June 2005

Company Overview and Business Model

PG. 2

Agenda

? Company Profile

? Latest Results

? Strategic Plan

PG. 3

FastWeb Concept: The Competitive Advantage

? Fibre-based Network infrastructure? Future-proof technology? Scalable Backbone

? Broadband-To-The-Home? A single high-speed connection for integrated voice, Internet and video services

? Integration of multimedia services over IP? Second generation Internet applications: not only text and images, but also high

quality interactive video, telephony and data

PG. 4

CustomerCustomersegmentssegments

ServicesServices

Business

Residential

Voice Video

Different networksused by...

Data / Internet

FastWeb’s Value Proposition

FastWeb

FastWeb’s integratedIP network

Network 2

IncumbentsNetwork 3

Network 1

Network 2

Cable TVs

Network 1

CLECs

Network 1

PG. 5

Business model’s success factors

? Innovative, future-proof technologies? Integration of multimedia services over IP? Strategic deployment of Fibre Optics Infrastructures? Innovative use of xDSL connectivity? Open platforms for VAS implementation

? Creative and aggressive Marketing strategy? Customized, comprehensive service offerings? Any service, any Customer segment? No single killer application: the real killer application is the Service Mix? Combination of Flat Rate and Pay Per Use tariff plans for matching specific

Customer needs

? One step ahead: constant service innovation

PG. 6

Unique Service Offering

Unique Service Offering

Unique Service Offering

Business Customers

Residential Customers

? Employees can work in different branches or at home as if they were connected to the same LAN

? IT departments can more efficiently re-engineer traditional client-server architectures

? SMEs can get an easier and cost-effective access to advanced telephony services with no need for PABX

With bandwidth of up to 1 Gbit/sand FASTWEB’s IP architecture…

… both fiber and DSL clients can…

? Watch broadcast channels, Pay-TV channels and Video-on-Demand content on their TV sets (world-first large scale TV-over-DSL service)

? Use network PVR(VideoREC) and EPG

? Browse the Internet at the fastest speed available (up to 10 Mbit/s)

? Video-communicateat TV quality

PG. 7

Results Overview

? FASTWEB provides voice, Internet connectivity, data transmission and TV services over a single connection by using Fiber-to-the-Home/Office and DSL access technologies

? The company offers its services to both companies and families

Integrated triple play offer

? Founded in September 1999, FASTWEB is the leading alternative operator of fixed broadband telecommunications services in Italy’s main urban areas (~ 22% of the population reached as at 31 March 2005)

? FASTWEB created a fully IP-based network totally independent from the incumbent’s infrastructure

The 2nd wirelinenetwork in Italy

? Recognised pioneer in broadband and triple-play? World first fully IP based network? Trusted supplier for mission critical application

Technological leadership

? Italy broadband penetration lags its European peers but is now among the fastest growing in EU

? No cable operators in Italy, weak infrastructure-based competition

Highly attractive market

? Co-leader with the incumbent in the covered areas? Highest residential ARPU in the sector? Impressive revenue and margin growth since inception

Successful business model

PG. 8

Fastweb’s Milestones

Aug 2003

Multicast over

ADSL Launch

VoD over ADSL

Launch

Mar 2003

VideocomService Launch

Nov 2002Jun 2002

VoIP Class5 Service Launch

Jan 2002

Internet PPU

Launch

xDSL Service Launch

Jul 2001

CountrywideService

Expansion

May 2001

VoD ServicesLaunch

Jan 2001

Consumer ServicesLaunch

Oct 2000Jan 2000

First Business

Customers

Oct 1999

Fastweb’s Foundation

Oct 2001

Multicast ServicesLaunch

PG. 9

2000-2004: Revenue* Growth and Milestones

Jan 2000: First business

customers

Oct 2000: Consumer

services launch

Mar 2001: VoDservices launch

May 2001: Nationwide

service expansion

July 2001: xDSL service

launch

Nov 2001: Access to Socrate and € 955 Mln

financingNov 2002:

Videocommunicationservice launch

Sept 1999: Foundation

Mar 2003: VoDover ADSL

launch

June 2002: EBITDA

breakeven

* Revenues from Italian operations (€ Mln) - Pro-forma figures equal to Group revenues net of HanseNet revenues

Aug 2003: Full TV over ADSL launch Dec 2004: Merger between

e.Biscom and FastWeb and change of company name in FASTWEB

1 52 3

4 5 4 65 7

6 4 6 97 8

1 1 21 2 3

1 4 3

1 7 91 8 6

1 9 7 1 9 4

1 11 7

531

1 5 8

1Q2000

2Q2000

3Q2000

4Q2000

1Q2001

2Q2001

3Q2001

4Q2001

1Q2002

2Q2002

3Q2002

4Q2002

1Q2003

2Q2003

3Q2003

4Q2003

1Q2004

2Q2004

3Q2004

4Q2004

1Q2005

New Business Plan:

