08 August 2006

The Board of Directors of Reply S.p.A. – a company listed on the STAR segment of the Italian Stock Exchange [REY.MI] – today approved Group results for the second quarter of 2006 and examined first half results.

On the consolidated level, in the first half of 2006 the Group records consolidated turnover of 109.4 million euros, up by 58.5% over the equivalent period in 2005. Margins also improved during the six-month period, with EBITDA of 14.4 million euros (+43.5%) and EBIT of 12.8 million euros (+ 41.5%). The pre-tax profit amounted at 13.6 million euros, an increase of 50.4% compared to the same period of the last year.

Reply’s results for the 2006 second quarter also displayed steep growth. Consolidated turnover from April to June 2006 totalled 56.1 million euros, some 52% higher than the equivalent period in 2005, with EBITDA of 7.1 million euros (+32.9%) and EBIT of 6.3 million euros (+30.3%).

The Net Financial Position at 30 June 2006 was positive by 11.3 million euros, compared to a positive figure of 8.7 million euros at 31 March 2006 and 2.2 million euros at 31 December 2005.

With reference to Reply’s business on the German market, during the first half of the year syskoplan recorded a turnover of 22.5 million euros (+12% compared to June 2005), with EBITDA of 2.5 million euros (+16%), EBIT of 2.0 million euros (+15%) and EBT of 3.3 million euros (+78%).