Telecom Italia 2Q07 VoIP update

• 924k VoBB subscribers (in Italy) at the end of 2Q07, near about 70% increase over 1Q07 subscriber figures

• VoBB subscribers represent about 15% of broadband subscriber base

• VoIP International Long Distance (ILD) minutes carried during 2Q07: 920 million
• VoIP ILD wholesale booming (signed up 11 new VoIP interconnects during the previous quarter)

• Domestic long distance VoIP minutes: estimated at around 6.5 billion minutes during 2Q07

• Earned revenues of 7 million Euros from French VoBB service during 2Q07. Also serves about 59k IP TV customers in France. Other main VoBB operations (much bigger than France) run in Germany