TISCALI’S ACQUISITION OF SPAIN’S AIRTELNET STRENGTHENS ITS LEADERSHIP POSITION IN THE EUROPEAN INTERNET MARKET.

This transaction enables Tiscali to strengthen its position in the Spanish market and puts the company well on track towards its objective of improving the profitability of its Spanish operations over the upcoming months. Moreover the acquisition of the aforementioned ISP activities, doesn’t include any liability and will not involve a transferral of Airtelnet staff to Tiscali allowing for a smooth and seamless integration process resulting in an immediate positive impact on Tiscali Spain’s accounts Tiscali’s market share in Spain will increase thanks to Airtelnets customer base of 110,000 dial up active users (including 5,000 business customers).

This transaction has been completed at a critical time for Tiscali Spain which is focussed on re-organizing its activities. In line with the group’s strategy of increasing its position in the broadband market, Tiscali Spain recently launched the new ADSL offer. Tiscali ADSL libre (aimed at the residential market) and ADSL PRO (aimed at the B2B market) are currently amongst the most competitive on the market.

Airtelnet subscribers will not be adversely affected by this acquisition as they will be re-addressed to the Tiscali Network and they will have access to the full range of innovative Tiscali services currently on offer.

This acquisition will allow Tiscali to develop significant synergies through its extended network and wide range of products and services. About Tiscali Tiscali S.p.A., (Nuovo Mercato, Milan: TIS, Nouveau Marché, Paris: 005773), is  the European Internet Company providing access, content and business applications, as well as innovative communications services. As at 30 September 2002, Tiscali had 7 million active users and 13,3 million unique visitors to the Tiscali portals, confirming the company as one of the leading web properties in Europe (source:Nielsen NetRatings). Tiscali's corporate website can be found at www.tiscali.com