Y2K Conversion Update

In light of the significance of our services, AEM (Milan's Power Utility) began addressing the "Millennium Bug" in 1997. Initially, steps were taken to modify and replace our information systems, Y2K compliant versions of which have been in operation since March, 1999, and, subsequently, to address the vast and complex field of embedded systems.

With regard to the latter, AEM is confident that it has achieved full Year 2000 Compliance.
In addition to these measures, AEM has prepared 45 specific Continuity and Contingency Plans, which add up to the existing round the clock prevention and security activities, in compliance with the requirements of the jurisdictional authorities.
Further, we will carefully monitor the transitional phase (from 9:00 a.m. on December 31, 1999 to 12:01 p.m. on January 1, 2000), the continuity phase (from 12:01 a.m. on January 1, 2000 to 8:00 a.m. on January 3, 2000), and the reimplementation phase (from January 3, 2000 onward) through a special internal "Task Force" which will coordinate the activities of all operating teams, the staffing of which will be reinforced for this project.
The Task Force will also coordinate with media as well as with local and national authorities.

AEM - TORINO

<http://www.aem.it/>
(dr. Enrico Caser)

AEM Torino (Turin's Power Utility) must guarantee quality and continuity of services throughout the Year 2000 Rollover.

Electricity (generation, transportation and distribution), District heating, Public lighting, Traffic control and Residential Heating have been thoroughly analyzed to minimize risks.

AEM Torino has been working to make all computer based systems and all sensitive electronic equipment Y2K compliant since 1997. AEM Torino's goal is to assuring regular and problem-free services to its customers.

All problem containment strategies and procedures are included in the Continuity and Emergency Plan. AEM Torino's Plan has been registered with the local Prefetture (Ministry of the Interior Provincial Offices).

During Rollover, AEM Torino will be connected through satellite phones with the National Decisional Center in Rome, where all the most important decisions are to be coordinated from. Extra AEM Torino's operational staff will be on duty to monitor the situation and reinforce intervention capabilities.

AEROPORTI di ROMA

<http://www.adr.it/>
( Pietrosanti Carlo)

Aeroporti di Roma (Airport Services) launched its Y2K project to assure both business continuity and customer service prior to, during and after Millennium rollover.

Project areas are:

Administration and Financial (SAP R/3), Human resources management (SAP R/3), Cargo, Commercial concession.

An appropriate Y2K conversion program has been carried out and completed on schedule in late June, 1999.

Contingency Planning is nearing completion and will be tested within the second half of November.

ALBACOM

<http://www.albacom.it/>
(dr. Carlo Ridolfi)

Albacom's Y2K Project is part of a wider Y2K Project set up by British Telecom and all participated companies, with the objective of assuring business continuity and preventing possible Y2K associated service disruptions.

Within the project, all the necessary activities to retain full Albacom's infrastructure and system functionality were defined. That is, apart from external causes such as, for example, other telecommunication services or power supply.

The two main aspects involved in the Y2K project are:

risk containment, to reduce the possibilities of disruptions, through non-compliant systems conversion (Y2K conversion project);

impact containment, with the scope of defining the activities to tackle Y2K related emergencies due to external events which cannot be directly dealt with (Contingency Planning), so as to contain their impact upon business organization and operation.

Below is the conversion progress status as of October 30, 1999:

-- Y2K compliance (Gartner Group COMPARE scale): 3.89

-- Contingency Plan:

risk/impact analysis: 100% completed

definition of activities: 100% completed

detailed planning: 70% completed

A L I T A L I A

<http://www.alitalia.it/>
(dr. M.Bendoni)

Alitalia started Y2K remediation activities in 1996. The main areas covered, in accordance with BSI definition, were:

IT systems and H/W equipment;
Ground equipment and systems;
Fleet.

The present situation with reference to the areas above has been one of "compliance" since the end of October, 1999.

Present activities are related to:

Contingency planning (November 1999),

Rollover (December 1999);

Final IT integrated testing;

Flight Check for every A/C type.

E N A V

http://www.enav.it/
(ing. Pierluigi D’Aloia)

ENAV, Italy's ATM and ATS provider, herein states that own equipment and systems have reached the Y2K compliance level internationally required to maintain 100% of the declared Capacity to meet 100% of its Users demand, within the ICAO acknowledged conditions of Safety.

Supporting, favourable recognition has been received from Users organization (IATA), including the national major airline representative.

Main systems validation field testing, as officially, internationally pre - announced to Users via NOTAM, has been successfully completed upon Y2K compliance assessment.

Contingency Plans, already in place for each ATS/ATC Unit, have been updated for Y2K and coordinated with adjacent Units.

LoA with neighboring foreign ATC Units were sent out and their signature is due back soon.

Coordination and dry run drills have been performed with ICAO/CFMU ad hoc Unit.

