"Clearly losing on penalties after working so hard doesn't leave us happy, " Italy coach Roberto Donadoni told the Associated Press.
CNN: Spain beat Italy in Euro penalty shoot out
Italy coach Roberto Donadoni had chosen Panucci ahead of Massimo Oddo at right-back and Gianluca Zambrotta instead of Fabio Grosso on the left.
BBC: Scotland 1-2 Italy
It was Walter Mazzarri's second successive win since taking over from former Italy coach Roberto Donadoni, and lifted Napoli up to eighth place.
CNN: Barcelona return to winning ways with Zaragoza rout
Cassano was in in Roberto Donadoni's Euro 2008 squad but ever since Lippi returned to guide the national team, the forward has not featured for Italy.
BBC: Lippi chasing victory in Dublin
Hamsik snatched the winner 10 minutes from time from Datolo's cross to give coach Walter Mazzarri a record of three wins in four league games since replacing the sacked Roberto Donadoni.
CNN: Ten-man Juventus ambushed by improving Napoli
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