Market Abuse

 Following the enactment of the "Market Abuse" directive by Italian law no. 62/2005 and the adoption by Consob of new "Regulations for Issuers", with resolution no. 15232 of November 29, 2005, a legal obligation has been introduced requiring the disclosure to the public and to Consob of transactions performed by significant persons and persons closely associated with them in regard to the financial instruments of the company.
Specifically, article 114, subsection 7 of the Finance Consolidation Act (TUF) and articles 152-sexies and subsequent of Consob Regulations for Issuers, provide the legal framework for internal dealing, defining and regulating significant persons and persons closely associated with them, the terms and methods of disclosure for transactions regarding shares or financial instruments linked with the shares of listed issuers. Violations of the new legal obligations are punished by a fine.

The new rules came into force on April 1, 2006.
As of this date, therefore, internal dealing is no longer regulated by Mediaset S.p.A. through its Code of Practice Internal Dealing.

 In 2006 the Board of Directors of Mediaset S.p.A. has actuated the relative legal obligations and done the following:

-  Identified the Assignee for the receipt, managing and diffusion of the communications to the market. For the Mediaset Group this party has been identified as the Company Affairs Directorate of Mediaset S.p.A., which already fulfilled this assignment based on the previous Code of Practice that regulated these matters.

-  Identified, also based on what has been detailed by the Consob (Italian SEC) in its communication DME/6027054 of 28^th March 2006 regarding the calculation of the condition of "relevancy", those relevant subsidiary companies the accounting book value of the holding in which represents more than 50% of the Balance Sheet assets of Mediaset S.p.A. as this re­sults from the last approved set of Financial Statements.

-  Put in place a procedure aimed at monitoring the condition of relevancy of its own subsidiary companies and identified, among its own company executives, the persons obliged to issue the relative communications.

-    Given the necessary information to the identified persons that their identification has taken place and regarding the connected obligations.

 

 

 In 2006 the Board of Directors approved the updated version of the organisa­tional guideline of the Mediaset Group called "Management and communica­tion of privileged information", which regulates the internal management and the communication to the public of privileged information, as well as putting in place and continuous updating of the "Register of the persons who have access to privileged information ", i.e. the Insider Register, which is referred to in article 115, part two of the Finance Consolidated Act (TUF). Privileged information refers to any non-public information of a specific nature which, if made public, could significantly affect the price of financial instruments.