ENAV (Ente Nazionale di Assistenza al Volo--National Flight Support Agency)

ATM (Air Traffic Management)

ATC (Air Traffic Control)

ATS (Air Traffic Services)

IATA (International Air Transport Association)

NOTAM (Notice to Airman)

LoA (Letter of Agreement)

CFMU (Central Flow Management Unit_ Eurocontrol)

ICAO (International Civil Aviation Organization)

E N E L

<http://www.enel.it/>
(ing. Vincenzo Ferrari)

The primary objective of Enel's "Y2K Project" is to ensure maximum continuity as regards power supply. The project, which began in 1997, is being carried out in observance of the most accredited international standards and of the North America Electric Reliability Council's (NERC) guidelines.

To date, certification and conversion activities have been completed on all mission-critical systems and equipment.

In addition, a continuity plan has been set up with the objective of guaranteeing service through the management of unpredicted events. The plan is based on full compliance with UCTE's (Union pour la Coordination du Transport de l'Electricit�) recommendations, on production programs aimed at maximum safety and on a careful review of the existing emergency and protection procedures.

Enel is highly confident in the results of this project.

E N I

<http://www.eni.it/>
(ing. Giovanni Bernardelli)

Each Eni Group Subsidiary Company, is managing its Y2K Program in the impact areas below :

- Supply chain

- Products & Services

- Process Systems

- Applications & Procedures

- IT Infrastructures

- Facilities & Equipment

All critical system Y2K remediation activities have been completed while overall project completion is expected by the end of November, 1999.

Contingency & Continuity Plans status is as follow :

- Safety criteria for contingency plans: issued

- Emergency and continuity guide lines: issued

- Contingency plans for electricity and communications: defined

- Completion date : Oct 1999

- Contingency plans testing: Oct. - Nov. 1999

Total cost estimate: Lit. 140 billion approx.

(Euro 72 million).

FERROVIE DELLO STATO

<http://www.fs-on-line.it/>
(ing. Antonio Lagan�)

Ferrovie dello Stato S.P.A.'s Y2K compliance statement:
(Italy's National Railways)

Ferrovie dello Stato S.p.A., is aware of the Year 2000 issues and several activities have been planned and are in progress to achieving Y2K compliance in accordance with such common standards as the BSI (British Standards Institution DISC PD2000 - 1), as well as similar , industry wide, de-facto standards.

We are currently working to attain full hardware, software and embedded systems Y2K compliance as scheduled. Indeed, Ferrovie dello Stato's Y2K compliance activities are nearly 95% completed as to mission-critical and important business systems (i.e.: systems impacting upon train circulation, passengers and personnel security, billing, ticketing and booking systems)

Internationally adopted procedures have been followed in inventory, compliance assessment, conversion, testing and certification of relevant components.

Furthermore, we have contacted Ferrovie dello Stato’ s relevant suppliers and business partners from whom Y2K compliance certification and specific assurances as to Y2K potential and long-terms problems from suppliers, vendors, business partners and public utilities, were obtained (or being received).

We are currently assessing Y2K compliance through an independent consulting company adopting the world-wide recognized COMPARE scale standard. The results of this finalY2K compliance assessment will be available during the first week of December, 1999.

Ferrovie dello Stato is currently setting up a national contingency plan to ensure transportation service continuity, in agreement with local and national utilities in order to guarantee public safety and security (i.e. railways stations).

Ferrovie dello Stato has defined and designed a dedicated organizational structure to manage the Y2K Crisis. This organization will be operational at central and local level, in addition and integrated with the standard emergency team, to minimize Y2K related disruptions. Y2K Crisis management Team implementation will start on November 15, 1999 and will include monitoring of locomotives and carriages testing final phase, currently completing field testing phase.

GLOBAL ONE COMMUNICATIONS S.p.A.

<http://www.global-one.net/y2k/index.html>

<http:/www.global-one.it>

(ing. Maurizio Marchetta)

Global One, the international joint venture of Deutsche Telekom, France Telecom, and Sprint, announced last July that it had reached its goal on schedule to be 100 percent Year 2000 compliant by 30 June for all Global One-owned network elements.

These network elements include the Global One backbone transmission network, the Global One voice network, the Global One ATM-based network, and the legacy IP and data networks. The network elements in the Global One-owned network have been thoroughlytested according to accepted international standards and confirmed to be 100 percent Year 2000 compliant.

To underscore the positive results of its own tests, Global One has participated in an in-depth series of Year 2000 voice and data inter-operability tests organized by the Year 2000 International Telecom Forum, whose members include Deutsche Telekom, France Telecom, Sprint, Sprint Canada, and Global One. The objectives of those tests -- conducted in laboratories located in France, Germany, the United States and Canada - were met by all ITF members without a single Year 2000-related failure.

Global One supports all the customers through the Global One Year 2000 Program Management Office: it was established in 1997 and includes a Risk Management Team that is coordinating company-wide efforts to ensure business continuity.

Besides Global One has established an Internet site on its corporate home page to provide detailed information for its customers and other interested parties concerning its Year 2000 program: to access this site, go to www.global-one.net and select Year 2000 from the main menu.

Global One in Italy is represented by Global One Communications S.p.A.

