Omnitel: Lire 1,231 Billion Investments as of September 30, 1999, 111% of Profit

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Omnitel: Lire 1,231 Billion Investments as of
September 30, 1999, 111% of Profit

Lire 5,125 Billion Turnover
Nine Million Customers
as of October 9

27 October, 1999

Press
Office:

Carlo Fornaro
+3906-500-65809 +393-4834-02811
Chantal Hamende
+3906-500-65717 +393-4876-08028
Bruno Manca
+3902-4143-3163 +393-4823-15150

Milan, Italy -- Omnitel closed the third quarter of 1999 with excellent
results, confirming the company's continued financial growth and market share.

Customer growth was constant during the summer months. As of September 30 Omnitel
had 8.9 million customers and broke the 9 million threshold on October 9. Customer
growth figures confirm Omnitel is now the co-leader in the Italian market and the second
largest mobile telecommunications operator in Europe.

Net growth in the customer base in the first nine months of the year was 2.7 million
subscribers.

Earnings in the third quarter of 1999 amounted to Lire 1,918 billion, bringing the overall
turnover in the first nine months of the year to Lire 5,125 billion, compared to Lire 2,953
billion in the first 9 months of 1998, for growth of 74%. In particular, service revenues
rose from Lire 2,578 billion to Lire 4,572 billion, up 77%. EBITDA (Earnings Before
Interest, Taxes, Depreciation, and Amortization) for the period was Lire 2,121 billion,
accounting for 46% of service revenues. In the first nine months of last year EBITDA
was Lire 962 billion, or 37% of service revenues.

Net profit for the first nine months was Lire 1,105 billion compared to Lire 498 billion
for the same period in 1998, up 122%, and was posted after a tax accrual of Lire 455
billion.

In the first nine months of the year Omnitel invested Lire 1,232 billion to support service
innovation, technological solutions, and continued customer focus. This represents
growth of 62% compared to the same period in 1998, or 111% of net profits for the
period.

Part of these investments was dedicated to Internet-related activities. The company
commercially launched its wireless portal, Omnitel 2000, and its virtual store
www.spaioomnitel.it, reaching a turnover of about 2 billion lire in just 4 months. There
will be further developments in commercial activities on the Internet in the months to
come.

On-line customer care was also stepped up with dedicated services and a newsletter sent
by e-mail to more than 70,000 registered customers.

"The new services and the Internet activities in general," stated Vittorio
Colao, Omnitel's Chief Executive Officer, "demonstrate yet again Omnitel's
orientation toward innovation, always with customer care in mind. Imvestments in these
areas will continue over the next three months and will be further increased during 2000.
Omnitel wants to maintain its leadership position not only in telecommunications but also
in the world of the Internet."

Financial Results
For the period 1/1/1999 - 30/9/1999

Billions of Lire 30 September 1999 30 September 1998 Variation

INCOME
* From services 5,125 2,953 2,172
* Other income 4,572 2,578 1,994

EBITDA 2,121 962 1,159

EBITDA as % of 46% 37% 9%
service revenues

Net Profit 1,105 498 607

Net Profit as % of 24% 19% 5%
service revenues

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