Corporate Presentation

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Corporate Presentation

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Highlights
Italtel is leader in Europe and among the top
players worldwide in the Voice over IP (VoIP)
market and in the offer of Next Generation
Network convergence solutions (voice/data/video)
About us
Design, development and implementation of
IP-based convergence solutions for voice, data
and video traffic on Next Generation Networks
(products and applications by Italtel and third
parties and services to support the customers
business)
What we do
Sales 545.8 million euros Revenues from
international markets 83.5 million euros, up 33
compared to 2004 EBITDA 122.6 million euros
(22.5 of sales)
Sales EBITDA
Risorse Umane
2,300 employees 46 in the Development
Innovation
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Corporate Strategy
Vision

• IP UBIQUITY
• Everything over IP everywhere

Mission
Enable SPs and enterprises to build convergent
networks (voice/data/video)

• Continue the development of leading edge
  convergence solutions on open standards
• Leverage on SPs to bring innovative solutions to
  consumer and enterprise customers

Execution

• Focus on human resources quality
• Focus on innovation
• Focus on customers needs
• Focus on strategic and commercial partnerships

Values
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Roots to the Future

• Market leader in EMEA (Europe, Middle East,
  Africa)
• New branches opened abroad
• Acquisition of important customers abroad, i.e.
  Belgacom (Belgium) and
• Tpsa (Poland)

2005

• New mission in voice data convergence
• Strategic investment from Cisco Systems
• Commercial launch of iMSS (switching platform)

2000

• International growth
• Development of data and mobile solutions

1995

• Launch Linea UT (switching exchange)
• 27M deployed Worldwide

1985

• Estabilished in Milan

1921
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Shareholders 2005 Financial Highlights
Key Managers and employees
2,65
2,16
US investment fund
Sales
545.8 Million
8,65
Personnel
Worldwide number one in the Internet industry
18,40
2,300 employees 46 in Development Innovation
19,37
EBITDA
One of the worlds leading telecommunications
operators
122.6 Million 22.5 of sales
Private US investment firm managing closed-end
funds for institutional investors
48,77
Investment in Development Innovation
18.2 of sales
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Market Positioning
In 2005, the Italtel Group is leader in Europe
in terms of innovative solutions for Next
Generation Network (NGN) and Next Generation
Services (NGS), obtaining a market share of 25
in the EMEA region and 6 worldwide (Yankee Group
data, Feb.06). In the softswitch segment, the
Italtel Group has consolidated its position as
EMEA leader, with a market share of 29, and it
ranked among the top four suppliers in the world,
with an 8 share globally (Yankee Group data,
Feb. 06).
Market share
7
Competences and Skills
General Administration
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Resources
16
Sales
Employees at Dec. 31, 2005 approximately 2300
(over 1000 specialists employed in the
Development Innovation area)
25
Service
Development Innovation
46
From 1999 to present ? over 5,000 person/years
dedicated to the development of
Next Generation Networks
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Worldwide Presence Market Focus
Sales Activities in Italy, EMEA, Russia and Latin
America Revenues from international markets equal
to 83.5 million, up 33 compared to 2004
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Italtel Plays at the Centre of Convergence
Network Architecture
Offer
OSS NG-OSS
Multimedia Products Solutions (MPS)
Application Systems

• Next Generation Networks (NGN)
• Next Generation Services (NGS)
• Traditional networks solutions

Control Layer

• Network Care
• Operations Support Systems (OSS e NG-OSS)
• Network Security Management

Professional Services(PS)
Transport Network
Mobile Access
Fixed Access
IP Communications (IPC)

• Carrier-grade IP Networks
• Enterprise IP Networks
• Business Voice Solutions (BVS)

