20 April 2007

Today the Board of Directors of Reply S.p.A.- a company listed on the STAR segment of the Italian Stock Exchange [REY.MI] - has approved the consolidated draft financial statement for the year 2006, to be submitted to the approval of the Shareholders’ Meeting, due in first call in Turin on 14 June 2007.

The Reply Group has closed fiscal year 2006 with consolidated revenues worth 230.2 million euros (+59.1% compared to 2006), an EBITDA worth 31.5 million euros (+49.7% as against 2005) and an EBIT worth 27.8 million euros (+48.0% compared to 2005), while net profits for fiscal year 2006, amounting to 10.3 million euros, increased by 49.7%.

Thanks to the positive results achieved, Reply’s Board of Directors has decided to propose at the next Shareholders’ Meeting the distribution of a dividend of 0.28 euros per share, to be paid as of 28 June 2007, with distribution date on 25 June 2007.

The Net Financial Position as at 31 December 2006 is positive for 6.7 million euros compared to 2.2 million euros as at 31 December 2005 (8.5 million euros as at 30 September 2006).

Today the Board of Directors also reviewed and approved the Directors’ Report concerning the Corporate Governance system and the adherence to the Corporate Governance Code of Listed Companies (Codice di Autodisciplina delle Società Quotate) promoted by Borsa Italiana.

Moreover the Board of Directors deliberated on the proposals for amending the Articles of Association resulting from the recent legislative changes established by the Law 262/2005 (the so-called "Legge sul Risparmio") and by the Decree Law 303/2006 (the so-called "Decreto Pinza").

"2006 – declared Mario Rizzante, Reply President, at the end of the Board of Directors– "was a very positive year for our Group, with results exceeding expectations".

"The soundness Reply has achieved in Italy – concludes Mario Rizzante – and the expansion of our network started in Germany, enable Reply focussing on a further strengthening of its own offering, especially in areas such as the convergence and the Web 2.0, the models of social networking and the new 3D worlds like Second Life".