IP, Reports & Roadmaps | Jun 14, 2007

Color Kinetics and High End Systems announce licensing agreement

Color Kinetics Incorporated (NASDAQ: CLRK) and High End Systems Inc., respective industry leaders in LED and entertainment lighting systems, today announced a global licensing agreement that reflects a continuing surge in the use of LED sources for stage and event lighting. High End Systems will license Color Kinetics' patent portfolio to develop its first line of products incorporating multicolor LEDs. The initial offering will uniquely combine conventional sources with LEDs for accent purposes.

High End Systems is credited for innovating some of the entertainment industry's most widely used lighting and control systems in its 35-year history - including various options for generating color and effects using traditional light sources. The company has illuminated some of the world's biggest artists on the largest stages, as well as film and television sets, cruise ships, theme parks, houses of worship, restaurants and retail spaces. Through the agreement, High End Systems will now be able to enhance its product range with the many proven aesthetic and practical advantages of LED sources.

The royalty-bearing license will apply to sales of applicable High End Systems products in all markets covered by Color Kinetics' patent portfolio. The agreement also calls for Color Kinetics to receive a royalty-free license to specific High End patents.

"High End is best known for our focus on innovation and use of cutting-edge technologies that can advance our industry as a whole. We believe that LEDs are one such technology, whose impact has only just begun to emerge," said Richard Belliveau, who co-founded High End Systems and is a prolific inventor with many market-changing products, patents and awards to his credit. "As innovators ourselves, we respectfully acknowledge the patented inventions of others, and no company has contributed more to the research, development and commercialization of intelligent LED lighting than Color Kinetics. We view access to their IP as a critical component of our LED-related product development strategy, and look forward to exploiting the far-reaching potential of LED technology for our customers."

"This agreement is a testament to how far and how fast LED technology has come - driving a whole new wave of product development by well-established industry leaders like High End Systems," said Bill Sims, President and CEO, Color Kinetics. "The entertainment industry was among the first to embrace intelligent LED lighting, and the number and caliber of partners we've secured in this space suggest that adoption is still on the rise. We look forward to enabling more market entrants as customers continue to experience and demand the clear-cut advantages of intelligently controlled LED sources."

Intelligent LED lighting technology is increasingly penetrating the entertainment and event production markets, particularly in color lighting applications. Unlike conventional sources, LED lighting products require no gels, filters or mechanical scrollers to generate color and dynamic effects. They're also well suited for creating flexible, modular displays for low-resolution video effects that are commonly applied as stage backdrops or dynamic set pieces.

In addition to their aesthetic versatility, LED lighting products can offer many cost advantages over conventional lighting equipment. Their long source life and rugged physical nature translate to minimal replacement, and their low power draw allows for easy installation without complex electrical requirements. They emit little heat, and can be used in tight spaces or within set elements, near performers, and in other areas where conventional light sources are impractical.

High End Systems' first LED product, SHOWGUN™, is scheduled for commercial release in June 2007.

About Color Kinetics:
Celebrating its 10th anniversary this year, Color Kinetics Incorporated (NASDAQ: CLRK) transforms environments through new, dynamic uses of light. Its award-winning lighting systems and technologies apply the benefits of LEDs as a highly efficient, long lasting, environmentally friendly, and inherently digital source of illumination - reinventing light itself as a highly controllable medium. Color Kinetics also enables widespread adoption of LED lighting through OEM and licensing partnerships in diverse markets. The company is headquartered in Boston, MA with offices in the UK and China. More information is available at http://www.colorkinetics.com .

About High End Systems:
Headquartered in Austin, TX, High End Systems is the world's leading innovator and manufacturer of automated and digital lighting instruments, and lighting control systems. In its fourth decade, HES has pioneered technology that defines the industry. HES products are specified by discerning lighting directors on a global basis and distributed through its dealer and distributor network More information is available at http://www.highend.com .

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