§         Net profit rises steeply to 5.4 million euro (+81%).

§         Dividend of 0.10 euro per share (+25%).

§         Share buy-back authorized up to 10% of joint-stock capital

§         Stock option plan amounting to 8% of joint-stock capital approved

Meeting in Florence today, the Shareholder Meeting of Targetti Sankey S.p.A. approved the Company’s balance sheet for the financial year 2002.

The Principal Consolidated Results of 2002

The year 2002 closed with sharp upturn of the consolidated net profit, which amounted to 5.4 million euro, an increase of 81.0% as compared with the 3.0 million euro of the previous year. This result represents an absolute record in the Group’s history.

Notwithstanding the decided slowdown characteristic of the sector in which the Group operates, the consolidated turnover reached 130.2 million euro (+1.5% as compared with the 128.3 million euro of 2001).

The year witnessed a clear improvement of all the economic indicators: the consolidated gross operating margin (EBITDA) reached 20.8 million euro as compared with 16.6 million euro the previous year, an increase of 25.7% and an improvement of 3% as far as the percentage incidence on turnover is concerned (16.0% as compared with 12.9% in 2001). This improvement is to be attributed first and foremost to the marked improvement of profitability of the Group Leader and the positive completion of the restructuring  of Targetti North America Inc., the Groups US subsidiary.

The consolidated operating profit (EBIT) therefore increased to 13.8 million euro, an increase of 48.8% over the 9.3 million euro of 2001, a result that result represents 10.6% of turnover (7.2% in 2001).

Dividend

On the basis of these results the Shareholder Meeting deliberated the distribution of a dividend of 0.1 euro per share (+25% as compared with the 0.08 euro dividend of the previous year), which corresponds to a 33.0% payout (as compared with 47.8% in 2001) and a dividend yield of 3.3%.

The dividend is to be paid from 15 May 2003 onwards (detachment of Coupon No.5 dated 12 May 2003), with attribution of an ordinary tax credit of 56.25% to the beneficiaries.

Principal Financial Indicators of 2002

The net financial position at the end of 2002 amounted to 26.2 million euro, a clear improvement over the 28.7 million euro of 2001, thanks to the greater cash flow generated by operational management. The ratio between debts and own assets came down to 55.6% (65.4% as of 31 December 2001).

Comments of the Board Chairman

“The economic results of 2002 – commented Paolo Targetti, Board Chairman of Targetti Sankey S.p.A. – bring out an exceptional growth of profitability, and demonstrate the Group’s reaction capacity even in difficult market conditions.

The product diversification strategy implemented by the Group enabled us to absorb the negative cycles of some sectors with the good performance of others; furthermore, we have slowed down our acquisitions and – in the endeavour of achieving economies – are now concentrating on the optimization and re-organization of our resources.

Our objective for the next few years is therefore to complete the integration of the Group brands to maximize our synergies, though always privileging attention paid to profit margins”.

The Group Companies

The Group Leader, Targetti Sankey S.p.A., achieved a net profit of 5.3 million euro in 2002 (a tenfold increase over the 483,000 euro of 2001). Turnover reached 54.5 million euro, which represents a 4.6% increase over 2001.

Among the controlled companies, the Neri Group, which specializes in external lighting and urban lighting equipment, recorded sales for a total of 26,0 million euro, a 9.2% increase as compared with the 23.8 million euro of the previous turnover). The gross operating margin (EBITDA) of 4.8 million euro represents a 1.8% increase over the previous year, while the net profit reached 2.0 million euro and remains unchanged as compared with 2001.

As regards Targetti North America Inc., this company at long last began to gather the fruit of the far-reaching reorganization that had been completed the previous year and, notwithstanding the difficult conditions of the home market, which markedly conditioned the turnover (with a decrease of 10.1% as compared with 2001), succeeded in reaching breakeven point, whereas the previous year had seen the company chalk up a net loss of 746,000 Us dollars.

Buy-Back

The Shareholder Meeting of Targetti Sankey S.p.A. authorized the purchase and subsequent sale of the Company’s own shares in one or more operations during a period of 18 months following the date of the Shareholder Meeting, up to a maximum of 1,770,000 ordinary shares of Targetti Sankey S.p.A. (the equivalent of 10% of the Company’s joint-stock capital) having a face value of 0.52 euro each.

Appointment of the Board of Directors

Lastly, the Ordinary Shareholder Meeting appointed the new Board of Directors, which is to remain in office for the next three years, confirming Giampaolo Targetti as Board Chairman and all the outgoing members of the Board. The new Board will also comprise Professor Riccardo Varaldo, Rector of Pisa’s Scuola Superiore S.Anna, who is to act as independent director. The new Board of Directors will therefore have 10 members rather than 9.

Stock Option Plan

The Extraordinary Shareholder Meeting of Targetti Sankey S.p.A. also deliberated two increases of the joint-stock capital to service, respectively, a stock option plan reserved for the directors of the Group Leader and the subsidiary companies and a second stock option plan reserved for the managers and other employees, again of both the Group Leader and the controlled companies.

These capital increases will involve a maximum of 1,500,000 ordinary shares, the equivalent of 8.5% of the present joint-stock capital of Targetti Sankey S.p.A. (17,700,000 shares). The potential beneficiaries may exercise their options – on one or more occasions and in accordance with the conditions established by the regulations associated with the plan – as from 1 September 2004 onwards, but not later than 31 December 2007.

N.B. The present press release is accompanied by the principal economic data brought out by the consolidated group accounts.

Contact:     Fabio Norcini
Investor Relator

Targetti Sankey S.p.A.

055 3791.299

Florence, 30 April 2003