27 September 2006

The Board of Directors of Reply S.p.A. - company listed on the STAR segment of the Italian Stock Exchange [REY.MI] - has today approved the half-year data for the period ending at 30 June 2006 that shows strong growth of all economic/financial indicators.

At 30 June 2006, the Group recorded consolidated turnover of 109.4 million euros (+58.5% compared to 30 June 2005), EBITDA were 14.4 million euros (+ 43.5%) and EBIT 12.8 million euros (+41.5%).

This positive trend is also reflected in the pre-tax profit of 13.6 million euros, a rise of 50.4% over 30 June 2005.

The first six months of the year confirm the Group’s ability to generate cash flow with the Net Financial Position at 30 June 2006 showing a surplus of 11.3 million euros compared to 2.2 million euros at 31 December 2005.

There has also been good performance on the German market with Syskoplan that in the first six months of the year has registered turnover of 22.5 million euros (+12%) with EBITDA of 2.5 million euros (+16%), EBIT of 2.0 million euros (+15%) and EBT of 3.3 million euros (+78%).

"Of particular importance in the first six months of 2006 - advised Reply Chairman Mario Rizzante - have been the development of activities in the financial services sector and consolidation of our position as part of the convergence between Telco and Media where we work with the main players on projects connected with Digital Terrestrial, IPTV, DVB-H and Digital Asset Management".