SLI Annual Meeting Focuses on Continued Profitable Growth, Vertical Integration

Canton, MA. At the Annual Meeting of SLI, Inc. (NYSE: SLI) today, chairman and CEO Frank M. Ward reviewed the company s sales and profit growth and progress toward becoming the world s #1 integrated lighting supplier in quality, innovation and customer service. He also reviewed Q1 00 results and recent developments to accelerate growth and enhance shareholder value.

SLI ranks among the world s six largest lighting companies, and among the two largest integrated lighting companies, operating in a $75 billion world market. SLI s 1999 sales were $874,823,000, up 13% over 98. Per-share earnings for the same period increased to $1.14 from $1.10, exceeding consensus estimates despite pricing pressures in Europe and declining Euro values. For the first quarter of 2000, the company met consensus estimates, reporting net sales of $225,285,000 and per-share earnings of 30 cents despite further erosion of the Euro.

99 Moves Toward Vertical Integration

Highlights for 99 cited by Mr. Ward included a strategic alliance with Stanley Electric, the premier Japanese LED manufacturer. "The Stanley alliance enables us to control the manufacture of our own LEDs, better serve our OEM markets and save $6 million a year in cost of goods," Mr. Ward said. "Plans are well-underway to become North America s first manufacturer of surface-mount LEDs."

He added that the OEM market for miniature lamps, mainly for LED packages, is among the company s fastest-growing and most profitable sectors. "Over the past three years the market for automotive interior lighting has doubled, the pace continues and the trend is definitely toward LEDs," said Mr. Ward. "As the world s #1 supplier of automotive instrumentation lighting and a principal lighting supplier to all major automakers and their first tier suppliers, we re better positioned to benefit from this trend than competitors. Our current order backlog for miniature lamps is three times larger than in 1997."

Mr. Ward added that the doubling of the company s multi-currency revolving credit facility in 1999 demonstrates support from the worldwide banking community.

Recent Developments

Shareholders also met Richard Crossland, who was appointed president of SLI Lighting in April. Mr. Crossland has an established track record in the lighting industry. He led the improved performance of several Philips Lighting businesses and later spearheaded Thomas Industries 25% growth and restored profitability within four years. "Mr. Crossland will undoubtedly help us become the number one lighting systems supplier in North America," said Mr. Ward.

Addressing Current Issues

Mr. Ward also touched on pricing issues in Europe, the decline of the Euro, the stock repurchase and dividend programs, cost containment and acquisitions. As one hedge against the Euro, Mr. Ward reported that SLI has accelerated the introduction of European made products into the US market, and initial reception has been good. Examples include the new universal ballast, indoor halogen floodlamps and transformerless miniature halogen lamps -- all true "firsts" in the US market.

Outlook

"We also continue to aggressively pursue acquisitions that fit our strategy, and have some immediate possibilities," Mr. Ward added. "We expect to be a billion dollar company in the near future," he said. "Our core vertical integration strategy is beginning to pay off in the marketplace, in product innovation and in operating efficiencies. And absent the decline of the Euro, which is temporary, it is beginning to show up in the numbers as well. We are a lighting company with a difference."

SLI, Inc., based in Canton, MA, is a vertically integrated designer, manufacturer and seller of lighting systems, which are comprised of lamps, fixtures and ballasts. The company offers a complete range of lamps (incandescent, fluorescent, compact fluorescent, high intensity discharge, halogen, miniature incandescent, neon, LED and special lamps). They also offer a comprehensive range of fixtures, ballasts and fiber-optic lighting systems. The company serves a diverse international customer base and markets, has 31 major plants in 30 countries and operates throughout the world. SLI, Inc. operates one of the US s three largest contract lighting maintenance companies serving retail chains, commercial, industrial and institutional buildings. It is also the #1 global supplier of miniature lighting products for automotive instrumentation.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties that may affect SLI s business and prospects and cause actual results to differ materially from those forward-looking statements. For more corporate information, contact SLI, Inc., 500 Chapman Street, Canton, MA 02021, phone 781-828-2948, fax, 781-828-2021, website: http://www.SLI-lighting.com.

Contact:
Frank B. Ward, Chairman and CEO of SLI, Inc.,
781-828-2948;
or Doc Ardrey of Ardrey, Inc.,
732-549-1300, for SLI, Inc.