RTI-MEDUSA-TAODUE: A NEW MAJOR FOR ITALIAN CONTENT IS BORN

An agreement was signed today to create a joint-venture that brings together
Medusa Film (a subsidiary of Rti, a leader in Italian film production) and Taodue
(controlled by Pietro Valsecchi and Camilla Nesbitt) leader in the production of quality
TV drama.
The aim of the operation is to create a new production company able to exploit
opportunities for growth in the content market for television and the cinema, both in
Italy and abroad.
The characteristics of the agreement
The operation will involve the creation of a new company (with net assets of around
€370 million) to which Rti will contribute 100% of Medusa Film and Valsecchi and
Nesbitt 100% of Taodue.
The shareholders of the production company will receive in exchange a 25% stake in
the new company (the remaining 75% of which will be controlled by Rti), as well as
around €107 million.
The governance of the new company will be guaranteed by a board of directors
comprising members nominated in proportion to the shareholders’ interest.

The value of the operation for Mediaset

The creation of this new joint-venture completes the company’s development project
in the content area, begun by Mediaset when it joined the consortium that bought
Endemol and the subsequent acquisition of the Medusa Group.

Rti’s traditional leadership in TV entertainment production (broadcast on Mediaset
channels and also distributed on the new platforms) was consequently reinforced,
firstly by an international opening thanks to Endemol (in May 2007) and then, in July,
with Medusa’s strong position in film rights which are an indispensable resource for
all media that distribute video content on whatever platform.

Today, thanks to the inclusion of TaoDue, the Mediaset Group also becomes leader
in the area of high-quality TV drama, which in continuous expansion, at both national
and international level.

Today’s definition of the agreement:
• represents an important base from which to pursue the development and
integration of film and TV drama production activities in Italy and around the
world;
• enriches the library with products with which it is possible to manage the entire
rights cycle, also by identifying new opportunities and spaces for their
exploitation;
• confirms the company’s intention to open up to the market and to develop also
in the new media area;
• and finally, and not least important, it guarantees a direct involvement and
growing commitment to the production of films and TV drama with new
investments that will valorise the talents of Italian professionals and will translate into development for the entire sector and support for the cultural
value of national products.

Above all, the operation creates new value, producing the necessary critical mass in
quality content which forms the basis for the launch of a new major focused on the
expansion and development of Italian products, also in foreign markets.

Milan, 29 November 2007

Medusa Film
Medusa Film is the leading company of the Medusa Group. Its core
business is film production (with investments in Italian cinema which
amount to an average of €65 million) and the distribution of films and
rights for theatrical, free-to-air, subscription-based and pay-per-view
television. In the distribution sector in 2006, Medusa was in overall
second place in the market and first among Italian companies, with a
market share of 13.0%. In the current season, which began on
1/12/2006, Medusa is the overall leading distributor, with a market
share of around 18%.

Taodue Film
Taodue, which was founded in 1991 by Pietro Valsecchi and Camilla
Nesbitt, is a leading player in the television market. Since the end of
the 90s it has produced quality TV drama and has made a distinctive
impression on many of the seasons on Canale 5, with successes
such as “La Uno Bianca”, “Ultimo”, “Distretto di Polizia”, “Ris”,
“Borsellino”, “Karol”, “Nassirya”, “Maria Montessori”, and the latest
hit “Capo dei capi”. Taodue produces films with a very strong link to
real-life events: from news stories and historical events on which
drama projects are developed which have allowed the company to
distinguish itself in the Italian television market.

Dept. of Corporate Communication & Image
Tel. +39 0225149251
Fax +39 0225149286
e-mail: ufficiostampa@mediaset.it
www.mediaset.it/corporate/

Investor Relations Department
Tel. +39 0225147008
Fax +39 0225148535
e-mail: ir@mediaset.it
http://www.mediaset.it/investor

MEDIASET SIGNED FOR THE ACQUISITION OF MEDUSA

AGREEMENT SIGNED FOR THE ACQUISITION OF MEDUSA MEDIASET BETS ON ITALIAN CINEMA AFTER ENDEMOL, ANOTHER STEP TOWARDS GREATER CONTROL OF CONTENT

Renewed top management at Medusa:
Carlo Rossella, chairman, Giampaolo Letta, MD
Mediaset S.p.a. has reached an agreement with Fininvest S.p.A. to buy
100% of the share capital of the Medusa Group. The closing of the
operation is expected to take place on 16 July 2007.
Fininvest S.p.A. has a 35.97% stake in Mediaset S.p.A. and owns 100%
of the Medusa Group.

