Bear Stearns Announces Investment Opinion on Telecom Italia Mobile.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Bear Stearns

LONDON--(BUSINESS WIRE)--Feb. 8, 2001

             Bear Stearns Downgrades Telecom Italia Mobile

                Reduces Forecasts for 2001 and Beyond

After keeping the faith for the latter half of 2000, Bear Stearns European Wireless Services Analyst Fanos Hira today downgraded Telecom Italia Mobile (TIM.MI) from buy to attractive and lowered estimates on the company's earnings for 2001 and beyond. "Telecom Italia Mobile has produced disappointing results that require us to lower our expectations going forward," Hira said. "With the news today that the company expects to report lower revenue for 2000, we are forced to remove our buy rating on the company."

The Bear Stearns analyst today released a note detailing TIM's woes. Some key points of the report:

-- Revenues in the fourth quarter of 2000 were down 1.8%, at 2,101 million
euros, well off the analyst's forecast of a 2.1% increase;

-- While net income increased 27.5% for the quarter, an unsustainable tax rate
aided the bottom line;

-- Data as a percentage of the company's revenue came in well below Mr. Hira's
expectations;

-- Voice ARPU was stable in the quarter, but came in below the analyst's
prediction.

With these results as foundation, Mr. Hira is lowering his forecasts: where he had expected 25% of TIM's subscriber base to acquire more sophisticated handsets during the year, he now expects that 15% will do so; he also predicts that data revenues will decrease from 850 million euros to 724 million euros; and that voice ARPU will continue to decline.

For more information regarding Mr. Hira's analysis of TIM and the European wireless services sector, the media may contact Benjamin Pratt in the Bear Stearns Corporate Communications Department at +1 212.272.9294 or Jerry Dellis, in Mr. Hira's group, at [phone].

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Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 2001. All rights reserved by Bear, Stearns & Co. Inc.