Trading Statement

RNS Number:7669N
Elitel Telecom S.p.A.
13 December 2006


13 December 2006


                               Elitel Telecom SpA

                           ("Elitel" or the "Group"),

                                 Trading Update



Elitel Telecom SpA (AIM: ETM) the independent Italian telecommunications group,
today provided an update on the Group's trading since the interim results
statement on 29 September 2006.  In its interim statement the Board announced
that Elitel had achieved steady growth in turnover and profitability during the
first six months.  This has continued into the second half.  Each of the
acquisitions and investments announced in the summer have been integrated into
the Group and Alpikom SpA, the largest of these acquisitions, will make a
significant contribution in the current year.


The Board anticipates that revenues for the year will be in line with market
forecasts at approximately Euro212 million (2005: Euro155 million).  However operating
margins will be lower than budgeted resulting in EBITDA, excluding exceptional
items, being below market forecasts for the current year, but not less than Euro8.0
million (2005: Euro4.1 million).  This is largely due to pricing pressure,
increased marketing expenditure in the Small Business and Residential Division
and increased competition for large accounts.  In addition the Company
experienced reduced growth in our residential customer market following the
allegations made in the Striscia la Notizia TV programme, which was noted in our
interim statement.  We are pleased to report that growth in the residential
customer market in the second half has returned to normal.  The episode has
nevertheless resulted in certain exceptional costs which will be absorbed in the
current year.  Overall the Board anticipates that as a result of a lower level
of operating profits, and the impact of certain exceptional costs, the Group
will report a pre-tax loss in 2006.



Elitel continues to experience strong growth across all business areas.  The
Board has identified a number of areas for further development during 2007 and
beyond, while also improving operating efficiencies, and looks forward to
announcing further progress at the time of the full year results.





Enquiries
Elitel Telecom S.p.A                                         [phone]
Federico d'Este (Chief Executive)
Ezio Ravaccia (Chief Financial Officer)

Buchanan Communications                                      [phone]
Mark Edwards/Isabel Podda/Jeremy Garcia

Charles Stanley Securities                                   [phone]
Russell Cook/Freddy Crossley




Notes to Editor


About Elitel

Elitel is an independent Italian fixed line telecommunications group. It
provides a broad range of voice, data and broadband services, including
voice-over IP ('VoIP'), to both businesses and residential customers. The Group
also provides wholesale telecommunications services to other carriers,
international call services specifically for the Italian ethnic market and
telecommunications services to premium content providers. Elitel's network,
which covers the whole of Italy is based on interconnection agreements and
access through the leasing of lines from carriers including Telecom Italia and
other international carriers.



By 31 December 2005 the Group's own fixed line customer base comprised more of
69.000 business customers; 175.000 residential customers and more of 9.200 VoIP
end users.



In February 2006, Elitel (www.eliteltelecom.com) successfully floated on AIM,
part of the London Stock Exchange (AIM : .ETM), raising #8.0 million to fund the
expansion of the Group.




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