Lighting science group announces private label agreement with Philips Solid State
DALLAS–Lighting Science Group Corporation (LSG) (OTCBB: LSGP), a leading provider of energy-efficient and environmentally responsible LED lighting solutions announced today that it signed a private label agreement with Solid State Lighting, N.A., a business unit of Philips Lighting Company, a division of Philips Electronics North America Corporation, whereby Philips will private label the Company’s patented LED lowbay lighting products for global sales and distribution under Philips’ brand.
Concurrent with this agreement, Philips placed an initial order for lowbay lights totaling US$358,000, which are expected to be delivered in the first and second quarters of 2007.
This is the second private label agreement announced by LSG in the past 30 days. The previously announced strategic OEM relationship with Super Vision International, Inc. (NASDAQ Capital Market: SUPVA) included an initial order for LSG’s suite of LED lighting products to be sold under Super Vision’s new SaVi™LED brand.
“Annual sales of lighting products in the United States are estimated to be $12 billion and are predominantly based on a 130-year-old technology. I firmly believe that LEDs are the future of commercial, residential and industrial lighting, providing cost-effective, long lasting and environmentally friendly lighting solutions,” said Ron Lusk, chairman and chief executive officer of Lighting Science Group. “We believe that this relationship with Philips, one of the largest lighting manufacturers in the world, further validates LSG’s market leading technology and the growing adoption of LED products. Additionally, LSG has seen steady growth in the sale of its products as we introduce new products into the market.”
As previously announced, LSG realized revenue of approximately $125,000 in the third quarter 2006. LSG estimates its fourth quarter 2006 revenue to be approximately $175,000. Thus far in January 2007, the company estimates that it has recorded revenue from shipments and has currently unfilled purchase orders for an aggregate of approximately $525,000, including the initial purchase order placed by Philips. In addition to the lowbay product, LSG is the first company to market a high-output, dimmable, Edison-base white-LED light bulb. The company currently has 25 patents in the LED lighting space and a product portfolio comprised of 30 different SKUs. Lasting up to 50 times longer than incandescent light bulbs, LED bulbs typically pay for themselves in less than two years and do not contain the hazardous materials such as mercury that is commonly found in fluorescent and compact fluorescent products.
Lowbay lighting fixtures are typically used in parking garages, and industrial and commercial settings, and installed at ceiling heights of [16] feet or less. The lights provide optimal luminosity over designated areas, which the Company believes create a safer, more productive work environment.
About Lighting Science Group Corporation
Lighting Science Group Corporation (www.lsgc.com) designs and sells highly energy efficient and environmentally friendly lighting solutions based on its proprietary Optimized Digital Lighting(TM) (ODL®) technology. The Company's patented and patent-pending designs and manufacturing processes enable affordable, efficient and long lasting LED based lighting systems to be quickly deployed in existing lighting applications and produce immediate cost savings and environmental benefits. Products include lowbay fixtures for parking garages and industrial facilities, MR-16, R30, R25, R20, R16 (elevator light), G11, G25, S6, candelabra and flame tip bulbs which can be purchased at http://store.lsgc.com.
