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Ministry of Economy and FinancePLACEMENT VIA AUCTION OF LONG TERM TREASURY BONDS INDEXED TO EURO-ZONE INFLATION

Press Release N° 178 of 11/20/2008

The MEF announces the issuance of public debt securities, to be auctioned on 26 November 2008 and settled on 28 November 2008, represented by the following bonds:

- Long Term Treasury Bonds indexed to Euro Area inflation

- 10-year treasury bonds

starting accrual date:15 March 2008; fourth tranche

maturity:15 September 2019

real annual coupon: 2.35% yearly, payable on a half-yearly basis

maximum nominal amount of issue: 500 million euro

- thirty-year treasury bonds

starting accrual date:15th September 2004; twenty-third tranche

maturity date:15th September 2035

real annual coupon: 2.35% yearly, payable on a half-yearly basis

maximum nominal amount of issue: 1,000 million euro

The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally. The amount placed will be determined excluding bids at prices considered to be unfavourable on the basis of market conditions.

As for the rest of the procedure, placement will be conducted following the technical criteria and regulations applied when placing nominal BTPs. Bonds will be subscribable by the public within the time-limits shown in the calendar here below. Each dealer, by and no later than 11am of the date shown below, can submit via the National Interbanking Network, a maximum of three bids, each offer having a real value (not recalculated on the basis of the Indexation Coefficient) of no less than 500,000 euro. Bid prices, they too formulated in real terms, shall differ one from the other by at least 1 euro cent. The Banca d'Italia, on the basis of the Indexation Coefficient referring to the settlement date, will calculate the value equivalent to the capital subscribed and the accrued interest payable for the bonds subscribed at auction. Settlement will take place two working days after auction date (T+2). For both the aforementioned bonds, subscribers will pay accrued interest for the period from 15 September 2008 to settlement date (74 days).

As payment for collecting bids from the public, commission shall be paid to the said dealers, commensurate with the nominal amount of bonds allocated, being:

- 0.40% for ten-year BTP€i

- 0.40% for thirty-year BTP€i.

The calendar for subscription operations is as follows:

Ten-year BTP€i

Thirty-year BTP€i

Public to reserve by

25 November 2008

25 November 2008

Submission of bids to auction: by 11.00am on

26 November 2008

26 November 2008

Settlement of subscriptions

28 November 2008

28 November 2008

Daily interest payable

74

74

State bond specialist dealers are eligible to participate in the additional placement whose maximum amount will be equivalent to 10% of the auction amount, submitting bids by 15:30pm of 27 November 2008.

The procedures and conditions for the participation of specialists in the additional allocations are set forth in the relevant decrees authorising the issuance of the above-mentioned bonds.

Rome 11/20/2008

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