The value of the operation for Mediaset

The acquisition of Medusa, national leader in film production and
distribution, is for Mediaset an operation of strategic significance that will:
• reinforce the company’s position in the content area (following the
recent Endemol operation) focused production and the exploitation of
film rights which are a primary resource across all platforms;
• allow direct and growing involvement in the production of Italian
cinema, a relevant feature of the scheduling requirements of the
Mediaset Group’s channels, which thanks to recent investments will
translate into growth across the entire sector and support the cultural
value of national production;
• generate further diversification into areas adjoining its “core business”
(theatrical management, home video)

The nature of the agreement

The price for the operation, which is of €152 million, has been calculated
on the basis of the net assets of the Medusa Group at 31/12/2006.
In the form of an integration of the price, Mediaset S.p.A. has promised
to pay to Fininvest S.p.A. a balance of up to a maximum of €18 million, to
be related to box office receipts from films distributed in the 2007-2008
seasons.

In support of the resolutions made by Mediaset’s boards regarding the
operation, the investment bank Lehman Brothers International has
determined that the price is in line with market values.

What is the Medusa Group

The Medusa Group operates in the production and distribution of Italian
and international films, cinema management, the development of
multiplex complexes and home entertainment.

The main companies of the Medusa Group are the parent company
Medusa Film and the companies Medusa Cinema, Medusa Multicinema
and Medusa Video, all of which are wholly-owned subsidiaries.
• Medusa Film is engaged in film production (investments in Italian
cinema production amounts to around €65 million) and the distribution
of films and rights for theatrical release, free-to-air television, pay-TV
and pay-per-view. In the distribution sector, in 2006, Medusa came
overall second and was the top Italian company with a market share of
13% (in 2005 it was in the fourth and second places respectively, with
a market share of 10.3%). In the current season, which began on
1/12/2006, Medusa is the overall leading distribution company with a
market share of around 18%.
• Medusa Cinema and Medusa Multicinema are among the biggest
cinema operators in the Italian market in terms of tickets sold and the
number of screens (with a network that covers Italy’s most important
cities, above all in the north of the country). The companies currently
run 101 screens, of which 100 are in multiplex complexes and one in a
traditional theatre.
• Medusa Video operates in the home entertainment sector, where it is
among the leading Italian players in the distribution of films,
documentaries, cartoons, and TV programmes on videocassette and
DVD.
Business results and assets of the Medusa Group
Here are the financial highlights of the Medusa Group for the year to 31
December 2006:
• the Medusa Group’s consolidated net assets at 31/12/2006 amounted
to €152 million
• net revenues: €195.5 million (+18.3% on 2005)
• operating profit was up compared with 2005: from -€3.0 to +€16.8
million
• net profit was up compared with 2005: from -€4.6 to +€6.7 million
• the consolidated net financial position was up on 2005: from -€85.7 to -
€55.0 million

New top management

In view of the announced resignation of the board of directors of the
Medusa Group, that will be formalised before the closing of the
operation, Mediaset’s executive committee, which met today, has drawn
up the new top management for the company.

Carlo Rossella, who will step down as editor of TG5, has been
nominated to take over as chairman. Rossella, after an extraordinary
journalistic career which has seen him as the editor of national daily
newspapers, newsmagazines and TV news programmes, has the ideal
experience and authority to be the chairman of a company like Medusa
that is engaged, at a national and international level, in editorial and
cultural activities.

Giampaolo Letta has been confirmed in his role as deputy chairman
and managing director and will guarantee great experience and
continuity in the management of the various aspects of film production
and distribution.

Cologno Monzese, 3 July 2007

Department of Communications and Media Relations
Tel. +39 0225149579
Fax +39 0225149286
e-mail: ufficiostampa@mediaset.it
http://www.gruppomediaset.it

Investor Relations Department
Tel. +39 0225147008
Fax +39 0225148535
e-mail: ir@mediaset.it
http://www.gruppomediaset.it/investorcenter