Telecom Italia Media: The Board of Directors Approves Results at December 31, 2007

The Board of Directors of Telecom Italia Media, chaired by Enrico Parazzini, examined and approved the draft financial statements of the Group and the Parent Company at December 31, 2007.

Digital Terrestrial Television

Revenues for 2007 amounted to € 62.7 million, growing 99.0% (€ 31.5 million in 2006). Profitability also improved significantly both in terms of EBITDA (- € 16.8 million compared to – € 43.4 million in 2006; +61.3%) and EBIT (- € 45.9 million compared to – € 67.6 million in 2006; +32.1%). This performance is attributable both to the increase in pay-per-view revenues and margins (thanks to the commercial development of the offering “LA7 Cartapiù”), and the cost rationalization policy adopted for the Free-to-Air digital channels (LA7 Sport and QOOB), as well as the growth in sales of digital band by the Network Operator.

The Digital Terrestrial sales offering “LA7 Cartapiù” allows the purchase of football matches for 10 teams out of 20 from the Serie A TIM. With reference to football, the programming was expanded to include international events, such as the Uefa Cup and the best of other countries’ championships. In the 2007-2008 season, non-football content was also expanded with the introduction of cult Japanese horror movies, telefilms, motor shows, cartoons, golf events and edutainment shows. “LA7 Cartapiù” allows users to buy single events, event packages or the entire programming for a month.

In 2007, QOOB TV — the multimedia platform broadcasting on television, the Internet and mobile phones the best of cartoons, movies, graphic design, and music, maintained a constant traffic of approximately 210,000 unique users. Appreciation of content is on the rise, as shown by an increasing number of videos copied and pasted on third-party websites. In order to satisfy the foreign public, in April QOOB was launched in an English version.

The Network Operator (TI Media Broadcasting) continued to perform well. During the first half of the year, a contract was finalized to acquire frequencies in Sicily for a total amount of € 15.8 million, which allowed the company to increase its coverage in the region. Following this transaction, the national coverage of the two Digital Multiplexes increased to 87.2% and 74.9%, respectively. Revenues from band sales to third parties increased approximately 49% compared to year-end 2006. Over the first nine months, important multi-year contracts were signed by the company to lease digital band to host new channels on its multiplexes.