Italtels offer drives the convergence of Next
Generation telecommunications
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Customer base expansion
International Telecom Operators
Italian Large Enterprises PA
Other Italian Service Providers
Other Italian Service Providers
Telecom Italia
Telecom Italia
Telecom Italia
Until al 2000
2004-2006
2000-2003
Investment Highlights
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Italtel-Cisco Systems Strategic Alliance
Together with Cisco we have achieved important
results in these last few years. We have
confirmed our presence among the main Italian
operators and acquired several new customers
abroad. Our solutions in softswitch technology
and those of Cisco in IP Communications and data
networking are the best in their class, and our
joint offer is undoubtedly one of the most
competitive currently present on the market. We
have decided to strengthen our alliance in order
to render our synergy in the development of
innovative solutions for our customers
increasingly effective, and increase our
possibilities for success in the next generation
networks market, which is opening up very
quickly. Mauro Righetti, Italtel CEO
Through our closer alliance with Italtel, we
have strengthened our value proposition to
service providers who are staking their long-term
future on IP technology. It is important that we
offer customers a clear and cost-effective
strategy for migration to next generation
networks. Together, we have proven our solutions
with telecommunications operators in Italy and in
some countries in Western Europe and now, we are
looking forward to extending our offering into
more than 100 countries in Europe, Middle East
and Africa. Rob Lloyd, Cisco Systems EMEA
President of Operations
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Italtel - Accenture Alliance

• ITALTEL E ACCENTURE INSIEME PER SVILUPPARE
  SOLUZIONI DI NUOVA GENERAZIONE IN EUROPA E SUD
  AMERICA
• Le due aziende lavoreranno fianco a fianco allo
  scopo di integrare i prodotti Italtel i-UDB,
  i-SSW, i-AS, che supportano soluzioni
  multimediali e sono adatti allo standard Internet
  Multi-Media Subsystem (IMS), con la linea
  Accenture Communications Solutions così che i
  service provider possano immettere più
  rapidamente sul mercato i servizi di nuova
  generazione.
• Laccordo di sviluppo congiunto si aggiunge al
  rapporto già esistente tra Accenture e Italtel,
  che hanno recentemente collaborato per
  ottimizzare la capacità di offerta di servizi
  convergenti per soluzioni di rete di nuova
  generazione di Telecom Italia. Il nucleo dei
  servizi di Telecom Italia è costituito da un
  database unificato che Accenture e Italtel hanno
  integrato per fornire un database centralizzato,
  affidabile, scalabile e rapido per la gestione di
  svariati profili utente in tempo reale, (in modo
  da agevolare i servizi innovativi).

"The agreement supports our corporate development
plans of expanding our capabilities to address
the needs of supporting the most innovative
operators that are set on expanding their VoIP
services, improving their time to market and
reducing their network management costs. We have
teamed successfully with Accenture on a number of
different complex projects and expect this
further collaboration to allow us to offer a
better service to new and existing clients."
Claudio Chiarenza, executive vice president,
Italtel Products Business Unit
Our challenge is to develop cost-effective
solutions that give communications providers
flexibility and enable them to get their products
to market quickly. Our combined solutions will
help clients to take full advantage of broadband
innovation while addressing the challenges of an
increasingly complex and convergent digital
environment. Roberto Citton, senior executive
in Accentures Communications High Tech
operating group
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Italtel Main References
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Success in Innovation

• Stefano Nocentini, Head of Network Services
  Telecom Italia
• Telecom Italia was one of the first Service
  Providers to introduce VoIP technology into its
  core voice network. The migration planned in a
  three years time was completed in less than two
  years.
• This migration, in addition to the good
  economical results, was also the best way in
  rationalising our network starting from the 66
  PoPs we had in 2000 now Telecom Italia national
  backbone is made of only 24 PoPs we reduced the
  switching technologies from 3 to only 1 trunking
  routes, 1,000 in 2001, now are 24.
• Now were taking on the second phase of our
  Strategy
• Telecom Italia is introducing advanced VoIP
  services to all kinds of broadband customers
  residential users can experience VoIP with Alice
  Voice, an innovative voice over ADSL offer. ..
  In large enterprise case, where the need for
  advanced communication services is already
  consolidated and the outsourcing process is
  becoming a must in line with the trend of
  dismissing non-core activities, Telecom Italia is
  implementing a hosted / managed IP-PBX service.
  And Italtel and Cisco are uniquely positioned
  to accelerate New World communications by
  integrating Cisco's industry-leading networking
  solutions with state-of-the-art carrier-class
  voice solutions from Italtel.

