Introduction --- RECORDSEPARATOR --- Tiscali S.p.A. --- RECORDSEPARATOR --- (Nuovo Mercato, Milan: --- RECORDSEPARATOR --- TIS --- RECORDSEPARATOR --- ) is the leading pan-European Internet --- RECORDSEPARATOR --- Communication Company, with local operations in 15 European countries as well as --- RECORDSEPARATOR --- in South Africa. It provides access, content, applications and innovative --- RECORDSEPARATOR --- communication services throughout Europe to 16 million registered subscribers, of --- RECORDSEPARATOR --- which 7 million are active, developing a monthly Internet traffic in excess of over 3.4 --- RECORDSEPARATOR --- billion minutes and over 9.5 million monthly unique visitors to its websites, as of 31 --- RECORDSEPARATOR --- March 2001. In terms of number of subscribers, total Internet traffic, number of page --- RECORDSEPARATOR --- views and pan-European footprint, Tiscali has established itself as the leading Internet --- RECORDSEPARATOR --- Communication Company in Europe. --- RECORDSEPARATOR --- Background --- RECORDSEPARATOR --- Tiscali was founded in June 1997 and started operating in January 1998. Based in --- RECORDSEPARATOR --- Cagliari, Sardinia, the company was initially established as a regional telephone --- RECORDSEPARATOR --- operator and Internet Service Provider (ISP), before expanding its operations --- RECORDSEPARATOR --- throughout Italy, where the convenience and user-friendly nature of its services --- RECORDSEPARATOR --- immediately differentiated it from its competitors. --- RECORDSEPARATOR --- In March 1999, through the launch of Italy's first free Internet access service, Tiscali --- RECORDSEPARATOR --- made a significant contribution to the development of the Italian Internet market and --- RECORDSEPARATOR --- established itself as a first mover. --- RECORDSEPARATOR --- Tiscali was officially listed on the Nuovo Mercato in Milan in October 1999. --- RECORDSEPARATOR --- The company has made a number of European acquisitions, including the acquisition --- RECORDSEPARATOR --- of World Online, the Netherlands based ISP, in December 2000, and the deal for the --- RECORDSEPARATOR --- acquisition of Liberty Surf, the second largest Internet Provider in France, in January --- RECORDSEPARATOR --- 2001; Tiscali has also undertaken a number of joint ventures and participations, --- RECORDSEPARATOR --- including the establishment of Andala (recently renamed Hutchison 3G Italy), which --- RECORDSEPARATOR --- successfully bid for an Italian UMTS license. --- RECORDSEPARATOR --- Tiscali, through its subsidiary Nets S.A., also owns the largest proprietary optical IP --- RECORDSEPARATOR --- network in Europe and has focused on building a unified network with the largest --- RECORDSEPARATOR --- European customer base. Tiscali is investing Euro 140 million in 2000-2002 for the --- RECORDSEPARATOR --- construction of this high-speed pan-European fibre-optic backbone network linking --- RECORDSEPARATOR --- cities throughout Europe: it has already completed the Northern Loop, which links --- RECORDSEPARATOR --- Paris and London as well as major cities in Germany and the Benelux, and is --- RECORDSEPARATOR --- constructing the Southern Loop, which connects major cities in Spain, France, --- RECORDSEPARATOR --- Switzerland and Italy. --- RECORDSEPARATOR --- Strategy --- RECORDSEPARATOR --- Having consolidated its position in Italy, Tiscali continues to develop its business on a --- RECORDSEPARATOR --- pan-European scale. Its goal is to establish itself as the leading ISP and portal in --- RECORDSEPARATOR --- Europe and to achieve 'critical mass' it has a target of being one of top three ISPs in --- RECORDSEPARATOR --- each major European country. --- RECORDSEPARATOR --- Tiscali's strategy involves utilizing Internet technologies to build a successful business --- RECORDSEPARATOR --- model based on a new concept of a proprietary, IP based, interconnected network. --- RECORDSEPARATOR --- The company will provide customers throughout Europe with a full range of services: --- RECORDSEPARATOR --- voice, Internet and audio/video streaming, to compete effectively with traditional --- RECORDSEPARATOR --- telecoms and cable players. The company is convinced that communications-related --- RECORDSEPARATOR --- services should be available to customers, regardless of the access means: fixed or --- RECORDSEPARATOR --- mobile telephones, PC or television. Being an independent player represents a key --- RECORDSEPARATOR --- factor in successfully developing and providing the best and most innovative services --- RECORDSEPARATOR --- to customers. --- RECORDSEPARATOR --- Tiscali's business plan is centered around new telco, media and retailing products and --- RECORDSEPARATOR --- services: --- RECORDSEPARATOR --- New Telco --- RECORDSEPARATOR --- Includes voice, access and business services. --- RECORDSEPARATOR --- Tiscali is able to provide both consumer and business customers with a --- RECORDSEPARATOR --- comprehensive range of internet and telephony services. The enlarged subscriber --- RECORDSEPARATOR --- base, geographic reach and network infrastructure of Tiscali improves time-to-market --- RECORDSEPARATOR --- and supplies enhanced opportunities for the International roll-out of new products and --- RECORDSEPARATOR --- services such as voice over IP, unified messaging and video services. --- RECORDSEPARATOR --- Media aggregator and distributor --- RECORDSEPARATOR --- Includes content distribution services and advertising. --- RECORDSEPARATOR --- Tiscali is an aggregator of audience and a distributor of content. It represents an --- RECORDSEPARATOR --- appealing and powerful platform for companies to distribute content thanks to the high --- RECORDSEPARATOR --- level of audience aggregated. Revenues are therefore generated from subscribers --- RECORDSEPARATOR --- consumptions and advertising collected from investors. --- RECORDSEPARATOR --- New retailing platform --- RECORDSEPARATOR --- Tiscali is a new retailing platform for all the authoritative partners interested in offering --- RECORDSEPARATOR --- their products and services through preferred/privileged channels, aggregating --- RECORDSEPARATOR --- Internet users. Tiscali provides its partners both with a large "window" to a massive --- RECORDSEPARATOR --- audience on Tiscali's portal and with special sites addressed to targeted audiences. --- RECORDSEPARATOR --- Tiscali's corporate website can be found at --- RECORDSEPARATOR --- www.tiscali.com --- RECORDSEPARATOR --- Tiscali/World Online's website in the Czech Republic can be found at --- RECORDSEPARATOR --- www.worldonline.cz