Trading Statement

RNS Number:2989Y
Elitel Telecom S.p.A.
13 June 2007

13 June 2007

                             Elitel Telecom S.p.A.

                                 Trading Update


Elitel Telecom S.p.A. ("Elitel" or the "Company"), the independent Italian
telecommunications group, announced on 16 February 2007 that the Company had
experienced difficult trading conditions in certain areas of its business and
was considering its options for the future development of the Company.
Following the appointment of the new Chief Executive Mr Giorgio Fatarella on 2
March 2007 the Board has focussed its action plan on significant cost-cuttings,
changes to products and services mix and the re-organisation of the internal
procedures and controls.  This has been coupled with the deployment of new
commercial initiatives, that are now producing positive impacts in terms of a
more dynamic commercial exposure of the Company.  In conjunction with the
implementation of the revised business model Elitel has entered discussions with
certain of the Company's creditors to achieve a major restructuring of the
Company's debt. The Directors are confident that these negotiations will result
in a substantial reduction in the debt position combined with a revised
repayment schedule.  However until such agreement has been finalised there can
be no certainty that the debt position will be restructured, or the impact this
will have on the Company. The Board will, in due course, advise shareholders as
to the outlook and prospects for the Company following clarification of the
agreement.

The Board remains focused upon implementing the new financial plan which, if
successful, they believe will provide the Company on a more profitable platform,
well positioned for future growth. Accordingly Mr Giorgio Fatarella, former CEO,
is now taking on the duties as Executive Chairman, focussing on the operational
management and commercial strategies of the Company. while Mr Federico d'Este,
is now Executive Deputy Chairman, with responsibility for corporate development
and investor realations. Mrs. Cristina Nati, who was appointed as a Non
Executive Director on 28 March 2007 has been appointed an Executive Director of
the Company responsible for relationships with the Government, Trade Unions,
Public Authorities and Telecom Italia.

The Company expects to announce its results for the year to 31 December 2006 on
or before 30 June 2007.

Enquiries
                                                           
Elitel Telecom S.p.A                                   [phone]
Federico d'Este

Charles Stanley Securities                             [phone]
Russell Cook/Freddy Crossley



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