Trading Statement

RNS Number:4041R
Elitel Telecom S.p.A.
16 February 2007

16 February 2007

                               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. The Board confirms that
revenues for the year will be in line with market forecasts for the 2006
financial year at approximately Euro212 million, (2005: Euro155 million). However
EBITDA for the Group will be significantly lower than the Euro8 million previously
expected by the Board due to two factors. Primarily, the wholesale business
suffered higher prices in November and December which significantly eroded
margins. The Group also has experienced a reduction in new higher margin
residential business. Trading during January 2007 has shown some signs of
improvements in margin as the Board have scaled down the wholesale business
significantly reducing the contribution of that area to the Group. The Board is
actively reviewing all areas of the business and considering options for the
future development of the business.

Furthermore the Board of Elitel Telecom S.p.A. announces that Ezio Ravaccia, a
non executive director of the Group, has decided to stand down from the Board
with immediate effect, to pursue other interests.

The Board will make further announcements as appropriate.


Enquiries
Elitel Telecom S.p.A                                [phone]
Federico d'Este (Chief Executive)
Nicolo Zanchi (Investor Relator)

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.

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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