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Ministry of Economy and FinanceISSUE OF BTPS (LONG TERM TREASURY BONDS)

Press Release N° 179 of 11/20/2008

The MEF announces the issuance of the following treasury bonds, to be auctioned on 27 November 2008 and settled on 1 December 2008, consisting of:

- BTPs (Long Term Treasury Bonds):

start date: 1 September 2008; seventh tranche

maturity: 1 September 2011

coupon: 4.25%

start date: 1 September 2008; third tranche

maturity: 1 March 2019

coupon: 4.50%

The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally within an issuance interval to be announced in a subsequent press release.

The amount placed will be determined excluding bids at prices considered to be unfavourable on the basis of market conditions.

Italian, EU and non-EU banks as well as brokerage companies and EU and non-EU investment businesses referred to in the decrees authorising the issuance of the above-mentioned bonds are eligible to participate in the auction.

The dealers referred to above may bid on their own account or on behalf of third parties.

Each bid submitted must state the relevant offer price. Each dealer may submit up to a maximum of three bids, each at a different price and for a minimum amount of 500,000 euro of nominal capital. Any bid below the minimum amount will not be considered. Each bid must not exceed the issuance amount; any bids in excess of the issuance amount will be admitted only up to that amount.

Prices may vary by a minimum of one euro cent; any variations of a different amount will be rounded up. The minimum sum subscribable is one thousand euro.

Bids from dealers must be submitted by the deadlines set down in the calendar below and by means of electronic bid sent to the Banca d'Italia via the National Interbanking Network in accordance with the technical procedures established by the Banca d'Italia and familiar to dealers.

In the event that not all bids at the uniform price can be accepted, there shall be an allotment pro rata, with rounding as necessary.

The allotment price shall be announced by way of a press release, which shall also state the amounts allocated to the specialists at the last three auctions.

Dealers participating in the auction shall arrange for the bonds allocated to be assigned to subscribers, without any charges being made in addition to the allotment price.

Settlement of the bonds allocated by dealers shall be at the allotment price and with payment of daily interest from the day following the start date of the current coupon to the day of settlement.

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:

- 0.20% for BTPs 4.25% 1.9.2008/2011

- 0.40% for BTPs 4.50% 1.9.2008/1.3.2019

The public shall be able to reserve bonds via the above mentioned groups of dealers by the deadline set down in the calendar; brokers shall be able to request a payment on account of the nominal amount reserved as security for completion of subscription.

On the settlement date, subscribers shall pay the sum due for the bonds allocated, on the basis of the allotment price, as well as daily interest due. A receipt will be issued on payment.

The calendar for subscriptions is as follows:

BTPs maturity 1/9/2011

BTPs maturity 1/3/2019

Public to reserve by

26 November 2008

26 November 2008

Submission of bids to auction: by 11.00am on

27 November 2008

27 November 2008

Settlement of subscriptions

1 December 2008

1 December 2008

Daily interest payable

91

91

State bond specialist dealers are eligible to participate in the placing of state bonds that shall take place automatically in addition to the issuance auctions.

The offer of the additional tranche is set for each issuance at a maximum amount not exceeding 10% of the nominal amount offered.

Specialists who did not participate in the issuance auction shall not be eligible to participate in the additional placement.

The additional allocation shall be at the allotment price determined at the auction for the current issuance.

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

Rome 11/20/2008

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