Financial Press Releases

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

RESULTS FOR FIRST NINE MONTHS 2006

REVENUES INCREASE TO EURO 80.1 MILLION
(+ 72.6% compared with the same period 2005)

OF WHICH 38% IS FROM DADA'S INTERNATIONAL BUSINESS

EBITDA & EBIT BOTH INCREASED TO EURO 11.1 MILLION (+18%) AND EURO 7.6 MILLION (+10%) RESPECTIVELY

THE GROUP'S NET FINANCIAL POSITION IS EURO 9.2 MILLION (compared with Euro 5.4 Million in the first nine months 2005) AND EQUAL TO EURO 11.5% OF SALES


• Consolidated revenues of Euro 80.1 million for the first nine months of 2006 (Euro 46.4 million for the same period 2005)
• EBITDA of Euro 11.1 million (Euro 9.4  million in the first nine months 2005)
• EBIT of Euro 7.6 million (Euro 6.9 million in the first nine months 2005)
• Consolidated NET results of Euro 9.2 million (Euro 5.4 million in the first nine months 2005) equal to 11.5% of sales.
• After the acquisition Nominalia S.L. and of Upoc Networks Inc. and the completion of the acquisition of Register.it S.p.A., for a total of Euro 9.1 million, the short term Net financial position as at September 30, 2006 was Euro 12.6 million
• In the first nine of 2006 International business accounted for 38% of consolidated sales, resulting from the expansion of the community and entertainment services via web and mobile in the USA, Germany, Spain, Portugal, United Kingdom, France, Belgium, Austria, Denmark, Holland, Sweden, Finland, China, Brazil, Australia, Mexico and Canada.
• The appointments of the Riccardo Stilli and Roberto Ravagnani as new Directors of Dada S.p.A.


Florence, November 9, 2006 - The Board of Directors of Dada (MTAX of Borsa Italiana: DA.MI), under the chairmanship of Paolo Barberis, today approved the Quarterly Report as at September 30, 2006.

Dada S.p.A. (dada.dada.net) confirms its position as an international leader in the provision of web and mobile community & entertainment services: Dada in the third quarter of 2006 saw significant growth in international revenues representing 44% of consolidated sales, (compared to 14% in the first half of 2005 during which Dada started the Internationalization of its services).
Dada services are available today in USA, Germany, Spain, Portugal, United Kingdom, France, Belgium, Austria, Denmark, Holland, Sweden, Finland, China, Brasil, Australia, Mexico and Canada.

The consumer offer of Dada - expressed through the community Dada.net (www.dada.net) and the brands Life.dada.net, Mobi.dada.net and Love.dada.net which today has over 7 million users worldwide - is characterized by a rich range of fee-based community and entertainment products and services to communicate, entertain and educate.  These services are accessible both via the PC and the mobile phone.

The convergence of a large number of applications, from entertainment/infotainment to social networking and dating available in a single all inclusive subscription, accessible via web and mobile, together with a rich library of content are strong differentiating factors of the Dada.net community.

With this in mind, Love.dada.net (http://love.dada.net) represents the development of Incontri by SuperEva.com, the leading dating portal in Italy, with nearly 3 million users worldwide.

Mobi.dada.net (http://mobi.dada.net) represents the mobile offering of Dada, consisting of a wide range of value added services for mobile phone personalisation and entertainment.  This service is currently available in 17 countries.

Life.dada.net (http://life.dada.net) is the ideal space where users can freely express themselves, publish and share texts, photos, video and chat not only via pc but also via mobile.


Financial Results

In the third quarter of 2006 the Dada Group registered consolidated sales of Euro 31.4 million (an increase of 90.6% compared with the same period in the previous year and 20% compared with the second quarter of 2006).  The EBITDA registered Euro 3.9 million before write-downs and extraordinary items of Euro 0.3 million with a percentage margin of 12.4% on consolidated sales (in the third quarter 2005 EBITDA was Euro 3.1 million).

It was noted that costs incurred for the creation and development of the international user base (an impact equal to Euro 14.6 million only for the quarter in question, compared with Euro 4.4 million in the previous quarterly financial report) and the resulting strong growth reduced the margin on sales from 21% in the third quarter 2005 to 12.4% for the third quarter 2006, notwithstanding a significant increase in the total value of EBITDA for this period which went from Euro 3.1 million in Q3 2005 to Euro 3.9 million in Q3 2006.

It was also noted that in the third quarter of 2006 the cost of labour was Euro 3.8 million, compared with Euro 2.8 million reported in the same period of the previous financial report, with an impact on consolidated sales of 12%, a marked improvement on the 17% of the same period  in 2005.

The operating results of the third quarter 2006 increased to Euro 2.6 million compared with the third quarter of 2005 which were equal to Euro 2.3 million.  Associated with this, there are write-downs and non-recurring items of approximately Euro 0.3 million, whilst the amortisation and depreciation on tangible and intangible assets for this quarter amounted to Euro 1.1 million, taking into account the change in the consolidation scope.

The net financial results for the quarter were Euro 4.6 million, an increase from Euro 1.9 million which was registered in the third quarter of 2005.

The short term net financial position on September 30, 2006 was Euro 12.6 million, compared with Euro 23 million on December 31, 2005 and Euro 23.1 million on June  30, 2006.
The absorption of the financial resources with respect to previous quarters is largely due to the investments made in the acquisition of the companies Nominalia SL - a leader in Spain in domain name registration and hosting,  as per the announcement made last August 4 -, UPOC Networks Inc. - a well established leader in providing web and mobile value added services in the USA, as per the announcement made last August 5 - and lastly the completion of the acquisition of Register.it S.p.A., which took place last July 21.

It should be noted that after the third quarter closing, Dada acquired Tipic Inc., an international leader in the blog community and social networking sector and owns the brands Splinder, the undisputed blog community leader in Italy and one of the richest resources for  user-generated content in the Italian market, and Motime, the leading service in the same sector in the American market.


The appointment of New Directors of the Board

In view of the resignations of the Directors Vittorio Colao and Aldo Bisio which had already been noted in the last Board of Directors meeting, the Board of Directors of DADA today thanked them for their contribution and accepted the appointments of Riccardo Stilli and Roberto Ravagnani as new Directors of Dada S.p.A.

Riccardo Stilli is the Chief Financial Officer of the RCS MediaGroup S.p.A., Chairman of the Board of Directors for RCS Pubblicità and M-Dis and a member of the Board of Directors of other companies of the RCS MediaGroup.
Previously, Riccardo Stilli was the Chief Financial Officer of Prada Gruppo and a member of the Board of Directors of Prada Holding.

Roberto Ravagnani is the Operations, Development and Compensation Director of RCS MediaGroup S.p.A. and a professor at many Management Schools and Universities including SDA Bocconi and the l'Istituto per il Commercio Estero.
Previously, Roberto Ravagnani was a Senior Manager in Bain & Co. and ESO and before that was a professor at the Finance and Commerce University, L. Bocconi in Milan.