Press release

08/24/2010 - 06:41 PM

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Telecom Italia Media S.p.A. announces that today it has taken part in the finalization of an agreement to reinforce the financial position of Dahlia TV, in which it holds a minority stake. The move is designed to enhance the value of the shareholding and support TI Media Broadcasting's premier customer which delivers average annual revenues of over €30 million in digital broadcasting capacity rental fees.

The total value of the Dahlia capital increase approved and signed is €51.4 million. Telecom Italia Media will contribute a sum of €3 million as an ordinary shareholder and a further €14.4 million through the subscription of a hybrid financial instrument made up of preferred shares, convertible and redeemable with limited voting rights. For its quota of the transaction Telecom Italia Media will write off receivables due to Telecom Italia Group from Dahlia for an equivalent amount.

As part of the financial strenghtening operation Dahlia TV has also obtained a line of credit from Unicredit Corporate Banking for a maximum €30 million.

Rome, 24 August 2010