He had organized his fleet in three divisions. The first under his own personal command was formed of the seven ironclads. The second division, under Commodore von Petz, was composed of wooden unarmoured ships. The commodore's flag flew on the old steam line-of-battle ship "Kaiser," a three-decker with ninety-two guns on her broadsides, all smooth-bores except a couple of rifled 24-pounders. With the "Kaiser" were five old wooden ships ("Novara," "Schwarzenberg," "Donau," "Adria," and "Radetzky") and a screw corvette, the "Erzherzog Friedrich." The third division, under Commandant Eberle, was composed of ten gunboats. A dispatch-boat was attached to each of the leading divisions, and the scout "Stadion," the swiftest vessel in the fleet, was at the immediate disposal of the admiral, and was sent on in advance.

The fleet steamed during the night in the order of battle that Tegethoff had chosen. The divisions followed each other in succession, each in a wedge formation, the flagship of the division in the centre with the rest of the ships to port and starboard, not in line abreast, but each a little behind the other. The formation will be understood from the annexed [diagram].

It was an anxious night for the Austrian admiral. For some hours there was bad weather. Driving showers of fine rain from a cloudy sky made it difficult at times to see the lights of the ships, and it was no easy matter for them to keep their stations. The sea was for a while so rough that the ironclads had to close their ports, and there was a danger that if the weather did not improve and the sea become smoother they would not be able to fight most of their guns. But Tegethoff held steadily on his course for Lissa. On sea, as on land, there are times in the crisis of a war when the highest prudence is to throw all ordinary rules of prudence aside, and take all risks.

The admiral had resolved from the outset that, whatever might be the result, the Austrian fleet should not lie in safety under the protection of shore batteries, leaving the Italian command of the Adriatic unchallenged. He felt that it would be better to sink in the open sea, in a hopeless fight against desperate odds, rather than ingloriously to survive the war, without making an effort to carry his flag to victory. So he steamed through the night, followed by his strange array of ships that another leader might well have considered as little better than useless encumbrances, and in front the handful of inferior ironclads that might well be regarded as equally doomed to destruction when they met the more numerous and more heavily armed ships of the enemy. But he had put away all thoughts of safety. He was staking every ship and every man and his own life against the faint chance of success. The coming day might see his fleet destroyed, but such a failure would be no disgrace. On the contrary, it would only be less honourable than a well-won victory, and would be an inspiration to the men of a future fleet that would carry the banner of the Hapsburgs in later days. So he rejoiced greatly when, as the day came, the weather began to clear, and the "Stadion" signalled back that Lissa was still holding out and the enemy's fleet lay under its shores.

As soon as he read the "Esploratore's" signal, Persano had no doubt that Tegethoff was upon him. He countermanded the attack on Lissa, ordered Albini to re-embark the troops, and proceeded to form his ironclads in line of battle, intending to engage the enemy with these only. The ironclads were standing in to attack the batteries of San Giorgio at the north-east end of the island. Persano formed nine of them in three divisions, which were to follow each other in line ahead, the ram "Affondatore" being out of the line and to starboard of the second division. The formation was as follows:—

First Division.
Rear-Admiral Vacca Principe di Carignano.
Castelfidardo.
Ancona.
Second Division.
Rear-Admiral Faa di Bruno Re d'Italia.Affondatore.
Palestro.(to starboard of the line).
San Martino.
Third Division.
Rear-Admiral Ribotti Re di Portogallo.
Maria Pia.
Varese.

The two other Italian ironclads, the "Formidabile" and the "Varese," were not in the line, and took no part in the coming battle. The "Formidabile" had suffered heavily in the attack on the shore batteries, numerous shells entering her port-holes and making a slaughterhouse of her gun-deck. She had been ordered to Ancona, and had left Lissa in the early morning. The "Varese" had been detached to assist in operations on the other side of the island, and joined Albini's squadron of wooden ships while the fight was in progress. Persano's battle line first steered west along the north side of Lissa. About ten o'clock the driving mist on the sea cleared, and the Austrian fleet was then seen approaching on a S.S.E. course. Persano altered his own course, and, led by Vacca in the "Principe di Carignano," the Italian ironclads turned in succession on a N.N.E. course. Thus as the Austrians closed on them the fleet in a sinuous line was steering across the bows of the attacking ships.

It was at this moment that Persano changed his flag from the "Re d' Italia" to the "Affondatore," the former ship slowing down to enable the admiral to leave her, and thus producing a wide gap between Vacca's and Faa di Bruno's divisions. The result of this sudden change of flagship was confusing, as most of the Italian ships were unaware of it, and still looked to the "Re d' Italia" for guidance, and did not notice signals made by the "Affondatore."

Tegethoff had given the successive signals as the mist dispersed, "Clear for action—Close order—Look-out ships return to their stations—Full speed ahead." As the last of the fog disappeared and the sun shone out, he saw to his delight the Austrian flag still flying on the hill-side batteries of Lissa, and close in front between him and the island shores the enemy's fleet crossing his bows. Out fluttered his battle signal, "Ironclads will ram and sink the enemy!" A final signal was being prepared, "Muss Sieg von Lissa werden!" ("There must be a victory of Lissa!"), but the close encounter had begun, and the ships were wrapped in clouds of powder-smoke before it could be hoisted.

While Persano was passing from the "Re d' Italia" to the ram "Affondatore," Vacca had begun the fight by firing his broadside at the advancing Austrians. The "Castelfidardo" and the "Ancona" followed his example. But Tegethoff held his fire, waiting for close quarters. One of these first shots killed Captain Moll of the "Drache" on the bridge of his ship. A young lieutenant took command of her. He was Weiprecht, who in later years became famous as the commander of the Austrian exploring ship "Tegethoff" in the Arctic regions.