Ashley Young and Ashley Cole missed from the spot, allowing Alessandro Diamanti to hit the winning penalty past Joe Hart to send the Azzurri through to the last four of the tournament.
|Hodgson: Nerves affected England
The 29-year-old admitted he and his team-mates were frustrated by the manner of their exit from the competition, but feels the side performed well under Roy Hodgson and that that bodes well for the future.
"Obviously we are disappointed with the way things have happened," Lescott told Sky Sports.
"But we have progressed and showed a lot of pride and passion and every England fan wants to see that in our performances and we have shown that."
Lescott insists the Three Lions can take away a lot of positives from the tournament, in particular their resiliency in defence that helped to keep them in games throughout the competition.
"We can take a lot of credit from the performances. We dug in at times when we were under pressure and showed a lot of pride," he concluded.