FY 2004 Results

Consolidated net profit: 141 million euro, +9%
Consolidated Assets under Administration: 26 billion euro, +10%

Embedded Value: 2,503 million euro, +16%
Embedded Value Earnings: 437 million euro, +53%

Dividend proposal: 0.14 per share, +27%

The Board of Directors of Mediolanum S.p.A. met today in Basiglio (MI) and approved the Annual Report and the Consolidated Financial Statements as at December 31, 2004.

The Board of Directors has proposed to the shareholders a distribution of a dividend of 0.14 euro per share, an increase of 27% with respect to 2003, payable as of May 26, 2005 (with an ex-dividend date of May 23, 2005).

The General Shareholders' Meeting for approval will take place April 26, 2005 at 3:00 p.m. for the First Call, and, if needed, April 28, 2005 at the same time for the Second Call, in Basiglio Milano 3, Palazzo Meucci.

With reference to the GROUP'S CONSOLIDATED RESULTS, including the effects of the New Ventures:

	Consolidated Net Profit was at 141 million euro, an increase of 9% compared to the results for the previous year.
	Consolidated Assets under Administration, grew by 10% with respect to December 31, 2003, totalling 25,791 million euro.

With reference to core business ITALY, the following results were achieved:

	Net Profit was at 174 million euro, a growth of 6% with respect to the results of the previous year.
	Assets under Administration grew 7% with respect to December 31, 2003, totalling 20,994 million euro.
	Net Inflows into Managed Savings, were positive, totalling 1,346 million euro (1,856 million euro as at December 31, 2003), and were positive each month of the year. The Life business made a important contribution, with net inflows of 1,399 million euro, in line with respect to the previous year.
	Gross Premiums Written in total came to 2,309 million euro, an increase of 12% with respect to the previous year. In particular, Life New Business grew 12% (euro 1,458 million), with New Business in Recurring Premiums (exclusively unit-linked) contributing 176 million euro, an increase of 34%, and Single Premiums adding 1,283 million euro, +9%.
	Mutual Funds & Managed Accounts registered Gross Inflows of 1,410 million euro.
	As at December 31, 2004, the Sales Network of Banca Mediolanum totalled 4,857 financial advisors - of which 4,048 were licensed advisors, compared to 4,052 for the previous year.
	There were a total of 785,000 Primary Account Holders as at December 31, 2004, an increase of 1% with respect to the previous year.
	Embedded Value, calculated by Tillinghast-Towers Perrin for the Life and Funds businesses in Italy, that do not yet value future profits of the Bank and of the foreign subsidiaries, registered an increase of 16%, from 2,166 million euro for 2003 to 2,503 million euro, pre-acquisition. In particular, Embedded Value Earnings came in at 437 million euro, +53% with respect to the previous year, and represents the highest result every attained. The Value of New Business from Life and Asset Management was positive at 176 million euro, an increase of 14% with respect to the previous year. A strong contribution came from the Life business, with a Value of New Business, at 151 million euro, increasing 22%.

With reference to the most advanced NEW INITIATIVES, the contribution from Fibanc in Spain and Banca Esperia in Italy to the Consolidated Group results are as follows:

	Net Profit for the business in SPAIN came to 1 million euro, in line with the previous year. Assets under Administration grew by 4% with respect to December 31, 2003, totalling 2,016 million euro.
	BANCA ESPERIA registered a profit of 8.5 million euro (4 million euro for Mediolanum's share), quadrupling the result of the previous year. (2 million euro). Assets under Administration reached 4,826 million euro, (2,341 million euro for Mediolanum's share), an increase of 56% with respect December 31, 2003.

The Board of Directors has resolved, among other things, to propose that the Stockholders' Meeting renew the Board's authority to buy and transfer its own shares, as it did in the past, up to a maximum of 3,000,000, the equivalent of 0.41% of share capital with a nominal value of €72,566,861, up to €50,000,000, for a period of one year and in any case up until the Annual General Meeting for the 2005 financial year.
This authority should be granted for the purposes of supporting the liquidity of the stock.
Purchasing and selling should be undertaken at a price no greater than and no less than 10% of the previous day's market price. It will not be undertaken by public offer, but will be carried out on the market in the ways indicated by Borsa Italiana S.p.A. and in compliance with article 132 of Italian Law 58/98, as well as with the limits applicable at the moment the purchasing or selling is carried out.
At today's date Mediolanum S.p.A. holds 385,000 of its own shares.

In 2003, the Mediolanum Group initiated a project for the transition to the IAS/IFRS principles.
The first phase was a preliminary diagnosis of the accounting and organizational impact on the Mediolanum Group companies of adopting the international accounting principles.
That analysis indicated all the actions necessary to accomplish the conversion to the international accounting principles.
The design phase was conducted keeping the "Banking" and "Insurance" areas separate, considering the specific nature of the two sectors.
The implementation process is still in progress and will be completed by the end of the first half of this year.
Mediolanum S.p.A. expects to prepare its first accounting situation under the international accounting principles (IAS/IFRS) at the time of the consolidated quarterly report at 30 September 2005.
Reconta Ernst & Young S.p.A.is in the process of being engaged to audit the opening account balances that will receive the effects of First Time Adoption.
Based on the evidence collected thus far, the application of the IAS/IFRS international accounting principles is not expected to have any significant effect on the balance sheet and income statement of the Mediolanum Group.

Download:

Reclassified Income Statement FY04 and Balance Sheet as at December 31, 2004


Basiglio - Milano 3 City, March 22, 2005

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

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