The Board of Directors approves capital increase reserved to the management of syskoplan AG

11 April 2006

The Board of Directors of Reply [Rey.MI] today approved the increase of capital reserved to the quotas, respectively of 2.8% and of 0.7%, of Manfred Wassel and Jochen Meier, Managing Directors of syskoplan AG, the German company of which Reply holds 63.76% of the capital even following the end of the mandatory tender offer on the Frankfurt stock exchange.

The capital increase took place through the issue of 303,729 new ordinary shares (nominal value 0.52 Euros each) for a total over pricing of 5,348,971.42 Euros at a 17.611 Euros each to be exchanged for 655,583 syskoplan AG shares.

In this regard it should be noted that the transaction announced on December 22nd, 2005 provided for the Managing Directors, Manfred Wassel and Jochen Meier, transferring their quotas in syskoplan AG, respectively of 25.1% and 6.1%, upon receipt of payment half in cash and half through newly issued Reply shares.