CAGLIARI -- Tiscali’s shareholder’s meeting, held today in an extraordinary session, hasempowered the Board of Directors to execute, by 31st December 2008, a capitalincrease for a maximum of Euro 220 million, thus increasing the maximum amount ofEUR 200 million originally proposed by the Board of Directors.

The capital increase may be carried out in one or more tranches through the issuanceof ordinary shares to be offered in pre-emption to shareholders and ranking pari passuwith the currently traded ones. The capital increase could alternatively be used toservice, in whole or in part, a convertible loan through the issuance of bondsconvertible in ordinary share of the Company, ranking pari passu with the currentlytraded ones, to be offered in pre-emption to shareholders.

The Board of Directors will establish each time the conditions as well as the number ofshares to be issued and the issue price. The Board of Directors will also establish thepossible destination of the capital increase to service bond conversion as well as theterms and conditions of the convertible bonds.

This resolution provides the Company with a flexible tool to obtain from the market newequity to be utilised for the optimisation of the financing related to the acquisition of thebroadband and voice division of Pipex Communications Plc. The new funding mightalso be deployed to pursue further development and expansion opportunities with aview of accelerating the implementation of the 2007-2010 business plan, approved bythe Company in October 2006, and aimed at the creation of value.

Tiscali SpA