008 and 2009; it approved a stock granting plan in favour of Board members, employees and executives of the Group to be carried out by the free granting of ordinary Reply S.p.A. stock, deliberating around buy back and sell of Reply shares related to the stock granting plan.

Reply’s Extraordinary Shareholders’ Meeting then approved amendments to the Articles of Association to be consistent with the Savings Protection Law (Law no. 262 of 28th December 2005) according to the last amendment made by L.D. 29 December 2006, no. 303.

It amended Article 5 of the Articles of Association to introduce the possibility for the Extraordinary Shareholders’ Meeting to deliberate the allocation of profits and/or profit reserves to the company’s employees and executives and its subsidiaries via the issue of ordinary shares by the same or with a special deliberation of the Board of Directors, for an amount corresponding to the profits and/or profit reserves.

It established the Reserve for the issue of shares pursuant to article 2349 of the Civil Code and it attributed a proxy to the Board of Directors, pursuant to article 2443 of the Civil Code, with the right to deliberate the free increase of share capital for the purpose of stock granting plans.