CAGLIARI, Italy -- The Board of Directors of Tiscali S.p.A. has today set the final conditions of the sharecapital increase with pre-emption rights for existing shareholders. The rights issue,approved by the Board of Directors pursuant to the delegation by the shareholders’meeting of 31st August 2007 pursuant to Article 2443 of the Italian Civil Code willinvolve the issuance of 149,792,880 ordinary shares nominal value of EUR 0.50, to beoffered by way of pre-emption rights to existing shareholders at the price of EUR 1.00per share and with a ratio of 6 new shares each 17 existing shares for a total issuevalue of EUR 149,792,880.

The pre-emption rights are required to be exercised between 14th January and 1stFebruary 2008 and rights will trade on market between 14th January 2008 and 25thJanuary 2008. By the end of the month following the pre-emption period, Tiscali willoffer on the stock exchange the unsubscribed rights, if any pursuant to Article 2441 ofthe Italian Civil Code.

Banca IMI S.p.A. and J.P. Morgan Securities Ltd have today signed an agreementpursuant to which they have underwritten the rights issue, save for the portion whichRenato Soru has committed to underwrite pro rata to his stake in Tiscali, correspondingto ca 25% of Tiscali’s current share capital.

The Italian prospectus, which has been approved by Consob on 9th January 2008 willbe published on 11th January 2008 and it will be made available in Tiscali’sheadquarters in Cagliari, at the Italian Stock Exchange’s premises in Milan and also onTiscali’s website www.tiscali.com.

Standard&Poors has today assigned a B corporate rating, credit watch positive whichS&P expects to become B+ upon full subscription of the capital increase.The CEO of Tiscali, Tommaso Pompei said: “The rights issue approved today isanother step in the implementation of our strategic plan’s objectives. Furthermore, thefirst corporate rating of Tiscali, issued by S&P, is evidence Tiscali’s attention toreliability and transparency standards towards the market”.

Tiscali SpA