Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications

FIRST SEMESTER, STRONG GROWTH IN DADA:
REVENUES +50%, EBIT OF +43%.
THE INTERNATIONAL EXPANSION CONTINUES WITH SUCCESS.

Florence, September 5, 2007 – The Board of Directors of Dada S.p.A. (MTAX of Borsa Italiana, STAR segment), under the chairmanship of Paolo Barberis, today approved the Half-Year Report of the Dada Group as at June 30, 2007 prepared in accordance with the IAS/IFRS international accounting standards – International Financial Reporting Standard.

The first half of 2007 saw the continual growth in web and mobile services and experienced a further strong growth in international revenues: the contribution of the international business was in fact of 44% of consolidated sales, compared to 34% in the first half of 2006 and 1% in the first half of 2005. Today Dada’s offer of community services and entertainment also directs to users of more than 30 Countries.

Economic Financial Results to June 30, 2007

In the first six months of 2007 the Dada Group recorded consolidated sales of euro 73.3 million with an increase of 50% compared to the same period in the previous year, which recorded consolidated sales of euro 48,7 million.

The Ebitda of the semester has grown up to euro 10.3 million ( compared to 7.2 million euro in the first half of 2006), before write-downs and extraordinary items of euro 0.5 million, with a margin percentage on revenues of 14%, despite the strong investments for the start up of the international activities and the development of Dada.net community that counts nowadays more than 8 million users in the world, with an average growth of 40 thousand registered users every day.
The Ebit of the Dada Group in the first six months of 2007 was positive for euro 7.7 million and 11% of consolidated sales, an increase compared to the 2.6 million euro in the first half of 2006. The amortization and depreciation on tangible and intangible assets amounted to euro 2.1 million, with an increase compared to the first half of 2006, in which they were 1.6 million euro.

The net result in the first half of 2007 was a net profit of euro 6.5 million, after income taxes of 1.1 million euro, with a percentage on consolidated revenues of 9%. In the first half of 2006 this aggregate was euro 4.5 million.

The short-term consolidated net financial position at June 30, 2007 was a positive amount of euro 17 million, compared to 11.8 million euro at December 31, 2006 and to 23.1 million euro at 30 June 2006. The performance of these figures was impacted by investments made in this period and specifically that of 30% of E-Box S.r.l. – the owners of the platform Blogo, the most visited vertical blog network in Italy – the second closing for the acquisition of Cotei, in preparation for the purchase of Nominalia S.L., the leading Spanish Internet domain name registrar. Investment activities were also related to the purchase of tangible assets for renewing and expanding the technological structure, as well as the remodeling of the new office for a total amount of approximately euro 4 million, in addition to new product and service development expenses and other important tangible assets for euro 1.7 million, while there was also a financial contribution deriving from the second tranche of 2005 stock options, equal to euro 1.4 million.

In the first half of 2007, the Parent Company Dada S.p.A. recorded sales of euro 49 million, compared to 28.5 million euro in the same period in 2006. The Ebit of the Parent Company was a profit of euro 4.6 million and the NFP was positive for euro 9,4 million.

Extraordinary operations subsequent to the closing of the semester

We recall two strategic operations that took place after the closing of the financial period analyzed: the acquisition of 100% of the shares of the Uk company Namesco market leader in domains & hosting in Uk and the creation of the joint venture in the USA called “Dada Entertainment LLC”, product of cooperation between Dada and SONY BMG MUSIC ENTERTAINMENT aimed at developing a new offering of entertainment services accessible via web and mobile.
Through the new joint venture, initially directed toward the U.S. consumer market, SONY BMG and Dada will offer the latest generation web & mobile consumer entertainment services that will combine a rich selection of music content, including ringtones, images, video ringtones, games for mobile phones, backgrounds and audio & video in integral formats, also in virtue of Dada’s longstanding experience in the area of community web 2.0 and social networking.

Further information

Today Dada’s Board of Directors, has decided to nominate Monica Alessandra Possa Board member in quality of new member of the Compensation Committee as a consequence of Barbara Poggiali’s dismissal as member and chairwoman of the Committee. It has also nominated Danilo Vivarelli, already member of the Committee, new Board Chiarman; the Compensation Committee is therefore composed by the following members: Danilo Vivarelli (Chairman of the Compensation Committee), Salvatore Amato and Monica Alessandra Possa. The executive manager in charge of writing the Company’s accounting documents, Federico Bronzi, according to the second comma of article 154 bis of D.Lgs 58/98, declares that the accounting information contained in the present release matches with the account books and the accounting entries of the Company.

* Ebitda: before write-downs and extraordinary items

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