MILAN, Italy -- The Board of Directors of FASTWEB S.p.A. (Milan, MTAX: FWB),Italy’s second largest fixed telecommunications services provider, has approved the interimreport as at 30 June 2007.

The first half results are in line with the company full-year expectations: consolidated revenuesfor the first six months amounted to 714.4 million euros, rising 24% over 578.4 million euros inthe year-earlier period. Second quarter revenues were 360.5 million euros, a 25% improvementover 289.4 million euros a year earlier.

As of the second quarter 2007, EBITDA is reported net of provisions for bad debt and riskcontingencies. The new criterion is adopted exclusively in order to align FASTWEB EBITDAwith that published by Swisscom. In order to allow full comparability with previously reportedquarterly results, tables reconciling quarterly reclassified consolidated income statement for thefull year 2006 and the first quarter 2007 are provided.

Consolidated EBITDA increased significantly in the first half 2007, partly as a result ofextraordinary items. EBITDA amounted to 223.8 million euros with a consolidated EBITDAmargin of 31.3%, up 75% from 127.6 million euros in the first half 2006 (22% EBITDA margin).

Second quarter 2007 EBITDA amounted to 137.7 million euros, marking a significantimprovement in margins, from 22.7% in the equivalent period 2006 to 38.2%.

Excluding extraordinary items, which produced a positive net impact of 43.5 million euros in thesecond quarter of 2007, organic EBITDA in the first half 2007 was 180.3 million euros (25.2%of consolidated revenues), up 41% year-on-year.

Extraordinary items are detailed below:

The consolidated EBIT in the first half 2007 was positive at 38.5 million euros, compared withnegative EBIT of 59.6 million euros in the first half 2006. Depreciation and amortizationamounted to 185.4 million euros in the first half of the year.

In the second quarter 2007, FASTWEB reported consolidated net profit of 5.8 million euros,compared with a net loss of 18.2 million euros in the same year-earlier period.FASTWEB posted a consolidated net loss of 14.9 million euros in the first half 2007, a 68%improvement with respect to a net loss of 47 million euros in the year-earlier period.

Capital expenditure from January to June 2007 amounted to 249.2 million euros. This amountwas related largely to the connection of new clients and also included investments ininfrastructure for the provision of telecommunications services to the Public Administration.

The total net debt at the end of June 2007 was 1,076.1 million euros, unchanged with respect tothe figure at the end of March and slightly lower than the 2006 year-end figure of 1,081.3 millioneuros. FASTWEB had a positive cash flow of 7.3 million euros in the first half of 2007, asignificant improvement compared with the negative cash flow of 230.4 million euros in theyear-earlier period, a further confirmation of the positive trend that began in the fourth quarter of2006 when FASTWEB reported its first positive net cash flow.

The number of net additions acquired in the April-June period was 62,500. The slowdowncompared with the previous quarters was due partly to a slow down in the Italian broadbandmarket, partly to FASTWEB compliance to the Bersani Decree that has introduced a reductionfrom 60 to 30 days for the notice period required to cancel a telecommunication contract andpartly to the company’s decision to require new customers to use standing-order payments.

The ruling that Telecom Italia should compensate FASTWEB 60.7 million euros for its failure tocomply with the requirement to provide unbundled local loop access was enforced during thesecond quarter 2007. It was thus possible for FASTWEB to update its customer base excluding17,400 potential clients that it was unable to activate due to Telecom Italia’s non-compliance toregulation.

The total number of clients as at 30 June 2007, including new subscribers acquired during thequarter and those cancelled from the client base, was 1,195,600, compared with 1,150,400 as at31 March 2007.

The residential vs business customer mix was substantially unchanged (82% and 18%respectively), while the two segments accounted respectively for 42% and 58% of first half totalrevenues. A portion of the revenues in the business segment came from wholesales operationsand from IRU sales, which accounted respectively for 13% and 4% of total revenues.

FASTWEB residential Average Revenue per Unit (ARPU) in June 2007 was 747 euros on anannualized basis, compared with 762 euros in March. The decrease, which is in line withexpectations, was mainly due to the low seasonality of June compared to March. Theperformance was also due to a lower contribution from video services as a result of thecommercial agreement with SKY, which came into effect in March, and to the impact of areduction in pricing and to new marketing strategies implemented during the first half of 2007.

FASTWEB began acquiring orders from the Italian Public Administration under the terms ofthe CNIPA and CONSIP conventions during the first half 2007. CNIPA order portfolio (dataservices) is in line with expectations, while CONSIP portfolio (voice services) reflects the delayincurred in the early months of the year owing to uncertainty over legal issues. Moreover, as aresult of the efficiency measures introduced by FASTWEB and by the Public Administrationduring the migration process, the number of active lines is presently lower than the initialestimate. However, the effect of such reduction is partly offset by the higher than expectedvolume of data services supplied under the CONSIP convention.

FASTWEB is actively evaluating a further network expansion plan to increase its coveragefrom 45% to 50% of the Italian market.

The Group had 3,474 employees as at 30 June 2007, compared with 3,434 as at 31 March 2007.

Fastweb SpA (Milan: FWB)