MTS's Shareholders Appoint New Supervisory Board; Financial Statements for 2004 Approved

28 June 2005

MTS S.p.A. is pleased to announce that, following the Company’s adoption of a "dualistic" management model, shareholders have duly appointed members of the new Supervisory Board.

The members of the new Supervisory Board are:

Niels Thygesen
Giorgio Basevi
Andrea Alessandrelli
Ashley Bacon
Richard Cohen
Fabio Gallia
Richard Herman
Guy Laffineur
Riccardo Lupi
Marco Morelli
Andrea Munari
Paola Pierri
Ignazio Angeloni
Mario Paolillo, Independent Auditor
Fabio Venegoni, Independent Auditor
Giuseppe Verrascina, Independent Auditor

The introduction of this management structure comes in the wake of an Italian decree that permits Italian companies, with effect from early 2004, to choose one of three governance models. The “dualistic” system involves a Supervisory Board, which occupies an intermediate position between the shareholders and the Management Board -- to be appointed by the Supervisory Board -- which is responsible for the management of the business.

The first meeting of the Supervisory Board will be on 1 July 2005 when the principal topics of the agenda will be (i) the appointment of the Management Board (ii) the opening of the MTS shareholder ballots registering acceptance of their preferred bid in the presence of the Notary Public and (iii) acknowledgement of the outcome of the voting.

Shareholders of MTS also approved the Financial Statements for 2004, which brought total revenues of €60.483 million (2003: €60.574 million) and an upsurge in net income from €1.027 in 2003 to €1.97 million. Volumes reached a record €18.2 trillion, a 7% increase compared with the previous year. These results were achieved in the face of challenging market conditions in the European government bond sector which, in general terms, was characterised by a lack of volatility and lower turnover in the interdealer markets.

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