Target of 45% population coverage by EoP 2006

PG. 10

Scaglia25%

Market65%

Micheli10%

Scaglia30% Market

43%

AEM12%

Micheli15%

Scaglia35%

Market22%

Partners7%

Micheli36%

2000-2005: Corporate Evolution

64.4% 33.0%30.8%

67%

Mgmt

4.8% 100%

Sha

reho

lder

sG

roup

Stru

ctur

eO

ther

Bus

ines

ses

From a partnership to a true Public Company

Simplifying Group’s Structure

Streamlining Group Activities

2000-2002 2003-2004 2005

FASTWEB group structure has evolved maintaining strong priority on transparency and simplicity toward capital markets

PG. 11

93

237

456

720

2001 2002 2003 2004

16,621 16,466 15,996 16,130

2001 2002 2003 2004

Line rental Voice Dial Up Internet Broadband Business Network Services

FASTWEB Overperformance in Growing BB Segment

Italian Annual TLC Fixed Spend (€ Mln)

FASTWEB Italian Operations Revenues (€ Mln)

0%

+50%

-15%

-8%

+1%

2001-2004 CAGR%

+98%

Source: Industry Research

?Positioned since inception

on the only fast growing

fixed line market segment

?Broadband bundled with

the other components of

business and residential

telecom spending (Access,

Voice, Business data

services)

?Exploited broadband

capacity to create new

revenue streams (TV,

Video, other VAS)

2001-2004 CAGR%

+50%+40% +62%

PG. 12

15%

20%

16%

12%

5%

Broadband Market Shares

?Telecom Italia is taking the highest share, as its services are deployed with national coverage

?FASTWEB is co-leader with TI in the covered areas, making immediate expansion a compelling opportunity

Broadband Penetration on Covered Market (2004 EoP) Market Shares of Total Broadband Market (2004 EoP)

Source: Companies' financial reports / ASSINFORM Report 2005

100% = 4.45 Mln BB Connections

(*) FASTWEB Penetration on Areas Covered since 4 years

(**) FASTWEB Penetration on Areas Covered since 2 years

(***) Overall FASTWEB Penetration

TI FASTWEB All Other Players

(***)

(**)

(*)

100% = number of households passed

TI Retail70%

3,115,000

Other6%

Tiscali5%

215,000

Wind8%

341,000

FASTWEB11%

496,000

PG. 13

Infrastructure Based Operator Business Model

?FASTWEB created an IP based end-to-end infrastructure that already enables to generate a 75%

gross margin and that will allow to reach slightly better economics than incumbents

constrained by legacy technologies and know-how

0%

5%

10%

15%

20%

0% 10% 20% 30% 40% 50% 60%

Resellers Business Model

Incumbents Business Model

Selected European Incumbents (2005E) (*)

Average European Incumbents (2005E) (*)

FASTWEB projected 2010

Infrastructure Operator Expansion Phase

EBITDA Margin %

Cap

ex/ S

ales

Rat

io % BT

FT

DT

PT

TEFTI

FASTWEB

Source: Company’s estimates based on publicly available information

PG. 14

Unique Positioning of FASTWEB’s Business Model

FASTWEB’s high operational leverage is due to…

End-to-end infrastructure ownership and control

ARPU

~ € 900/year residential ARPU

> € 8,000/year Small business ARPU

~ € 2,000/year SoHo ARPU

Opex

Semi-fixed cost structure

Highly capital intensive with high barriers to entry

Both business and residential markets served by the network

Single fully integrated IP network with no legacy technologies and IT systems to be maintained

Selective geographical coverage Triple play approach coupling higher ARPU with more convenient commercial offer

Gross Margin

~ 75% Gross Margin on both residential and business segments

PG. 15

Customers Pay Back Time

Residential Single Play (**)

Residential 2&3 Play (*)

SoHoSME

ARPU

Gross margin

Capex

Pay Back Time (months)

~ € 8,000 ~ € 2,000 ~ € 900 ~ € 300

75% 75% 70% 75%

~ € 3,500 ~ € 850 ~ € 500 ~ € 170

~ 7 ~ 7 ~ 10 ~ 8.5

? All market segments show attractive economics

* Includes Video and TV components** To be launched in the 2nd half of 2005

PG. 16

Agenda

? Company Profile

? Latest Results

? Strategic Plan

PG. 17

1Q 2005 Highlights

4.8 Mln households reached (22% of Italian population) following the opening of new cities such as Como, Viterbo, Rieti, Asti, La Spezia, Latina, Forlì and expansion in existing areas

Smooth ongoing process for the achievement of the 7 Mln goal by year end

46k new customers in the period, in line with the record quarter achieved in 1Q 04

Success arising from previously opened areas

Commercial activities in new cities started only at quarter end

Stable marginality in a quarter of

?new operating expenses related to coverage expansion

?lower IRUscontribution

Proceeds from share capital increase provides ideal financial position to implement new business plan

New € 950 Mln long term financing facility with a more than halved cost of debt

Coverage New Subs Margins Financial Structure

First Quarter of New Business Plan Implementation

PG. 18

New Areas Openings Snapshots

?Formalisation of a standard process for the opening of a new city

?General agreement with TI to access ~ 300 COs

?In depth analysis of available infrastructure and digging requirements in all new areas

