Swisscom intends to acquire Fastweb

March 20, 2007 - Swisscom has submitted a proposal to Fastweb Board of Directors to launch an all-cash friendly public tender offer on 100% of Fastweb. Prior to submitting its proposal, Swisscom, with the consent of the Board of Directors of Fastweb, has performed a confirmatory due diligence exercise on Fastweb.

According to a press release issued by Swisscom, Fastweb is considered as a highly innovative company and in 2001 was the first provider in the world to launch fully IP-based broadband, voice and TV services. As a strategic partner committed to the long term, Swisscom is investing in Fastweb with the clear objective of further exploiting the Fastweb competitive advantages and technological lead as well as expanding its portfolio of offerings. Fastweb's operational business will continue to be separately managed and Swisscom intends to continue working with Fastweb's existing management team. Nothing is expected to change in terms of the way Swisscom and Fastweb present themselves on their respective markets.

A press release issued by Fastweb has stated that its Board has acknowledged receipt of the proposal and its friendliness and underlines the good development opportunities the proposal offers to the company. The Board wishes that Swisscom will file and publish the tender offer notice required by the law promptly. Swisscom expressed its intention to publish such notice on March 22.

Fastweb chairman Silvio Scaglia and SMS Finance S.A., on their side, communicate that they entered today into an undertaking agreement with Swisscom whereby they commit to tender their 18,75% stake to the tender offer when it is finalised.