21 April 2006

The Board of Directors of Reply S.p.A. - a company listed on STAR segment of the Italian Stock Exchange [REY.MI] - today approved the draft consolidated financial statement as at 31 December 2005, to be presented for approval at the shareholders’ meeting to be held in Turin, at the first calling on 15 June 2006.

At the end of 2005 Reply achieved consolidated turnover of 144.7 million euros (+29.4% on 2004), EBITDA of 21.0 million euros (+48.4% on 2004), EBIT of 18.8 million euros (+ 56.6% on 2004) and consolidated net profit of 6.9 million euros (+46.6% on 2004).

Thanks to the positive results achieved, Reply’s Board of Directors has decided to propose the distribution of a dividend equivalent to euro 0.20 per share (+33.3%) at the next shareholders’ meeting, which will be paid out on 20 July 2006 with a distribution date of 17 July 2006.

The Net Financial Position at 31 December 2005 is positive for 2.2 million euros compared to Euro 2.1 million at 31December 2004.

Today Board also examined and approved the Directors’ report on the Corporate Governance system and compliance with the Best Practice Code for Listed Companies promoted by the Italian Stock Exchange.

The Board of Directors has finally deliberated about the modifications to the articles of association as a consequence of the new laws introduced from L.262/2005 (c.d. "Law on the Saving").

"We confirm the positive trend of the company in 2005 – Mario Rizzante, Chairman of Reply, said at the end of the Board of Directors - The recently recorded results show once again that Reply is a competitive and reliable reality with a flexible organization able to anticipate target market developments by making available the most innovative technological solutions and the most efficient organizational models".

"In the first quarter of 2006 – Mario Rizzante concluded - we completed the acquisition deal of 63,7% of syskoplan AG’s shares, a company listed on the Frankfurt Stock Exchange, leader in CRM solutions, Business Intelligence and on SAP technologies. Thanks to this operation Reply will be able to expand its presence in the largest European IT services market and to implement the Group’s European strategy on SAP".