In response to a report in today´s edition of the newspaper "La Republica", regarding the acquisition by Telecom Italia of a participation in Telekom Serbija, made in June 1997, Telecom Italia states that it had no knowledge of any irregularity in the setting of terms or in the perfectioning of the contract between Telecom Italia and PTT, the Serbian ministerial entity that at the time held control of the company.
Furthermore, the current Telecom Italia administration, in place since June 28, 1999, did not receive either at the time of its election or at any subsequent time, any evidence of possible irregularity within the framework of the acquisition in question.
Telecom Italia will, however, undertake its own internal investigation aimed at ascertaining any possible irregularities and reserves the right to assume any initiative legal or otherwise, necessary to protect its own rights.