20 November 2008

The Board of Directors of Reply S.p.A. today resolved – by means of proxy in accordance to article 5 of the Articles of Association, granted to it by the extraordinary Shareholders Meeting on June 14th 2005 – to increase, subject to payment, with share premium, the share capital for a face value of 74,327.24 Euros, with exclusion of the pre-emption rights pursuant to article 2441, paragraph 4, of the Italian Civil Code to be offered in subscription to the shareholders of the company Glue Reply Limited following the allotment of 300,985 shares of the same company.

This operation, under the share swap agreement with the company glue:ltd, signed in July 2008, has the following characteristics:

• Issue of 142,937 new ordinary shares of a face value of 0.52 each;
• Subscription within the deadline of December 31st 2008, with simultaneous release of new ordinary shares of Reply S.p.A.;
• Total share premium of euro 3,072,002.00 equal to euro 21.49 for each newly issued share, to be allotted to “share premium reserve”.