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Ministry of Economy and FinancePLACING BY AUCTION OF 2019 BTP€i INDEXED TO EUROZONE INFLATION

Press Release N° 125 of 08/21/2009

The MEF hasprovided for the issue on 27 August, 2009, with settlement on 31 August, 2009,of the following Long Term Treasury Bonds indexed to inflation in the Eurozone:

- 10 Year BTPi:

start date: 15March 2008; sixteenth tranche

maturity: 15September 2019

real annualcoupon rate: 2.35% annual, payable six-monthly

maximum nominalissuance amount: 1,000 million euros

ISIN: IT0004380546

The placement mechanismto be used will be the uniform-price auction mechanism, with allotment priceand issuance amount being set discretionally. The amount placed will bedetermined excluding bids at prices considered unfavourable on the basis ofmarket conditions.

As regards theremainder of the procedure, placement will be conducted following the technicalcriteria and regulations applied when placing nominal BTPs. The public will beable to reseserve bonds until 26 August 2009. All dealers can, until 11.00 on 27August 2009, submit, via the National Interbanking Network, a maximum of threebids, each having a real value (not revalued on the basis of the IndexationCoefficient) of no less than 500,000 euros. Bid prices, which must also beformulated in real terms, shall differ by at least 1 euro cent. On the basis ofthe Indexation Coefficient with reference to the settlement date, Bancad'Italia will calculate the equivalent values in relation to the capitalsubscribed and the accrued interest payable for settlement of the bondssubscribed at auction. Settlement shall take place two working days after theday of the auction (T+2), being 31 August 2009. For the aforementioned BTPi,the maturity date on the second coupon of which is 15 March last, subscribersshall pay accrued interest for the period of 169 days.

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

State bondspecialist dealers shall be eligible to participate in the additional placing,the maximum amount of which shall be equal to 10% of the amount offered atauction, submitting subscription bids by 15.30 on 28 August 2009. Theprocedure and conditions for the partecipation of specialists in the additionalallocations are set out in the relevant decrees authorising the issuance of theabove mentioned bonds.

08/21/2009

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