14 May 2008

All economic and financial indicators show an upward trend:

• Consolidated revenues achieved 77.1 million Euros (+15.0% compared to March 31st, 2007);
• EBITDA achieved 10.8 million Euros (+15.1 compared to March 31st, 2007);
• EBIT achieved 9.9 million Euros (+16.5% compared to March 31st, 2007);
• Income before taxes amounted to 9.7 million Euros (+16.5% compared to March 31st, 2007).

Today the Board of Directors of Reply S.p.A. – a company listed on the STAR segment of Borsa Italiana [REY.MI] – has approved the results as at March 31st, 2008.

The Reply Group achieved consolidated revenues worth 77.1 million Euros, increased by 15.0% compared to the same period of 2007.

Significant marginality improvement reported in the first quarter of 2008: consolidated EBITDA worth 10.8 million Euros (+15.1%) and EBIT worth 9.9 million Euros (+16.5%). Compared to the same period of 2007, earnings before taxes increased by 16.5% achieving 9.7 million Euros.

Following the acquisition of Communication Valley, the Net Financial Position of the Group as at March 31st, 2008 is negative by 2.1 million Euros compared to the positive position of 10.4 million Euros reported as at December 31st, 2007 (+ 11.2 million Euros as at March 31st, 2007).

As far as Germany is concerned, the Group reported positive results also in this country, where syskoplan closed the first quarter of 2008 with consolidated revenues worth 14.9 million Euros (+10.1%), a 1.8 million Euros EBITDA compared to the 1.3 million Euros as at March 31st, 2007 and a liquidity of 16 million Euros.

“The results we achieved in 2008 – said Mario Rizzante, Reply President – confirm the positive trend and demonstrate the soundness of our growth strategy, ever since based on technology and process innovation. In the first quarter of 2008 we have strongly committed ourselves to enhancing our offering in models and technologies with considerable growth potential, such as Web 2.0, the Enterprise Social Networking and the new architectures for the Enterprise Cloud Computing; moreover we have consolidated our presence in strategic market segments including Telcom and Media, Financial Services industry and CRM”.

“The excellent results reported in the 2007, combined with the very good start of FY 2008 – concluded Mario Rizzante – are a solid foundation that will enable Reply to become the key reference point, in terms of technology and consultancy, for companies keen to strategically leverage technology and the new business models to compete in the global marketplace”.