PRESS RELEASE

Targetti Group: Shareholders' Meeting approves capital increase reserved to NERI

·INCREASE IN NOMINAL CAPITAL 1.404.000 EURO (EQUAL TO 18% OF CAPITAL)

Today in Florence, in the presence of Paolo Targetti, an ordinary and extraordinary shareholders'meeting of Targetti Sankey S.p.A. was convened.

The extraordinary shareholders' meeting has approved a resolution to increase authorised capital with an issue of 2.700.000 ordinary shares of Targetti Sankey S.p.A. with a nominal value of 0,52 Euro, for a total of 1.404.000 Euro, with a premium of 0,92 Euro, for a total of 2.484.000 Euro with exclusion of the option rights in compliance with article 2441 c.c. reserved to Domenico Neri S.r.I. that confers on
Targetti Sankey S.p.A. the shares equal to 100% of the company Neri S.p.A. as per the agreement signed last October between Targetti Sankey S.p.A. and Domenico Neri S.r.I.

The increase in capital concludes an operation which allows the Florentine Group to reinforce its presence in the sector of outdoor architectonic lighting and urban furnishings, thanks to the know-how
of the Neri Group and the innovative technology which it brings to the processing of cast iron, as well as its nearly 40 years of experience in the sector.

The Neri Group, with its 120 employees and a turnover of 20,7 million Euro for the 2000 financial year, has been active since 1962 in the production of outdoor lighting equipment and elements of urban
furnishing, combining technological innovation with close attention to the preservation and restoration of the urban artistic heritage. In the course of its activities, it has contributed to lighting and to
upgrading more than 3,000 municipalities in Italy, in addition to taking part in major international lighting projects.

In the field of urban furnishings, it has restored the historic lampposts in Milan's Piazza della Scala, plus the Canal Grande in Venice, along with numerous other projects in the historic downtown areas of the most famous cities in Italy and the rest of the world (including New York, London, St. Petersburg and Dublin). And these culturally significant efforts have included the promotion of other prestigious initiatives, such as the creation of the Italian Cast-Iron Museum and the publication of the magazine "Arredo e Città" (nominated for the Guggenheim Prize in 1998).

The shareholder structure of Targetti Sankey SpA, following the capital increase described above, shall be as follows: Paolo Targetti 43,1%, Domenico Neri Srl 15,3%, traditional shareholders 13,3%, Henderson Global Investors 3,4%, Comit Asset Management 1,9% and the remainder of the market 23%.

For further information please contact:

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

Florence, 24 July 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.