Supervisory Body

CONSOB

Name of Clearing & Settlement Organization

Cassa di Compensazione e Garanzia (CC&G); Monte Titoli

Settlement Cycle

T + 3
T + 3 (only for BOT : T + 2)

Name of Central Securities Depository

Monte Titoli
Monte Titoli and ICSDs (Euroclear, Clearnet)

Commissions on Transactions levied by Exchange

Taxes on Dividends, Interestsn apital gains - Capital gains accrued byprivate domestic investors from non substantial holdings (< 2 %) are subject to a definitive witholding tax of 12.5 %.

Foreign investors are exempt from capital gain taxation both on cash and derivatives instruments.

Dividends - Private domestic investors are subject to definitive 12.5 % witholding tax. For dividends linked to a substantial holdings the taxpayer will pay ordinary personal taxation on 40 %of dividends (without tax credit). Companies are subject to ordinary taxation on 5 % of dividends (without tax credit).

Foreign investors are subject to a definitive 27 % whitholding tax. The tax rate is limited to 12.5 % for dividends on saving shares.

Interest rates - Domestic investors are subject to a witholding tax of 12.5 % (raised to 27 % for interests on private bonds with expiry shorter than 18 months). Foreign investors : exempt for OECD countries.

2007 Share ownership thresholds (%)

2%

Short selling (Yes / No)

Short selling conditions (if any)

There is no legal definition of short selling operations. Market participants willing to sell securities they don't own use securities
lending arrangements concluded on a bilateral basis and not subject to disclosure.