PRESS RELEASE

Targetti Group: Annual Shareholders' meeting approves 2000 accounts

CONSOLIDATED TURNOVER INCREASED BY 28% TO 101.3 MILLION EUROS
CASH FLOW INCREASED BY 6% TO 8.1 MILLION EUROS
DIVIDEND OF 160 LIRE ( 48% PAY OUT)
DOMENICO E ANTONIO NERI ENTER TARGETTI BOARD OF DIRECTORS

The Shareholders' meeting of Targetti Sankey S.p.A. - one of Europe's leading operators in the architectural lighting sector - which met in Florence in the presence of Board Chairman Paolo Targetti, approved the Group's consolidated annual accounts for the year 2000.

The principal results. During the year under review the Group achieved a turnover of 101.3 million euros, which represents an increase of 27.9% with respect to the 79.2 million euros of 1999.

Net of the variation caused by the larger consolidation area, the turnover increase amounts to 12%, a particularly positive contribution being made by the outside lighting sector, which reached a total turnover of 10.3 million euros (+39.5%); the Group is continuing its internationalization process: the turnover achieved abroad rose from 59.3% of total sales to 64%.

The gross operating margin (EBITDA) reached 13.5 million euros (13 million euros in 1999), which represents an increase of 3.5% over the previous year and 13.5% of the total turnover (16.5% the previous year). Depreciations and allocations to reserves amounted to 5.6 million euros (including 1.2 million euros of goodwill write-offs) as compared with 3.6 million euros the previous year (when the goodwill write-offs amounted to 0.5 million euros).

The consolidated net profit amounted 2.6 million euros, which compares with 4.1 million the previous year. This result suffers the negative effects of a particularly high tax burden (due to the fact that the goodwill write-offs do not qualify for deduction purposes), the negative phase through which the US subsidiary (Tivoli, now Targetti North America) is passing and the fact that the turnover of the last quarter was below expectations, not least on account of a delivery slowdown caused by the logistical reorganization that is being undergone by the group leader.

Paolo Targetti's comments. "The year 2000 saw the Targetti group continue its considerable expansion, thus confirming the success of our products. It is important to underscore the brilliant results achieved by our subsidiary Extérieur Vert. On the other hand, it is with regret that we have to report the downturn in the Group's profit margin, strongly conditioned by the results of Tivoli, our American subsidiary. We are confident to recover profitability during the present fiscal year also taking into account the expected positive contribution of Neri S.p.A. to be consolidated from 2001 onwards".

The financial situation. The consolidated financial position brings out a net indebtedness amounting to 20.2 million euros (11.7 million euros in 1999); this results derives from the expansion of our activities and the investments made during the course of the year. The net financial charges sustained during the year 2000 amounted to 1.4 million euros, which compares with 0.9 million euros in 1999.

The mater company. Targetti Sankey S.p.A. achieved a total turnover of 54.5 million euros, which represents a growth of 9.4% as compared with 1999 (49.9 million euros). The gross operating margin amounted to 10.2 million euros as against 9.9 million euros the previous year. The net profit reached 2.8 million euros and compares with 3.7 million euros in 1999. Ignoring the greater dividends distributed in 1999 and the devaluation of the holding in Targetti North America, the result for the year 2000 would attain levels slightly better than those of 1999.

Dividend. Shareholders are to receive a dividend of euro 0,083 (160 lire) per share, which represents a 48% payout. The value date is to be 10 May 2001 (shares to be ex coupon as from 7 May 2001). The dividend will qualify for a full tax credit.

Appointments. The Annual Shareholders' Meeting elected Domenico and Antonio Neri as new members of the Board of Directors. Domenico and Antonio Neri are respectively Chairman and Managing Director of Neri S.p.A.. The Meeting also appointed the new Supervisory Board and the Audit Firm for the next three-years period (2001 - 2003), the old Supervisors and Audit firm were confirmed.

N.B.: The principal data of the consolidated balance sheet and the balance sheet for the year ending 31 December 2000 as approved by the Annual Shareholders' Meeting are appended to the present Press Release.

For further information please contact:
Fabio Norcini
Investor Relator
Targetti Sankey S.p.A.
+39 055 3791.299