RCS MediaGroup Board of Directors: 2007 preliminary consolidated results

• Growth in 2007 preliminary consolidated results:

  Consolidated revenues up 15% to EUR 2,738.7 million (EUR 2,380.7¹ million at 31 December 2006) (+4.5% stripping out Recoletos revenues of EUR 251.5 million²)

  EBITDA up EUR 73.6 million, from EUR 286.7¹ million to EUR 360.3 million (+4.8% stripping out EBITDA from Recoletos of EUR 59.8 million²)

• Agreements for the purchase of the remaining 44.6% of VEO Television and 49% of Digicast

Milan, 7 February 2008 – At its meeting today at Unidad Editorial’s new offices in Madrid, the Board of Directors of RCS MediaGroup, under the chairmanship of Piergaetano Marchetti, examined the preliminary consolidated results to 31 December 2007. Consolidated revenues grew by 15%, from EUR 2,380.7 million to EUR 2,738.7 million, including EUR 251.5 million from Recoletos, which was fully consolidated from the second quarter of 2007. Stripping out revenues from Recoletos, the increase of 4.5% includes the positive contribution of certain group divisions, particularly Unidad Editorial (on a like-for-like basis), Dada and the Books division, which offset the expected lower revenues from add-on sales. Note too the excellent result for advertising revenues, particularly for the Newpapers division, both in Italy and Spain, which outperformed the reference market. EBITDA³ increased by EUR 73.6 million, from EUR 286.7 million to EUR 360.3 million, including EUR 59.8 million from Recoletos, consolidated from the second quarter of 2007. Stripping out Recoletos, group EBITDA increased by 4.8%. The net financial position³ was negative for approximately EUR 966 million, mainly due to the acquisition of Recoletos. This compares to a positive cash position of EUR 5.7 million to 31 December 2006.

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As part of its strategic development in satellite and digital television markets and in order to favour multimedia integration within the group, the Board of Directors of RCS MediaGroup also approved agreements for:

• the acquisition by subsidiary Unidad Editorial of all shareholdings belonging to minority shareholders in VEO Television, equal to 44.6% of the capital (the remaining 55.4% is already held directly), for a total of EUR 88.5 million. A third of this amount is to be paid on the acquisition date, a third after six months and the balance after twelve months. The RCS group plans to finance the operation, whose impact was not included in the 2010 financial objectives announced to the market at the presentation of the Industrial Plan in July, using lines of credit already available. VEO Television is a digital terrestrial television concession holder in Spain;

• the direct acquisition of the remaining 49% of the share capital of Digicast SpA from its only minority shareholder, Digifin SpA (RCS already owns 51% directly) for EUR 16.2 million. This represents the early exercise (and therefore termination) of existing call and put options on the stake in question (see press release of 13 November 2006). Digicast SpA produces thematic channels including Jimmy, Caccia e Pesca, MotoTV and Yacht & Sail Channel, which today are distributed mainly via the Sky platform.

The Board of Directors also approved the stipulation, with a leading financial intermediary, of one or more agreements relating to call options for RCS MediaGroup, within a period of 45 consecutive or non-consecutive trading days (but not later than 15 May 2008), together with corresponding put options for the counterparty on a maximum of 320,000 ordinary shares (equal to around 1.97% of the total share capital) of Dada SpA, to be exercised not before 11 August 2008. The options will conform to ISDA standards, and will be settled either via physical delivery – that is, with ownership of the underlying shares being transferred to RCS MediaGroup – or, at RCS MediaGroup’s discretion, in cash. No agreements will be reached between RCS MediaGroup and the intermediary regarding the exercise of administrative or economic rights over any shares purchased by the intermediary itself for hedging purposes. RCS MediaGroup currently owns around 46.54% of the share capital of Dada SpA. Editor-in-chief of Gazzetta dello Sport, Carlo Verdelli, presented to the Board of Directors the new format that will be adopted by the daily from 2 April, while director of Unidad Editorial and editor of El Mundo, Pedro J. Ramirez, gave a presentation on the Group’s various publications in Spain.

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Riccardo Stilli, the director responsible for drawing up the company’s accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the Testo Unico della Finanza law, that the information contained in this press release accurately represents the figures contained in the Group’s accounting records.