Broadband World Forum Europe 2004 Venice,
September 20
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Success in Innovation

• Guido Garrone, CTO Fastweb
• Italtel joined us since the very beginning of
  our challenge and guaranteed thanks to its
  consolidated experience and know-how in voice
  handling the interoperability between our full IP
  new generation network and the PSTN one .
• During these years we have leveraged on both
  Italtel technologies, adopting Italtel NGN
  platform, i-MSS, and its competences in
  integrating third parties products from the
  design to the deployment of the solution.
• Considering the wide service bundle we offer to
  different kinds of customers, the technological
  complexity and our innovative processes, we
  decided this year to consolidate the service
  assurance of our network.
• Italtel, as our Global System Integrator, has
  been chosen to deliver us a full Service
  Assurance System
• Thanks to this solution, FastWeb will have a full
  performance monitoring of its network and
  additional fault management features.

CISCO SYSTEMS EMEA NETWORKERS 2004 Cannes,
December 12-14
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Success in Innovation

• Robert Ammon, Residential Voice and Internet
  Services Director Cegetel
• We choose Italtel softswitch because we
  appreciated the fact i-MSS is an open platform
  studied to match future developments in terms of
  services and to interoperate with third parties
  products.
• In particular, thanks to the strategic
  technological partnership between Italtel and
  Cisco Systems, whilst moving towards an IP
  Telephony solution we could leverage on the Cisco
  IP data products installed base to deploy our new
  broadband service bundles.
• A second factor that brought us to focus our
  attention on the i-MSS was the strong experience
  of Italtel in deploying rapidly, as global
  integrator, this kind of infrastructure. The
  Italtel platform is already up and running at the
  core of the network of many important
  telecommunication operators in Europe and South
  America.
• And we enjoyed, as Italtel customers, that this
  leadership has been confirmed by the 2004s
  second quarter report Infonetics Research in
  which Italtel has been pointed out as the leader
  in EMEA softswitch market.

CISCO SYSTEMS EMEA NETWORKERS 2004 Cannes,
December 12-14
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Success in Innovation

• Francesco Caio, CEO Cable Wireless
• Cable and Wireless has recently launched its
  broadband initiative in the UK. The company is
  uniquely positioned to take advantage of the
  opportunities of the Local Loop Unbundling in the
  country given the reach of its national network,
  the second largest in the UK. We are now offering
  an innovative set of services that combine fast
  internet access and high quality voice over the
  same line. As part of our investment in networks
  and systems, we chose to rely on Italtel's
  softswitch technology, due to its quality and
  reliability, as demonstrated by the growing
  number of implementations in very demanding and
  innovative networks.

Source Italtel Cisco Systems Press Release
Milan, December 1, 2004
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Success in Innovation

• Belgacom chooses Italtel and Cisco Systems to
  develop its IP based Multimedia services
• Italtel and Cisco Systems, Ltd., today announced
  they have been chosen by Belgacom, a leading
  telecommunications company in Belgium, for the
  development of its IP (Internet Protocol) based
  Multimedia Services.
• The contract is for the supply and end-to-end
  integration of a new IP-based NGN (Next
  Generation Network) consolidated infrastructure
  on which Voice over IP and other new multimedia
  Real-Time-Communication services could be
  delivered to the residential and business
  segments. The IP-based NGN
  Real-Time-Communication Platform is based on the
  Italtel NGN-IMS Architecture, with i-SSW (Italtel
  iMSS based Softswitch solution) and i-UDB
  (Italtel Universal Data Base) platforms developed
  by Italtel at the network core, and integrates
  Cisco IP gateways and Cisco IP carrier routers as
  well as value-added application platforms.

Source Italtel Press Release Milan, February
23, 2005
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Success in Innovation

• Albacom chooses Italtel and Cisco Systems to
  develop VoIP services for business customers
• Innovative features of network transformation
  solution and tight integration with existing
  network are key factors in Albacoms decision to
  establish technology collaboration with Italtel
  and Cisco Systems.
• The solution proposed by Italtel, based on the
  iMSS (Italtel Multi Service Solution) Softswitch
  platform with a Class 5 SIP-based configuration
  and Cisco Systems Voice Gateways and
  Multiprotocol Label Switching (MPLS) voice
  backbone, will be deployed at the core of the
  Italian operators network and will help to
  provide complete interoperability between
  traditional switched telephony networks and VoIP
  services.
• In addition to the benefits of providing
  cost-effective voice over broadband services for
  SMB users, the solution delivers network
  management advantages through its scalability,
  reliability and ability to manage high traffic
  peaks. The proposed solution is the first step
  towards the future inclusion of convergent
  services targeted to enterprise customers.

Source Italtel Press Release Milan, April 12,
2005