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Mediaset Board of Directors Meeting 7 November 2006

REPORT ON THE FIRST NINE MONTHS OF 2006 APPROVED

Consolidated results
Net revenues: 2,671.5 million euros
Ebit: 740.2 million euros
Net profit: 369.1 million euros

TV ratings

Italy
Mediaset channels and Canale 5 leaders
in the audience aged 15-64

Spain
Telecinco Spain's leading channel
in the commercial target

"INDICATION OF INTEREST" FOR PROSEIBEN-SAT1

The Board of Directors of Mediaset met today under the Chairmanship of Fedele Confalonieri to approve the quarterly report on the Mediaset Group's results to 30 September 2006.

In Italy Publitalia '80's TV advertising revenues for the Mediaset channels during the quarter grew by 0.6% to reach a figure for the end of the nine-month period of 2.067 million euros (-0.9% compared with the same period of the previous year). The results of the first nine months of the year continued to be affected by events in the second quarter (the Easter holidays, a general election and the World Cup football championship) that led to a slowdown in advertising investments.

Ratings have been very positive for Mediaset's channels. From 3 September (the beginning of the Autumn guarantee period) to 4 November 2006, Mediaset confirmed its leadership in the audience in the i 15 to 64 year-old age range (the commercial target) who account for 70% of the Italian population and on whom 80% of advertising investments are targeted. Mediaset channels lead in this premium audience band with a 43.6% share in the early evening and 42.6% in the 24-hours. Canale 5 is clearly Italy's leading channel with 24.4% in prime time and 22.2% in the 24-hours.

Canale 5's leadership was confirmed in prime time also in the total audience with a 22.9%.

On the digital terrestrial pay-per-view front, results during the first nine months of 2006 were especially positive, with sales of around 355.000 new rechargeable pre-paid "Mediaset Premium" cards and around 1.1 million recharges. (2.6 million in the entire 2005-2006 season). Since the beginning of the year sales have generated total revenues of more than 61.5 million euros.

Excellent results were also generated in Spain by the Telecinco Group.
Advertising sales by Publiespana came to  676.7 million euros, an increase of 3.9% on the first nine months of 2005.
During the first nine months of 2006 Telecinco confirmed its undisputed leadership in the commercial target of reference (16-59-year-olds), that of most interest to advertisers, both in prime time (23.8%) and the entire day (23.1%).

MEDIASET GROUP CONSOLIDATED RESULTS

The Group's performance in the first nine months of 2006 can be summarised as follows:

• consolidated net revenues came to 2,671.5 million euros, compared with 2,602.6 million euros in the first nine months of 2005 (+0.7%).

• EBIT came to 740.2 million euros, which shows a difference of 149.1 million euros compared with the same period of the previous year (889.3 million euros) which benefited from a capital gain of 43.1 million euros deriving from the sales of a 1.9% stake in Telecinco.

• operating profit, as a proportion of consolidated net revenues (operating profitability), came to 27.7%, a reduction on the 34.2% in the first nine months of 2005.

• profit before taxation and minority interest came to 727.1 million euros, compared with 877.6 million euros for the first nine months of 2005.

• net profit for the Group, net of estimated taxation, came to 369.1 million euros, compared with 464.6 million euros for the first nine months of the previous year.

• the Group's net financial position went from the -358.0 million euros on 31 December 2005, to  -578.6 million euros on 30 September 2006, mainly as a result of the effects of substantial investments in Digital Terrestrial and dividend distribution by the parent company and the subsidiary Telecinco for a total of 633.4 million euros.

A BREAKDOWN OF RESULTS BY GEOGRAPHIC AREA

Italy

• consolidated net revenues in the first nine months of 2006 came to 1,975.4 million euros, a 2.1% increase on the same period of the previous year (1,931.7 million euros).

• EBIT came to 423.3 million euros, compared with the 581.9 million euros of the first nine months of 2005. This figure, as well as the abovementioned impact of the dynamics in the advertising market in 2006, was also affected by the fact that the Ebit figure for the first half of 2005 benefited from the capital gain deriving from the sale of a 1.9% stake in Telecinco.

• profit before taxation went from the 565.6 million euros of the first nine months of 2005, to 402.8 million euros this time.

• net profit came to 253.9 million euros, compared with the 355.6 million euros of the first nine months of 2005.

Spain

• In the first nine months of 2006 the consolidated net revenues generated by the Telecinco Group came to 700.9 million euros, compared with the 671.5 million euros of the same period of the previous year.

• Telecinco's operating profit rose to 317.3 million euros, compared with the 305.2 million euros of the first nine months of 2005.

• pre-tax profit came to 324.6 million euros compared with the 309.9 million euros of the first nine months of 2005.

• net profit reached 229.3 million euros, compared with the 212.7 million euros of the first nine months of 2005.

FORECAST FOR THE FULL YEAR

• The trend in advertising sales for Mediaset's channels after ten months shows a decided improvement compared with the first part of the year. In fact, after the first six monthst there was a 1.4% fall compared with the same period of the previous year. Already at the end of the third quarter there was a clear improvement at -0.9%. After 10 months, therefore, it is possible to confirm the objective of ending the year with advertising revenues at the same record level of 2005.

• In terms of the Mediaset Premium offer, at 31 October 2006, sales of smart cards totalled 2.4 million, with 4.3 million recharges.

• On the basis of current evidence, it is confirmed that for the full year, consolidated operating profit for the ordinary management, will be slightly lower than that of the previous year.

THE SALE OF PROSEIBEN-SAT1

The Board of Directors was today informed about the process for the sale of the German broadcaster ProSieben-Sat 1 and agreed that it would be opportune to present a non-binding indication of interest.
It should be noted, however, that the entire procedure is protected by strict obligations of confidentiality.

Highlights from the consolidated income statement & Highlights from the consolidated balance sheet (PDF 19 Kb)

Cologno Monzese, November 7, 2006

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