Tiscali : 04/10/2017 Information to the market pursuant to Art. 114 law decree N. 58/98

Cagliari, October 2, 2017

In compliance with Consob request sent to the Company on July 14, 2009, pursuant to article 114, paragraph 5 of the Law Decree No. 58/98, the Company hereby provides to the market the following information concerning the Tiscali Group as at August 31, 2017.

Notes:

1. Includes the short-term amount of the new convertible loan signed on September 7, 2016, with Rigensis Bank e Otkritie Capital International Limited.

2. Includes the short-term amount of the senior loan with Banca Intesa / BPM (signed on June 29, 2016) for EUR 5.8 million, and the short-term amount of other long term banking loans of the Aria Group for EUR 4,1 million.

(3) Includes the short-term amount of the "Sale and Lease Back Sa Illetta" leasing loan for EUR 10.1 million, the short-term portion of finance lease payables related to investments in the network infrastructure for EUR 6 million and the short-term portion of the loans granted by the Ministry for Education and University and by the Minister for Economic Development for EUR 0.6 million;

1. Includes the long-term amount of the senior loan with Banca Intesa / BPM (signed on June 29, 2016) for EUR

   80.8 million and other long-term loans of the Aria Group for EUR 2.4 million.

2. Includes the long-term amount of the convertible bond undersigned on September 7, 2016, with Rigensis Bank e Otkritie Capital International Limited.

3. Includes the long-term amount of the "Sale and Lease Back Sa Illetta" leasing loan for EUR 42.1 million, the long-term portion of finance lease payables related to investments in the network infrastructure for EUR 12.7 million and the short-term portion of the loans granted by the Ministry for Education and University and by the Minister for Economic Development for EUR 0.6 million.

It should be noted that there are ongoing negotiations with Financial Institutions (Banca Intesa and BancoBpm) aimed at obtaining a standstill agreement on payments due under the Second Facility Agreement. A request for standstill on the payments owed to them in September 2017 and March 2018 for capital and interests was formalized.

On September 15, Tiscali received two confirmations from both Financial Institutions, in which the lenders communicated, even without entering into irrevocable commitments, that they have started the preliminary activities and that at their end, the standstill requests made by Tiscali will be submitted to the competent deliberative bodies.

Similarly, negotiations are ongoing to obtain a standstill on payments due under the 'Sale & Lease Back Sa Illetta' contract. On September 19, Mediocredito Italiano and Unicredit Leasing sent a statement in which they stated that they had initiated the preliminary activities.

It should also be noted that on August 7, 2017, the transaction concerning a share capital increase reserved to Okritie Capital International Limited and Powerboom Investment Limited, with the issue of 314,000,000 shares equally subscribed by the two parties, which simultaneously paid EUR 5,903,200, for a total payment from the operation amounting to EUR 11,806,400.

As at August 31, 2017, net overdue trade payables amounted to EUR 38.9 million (net of payment plans agreed with suppliers and net of credit amounts or claims against the same suppliers).

As at the same date, overdue financial debts amounted to EUR 7.1 million (net of credit positions).

There were also overdue tax debts for approximately EUR 12.4 million, as well as overdue debts towards social security institutions amounting to EUR 0,1 million.

There have been no suspensions of relationships with suppliers capable of affecting the course of business.

As at August 31, 2017, the group received reminders for payment only within the ordinary course of business. On that date, the injunctions for payment received by the Company and not paid off as they were still in negotiation or opposition amounted to EUR 5.8 million, while the total injunctions for payment received amounted to EUR 9.1 million.

The Tiscali Group holds relationships with related parties on terms deemed as customary in the respective reference markets, taking into account the characteristics of the goods and services provided.

The table below summarizes the income statement and balance sheet for the Tiscali Group as at August 31, 2017, arising from transactions with related parties.

1. Studio Racugno (Racugno Law Firm): Gabriele Racugno, member of the Board of Directors of Tiscali S.p.A since December 21, 2009, resigned as Director on May 16, 2016. The Racugno Law firm offers legal, judicial and extrajudicial assistance to Tiscali Italia S.p.A.

2. Monteverdi S.r.l.: company owned by a member of the Board of Directors, Renato Soru. The relationship concerned refers to a leasing contract for a space used for the storage of business documentation.

3. The share of Otkritie concerning the Rigengis-Otkritie Convertible Bond.

4. Open Campus: company owned 80% by Alice Soru, member of the Board of Directors of Tiscali S.p.A. There are two ongoing contracts with Open Campus, one according to which Tiscali Italia purchases brand promotion services from Open Campus, and the other according to which Tiscali Italia rents an equipped office areas to Open Campus for the performance of its activities. The two contracts are not related one to each other.

It shall be noted that the income statement and the balance sheet values reported in the table above do not include fees paid to Directors, Statutory Auditors and Top Managers tasked with strategic responsibilities.

I, the undersigned Daniele Renna, Executive in charge of drawing up the Company's accounting documents of Tiscali S.p.A., certify that, pursuant to Art. 154-bis, paragraph 2, of the Legislative Decree No. 58/98 and subsequent amendments, that the accounting information contained in this press release is consistent with the official documents, books and accounting records.

Daniele Renna

Executive in charge of drawing up the Company's accounting documents

Information on Tiscali

Tiscali S.p.A. (Borsa Italiana. Milan: TIS) is one of the leading alternative telecommunications companies in Italy and provides its private and business customers with a wide range of services: internet access through dial-up, ADSL and FIBER, as well as voice, VoIP, media, and added-value services and other technologically advanced products. As at June 30, 2017, Tiscali reported recorded a customer portfolio of about 716.900 units. The Tiscali website may be accessed at www.tiscali.it

Tiscali S.p.A.

Sede Legale Loc. Sa llletta km 2,300 09123 Cagliari, Italia - Tel. +39 070 46011 Fax +39 070 4601 400 Cap. Soc € 103.007.322,89 - P.IVA e C.C.I.A.A. Cagliari 02375280928 RE.A. 191784

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