ROME -- BT Albacom improved performance in 2004-2005 Albacom S.p.A. today announced initial results for its fiscal year ending March 31 2005, with revenues increasing 4 per cent year-on-year to EUR 660 million and an EBITDA increase of 33 per cent, a clear turnaround compared to previous year’s trend, highlighting a marked improvement in all management parameters. The performance highlights were communicated by CEO Corrado Sciolla and BT International President François Barrault during a press conference announcing the rebranding of the company into BT Albacom.

The 2004-2005 revenues showed significant growth in business with large organisations, thanks to the acquisition of new customers such as Fincantieri and to important contracts in the Public Admistration sector .Significant contracts were also recently renewed for five years with ENI, Mediaset and BNL.

In the course of the fiscal year, Albacom S.p.A. continued to invest in its network capability, with capital expenditure at a level of almost 10 per cent of turnover. Specifically, the company completed the development of its domestic network (over 8,000 km), completely integrated with BT's global network.

Albacom S.p.A.'s EBITDA increased by 33 per cent compared to the previous year’s results, at a level of 8 per cent of turnover. The company's balance sheet also strengthened substantially during the year, with financial debt falling 57 per cent relative to 2003/04, thanks primarily to the repayment of bank loans totalling EUR 250 million.

Corrado Sciolla, CEO of BT Albacom, said: "Those achievements are due to our focus on cost control and to the launch of new IP-based services, strengthening the offer of convergent voice/data solutions in the Italian market. I am happy with those results and, now that BT is fully in charge, I believe all the conditions are there for us to break even by the end of the next financial year.”

In a separate release:

BT today announced the rebranding of its Italian operation into BT Albacom.The new brand will replace the current "piper" logo by the colourful "connected world" mark adopted by BT in April 2003.

Albacom became a wholly owned subsidiary of BT on February 4 2005. With EUR 660 million revenues during the last financial year, and over 240,000 business customers, BT Albacom is currently one of BT's largest operation in continental Europe.

BT Albacom is focussed on providing communications services and solutions to businesses active in Italy as well as to Italian companies expanding on international markets. BT Albacom's IP-based domestic 8,000 km network is fully interconnected with BT's global network assets, connecting more than 140 countries. BT Albacom relies on a wide and highly innovative services offer based on state-of-the-art technologies, taking full advantage of BT's global portfolio and research and development capabilities.

Corrado Sciolla, CEO of BT Albacom, said: “BT Albacom is already today a leading supplier of communications services to the Italian business market and the partner of choice for Italian businesses using networked IT services to reduce their costs and increase their competitiveness. Thanks to BT, we supply our clients with some of the best technology and know-how available on the global ICT marketplace. Today's rebranding demonstrates that we are now a full member of BT's growing family and allows us to deliver a customer experience that is more consistent with what BT delivers in the rest of the world.”

François Barrault, President of BT International, said: “"For BT, Italy has always been a market of strategic importance, offering many opportunities for development. It is one of the biggest and most advanced markets in Europe for the communications industry. I am confident that the stage is now set for BT's total business in Italy to reach the billion euro mark in the coming years. The full integration of BT Albacom in BT International forms part of our increased capability to supply networked IT services to multi-site organisations all over the world. It will improve our ability to support Italian corporations in their international expansion while offering global companies with activities in Italy the same consistent set of services and solutions they enjoy elsewhere, facilitating further development of their Italian operations. We are thrilled by the quality and professionalism of BT Albacom’s employees and are confident that the new brand will reinforce their position on the Italian markeplace and internationally."

BT Group plc