Board of Directors approves 2007 first quarter results

14 May 2007

Today the Board of Directors of Reply S.p.A.- a company listed on the STAR segment of the Italian Stock Exchange - Borsa Italiana [REY.MI] – has approved the results as at March 31st, 2007.

The Reply Group achieved consolidated revenues worth 67.1 million Euros, increased by 25.7% compared to the same period of 2006.

Significant marginality improvement: consolidated EBITDA of 9.4 million Euros (+28.9%) and EBIT of to 8.5 million Euros (+30.9%); compared to the same period of 2006, Earnings Before Taxes increased by 16.3%, achieving 8.3 million Euros.

The Net Financial Position as at March 31st, 2007 remains positive by 11.2 million Euros compared to the 8.7 million Euros as at March 31st, 2006 (6.7 million Euros as at December 31st, 2006).

The trend of the Group in Germany is also positive. Here, syskoplan closed the first quarter of 2007 with consolidated revenues worth 13.5 million Euros (+30%), a 1.3 million Euros EBITDA compared to the 1.2 million Euros as at March 31st, 2006 and liquidity of 15.1 million Euros.

"The results approved today – said Mario Rizzante, Reply President, at the end of the Board of Directors - confirm that Reply is a solid and reliable Group which is continuously growing. Since January we have further consolidated our relationships with large customers and industrial groups in Italy and abroad and we have started many new important projects in the areas of convergence and new technologies aimed at supporting core processes such as SOA, SaaS (Software as a Service), Mobile and Fast Rich Portals".

"As far as middle-term strategies are concerned – states Mario Rizzante – we aim at becoming the main key player in the new transformation process which nowadays takes place in the net through the Web 2.0 models. Reply has accepted this challenge and has turned it into new growth and value for customers, thus developing an offering which combines consulting services, architectural models and proprietary methodologies. Thanks to our investments, last but not least our presence at the last Web 2.0 Expo San Francisco, we are among the first companies in Italy committed to the development of Web 2.0 solutions; furthermore we are experimenting the new 3D-worlds, such as Second Life, where we are present with a reputable partner: Giugiaro".

"The Web 2.0 models - concludes Mario Rizzante - initially conceived for the consumer world, are rapidly entering the corporate world which begins to perceive their huge potential, also thanks to the more and more widespread convergence between media and telecommunications".