12 May 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 the results for the first quarter ending at March 31st 2006, that highlight a strong growth of all economic-financial indicators.

The Group has recorded consolidated turnover of 53.4 million euros, an increase of 66% compared to the first quarter ending at March 31st 2005.

Margins have also improved during the first three months of 2006 with consolidated EBITDA of 7.3 million euros (+55,6%) and EBIT of 6.5 million euros (+54,5%), whilst pre-tax profit amounts at 7.1 million euros, an increase of 71% compared to the same period ending at March 31st 2005.

There has been a significant increase in the cash flow of the Group, whose Net Financial Position at March 31st 2006 is positive for 8.7 million euros, a substantial rise compared to the 2.2 million euros of December 31st 2005.

"The first part of 2006 has ended in a very positive way – commented Mario Rizzante, Chairman of Reply – we have always focused innovation as a combination of processes, applications and technologies. This approach has allowed Reply to record a substantial growth in all business sectors and currently to position itself as one of the leading consultancy and system integration groups in the new ’convergence’ scenario arising from the integration of telecommunications, media and consumer electronics. We believe that there are great opportunities for growth and development in this sector".

"From January – concludes Mario Rizzante – we have consolidated the results of Syskoplan AG, that in the first quarter of this year has achieved sales of 10.4 million euro with a good profit margin. Syskoplan has recently acquired macrosInnovation, a Munich-based company highly specialized in solutions for the banking and insurance sector. This is the first step towards the setting up of a ’Reply network’ in Germany".