?Accurate planning of equipment purchasing

One off planning activities

Sales ActivitiesPre-Launch Activities

Network Creation

Commercial Organisation

Implementation steps

Communication and PR

t0t-1t-2t-3

? Time effective launch of new areas and immediate commercial success thanks to:

? 5 years know how leading to unique planning expertise

? Local Authorities’ awareness of innovation and development opportunities generated by FASTWEB leading to strong cooperation in network deployment and commercial launch

? Strong territorial approach in communication (local ADV, events, institutional relationships)

PG. 19

542496

457418

377

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005

Customer Growth and Composition

Customers (thousands) Customers by Segment

? 46k net additions in 1Q 05, above the 40k quarterly run rate experienced in 2004

? New areas released at quarter end – success achieved mainly in old cities

+44%

Families85%

Companies15%

PG. 20

158179 186

197 194

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005

Revenue Growth and Composition

Group revenues (€ Mln) Revenues by segment

? Revenues continue to show significant growth rates year-on-year

? IRUs contribute for ~ 2% of total revenues in 1Q 2005 vs ~ 6% in FY 2004

? Change in revenue mix determined by seasonal effects of the business segment

+23%

Families49%

of which IRU 2%

Companies51%

PG. 21

46,752,8

57,362,1 60,4

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005

29,6% 29,5%30,9% 31,5% 31.1%

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005

EBITDA and EBITDA Margin Quarterly Growth

EBITDA (€ Mln) EBITDA Margin (%)

? EBITDA continues to grow significantly on a year-to-year comparison

? Notwithstanding significant expansion into new areas, EBITDA margin shows year on yearimprovement

+29% + 1.5 p.p

PG. 22

(92,7) (96,3)(88,1)

(6,9)

(56.4)*

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005

75,7

820,2814,4726,6

630,4

Mar 04 Jun 04 Sep 04 Dec 04 Mar 05

Free Cash Flow and Net Debt Evolution

Free Cash Flow (€ Mln) Net Debt Evolution (€ Mln)

? Positive cash flow evolution, despite new phase of expansion started in 1Q 05

? Extremely sound financial position, thanks to new capital resources

* 1Q 05 Free cash flow does not include commissions on the right issue as it was finalised in the first week of April

PG. 23

806 802 805 829 828

102 109 829896

908 911 903 925 910

Mar 04 Jun 04 Sep 04 Dec 04 Mar 05Telecom Services Video Services

357 353 345 359 342

Mar 04 Jun 04 Sep 04 Dec 04 Mar 05

Residential ARPU Evolution

? Confirming ARPU in the € 900/year region

? Current slow down of video services take-up slightly impacting overall ARPU

? Focused advertising campaigns and extension of VoD offer are the next planned steps tofurther increase TV services appeal

Total residential ARPU (€ /year) ARPU of Video Customers (€/year)

PG. 24

Agenda

? Company Profile

? Latest Results

? Strategic Plan

PG. 25

Key Achievements and New Strategic Highlights

2000 - 2003 2004 2005-2010

Start up phase successfully completed

Proved sustainability of an infrastructure based triple play approach

Positioned as both market and technological leader

4.0 Mln home passed EoP(18% of population)

Beaten FY targets set one year earlier:? Customers: 496 k? Revenues: 720 € Mln? EBITDA: 219 € Mln

Sustained technological leadership

Broadband market leader in the covered areas

Booming Broadband market

Favourable competitive landscape

Opportunity to anticipate growth

Becoming the #2 fixed line Telecom operator with strong long term competitive position (45% of population by 2006 and 60% of telecom spending)

PG. 26

Geographical Expansion

Covered Areas 2004 EoP

Acceleration of geographical coverage (Homes passed Mln)

Covered Areas 2006 EoP (Exp.) 3 Mln new homes

expected to be passed

in 2005 and a further 3

Mln expected by the end

of 2006 reaching 10 Mln

homes passed (approx.

45% of Italian

population and 60% of

telecom spending)

4

7

10 10

2004 2005 2006 2010

Accelerated targets

PG. 27

10%

12%

17%

22%24%

12%

2004A 2005E 2006E 2007E 2010E 2013E

Double & Triple Play Single Play

Market Penetration and Customers Targets

?Long term penetration at over 20%. Initial decrease in market penetration due to significant

enlargement of covered areas

Addressable Market (HH’m)

4 7 10 10 10 10

Customers Target (’000)Market Penetration Target (%)

700

1,200

1,650

2,2002,400

496

2004A 2005E 2006E 2007E 2010E 2013E

Double & Triple Play Single Play

PG. 28

IT & Systems

12%Other10%

New Coverage

33%

Customer Driven

45%

Customer Driven

67%

Other12%

IT & Systems

21%

Capex Analysis

?Following completion of geographical expansion in 2005-2006, highly flexible and scalable

capex plan due to additional-customer-driven capex representing over 60% of total projected

investments

Penetration Growth (2007-10) Cumulated CapexGeographical Expansion (2005-06) Cumulated Capex

100%= 1.4 Bln 100%= 1.4 Bln