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Ministry of Economy and FinancePLACING AT AUCTION OF 2023 BTP€i: INDEXED TO EUROZONE INFLATION

Press Release N° 112 of 07/24/2009

The MEF has provided for the issue on 29 July 2009, with settlement on 31 July 2009, of the following Long Term Treasury Bonds indexed to inflation in the Eurozone:

- 15-year BTP€i:

start date: 15 March 2007; sixteenth tranche

maturity: 15 September 2023

real annual coupon rate: 2.60% annual, payable at six-month intervals

maximum nominal amount of the issue: € 1,250 million.

ISIN: IT0004243512

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

As regards the remainder of the procedure, placement will be conducted following the technical criteria and regulations applied when placing nominal BTPs. The public will be able to reserve bonds until 28 July 2009. All dealers have until 11.00 AM on 29 July 2009 to submit, via the National Interbanking Network, a maximum of three bids, each having a real value (not restated on the basis of the Indexation Coefficient) of not less than € 500,000. Bid prices, which must also be formulated in real terms, shall differ by at least 1 euro cent. On the basis of the Indexation Coefficient with reference to the settlement date, Banca d'Italia will calculate the equivalent values in relation to the capital subscribed and the day-by-day interest to be paid for the settlement of the bonds subscribed at auction. Settlement shall take place two working days after the day of the auction (T+2), i.e. on 31 August 2009. For the aforementioned BTPi, the maturity date on the fourth coupon of which was 15 March last, subscribers shall pay accrued interest for a period of 169 days.

As payment for collecting bids from the public, a commission of 0.4% shall be paid to dealers, commensurate with the nominal amount of bonds allocated.

State bond specialist dealers shall be eligible to participate in the additional placing, the maximum amount of which shall be equal to 10% of the amount offered at auction, submitting subscription bids by 3.30 PM on 30 July 2009. The procedure and conditions for the participation of specialists in the additional allocations are set out in the relevant decrees authorising the issue of the above-mentioned bonds.

Rome 07/24/2009

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