thegrimreaper will sit upon his hands

First tranche of real estate properties sold to the Raissa Fund



THE VALUE OF THE TRANSACTION IS APPROXIMATELY 486 MILLION EURO, WITH A GROSS CONSOLIDATED CAPITAL GAIN OF APPROXIMATELY 182 MILLION EURO

THE OPERATION WILL HAVE A POSITIVE IMPACT ON TELECOM ITALIA GROUP FINANCIAL DEBT OF APPROXIMATELY 376 MILLION EURO, BEFORE TAX


Telecom Italia states that -as a part of its programme of real estate disposals for a total value of over 1 billion euro, approved on 21 December 2005 by the Board of Directors- its subsidiary Olivetti Multiservices on 28 December 2005 concluded the transaction of a first tranche of 561 properties to the closed-end fund denominated Raissa.

Units in the Raissa fund were sold to institutional investors headed by The Morgan Stanley Real Estate Funds, and participated with a minority stake by Pirelli & C. Real Estate.

The value of the transaction is approximately 486 million euro, with a gross capital gain of approximately 182 million euro.

The transaction will have a positive impact on the consolidated financial debt of the Telecom Italia Group of approximately 376 million euro, before tax.