Wind Reports Q2

ROME -- WIND: strong growth in Q2 2006 Roma 3 .08 .2006

The Board of Directors of Wind met today to review the second quarter 2006 and first half 2006 preliminary unaudited financial results.

Q2 2006 results
In the second quarter of 2006 total revenues grew by 6.8% to €1,273 million. Telecommunications service revenue grew by 7.0% over the previous year as a result of the strong growth of mobile telecommunication service revenues which grew by 13.9% to €802 million. Mobile ARPU in the quarter increased to €19.1 from €18.9 of the corresponding period of the previous year notwithstanding the interconnection rate cut, reflecting an opposite trend from the market. Fixed-line and Internet telecommunication service revenues decreased to €420 million, a reduction of 4.2% as compared to the same period of 2005, mainly as a result of the fall in international traffic coupled with a decline in the indirect and narrowband customer base. However the increase in direct and broadband customers has improved the customer mix with a positive effect on the profitability of fixed-line services.

EBITDA in Q2 2006 reached €420 million, an increase of 19.4% over the same period of 2005, as a result of the consistent growth in revenues coupled with a tight control on costs. The EBITDA margin grew 3 percentage points over the previous year to 33.0%.In the second quarter of 2006, Wind posted a net profit of €3.6 million compared to a loss of €99 million for the same period of the previous year, confirming the positive trend of the previous quarters.As of June 30, 2006, Wind had €294 million of available cash after the repayment of approximately €219 million of senior debt on June 1, 2006.

For the quarter ended June 30, 2006, Wind’s net financial indebtedness amounted to €6,246 million (€6,469 million as of March 31, 2006). The net financial indebtedness of Wind Acquisition Finance S.p.A., the parent entity of Wind (which includes and consolidates the debt of Wind) amounts to €7,334 million, a decrease of €170 million over March 31, 2006.

Wind Telecomunicazioni SpA