THE ITALIAN ICT MARKET Maura Gritti - International Operations Director

WORLDWIDE ICT MARKET BY REGION 2003: TOTAL WORLDWIDE MARKET VALUE 2070 BILLION ICT MARKET GROWTH 2004/2003= +4,3% Source: EITO - Smau EU 30% USA 33% Japan 12% 4 Tigers 3% RoW 22%

EUROPEAN ICT MARKET BY COUNTRY Source: EITO - Smau 2003: TOTAL WE ICT MARKET VALUE 592,3 BILLION ICT MARKET GROWTH 2004/2003= +3,1%

TOP 5 ICT MARKET GROWTH, in % Source: EITO - Smau 0,6 1,0 -0,6 0,4 4,6 1,3 3,0 3,2 2,4 2,5 5,5 3,0 4,6 4,9 4,4 3,6 7,2 4,7 WEUKFRANCEGERMANYSPAINITALY 2003/02 %2004/03 %2005/04 %

WESTERN EUROPEAN IT MARKET VALUE GROWTH BY COUNTRY IN % Source: EITO - Smau -3,6 -1,4 -2,7 -6,1 -4,0 -2,1 -1,3 -0,3 -1,9 -2,2 3,8 -2,6 2,3 2,4 0,7 4,6 1,6 WEUKFRANCEGERMANYSPAINITALY 2003/02 %2004/03 %2005/04 %

WESTERN EUROPEAN TLC MARKET VALUE GROWTH BY COUNTRY IN % Source: EITO - Smau 3,3 2,3 5,2 1,6 4,7 3,7 2,5 2,4 1,0 3,2 4,9 3,8 3,7 4,1 2,3 4,5 5,9 3,9 WEUKFRANCEGERMANYSPAINITALY 2003/02 %2004/03 %2005/04 %

WESTERN EUROPEAN ICT MARKET PRODUCT SEGMENT SHARES, 2004 Source: EITO - Smau ICT equipment 25% Software 11% IT services 21% Carrier services 43% 2004: TOTAL EU ICT MARKET VALUE 606 BILLION

ITALY ICT MARKET VALUE GROWTH BY PRODUCT SEGMENT Source: EITO - Smau -8,3 0,2 -2,7 -4,1 -0,3 5,0 -0,7 2,6 -0,4 3,9 2,0 4,1 2,0 6,0 4,5 7,0 4,0 4,7 Computer hardwareEnd user communications equipment Office equipmentDatacom and network equipment IT servicesCarrier services 2003/02 %2004/03 %2005/04 %

ITALIAN ICT MARKET 2,6 4,4 1,3 2,7 9,5 2,7 3,4 2,4 2,0 9,5 portableperipheralsprinters & MFPPBX & key systemstransmissionother data communications ,62, Source: EITO - Smau

IT SERVICES IN ITALY, GROWTH IN % -1,7 -0,6 1,9 -0,9 -0,3 2,3 1,5 3,8 1,3 2,0 4,7 3,3 6,4 3,2 4,0 ConsultingImplementationOperations management Support services IT services 2003/02 %2004/03 %2005/04 %

IT COMPANY BY NUMBERS OF EMPLOYEES Source: Anasin-IDC 2-5 employees 68% 6-19 employees 24% more than 50 employees 3% employees 5%

ITALIAN IT COMPANY BY REGION Source: Anasin-IDC NW 41% NE 25% South 15% Centre 19%

ITALIAN CARRIERS MARKET Source: EITO - Smau MARKET VALUE 2004: 36,2 MLD € Fixed voice telephone services 32% Fixed data services 15% Mobile telephone services 53%

MOBILE SUBSCRIPTIONS Source: EITO - Smau

THE EVOLUTION OF BROADBAND CONNECTIONS Source: EITO in cooperation with IDC 0 10,000 20,000 30,000 40,000 50,000 60, Consumer Business

2,923 4,996 2,024 2,027 2,971 2,477 2,714 1,705 France Germany Italy Spain UK Nordic Benelux Other Western Europe Total connections 2003 (thousands): 21,837 Source: EITO in cooperation with IDC NUMBER OF BROADBAND CONNECTIONS BY COUNTRY

WEB USERS BY COUNTRY, THOUSANDS Source: EITO in cooperation with IDC 2003% of population 2007% of population CAGR France27, , Germany 42, , Italy22, , Nordic16, , Spain15, , UK34, , Other 32, , Western Europe 190, ,