O M N I T E L

<http://www.omnitel.it/>
(dr. Elisabetta Stefanini)

Omnitel's Y2K Compliance statement

Omnitel has adopted an action plan--which also involved its partners and suppliers--for the conversion or compliance certification of its I.T. systems in accordance with millennium date change requirements.

Such activities have been sucessfully carried out as to business mission-critical systems. Ongoing fine-tuning and testing activities will be continued untill the end of the year.

The Company also confirms that it has prepared a contingency plan aimed at solving possible critical process malfunctioning which-- notwithstanding the care and precision that Omnitel devoted to carrying out the above mentioned activity plan--may however occur.

S E A

<http://www.sea-aeroportimilano.it/>
(dr. Lidia Lago Suardi)

Sea Milan Airports, in its capacity as the Linate and Malpensa airports operator, informs all those concerned that:

Sea Y2k Continuity Planning was started in 1997 with the purpose of:

ensuring that airport operation would be maintained with the minimum level of disruptions over the "Millennium date change period" with complete safety, business continuity and minimal impact on infrastructure's capacity.

Adopted Y2K conversion standards: British Standards Institution and Aci-Iata worldwide programme

All the vital systems and equipment in use at the Milan Linate and Malpensa airports, under Sea’s responsibility, have been validated and, where necessary, implemented.

All suppliers have been contacted and conformity certificates have been obtained from the same. The systems are therefore 100% Y2k ready.

Contingency and Recovery Plans have been established and have been sent out to all our business partners.

The airport staff have been called upon; a Y2k Situation Unit has been formed to quickly respond to any difficult situation that may arise.

T E L E C O M

<http://www.telecomitalia.it/>
(ing. Gian Carlo De Iacovo)

Y2K Compliance Satus:

Telecom has reached and already exceeded Level 4: Operational Sustainability. (At this level, mission-critical technology has been remediated from year 2000 risk), according to the Gatner Group COMPARE (COMpliance Progress And Readiness) standard.

Before the end of the year Telecom Italia will reach Level 5: Fully Compliant. (At this level, all technology within the enterprise and within business partners has been made compliant).

CONTINUITY AND EMERGENCY PLANS:

Continuity and Emergency Plans are being completed for mission critical systems by the relevant company departments. Risk analysis and solution identification are both complete. The plans in question are currently being drawn up and codified, a stage which is scheduled for completion by the 15th of November. These plans will undergo drill sessions and testing in November and December.

Under the auspices of the Comitato Anno 2000 (Italy's Y2K Committee) , Telecom Italia’s plans will be integrated with those drawn up by other telecommunications companies and, more generally, with those of Italy's essential infrastructure service providers.

T I M

<http://www.tim.it/>
(P. Bagnoli, CIO)

Y2K Compliance Status:

Telecom Italia Mobile (TIM) has reached and already exceeded Level 4 (Operational Sustainability), according to the Gartner Group COMPARE (COMpliance Progress And Readiness) standard.

Before the end of the year TIM will reach Level 5 (Fully Compliant) as to all technology within the enterprise, as well as the interoperability with business partners such as Dealers and Network Technology Providers.

Due to the peculiarity of the operational procedures between TIM and the variety of its other partners (Banks, Credit Card Operators, Post Offices etc.)TIM will pursue the highest I.T. compliance possible under the circumstances.

CONTINUITY AND EMERGENCY PLANS:

Continuity and Emergency Plans are being completed for "mission critical" systems by the relevant company departments. Risk analysis and solution identification are both complete. The plans in question are currently being drawn up and codified, a stage which is scheduled for completion by November 15, 1999. These plans will undergo drill sessions and testing in November and December.

Under the auspices of theComitato Anno 2000, TIM’s plans will be integrated with those drawn up by other telecommunications companies and, more generally, with those of Italy's essential infrastructure service providers.

W I N D

<http://www.wind.it/>

WIND and Year 2000 compliance

As a provider of mobile and fixed telecommunication services, WIND is proactively engaged in anticipating Y2K potential problems, has implemented a Year 2000 Project and takes part in the Italian Year 2000 Committee.

The progress of the Project is monitored on a regular base through a Steering Group. Project activities includes:

Audit of our systems and services along with our internal infrastructure for Year 2000 compliance (inventory closed by June 99)

Additional testing of our most critical business processes (closed by November 99)

Requests to suppliers for Y2K compliance statements (closed by October 99)

Now we are at level IV of COMpliance Progress And Readiness (according to Gartner Group COMPARE methodology)

Contingency Planning is structured with:

Presence at Forte Braschi (the National Decision Center)

WIND Control Room (3 responsible)

Reinforcement of technical presence on the field during critical dates (31/12, 1/1, 3/1)

Our contingency plan is currently scoring 92% according to CEP2000 verification questionnaire about business continuity.

WIND Telecomunicazioni S.p.A.

Technical Operation Director

Georges Leperchey

< Versione in italiano curata da Ercole Guidi >

Italy's Major Public Service Providers'

Y2K CONVERSION UPDATE

as of November 11, 1999