Telecom Italia Media Preliminary Results as of June 30, 2007

Monday, July 23rd, 2007

The Board of Directors of Telecom Italia Media (BIT:TME.MI) examined and approved the preliminary results as of June 30, 2007.

Digital Terrestrial Television

Revenues for the first half of 2007 more than doubled reaching €21.9 million, growing 154.7% (€8.6 million in H1 2006). Profitability also improved significantly both in terms of EBITDA (-€7.9 million compared to -€26.7 million in H1 2006; up 70.4%) and of EBIT (-€22.0 million compared to -€38.5 million in H1 2006; up 42.9%).

This trend can be attributed to the growth in revenues and margins from pay-per-view, thanks to the commercial development of the “La7 Cartapiù” offer and the positive contribution arising from the agreements reached with Mediaset and Telecom Italia to broadcast the audiovisual contents of Italian Serie A soccer games, and thanks to the initiatives to lower costs on digital free-to-air channels (La7 Sport and QOOB), and the increased sale of digital bandwidth by the Network Operator.

In H1 2007, the range of pay-per-view content was extended with the summer offer, also broadcasting 64 match races of the America’s Cup, 46 car and superbike racing events, 51 TV movies and 108 Cartoons.

QOOB TV continued to grow during this six-month period. This multimedia platform offers the best of animation, cinema, graphic design and music on television, the Internet and mobile phones, reaching approximately 210,000 unique users. During the six-month period, a series of new initiatives was launched (such as the platform in English, the agreement with the European Institute of Design for advertising), with growing appreciation for content, as demonstrated by the increase in the number of videos that were cut and pasted on third-party websites.

The activities of Network Operator (TI Media Broadcasting) confirmed the positive results already achieved in the first quarter of 2007, with the acquisition of frequencies in Sicily, for a total amount of €15.8 million, which enabled the company to extend the regional coverage. Following this transaction, the national coverage of the 2 Digital Multiplexes increased to 87.2% and 75%, respectively.