Consolidated turnover of 76.0 million euros (+ 6.9%)

Net profit for the Group of 2.5 million euros (2.7 million euros in 2004).

The Board of Directors of Targetti Sankey S.p.A. met today in Florence to approve the half-yearly statement as at 30 June 2005 and the report on transition to international accounting standards (IAS/IFRS).      

Primary consolidated results for the first half of the year

The group's consolidated turnover for the first six months of 2005 was 76.0 million euros, a 6.9% increase compared to the figure of 71.1 million euros in the first half of 2004, up 5.3% in relation to the same consolidation area.

This result was primarily influenced by performance in the architectural lighting sector (+14.6%), the group's core business, as compared to a drop of 7.6% in sales of public exterior lighting and 7.0% in the sale of lighting sources.

Revenues grew in all geographic areas: there was an increase of 7.8% in EU countries, including Italy, 4.8% in the US, and 2.7% in the rest of the world.

The consolidated gross operating margin (EBITDA) came in at 8.6 million euros, compared to 9.4 million euros for the same period in 2004, whereas the consolidated operating result (EBIT) amounted to 6.6 million euros, compared to 7.4 million euros in the first half of 2004.

The group saw a net consolidated profit for the period of 2.5 million euros, compared to 2.7 million euros for the same period in 2004[1].

Assets and liabilities as at 30 June 2005

The net financial position as at 30 June 2005 amounted to 36.8 million euros, compared to 25.1 million euros as at 30 June 2004.

Net assets stood at 57.5 million euros, compared to 52.7 million euros as at 30 June 2004.

Impact of transition to international accounting standards (IAS/IFRS)

The report on the transition to international accounting standards (IAS/IFRS) annexed to the half-yearly statement shows the effects of the adoption of these new standards.

The changes introduced in compliance with the new accounting standards entailed that group accounts showed an increase of 2.2 million in net assets as at 31 December 2004 and an increase of 1.1 million euros in consolidated profit for 2004.

As regards accounts for the first half of 2004, the impact of the new accounting standards generated an increase in net assets of 2.5 million euros as at 30 June 2004, and an increase in net profit for the period of 1.1 million euros.

Comments of the Managing Director

"In the first half of this year," stated Lorenzo Targetti, Managing Director of Targetti Sanky S.p.A., "the market has shown particular and substantial rewards for activities related to architectural lighting, which is Targetti's primary sector. Moreover, the positive impact of sales figures for European countries has confirmed the validity of the strategies implemented in our key market, which is still in a situation of stagnancy."

"This context allows us to be cautiously optimistic," Targetti continued, "and we are sticking to our projections for the end of the year."

Attached to this release are the primary consolidated economic and financial data for the first half of 2005, as approved today by the Board of Directors.

The Targetti Group is one of the European leaders in the sector of interior and exterior lighting. A network of nine highly specialised companies, it draws its strength from its long history and from its natural talent for research. Thanks to its perfect blend of technology and design, Targetti equipment lights universal masterpieces of art such as Michelangelo's David, Leonardo's Last Supper, and the Notre Dame Cathedral, and is used in a wide range of  environments: the Singapore Opera House, Madrid, Canton, and Paris airports, the Bulgari, Benetton, Celine, Diesel showrooms, the Formula 1 McLaren boxes, corporations such as Peugeot, Citröen, and Alfa Romeo, the world's most prestigious hotel chains, and over 4000 large and small urban environments, all places where light...means Targetti.

Contact:
Marco Cisbani
Targetti Sankey S.p.A  
Tel.: +39 055/3791.203             

Massimiliano Parboni
Barabino&Partners
Tel.: +39 06/679.29.