· BEFORE-TAX PROFIT FOR THE NINE MONTHS REACHES 10 MILLION EURO (+108%)
· GROSS OPERATING MARGIN FOR THE NINE MONTHS AT 17 MILLION EURO (+48%)
· ALVARO ANDORLINI APPOINTED MANAGING DIRECTOR
· BEHAVIOUR CODE FOR INTERNAL DEALINGS APPROVED

Meeting today under the chairmanship of Paolo Targetti, the Board of Directors of Targetti Sankey S.p.A. approved the consolidated results of the Group for the third quarter of 2002 (1 July - 30 September 2002).

The principal results of the third quarter
The results of the third quarter bring out a considerable upturn of the consolidated profit before tax, which reached 4.4 million euro, an increase of 59.6% as compared with the same period of 2001 (2.8 million euro). These results are due for the most part to the excellent performance of the Group Leader (Targetti Sankey S.p.A.) and the positive contribution made by the "Outside Lighting / Urban Light Fittings" Sector (Neri Group).

The consolidated revenue of the quarter, amounting to 30.8 million euro and substantially in line with the same period of 2001 (31.7 million euro), suffer from the far from positive trend of the reference market.

Profitability continues to increase at substantial rates: the consolidated gross operating margin (EBITDA) reached 6.3 million euro, + 20.2% as compared with the third quarter of 2001 (5.2 million euro); expressed as a percentage of revenue, it amounted to 20.4% and compares with 16.5% during the corresponding period of the previous year.

The consolidated operating result (EBIT) improved by 29.9% and amounted to 4.6 million euro, as against the 3.5 million euro of the corresponding quarter of 2001. Put in terms of percentage incidence on revenue, it amounted to 14.9%, a clear increase over the 11.1% of the third quarter of 2001.

The asset situation
The net financial situation brings out an indebtedness of 30.6 million euro (31.7 million euro as of 30 June 2002). Net financial charges amounted to 0.2 million euro and compare with 0.9 million euro for the corresponding quarter of 2001.
Net group assets reached 52 million euro, whereas on 30 September 2001 they had stood at 43 million euro.

Comment by the Board Chairman: "We are gathering the fruits of a hard job of 1 year and a half," - said Paolo Targetti, Chairman of the Group -  "directed to the integration of the acquisitions realised. These brilliant results on margins, confirm the effectiveness of our strategies, even in a quite slack market".

Principal results of the first nine months of 2002
An appreciable upturn of Group profitability was recorded also during the first nine months of the present year: the consolidate profit before tax amounted to 10.1 million euro, an upturn of 107.6% over the previous year and easily exceeded the profit realized for the whole of 2001, which totalled 7.1 million euro.

The consolidated revenue of the first nine months reached 97.9 million euro, which represents a growth of 4.4% as compared with the income of 93.8 million euro achieved during the same period of 2001.

All the income indices bring out substantial progress: at 17.3 million euro, the gross operating margin (EBITDA) went up by 48.3% as compared with the 11.6 million euro of the corresponding period of 2001. Expressed as a percentage of total sales, the gross operating margin of the nine-month period amounted to 17.6% and represents a considerable improvement over the 12.4% achieved during the same period of 2001.

The consolidated operating result (EBIT), which almost doubled as compared with the corresponding period of 2001, reached 11.9 million euro (6.5 million during the first nine months of 2001).  This operating result represented 12.1% of the Group's turnover and compares with 7% as of 30 September 2001.

Group companies: before-tax profit of Targeti Sankey S.p.A. 5 times the 2001 profit
The increased profitability of the Group is due for the most part to the excellent results achieved by the Group Leader Targetti Sankey S.p.A., where the turnover of the first nine months of the year reached 41.9 million euro (+8.8% as compared with the first nine months of 2001), while the profit before tax rose from 1.7 million euro to 8.7 million euro,

As of 30 September 2001, the Neri Group (Outside lighting and urban light fittings) realized a consolidated revenue of 18.8 million euro, which represents an increase of 12.8% over the 16.7 million euro of the corresponding period of the previous year and a before-tax profit of 2.1 million euro, which represents a 9% increase over the previous year, when the before-tax profit for the same period stood at 1.9 million euro.

Targetti North America reached breakeven point for the first nine months of the year, realizing a before-tax profit of 4000 euro, which compares with a loss of 447,000 euro sustained during the same period of the previous year.

Appointments
The Board of Directors decided to appoint a second Managing Director and raised Ing. Alvaro Andorlini, present Director General of Targetti Sankey S.p.A., to this position.

Behaviour Code for Internal Dealings
In compliance with the regulations of the markets organized and managed by Borsa Italiana S.p.A., operators of the Italian stock exchanges, the Board of Directors of Targetti Sankey S.p.A. the Code of Behaviour for Internal Dealings. The Code, which is to come into force on 1 January 2003, introduces the obligation to inform the market of any operations carried out by "important persons" that involve the listed shares of the company and the derived  financial instruments.
The Board of Directors also reserved their right to prohibit or limit the carrying out by important persons of operations concerning the financial instruments referred to in Article 2.6.4 of the Regulations of the Italian Stock Exchange at particular moments of the life of the company.

N.B. The principal figures relating to the third quarter of 2002 and the first nine months of the year are appended to the present communiqué.

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

Florence, 13 November 2002

CONSOLIDATED ECONOMIC AND FINANCIAL DATA – TARGETTI GROUP
Consolidated balance sheets – (euro/000)	30/09/2002		30/06/2002		31/12/2001
Assets
Short-term securities	85.724		90.163		82.305
Net fixed assets	23.102		23.468		23.686
Intangible assets	10.117		10.670		11.612
Financial assets	500		459		514
Other medium- and short-term assets	1.507		1.539		1.754
Total assets	120.950		126.299		119.871
Liabilities and net assets
Short-term liabilities	55.769		64.829		60.183
Medium- and long-term liabilities	13.185		13.919		15.778
Net assets*	51.996		47.551		43.910
Total medium- and short-term liabilities	120.950		126.299		119.871
Net financial position	(30.582)		(31.740)		(28.702)
Investments of the period	4.015		3.397		8.826
* The results of September 30, 2002 and June 30, 2002 take no account of income tax due in respect of this period.
Consolidated statements of income – (euro/000)	3rd quarter 2002		3rd quarter 2001		Nine months 2002	Nine months 2001
Net turnover	30.771		31.710		97.896	93.786
Other earnings	329		40		1034	960
Consumables and other operating costs	(18.884)		(21.017)		(62.603)	(64.060)
Value added	12.216		10.733		36.327	30.686
Personnel costs	(5.927)		(5.500)		(19.062)	(19.042)
Gross operating margin	6.289		5.233		17.265	11.644
Depreciation and devaluations	(1.374)		(1.373)		(4.385)	(4.118)