France's Free Selects Pirelli Broadband Solutions for the Supply of GSM/Wi-Fi 'Dual-Mode' Phones


Pirelli announces new customer at Broadband World Forum Europe -- Free chooses Pirelli for new fixed-mobile VoIP service

Milan and Paris, 9 October 2006 - Pirelli Broadband Solutions, the broadband access and photonics company of the Pirelli Group, and Free (the Iliad Group), France's leading alternative broadband operator, signed an agreement for the supply of Pirelli's new "dual-mode" phones.

Under the terms of the agreement, Pirelli will deliver Wi-Fi/GSM handsets for Free's new fixed-mobile commercial offering - "Nomad Telephony" - launched last week in France.

The Pirelli "dual-mode" phone is an innovative handset which enables the convergence of fixed and mobile services, integrating cell phone technology with Internet telephony. The new Pirelli phone, based on SIP (Session Initiation Protocol), can alternatively function as a telephone handset in Wi-Fi mode or as a mobile phone, thanks to a technology which allows the device to use both GSM and WLAN Voice over IP networks.

"We are very pleased to have concluded this agreement with a leading broadband dual-mode phone manufacturer. Our customers will enjoy the know-how of Pirelli with this high- end handset, and will benefit from the best of fixed-mobile convergence thanks to Free," explained Michael Boukobza, CEO of Iliad.

"Our innovative dual-mode phone, said Mauro Sacchetto, CEO of Pirelli Broadband Solutions, is the result of our success in the broadband technology sector and in Voice over IP service-oriented devices. The partnership with a leading operator such as Free validates the superior performance and reliability of our product offering and can only strengthen our presence in the European telecoms market."

Using the "dual-mode" phone, users will be able to make regular mobile phone calls using a SIM card or call via the internet with a Wi-Fi DSL gateway. This solution enables mobile phone features such as SMS, MMS, and e-mail through a fixed-broadband connection, which provides greater bandwidth and cost savings. Pirelli dual-mode phones also provide automatic provisioning and software upgrade features that allow the operator to simplify the user's experience and lower the costs related to service activation and management.

About Free
Free is a subsidiary of Iliad. The Iliad Group is a major player in the Internet and telecommunications markets in France through its subsidiaries Free (the leading alternative broadband operator with 1,905,000 broadband subscribers as at 30/06/2006), Onetel and Iliad Telecom (fixed telephony operators) and Kertel (prepaid phone cards), as well as IFW (WiMax). The Iliad Group was established in 1991 and currently has more than 1,400 employees. The Iliad Group is listed on the Euronext Paris Eurolist under the mnemonic code ILD.

About Pirelli Broadband Solutions
Pirelli Broadband Solutions specializes in broadband access technology and photonics. The Access division provides a range of broadband CPE, including access gateways, set-top boxes, multiple handsets, and a remote management system. The Photonics division leverages nanotechnology and its use of tunable and pluggable solutions to deliver multi-wavelength components, modules and subsystems, including tunable lasers, GPON triplexers, an integrable tunable laser assembly, radio over fiber and a CWDM metro access system. In full year 2005, Pirelli Broadband Solutions posted revenues of 112 million euros (+78% compared to a year earlier).

Contacts:
Iliad Press relations
+ 33 1 73 50 27 22
presse@iliad.fr
www.iliad.fr

Pirelli Broadband Solutions Press Office:
+39 02 8535 4270
pressoffice@pirelli.com
www.pirellibroadband.com

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