PRESS RELEASE

Targetti Group: The Board of Directors approves 1st quarter 2001 results

GROWTH IN PRO-FORMA TURNOVER OF 29,2 MILLION EURO (+ 18%)
PRO-FORMA GROSS OPERATING MARGIN AT 2,8 MILLION EURO (+10%)

The Board of Directors of Targetti Sankey S.p.A. which met in the presence of Paolo Targetti, approved the first quarter consolidated results for the period ending 31 March 2001 which include the pro-forma accounting prospects of Neri S.p.A., recently acquired.

The principal pro-forma results. During the first quarter the Group achieved a net turnover of 29,2 million euros which represents an increase of 18% with respect to the first quarter of 2000. The result is mainly due to the introduction in the consolidation area of Neri S.p.A.; net of this variation turnover is in line with respect to the previous financial year (+1%).

The gross operating margin (EBITDA) reached 2,8 million euro, equal to 9,8% of net turnover, with an increase of 10% with respect to the 2,6 million euro of the first quarter of the previous financial year (10,5% of net turnover).

Pre-tax profit amounted 0,9 million euro with respect to 1,1 million Euro of the same period of the previous financial year. Such results indicate the effects of the significant investment made in the course of the first quarter by the Parent Group to support commercial activities and the negative results of the American subsidiary.

Presentation of results. The company will present the results to the financial analysts and sector professionals on 23 May 2001 at 15h00 at Sala Bolaffio during Intel 2001 exhibition, Milan (to attend call tel. 055/3791.299 before 18/05/01)

N.B.: The principal data of the consolidated balance sheet and P&L account for the 1 quarter ending 31 March 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, May 14, 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 31/03/01* 31/03/01 31/12/00

Assets
Short-term assets 78.865 62.427 61.273
Net tangible assets 24.390 22.295 21.946
intangible assets 12.856 11.253 11.566
Financial assets 718 1.113 1.111
Other medium- and long-term assets 1.056 1.054 1.104
Total assets 117.885 98.142 97.000

Liabilities and net equity
Short-term liabilities 60.256 50.361 49.783
Medium- and long-term liabilities 15.458 9.906 9.602
Shareholders' equity 42.171 37.875 37.615
Total liabilities and equity 117.885 98.142 97.000

Net financial position (29.990) (23.487) (20.404)
Investments made during year 1.357 7.687

Economic Data - thousand of euro 31/03/01* 31/03/01 31/03/00

Net sales 29.173 24.888 24.762
Variation of finished and semi-finished products in hand 516 144 214
Other earnings 623 400 328
Total value of production 30.312 25.432 25.304
Cost of raw materials, accessories and goods (12.297) (10.186) (10.879)
Variation of raw material in stock 257 (63) 475
Cost of services and other operating costs (8.717) (7.297) (7.111)
Total value added 9.555 7.886 7.789
Cost of labour (6.709) (5.828) (5.201)
Gross Operation margin 2.846 2.058 2.588
Depreciation (1.346) (1.094) (1.091)
Allocation reserves and other value loss (124) (115) (44)
Operation results 1.376 849 1.453
Nef financial receipt (charges) (464) (348) (278)
Value adjustments 0 0 0
Ordinary Management result 912 501 1.175
Net extraordinary receipt charges (9) (6) (31)
Result before taxes 903 495 1.144
Tax paid on profit (556) (298) (602)
Net result 347 197 542
Result due to third-party shareholders (189) (189) (21)
Net profit to be disposed of by Group 158 8 521

*Pro-forma figures include data referring to Neri S.p.A.