PRESS RELEASE

QUARTERLY TURNOVER UP BY 33% TO 32.8 MILLION EUROS
QUARTERLY OPERATING RESULT IMPROVED BY 38% TO 2.2 MILLION EUROS

At their meeting held in Florence today, the Board of Directors of Targetti Sankey S.p.A. approved the Group's consolidated results for the second quarter of 2001 (1 April - 30 June).

Principal results of the second quarter ("Q2 2001"). During the course of the quarter the Group achieved a net turnover of 32.8 million euros, which in relative terms corresponds to an increase of 33.0% as compared with 24.7 million euros in the second quarter of 2000 ("Q2 2000"). This growth is attributable for the most part to the consolidation of Neri S.p.A.. Net of the Neri contribution the quarterly turnover increase amounts to 6.2%.

The consolidated gross operating margin (EBITDA) reached 3.8 million euros (3.1 million euros in Q2 2000), which represents a growth of 20.3% and a margin of 11.5% of turnover (as compared with 12.7% in Q2 2000).

The consolidated operating result (EBIT) attained 2.2 million euros, a growth of 38.5% as compared with the corresponding period of 2000, when it amounted to 1.6 million euros. Expressed as a percentage of turnover, this is the equivalent of 6.7% and represents an improvement as compared with the 6.4% of Q2 2000.

Profits before tax amounted to 1.6 million euros, an increase of 20.4% as compared with the 1.3 million euros of the second quarter 2000. This result benefits from the positive contribution of the sector for "exterior illumination and urban lighting fixtures" (Neri achieved a turnover of 6.6 million euros and a before-tax profit of 1.2 million euros in the second quarter of 2001) and the re-established economic equilibrium of Targetti North America (formerly Targetti-Tivoli), the Group's subsidiary in the USA.

Asset situation. The consolidated financial situation brings out a net indebtedness amounting to 33.3 million euros (30.0 million euros as of 31 March 2001). The net financial charges sustained in the second quarter amounted to 0.6 million euros and compare with 0.3 million euros in the corresponding period of 2000.

The net assets passed from 42.2 million euros as of 31 March 2001 to 41.9 million euros as of 30 June 2001.

Comment of the Managing Director, Lorenzo Targetti. "Notwithstanding the fact that the market continued to suffer from a not by any means easy economic situation, the Targetti Group achieved quite satisfactory results in the course of the second quarter, where the brilliant performance of Neri and the re-established economic equilibrium of the Group's American subsidiary merit special emphasis. Following the promising start made in the second quarter, we expect to continue this profitability recovery also in the second half of the year".

First half of 2001. The consolidated turnover of the first half of 2001 amounted to 62.0 million euros, which represents a growth of 25.4% as compared with the 49.4 million euros achieved in the corresponding period of last year. A substantial part of this growth is due to Neri, included in the Group's consolidation area as from 1 January 2001.

The consolidated operating result (EBIT) reached 3.6 million euros as compared with the 3.0 million euros achieved in the corresponding period of 2000 (+17.5%). Expressed in terms of the turnover, the operating result for the half-year amounted to 5.7%, which compares with 6.1% of the corresponding period of the previous year.

The before-tax profit for the six months under review amounted to 2.5 million euros and compares with 2.4 million euros in the first half of 2000 (+1.0%).

The half-yearly results, which are to be considered and approved by the company's Board of Directors on 27 September 2001, are to be subjected to limited auditing by Reconta Ernst & Young S.p.A.

N.B. The principal data of the consolidated balance sheet and P&L account for the 2nd quarter ending 30 June 2001 as approved by the Board of Directors are appended to the present Press Release.

For further information please contact:

Fabio Norcini
Investor Relations
Targetti Sankey S.p.A.
+39 055 3791.299

Florence, 9 August 2001

The Targetti Group, with headquarters in Florence, is one of the leaders in the interior and exterior architectural lighting sector. The Group produces and markets sophisticated equipment, providing a perfect synthesis of technology and design, utilised to light major works of art such as Michelangelo's David and the Last Supper by Leonardo da Vinci, as well as the Archaeological National Roman Museum, not to mention the Amsterdam Railway Station, the Bilbao Subway, the New York Stock Exchange, restaurants of the Mc Donald's chain, plus the showrooms of Benetton, Bang & Olufsen and Diesel, up to and including the pit station of the Mc Laren Grand Prix racing team.

TARGETTI GROUP - CONSOLIDATED ECONOMIC AND FINANCIAL DATA

Asset Data - thousand of euro 30/06/2001 31/03/2001 31/12/2000
Assets
Short-term assets 84.611 78.865 61.273
Net Tangibile assets 24.545 24.390 21.946
intangible assets 12.673 12.856 11.566
Financial assets 778 718 1.111
Other medium-and long-term assets 1.023 1.056 1.104
Total assets 123.630 117.885 97.000
Liabilities and net equity
Short-term liabilities 63.970 60.256 49.783
Medium-and long-term liabilities 17.756 15.458 9.602
Shareholders' equity 41.904 42.171 37.615
Total liabilities and equity 123.630 117.885 97.000

Net financial position (33.266) (29.990) (20.404)
Investments made during year 2.881 1.710 7.687

Economic Data-thousand
of euro 2nd Quarter 2nd Quarter 1st Half 1st Half
2001 2000 2001 2000

Net sales 32.816 24.669 61.989 49.431
Variation of finished
and semi-finished
products in hand 767 1.263 1.283 1.477
Other earnings 159 250 782 578
Total value of production 33.742 26.182 64.054 51.486
Cost of raw materials,
accessories and goods (13.550) (10.996) (25.847) (21.875)
Variation of raw material
in stock 582 504 839 979
Cost of services and other
operating costs (10.161) (7.076) (18.878) (14.187)
Total value added 10.613 8.614 20.168 16.403
Cost of labour (6.830) (5.468) (13.539) (10.669)
Gross Operation margin 3.783 3.146 6.629 5.734
Depreciation (1.424) (1.363) (2.770) (2.454)
Allocation reserves and
other value loss (174) (204) (298) (248)
Operation results 2.185 1.579 3.561 3.032
Nef financial receipt
(charges) (614) (253) (1.078) (531)
Value adjustments 0 0 0 0
Ordinary Management result 1.571 1.326 2.483 2.501
Net extraordinary receipt
charges (7) (26) (16) (57)
Result before taxes 1.564 1.300 2.467 2.444
Tax paid on profit (706) (804) (1.262) (1.406)
Net result 858 496 1.205 1.038
Result due to third-party
shareholders (84) (39) (273) (60)
Net profit to be disposed
of by Group 774 457 932 978

Neri S.p.A is included in the consolidation area since 1 January 2001