Income (loss) from discontinued operations

40. Income (loss) from discontinued operations

The income from discontinued operations of Euros 33,070 thousand includes the gain of Euros 91,000 thousand on the sale to Goldman Sachs of the warrants obtained as part of the July 2005 sales agreement for the Energy and Telecom Cables and Systems businesses and linked to the economic benefits on Prysmian (Lux) S.a.r.l., the expense relating to the adjustment of the amount of the guarantees provided to Goldman Sachs (a negative Euros 4,125 thousand) and the effect of the sale of Olimpia S.p.A. (a negative Euros 53,805 thousand, including transaction costs of Euros 14,011 thousand).

The loss from discontinued operations for 2006 of Euros 1,970,039 thousand includes Euros 1,940,039 thousand for the share of Olimpia S.p.A.’s loss for the year ended December 31, 2006 and Euros 30,000 relating to expenses for the finalization of the price adjustment called for by the sales contract on the Cables and Systems activities mentioned above, and guarantees provided.

41. Earnings per share

Basic earnings per share is calculated by dividing the income attributable to the equity holders of the company (adjusted to take into account the minimum dividends due to savings shares) by the weighted average number of outstanding ordinary shares during the year, excluding ordinary treasury shares.

2007

2006

Income (loss) from continuing operations for the year attributable to the equity holders of the company

131

802

Income (loss) attributable to savings shares considering the extra 2% *

(3)

(20)

Income/(loss) from adjusted continuing operations for the year attributable to the equity holders of the company

128

782

Weighted average number of outstanding ordinary shares (in thousands)

5,230,525

5,205,142

Basic earnings per ordinary share from continuing operations (in euros per thousand of shares)

24.47

150.24

Income (loss) from discontinued operations for the year attributable to the equity holders of the company

33

(1,970)

Income (loss) attributable to savings shares considering the extra 2% *

(1)

50

Income (loss) from discontinued operations for the year attributable to the equity holders of the company

32

(1,920)

Weighted average number of outstanding ordinary shares (in thousands)

5,230,525

5,205,142

Basic earnings per ordinary share from discontinued operations (in euros per thousand of shares)

6.12

(368.87)

* The right for 2006, in which a loss was reported, is cumulative with this right.

Diluted earnings per share has not been calculated since the company, at both December 31, 2007 and December 31, 2006, has only one category of potentially dilutive ordinary shares: shares from exercising stock options. However, since the price to exercise the stock options is higher than market value, the stock options have not been considered as exercised.