9M 2008 Results

Q3 2008 net income: 333 million euro, -21% compared to Q3 2007
9M net income: 104 million euro, -33%
BANCA MEDIOLANUM net inflows: 1,683 million euro, +55%
2008 interim dividend: 8.5 eurocents per share

The Board of Directors of Mediolanum S.p.A. met today in Basiglio (MI), approved the Consolidated Financial Statements as at September 30, 2008, and resolved to distribute an interim dividend of 8.5 eurocents per share before any withholding tax. The dividend will become payable on November 27, 2008 (ex-dividend date November 24, 2008; coupon No. 17).

As announced October 22, with reference to the initiative in favour of customers holding index-linked policies with Lehman Brothers bonds underlying, the two major shareholders, the Doris Group and Fininvest S.pA., have waived their share of the aforementioned interim dividend for a total of 47.5 million euro. Additionally, today they have paid the amount of 72.5 million euro in the form of financing, which along with the dividend waiver will cover the burden pertaining to the Mediolanum Group, safeguarding its net equity and leaving the minority shareholders unharmed. Thus, the intervention by the two major shareholders comes to a total of 120 million euro.

The CONSOLIDATED GROUP RESULTS confirm the positive trend already evident at the half-year point. The decrease with respect to the first nine months last year was limited to 33%, thanks to a net income of 33 million euro for the quarter, -21% with respect to the third quarter 2007.



The dismal trend in the financial markets in the first nine months had an impact on commissions from managed assets (-39 million euro with respect to September 30, 2007), and on the net financial margin of the investments at fair value (-11 million euro compared to September 30, 2007).
However, the Company confirms they do not have any write-downs that would come from sub-prime mortgages or mortgage-backed securities.

In light of the aforementioned:

	Net income for the nine months was at 104 million euro, a decrease of 33% compared to the result for the same period last year.
	Profit before Tax was at 134 million euro, with a decrease of 33%.
	Assets under Administration totalled 30,782 million euro, down 12% compared to September 30, 2007.
	Net Inflows, on the other hand, remained significantly positive at 1,076 million euro.

The same considerations made for the Group can also be applied to the DOMESTIC MARKET where the following results were achieved (Net Income and Assets include Banca Esperia for the 48.5% share pertaining to the Group):

	Net Income was at 112.9 million euro, with a decrease of 26% with respect to the same period last year;
	Assets under Administration declined 10% with respect to September 30, 2007, totalling 28,811 million euro.

It should be highlighted that Banca Mediolanum registered significant business progress.
In particular,

	Net Inflows were positive at 1,683 million euro, an increase of 55% compared to the first nine months of last year. In contrast with the rest of the market, Net Inflows into Managed Savings were very positive at 814 million euro, up 39%.
	Life Gross Premiums Written totalled 2,100 million euro, 12% less with respect to the same period last year. This result is due, on one hand, to an extraordinary performance in new business of Recurring Premiums, which grew by 39% to 198 million euro, and in particular in the sales of the Individual Pension Plans, ‘Tax Benefit New’; on the other hand, to a reduction of 27% in Single Premiums, coming in at 1,020 million euro.
	Growth in the number of Licensed advisors continued: 5,108 or +9% compared to September 30, 2007, with an additional 844 non-licensed advisors waiting to take the CONSOB licensing exam.
	There was a total of 1,077,000 customers at September 30, 2008, an increase of 2%.
	There was a total of 554,800 bank accounts at September 30, 2008, an increase of about 37,000 accounts with respect to September 30, 2007, +7%.

Highlights in particular with respect to Banca Esperia:

	Net Income was at 8.3 million euro (4.0 million euro for Mediolanum’s share), a decrease of 63%, substantially due to the absence of performance fees.
	Assets under Administration fell 5% with respect to September 30, 2007, reaching 8,652 million euro (4,196 million euro for Mediolanum’s share).

With reference to the FOREIGN MARKETS:

	The Net Economic Result was a negative 9.4 million euro. The business in Spain, through Fibanc Mediolanum, closed the nine month period with a negative net result of -4.8 million, caused by the difficult situation in the markets.
	Assets under Administration totalled 1,971.3 million euro, down 33% with respect to September 30, 2007.

In an effort to provide more complete disclosure about the results as at September 30, 2008, we have attached the segment report detailing income statement data, reclassified to reflect the criteria used by the Mediolanum Group.

A presentation in English of the financial information contained herein will be available at Borsa Italiana.

The interim Financial Statements as at September 30, 2008 will be available at the company’s Registered Office in Basiglio - Milano 3, Palazzo Meucci - Via F. Sforza, on the website http://www.mediolanum.itand at Borsa Italiana S.p.A..

The Officer responsible for preparing Mediolanum S.p.A accounting documents, Luigi Del Fabbro, declares that, in compliance with the requirements of the second paragraph of section 154 bis of the Consolidated Finance Act, the financial information contained herein reflects the accounting entries, records and the books.

The Board has also resolved to start a program for Mediolanum S.p.A. for the issue of non-convertible bonds for a maximum of 400 million euro that will mainly be aimed at the retail customers of Banca Mediolanum S.p.A.

This bond issue plan has the goal of modifying the time horizon of the current financing of the holding company, diversifying the due dates toward the longer term. In fact, the bonds will be issued with durations of 3 to 6 years.

The plan mainly entails the issuing of variable-rate bonds, with coupons indexed to the 3-month EURIBOR, and a payback of the principal at maturity. Some of the bonds may entail early reimbursement. The plan also includes the possibility of the issue of fixed-rate bonds based on market rates.

The specifics of the bond issue plan will be described in detail in the Basic Prospectus, which will undergo the authorisation process by the relevant regulation authority (CONSOB).


Basiglio - Milano 3 City, November 12, 2008


Attachments:
Balance Sheet as at September 30, 2008
Income Statement as at September 30, 2008
Segment Report

Contacts: Media Relations Roberto Scippa Tel +39 02 9049 2902 Fax +39 02 9049 2345 e-mail: gmmedia@mediolanum.it

Investor Relations Alessandra Lanzone Tel +39 02 9049 2039 e-mail: investor.relations@mediolanum.it

Dati societari  -   General Archive  -   Legal Disclaimer  -   Privacy  -   F.A.Q.  -   Glossary  -   Site map  -   Links  -