CONSOLIDATED 1H02 NET PROFIT BEFORE TAXES REACHES 5.4 MILLION EUROS (+164% COMPARED TO 1H01 RESULTS)

CONSOLIDATED 1H02 TURNOVER IMPROVES BY 9% AT 67.6 MILLION EUROS

The Board of Directors of Targetti Sankey S.p.A., meeting today under the chairmanship of Paolo Targetti, approved the Group’s consolidated results for the second quarter 2002 (April, 1st – June, 30th).

Principal results of the second quarter
Targetti Group achieved in 2Q02 the best performance of its history: consolidated net profit before taxes reached 4.3 million euros (4 times higher than net profit before taxes in 1Q01, which amounted to 1.2 million euros). Positive results are to be attributed to the excellent performance of the niche of “architectural lighting” (through the mother company Targetti Sankey S.p.A.), to the brilliant contribution of exterior and public outdoor lighting, (through Neri S.p.A.) and to the financial and economic recovering of the US acquisition, Targetti North America.

Consolidated turnover amounts to 36.4 million euros (+10.5% higher than 2Q01, where amounted to 32.9 million euros). The favourable trend of revenues is partially attributable to the first deliveries for the key deal with McLaren Co. – in a partnership since 1996 – for the illumination of Paragon, the new TAG McLaren Group’s technology centre.

Positive economic evolution is confirmed by the increase of the consolidated EBITDA, reaching 7.2 million euros, doubling the 2Q01 figures, which amounted to 3.6 million euros, with a percentage incidence on consolidated revenues of 19.8% (in 2Q01 the percentage incidence amounted to 10.8%).

The consolidated EBIT is more than triplicated, with an increase from 1.6 to 5.3 million euros, with a percentage growth of 227.4%. The percentage incidence on consolidated revenues amounts to 14.7% (instead of 5.0%, registered in 2Q01).

Asset situation
The Net Financial Position is negative for 32.0 million euros (-30.7 million euros at 1Q02), while financial charges amounts to 0.8 million euros (0.5 millions euros at 2Q01) and include 0.3 million euros of loss on foreign exchange rates.

Comment of the Managing Director, Lorenzo Targetti
“We are gathering the fruits of a hard job of 1 year and a half,” – said Lorenzo Targetti, CEO of the Group – “directed to the integration of the acquisitions realised. These brilliant results, both on revenues and margins, confirm the effectiveness of our strategies, even in a quite slack market”.

First half of 2002
Even 1H02 registered a relevant growth: the consolidated net profit before taxes amounts to 5.4 million euros (+163.6% higher than 1H01, which amounted to 2.1 million euros).

The consolidated turnover of the first half of 2002 amounts to 67.6 million euros, with an increase of 8.9% on the 2001 correspondent period (1H01 consolidated revenues amounted to 62.1 million euros).

The brilliant dynamics is reinforced by the growth of EBITDA and EBIT margins.

Consolidated EBITDA reaches 10.7 million euros (+67.2% on 1H01 EBITDA, which amounted to 6.4 million euros). In terms of revenues percentage, the incidence is 15.9% (instead of 10.3% at 1H02).

Consolidated EBIT is more than doubled, amounting to 7.1 million euros (1H01 EBIT amounted to 3.0 million euros). The percentage incidence on revenues is 10.4% (4.8% on 1H01).

Group companies’ overview: Targetti Sankey S.p.A. net profit before taxes 7 times higher than 1H01
As far as company results are concerned, the mother company Targetti Sankey S.p.A. achieved a considerable progress both on revenues (amounting to 29.3 million euros, +11.5% higher than 1H02) and on margins (net profit before taxes increases from 0.7 to 5.1 million euros, 7 times higher than 1H01 results).

Neri Group (exterior and public outdoor lighting) reaches 12.7 million euros of consolidated revenues (+15.9% higher than 1H01 results, which amounted to 10.9 million euros), an EBITDA of 2.3 million euros (+7.9% on 1H01 figures, amounting to 2.2 million euros) and a net profit before taxes of 1.4 million euros (+9.7% on 1H01 profit, amounting to 1.3 million euros).

During 2Q02, Targetti North America Inc. registered - for the first time from the acquisition - a positive net result before taxes for 82.000 euros (the net loss in 1Q02 amounted to 137.000 euros).

1H02 results will be approved on the next September 27th from the Board of Directors, and they will be subject to a limited review by independent auditors.

Attached: 2Q02 and 1H02 main economic and financial results are attached to the present press release

For further information, please contact: Fabio Norcini
Investor Relator
Targetti Sankey S.p.A.
(0039) 55 37 91 299
f.norcini@targetti.it
Florence, August 8, 2002

* Income taxes of the period are not calculated.