First half 2008 financial results:

• Total revenues €2,694 million, growing 5.4%¹ over H1 2007
• EBITDA €974 million, up 9.7%¹ over the same period of the previous year
• Strong growth in EBIT reaching €458 million (+31% vs H1 2007)
• Group net profit for the semester of €147 mln vs the €122 mln loss recorded in H1 07
• Net financial indebtedness down to €6,098 mln, minus €342 mln from the end of 2007
• 16.1 million mobile customers (+5.6% over June 30, 2007)
• 1.64 million direct fixed-line customers (unbundling), up 31.6% over previous year

Results as of June 30, 2008

In the first half of 2008, Wind generated total revenues of €2,694 million, up 5.4%¹ over the same period of 2007. Telecommunication service revenues in the semester grew to €2,576 million, up 4.9%¹ over the first six months of the previous year. Mobile service revenues grew in the semester to €1,769 million, up 3.8% over H1 2007, notwithstanding termination rate cut in July 2007 and recharge fee abolishment starting from March 5, 2007. Fixed-line and Internet service revenues grew to €807 million, a solid 7.6%¹ growth over the same period of the previous year.
Wind’s EBITDA in the first half of 2008 reached €974 million from €888 million recorded in the first half of 2007, up 9.7%¹, including €22 million positive impact of certain non recurring settlements. Net of this impact EBITDA growth would have been +7.2%. The EBITDA margin grew by 1.5 p.p. to 36.2%.
EBIT in H1 2008 grew 28.6%¹ reaching €458 million.
In the first semester of the year, Wind posted a net profit of €147 million, compared to the net loss of €122 million recorded in the corresponding period of the previous year.

Wind’s net financial indebtedness for the six months ended June 30, 2008, amounted to €6,098 million, decreasing by €342 million from €6,440 million recorded as of December 31, 2007.

The second quarter of 2008 confirmed the growth trend recorded in the previous quarters. Total revenues reached €1,394 million, up 6.3%¹ over Q2 2007. Service revenues in Q2 2008 increased by 3.8%¹ to €1,315 million and EBITDA grew 12.6%¹ to €518 million over Q2 07, with a margin of 37.2%. In Q2 2008, Wind posted a net profit of €107 million.

The continued strong cash flow generation in the first six months of the year, which led to approximately €460 million of cash available as of June 30, 2008 enables Wind to request an anticipated debt repayment for the tranche A2 maturity scheduled for the end of 2009 and for the tranches A1 and A2 maturities scheduled for the end of 2010 for a total amount of €412 million.
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[1] Excluding the impact of Tellas, deconsolidated as of September 2007

Mobile

Wind’s success in the mobile business continued in the first half of the year with its customer base reaching 16.1 million, a 5.6% growth over the same period of 2007, driven by Wind’s simple offer structure and tangible benefits for the customer. Wind’s mobile ARPU in the first half of the year slightly decreased to €18.7 from €19.0 recorded in the H1 2007, as a result of termination rate cut in July 2007 and recharge fee abolishment in March 2007.
Overall traffic volumes increased by 9.8% reaching 15.66 billion minutes while the number of SMSs sent in the semester grew 144% to over 6.78 billion messages.

Fixed-line and Internet

In the first half of 2008 Wind continued to focus its efforts on the growth of its direct subscriber base, both in terms of voice and Broadband services.
Infostrada’s highly successful voice offerings, together with the further enrichment and enlargement of its offering portfolio, was proved by the performance recorded in the first six months of the year, with 212 thousand direct customers net adds. Total direct customer base reached 1.64 million subscribers as of June 30, 2008, up 31.6% over previous year.
Wind recorded also an increase of its voice customer base to 2.52 million from 2.34 million as of June 30, 2007 (+7.8%). Over 63% of these are direct customers (ULL or Virtual ULL). In the first half of the year, WLR was selected by over 210 thousand customers (23% of indirect subs). Infostrada is deploying and pushing on WLR in areas in which direct access is not physically or economically viable.
In first half of 2008 Infostrada confirmed the strong growth of its broadband business with the number of broadband customers increasing by 300,000 over the previous year and reaching 1.2 million, up 33.4% over the same period of 2007. The growth trend was further enhanced by the increasing proportion of flat offers, selected by 89% of broadband customers.

Outlook for the rest of the year
Notwithstanding the negative economic environment and assuming no-major adverse regulatory decisions, the performance recorded in the first half of 2008 and the actions undertaken to date allows Wind to expect further growth in revenues, margins and net income for the year.