Refinancing Agreement led by Banca IMI SpA (Intesa Sanpaolo Group) for a New Loan of EUR87 Million

LONDON - Buongiorno S.p.A. (MTA, Borsa Italiana: BNG), a leading multinational in digital entertainment, today announces that a new loan facility has been signed with a pool of banks headed by Banca IMI SpA (Intesa Sanpaolo Group) for the issue of a new multi-year loan for a total consideration of EUR87 million. It is divided into a five-year, EUR67 million senior loan with payments due every six months (Tranche A) and a EUR20 million revolving credit facility, which will be gradually cancelled starting the fourth year after the issuance date (Tranche B).

The loan calls for a spread of 300 basis points with respect to the benchmark interest rate, subject to adjustment on a six-monthly basis according to a reward mechanism linked to the ratio of gross financial debt to EBITDA, as shown in the following table:

Gross Financial Debt / Spread EBITDA R>2,0 3.0% (300 basis points) 1,5

The loan agreement also contains covenants concerning the level of gross financial debt and the ratio of gross financial debt to cash-generating capacity, represented synthetically by EBITDA.

Carlo Frigato, CFO of Buongiorno, commented on the transaction, “We are highly satisfied with the closing of this loan agreement, which represents one of only a few transactions of its kind in Italy during 2009 so far. It demonstrates that although the credit market remains in critical condition, financing is still available to reputable companies with business models that show good visibility for the next few years.” He further adds, “The strengthening of the Group’s financial structure and our focus on consistent debt repayments were highlighted as two positive factors by the participating banks in the agreement of this loan.”

During 2008 Buongiorno initiated a process of rationalising the corporate structure through synergies with the acquisition of the South African company iTouch. This resulted in a decrease in the number of Group companies and greater financial efficiency within the Group. The acquisition involved the contracting of a bridge loan to the amount of EUR115 million with the aim of revising the structure of this debt in the near term according to the Group’s effective needs in the medium term. As a result, we entered into a loan agreement for an amount well under EUR87 million. Over the past twelve months, the optimisation of the financial positions of individual group companies has led to a decrease in gross debt by more than EUR40 million to approximately EUR100 million as of today.

Studio Bonelli Erede Pappalardo was Buongiorno’s Legal Advisor for the transaction.

Fiona Conroy, ICIS PR (London, UK), Tel: +44(0)20-7651-8688, Fiona.Conroy@icisnet.com

Source: Buongiorno S.p.A.

Fiona Conroy, ICIS PR (London, UK), Tel: +44(0)20-7651-8688, Fiona.Conroy at icisnet.com