- The document provides an analysis of consumer internet usage in Italy in August 2008 based on Nielsen NetRatings (NNR) data. - It finds that MSN/Windows Live brands grew in unique users both with and without internet applications. Windows Live Hotmail overtook Libero to become the #1 email service. - Windows Live Messenger remained the dominant instant messaging service, and Windows Live Spaces closed in on Blogger for the top member community site. Facebook saw huge growth in page views and time spent.

1. Consumer & Online Italy Audience Summary August 2008

2. Executive Summary OSG Network: growing in August08 NNR data MSN/Windows Live brand with Internet Applications: 16.1M UUs MSN/Windows Live brand without Internet Applications: 12.7M UUs Windows Live UU (NNR): WL Messenger up 12.1M (+3.9% MoM, +21.9% YoY) and is stable in terms of market share (83.3%); WL Hotmail back at #1 in the ranking growing up to 6.6M UUs (+6.6% MoM, +30.3% YoY) and overtaking Libero (6.5M UUs and +4.0% MoM); Spaces up to 6.0M UUs (+5.7% MoM, +59.7% YoY) and is getting closer to Blogger in first position; Search decreasing with now 10.3M SoV and 2.72% in terms of SoV share Application Unique Users: WL Messenger still at #1 with 12.2M UUs, Windows Media Player still at #2 with 10.3M UUs.

3. MSN/Windows Live Network Looking at NNR data, MSN/WL is still growing: In the “All sites with Internet Applications” ranking: MSN/Windows Live brand up to 16.2M (+5.3% MoM, +26.2% YoY); In terms of Reach%, MSN/WL up to 60.8%; Google slightly decreasing but stable at #1 with a reach of 82.3%. In the “All Sites without IA” ranking: OSG Network up to 12.7M UUs (+5.8% MoM, +33.2% YoY); Google growing as well (+2.8% MoM) and remains far at #1 with 21.8M UUs; Virgilio (12.2M UUs, +6.7%MoM), Yahoo (11.4M UUs, +3.3% MoM) and Libero (10.7M UUs, 1.5% MoM) competing for the 3rd position.

4. Brand with Internet Applications - I Unique Users (NNR)

5. Brand with Internet Applications - II Reach (NNR)

6. Brand with Internet Applications - III TimeSpent, Total UU, UU Growth YOY (NNR) N.B. Ball size indicates the total number of UUs Transparent ball represent the same brand the year before

7. Brand without Internet Applications - I Unique Users (NNR)

8. Brand without Internet Applications - II TimeSpent, Total UU, UU Growth YOY (NNR) N.B. Ball size indicates the total number of UUs Transparent ball represent the same brand the year before

9. Internet Applications Unique Users (NNR)

10. Instant Messaging – I NNR. WL Messenger enforcing its leadership with 12.1M UUs: in August08 WL Messenger up to 12.1M UUs (+3.9% MoM, +19.5% YoY) and still far at #1 with a market share of 83.3% (slide 15) Skype up to 4.5M UUs (+5.4% MoM, +29.1% YoY) gaining 0.5pts in terms of market share (30.9%) In terms of time spent Strong growth of Yahoo Messenger in the last 2 months (+76% MoM in July and +6.5% MoM in August) with a total of 2h53m per person; WL Messenger is still the leader with 3h16m (-9.9% MoM) Skype very far in 4th position (1h10m) behind C6 (1h18m)

11. Instant Messaging - II Unique Users (NNR)

12. Instant Messaging – III TimeSpent, YoY UU Growth, Total UU (NNR) N.B. Ball size indicates the total number of UUs Transparent ball represent the same competitor the year before

13. Email - I NNR. WL Hotmail back at #1 with 6.6M UUs: WL Hotmail up to 6.6M UUs, +6.6% MoM, +30.3% YoY Libero now @#2 with 6.5M UUs (+4.0% MoM, +20.4% YoY) All other main competitors are also growing: Virgilio Mail: +10.9% MoM but still far from the leaders with 4.7M UUs Gmail: 3.0M with +9.2% MoM Yahoo! Mail: 2.9M with +1.6%MoM In terms of time spent Google is at #1 WL Hotmail: still decreasing (-20.7%MoM, -15% YoY) and very far from the first position with 23m per person Gmail: 1h20m with a (12.3% MoM and +70% YoY) Yahoo! Mail at #2 with 46m (-31.4% MoM, +20% YoY)

14. Email – II Unique Users (NNR)

15. Email – III TimeSpent, YoY UU Growth, Total UU (NNR) Source:Nielsen//NetRatings N.B. Ball size indicates the total number of UUs

16. Member Communities - I NNR. Big slowdown for Blogger (-9.7% MoM) and Spaces now is very close to the 1st position with 6.0M UUs: WL Spaces up to 6.0M (+5.7% MoM; +59.7% YoY) Blogger down to 6.1M with a -9.7% MoM and a +106% YoY In terms of PVs: Spaces at #6 in the ranking with 163M PVs (+13.9% MoM, +16.3% YoY) Huge growth for Facebook: strongly at #1 with over 670M PVs (+43.5%; +1448%YoY) Netlog follows with 578M PVs (+59.8% MoM) far ahead than Badoo (432M PVs and +7.0% MoM) which is now in third position In terms of Time Spent per person: Facebook at #1 with 1h54m followed by Netlog with 1h42m (+45%MoM!) and Badoo with 1h15m WL Spaces stable at 21m

17. Member Communities – II Unique Users (NNR)

18. Member Communities – III TimeSpent, YoY UU Growth, Total UU (NNR) N.B. Ball size indicates the total number of UUs Facebook: +762% YoY 1h54m Time Spent

19. Search Engines - I NNR. Live Search still having an unpredictable trend month after month: 10.3M SoV (-13.0% MoM, +2.0% YoY) with a market share that went down to 2.72% from 2.94% Google down to 323M SoV (-6.4% MoM and +33.1% YoY) with a market share that went down to 85.3% from 85.7% Alice stable in 2nd place: 22.0M SoV (+42.1% YoY) and a market share that grew up to a 5.79% from 5.46%

20. Search Engines – II Share of Visits (NNR) – Other players