Consolidated EBITDA at 7.4 million euro (11.0 million in 2002) and consolidated EBIT at 4.3 million (7.3 million in 2002).

Meeting in Florence today, the Board of Directors of Targetti S.p.A. approved the consolidated results of the second quarter of 2003.

The principal consolidated results of the first half of the year (January-June).

The consolidated turnover as of 30 June 2003, i.e. for the first half of the year, amounted to 63.52 million euro, which compares with 67.13 million in 2002; the downturn of 5.4% in sales is to be attributed for the most part to the unfavourable dynamics of the dollar exchange rate: at constant exchange rates the turnover would have been substantially in line with that of the first half of the previous year (-1,5%).

Notwithstanding the general weakness of demand that characterized the lighting sector, the Targetti Group substantially held its ground during the period under review: the comparison with the data of the first half of 2002 is influenced in a decisive manner by the extraordinary order regarding the lighting of the McLaren Technology Centre that had generated an exceptional revenue flow in the second quarter of 2002 and had led to a significant concentration  of the seasonality of the margins in that period of the year.

The gross operating margin (EBITDA) arrived at 7.44 million euro – as compared with 10.98 million in 2002 – with an incidence of 11.7% of turnover, while the effective operating result (EBIT) amounted to 4.27 million – as against 7.30 million the year before – and represents 6.7% of turnover. The profit before tax amounted to 2.64 million and compares with 5.62 million the previous year.

These results nevertheless represent a considerable growth as compared with 2001 (+16% for EBITDA, +4.2% for EBIT and +28% for the before-tax profit) and all the previous years, which were not enhanced by extraordinary orders and therefore reflected the customary seasonality of the Group and the lighting sector as a whole. Only 30-40% of EBITDA, EBIT and before-tax profit for the year are historically determined by the first half of the year, while the contribution in the first six months of 2002 was more than 50%.

The asset situation as of 30 June 2003

The net financial position as of 30 June 2003 settled at 33.4 million euro, which compares with 28.59 million as of 31 March 2003, mainly due to the effect of the dividend distribution and income tax payments.

The net assets of the Group have now stand at 47.74 million euro and compare with 48.13 million as of 31 March 2003 due to the effect of the positive economic results for the period and the dividend payments for a total amount of 1.77 million euro.

The principal consolidated results of the second quarter

The second quarter (April-June) 2003 saw the group achieve a turnover of 32.34 million euro (35.87 million in 2002), while EBITDA and EBIT reached, respectively, 4.03 million euro (7.46 million in 2002) and 2.46 million euro (5.59 million in 2002).

The result before tax reached 1.41 million euro, which compares with 4.48 million euro in 2002.

Comments of the Managing Director

“As was to be expected, these six months proved a toilsome period with both light and shade within the Group, commented Lorenzo Targetti, Managing Director of Targetti Sankey S.p.A.. Fortunately, our presence in different market segments made it possible for us, be it even in a far from favourable market context, to obtain results in line with the objectives we had set ourselves at the beginning of the year. We are confident that the Group has good growth prospects in the second half of the year”.

The quarterly report approved by the Board will be available to the public at the Company’s registered office and the Italian Stock Exchange as from tomorrow onwards. Tomorrow it will also be published at the Company’s Internet site, www.targetti.com. The present press release will be available there as from today.

Contact:          
Fabio Norcini
Investor Relator

Targetti Sankey S.p.A.

055 3791.299

Firenze, 7 agosto 2003