15 June 2006

The Annual General Meeting of Shareholders of Reply S.p.A. - a company listed on the STAR segment of the Italian Stock Exchange [REY.MI] - today approved the financial statement for the 2005 financial year that has concluded with consolidated turnover of 144.7 million euro (+ 29.4% over 2004) and the distribution of a dividend of 0.20 euro per share, an increase over the 0.15 euro per share of 2004.

Ex-dividend date is July 17th, 2006 with payment date July 20th, 2006.

The results achieved by Reply have shown notable improvement in 2005. Indeed, at the end of the year, the Group has recorded consolidated turnover of 144.7 million euro (+29.4% over 2004), EBITDA of 21.0 million euro (+48.4% over 2004), EBIT of 18.8 million euro (+56.8% over 2004) and consolidated net profit of 6.9 million euro (+46.6% over 2004).

As regards first-quarter performance, the Group has also begun the 2006 financial year in a positive manner with all main economic/financial indicators showing improvement. Consolidated turnover at March 31st, 2006 total 53.4 million euro (+66%) with EBITDA of 7.3 million euro (+55.6%) and pre-tax profit of 7.1 million euro (+71%).

The Net Financial Position as at March 31st, 2006 shows a surplus of 8.7 million euro, an improvement over the 2.2 million euro of December 31st, 2005.

At the end of the Meeting, Reply Chairman Mario Rizzante stated: "2005 has been an important and highly-satisfactory year for us. The positive results achieved mean that we have decided to distribute a dividend of around 25% of net profit, in line with Group policy to create value for shareholders and the market".

"Reply - continues Mario Rizzante - is led by a group of partners and managers that in just 10 years since its formation has managed to establish a model in extremely-competitive markets based on highly-specialised skills and expertise in new technologies. Our current objective is to establish Reply as a leading player in the global development process being experienced as a result of the convergence of telecommunications, media and consumer electronics".