PRESS RELEASE

TURNOVER IMPROVES BY 27% TO 128 MILLION EURO
NET PROFIT INCREASES BY 28% AND REACHES 3.3 MILLION EURO
DIVIDEND OF 8 EURO CENTS (43% PAY-OUT)
GOOD PERFORMANCE OF THE OUTSIDE LIGHTING SEGMENT THANKS TO NERI

The Shareholders' meeting of Targetti Sankey S.p.A. - one of Europe's leading operators in the architectural lighting sector - which met today in Florence in the presence of Board Chairman Paolo Targetti, approved the Group's consolidated annual accounts for the year 2001.

The principal results
In the course of 2001 the Group achieved a net revenue of 128.3 million euro, which represents an overall upturn of 26.7% as compared with the 101.3 million of the previous year. For the first time the consolidated accounts of the Targetti Group contain the revenue of Neri SpA, a recently acquired subsidiary, for a total of 23,8 million euro.

The gross operating margin (EBITDA) reached 16.6 million euro (the corresponding figure for the previous year amounted to 13.5 million euro), which represents a growth of 23.2% and a percentage incidence on revenue of 12.9% (as compared with the 13.3% of the previous year).

Write-offs and depreciation totalled 7.3 million euro (+1.7 million euro as compared with the 5.6 million euro of the previous year) and include goodwill write-offs for a total of 1.3 million euro.

Considering the operating result (EBIT), the annual growth amounted to 17.6% - from 7.9 million euro to 9.3 million euro - and represents 7.2% of the net sales revenue.

The cash flow. i.e. the net profit plus the write-offs, proved particularly satisfactory and reached 10.6 million euro, which compares with 8.1 million euro in 2000 and represents an upturn of 30.2% over and above the previous result.

The net consolidated profit amounted to 3.3 million euro (+28.1%) as against the 2.6 million euro of the previous year.

Comment of Board Chairman Paolo Targetti:
"Our Group finished the year 2001 with a growing economic result; this result becomes all the more significant when one bears in mind the far from favourable international political and economic context; special mention is undoubtedly merited by the brilliant performance of Neri, which made it possible to strengthen the group's position in the external lighting sector, and the good start of the Group for the present year".

The asset situation
As far as the asset situation is concerned, the principal variations are the direct consequence of the structural growth of the group. The consolidated financial position brings out a net indebtedness of 28.8 million euro (20.4 million euro in 2000): this result derives from the expansion of group activities and the investments made in the course of the year. Net financial charges sustained by the group passed from 1.4 million euro in 2000 to 2.3 million euro in 2001.

The net assets reached 43.9 million euro, which compares with 37.6 million euro in 2000 and represents a growth of 16.7%. The growth derives from the positive economic results achieved during the year and the increase of the group's equity due to the addition of 100% of the joint-stock capital of Neri SpA.

Targetti Sankey S.p.A.
The group leaders, Targetti Sankey S.p.A., finished the year 2001 with a turnover of 52.1 million euro as compared with 54.5 million euro the previous year. This downturn of overall sales derives not only from a general slowdown of the reference market, but is also due to the fact that the sales previously made in Asia (3.6 million euro in 2000) are now credited to the newly constituted Targetti Asia.
The gross operating margin amounted to 7.5 million euro and compares with 10.2 million euro the previous year. This result is the combined effect of aforementioned market weakness and the considerable investment that were made, especially in the first half of the year, to sustain the expected growth; the benefits of these investments are expected to make themselves felt from the present year onwards.
The net profit amounted to 0.5 million euro, whereas the year 2000 had closed with a net profit of 2.8 million euro.

Neri S.p.A.
Neri S.p.A. (outside lighting and urban lighting fittings) achieved particularly positive results and closed the year 2001 with a turnover growth of 15.2%, revenue totalling 23.8 million euro as compared with 20.7 million euro in 2000. The pre-tax profit, records a growth of 15.2% and reached 3.2 million euro as compared with 2,8 million euro the previous year. It represents 13.6% of the company's total sales revenue.

Dividend
Shareholders are to receive a dividend of euro 0,08 per share (0,083 euro in 2000), which represents a 42,7% payout. The value date is to be 9 May 2002 (shares to be ex coupon as from 6 May 2002). The dividend will qualify for an ordinary tax credit of 56.25%.

N.B. The principal economic and financial data brought out by the consolidated group accounts are attached to this communiqué.

For further information, please contact:
Fabio Norcini
Investor Relator
Targetti Sankey S.p.A.
(0039) 055 37 91 299

Florence, 29 April 2002

The Targetti Group, with headquarters in Florence, are one of the leading protagonists in the sector of architectural lighting for both interiors and exteriors. The group companies produce and market sophisticated equipment - a perfect synthesis of technology and design - that illumines important works of art, including Michelangelo's David, Leonardo da Vinci's Last Supper and the Roman National Archeological Museum and finds application in wide variety of different environments, among them Dublin's city centre, Piazza della Scala in Milan, Amsterdam's railway station, the Bilbao Underground, the New York Stock Exchange, the restaurants of the McDonald chain, the showrooms of Benetton, Bang & Olufsen and Levi's and, not least, the pits of the McLaren Formula 1 Team.

CONSOLIDATED ECONOMIC AND FINANCIAL DATA
Targetti Group

Asset Data - thousand of euro 31.12.01 31.12.00
Assets
Short-term assets 82.305 61.273
Net tangible assets 23.686 21.946
Intangible assets 11.612 11.566
Financial assets 514 1.111
Other medium and long-term assets 1.754 1.104
Total assets 119.871 97.000

Liabilities and net worth (equity)
Short-term liabilities 60.183 49.783
Medium- and Long-term liabilities 15.778 9.602
Shareholders' equity 43.910 37.615
Total liabilities and equity 119.871 97.000

Net financial position (28.783) (20.404)
Investments made during year 8.826 7.687

Economic Data - thousand of euro 31.12.01 31.12.00
Net sales (turnover) 128.314 101.298
Variation of finished and semi-finished products in hand 2.258 3.068
Other earnings 1.187 1.025
Total value of production 131.759 105.391
Cost of raw materials, accessories and goods (51.740) (43.314)
Variation of raw material in stock (179) 709
Cost of services and other operating costs (36.987) (27.630)
Total Value added 42.853 35.156
Cost of labour (26.270) (21.695)
Gross operation margin 16.583 13.461
Depreciation (6.318) (4.920)
Allocation to reserves and other value losses (969) (638)
Operation results 9.296 7.903
Net financial receipt (charges) (2.339) (1.363)
Value adjustments (26) (28)
Ordinary management result 6.931 6.512
Net extraordinary receipts (charges) 156 161
Result before taxes 7.087 6.673
Tax paid on profit (3.768) (4.083)
Net result 3.319 2.590
Result due to third-party shareholders (358) (137)
Net profit to be disposed of by Group 2.961 2.453