IP, Reports & Roadmaps | Dec 21, 2006

Color Kinetics announces licensing agreement with Neo-Neon

Boston, MA, Color Kinetics Incorporated (NASDAQ: CLRK), a leading innovator of LED lighting systems and technologies, today announced the signing of a global licensing agreement with Neo-Neon International Ltd. Neo-Neon will be granted access to Color Kinetics’ complete patent portfolio, allowing the continuing development and sale of its LED lighting products worldwide.

Neo-Neon is a China-based, 25-year established manufacturer of decorative and entertainment lighting products that include a growing number of LED-based offerings. Through the agreement, Neo-Neon will be able to offer its customers the powerful capabilities of digital intelligence as protected by Color Kinetics’ patents. The license will apply to sales of numerous Neo-Neon products in all markets covered by Color Kinetics’ patent portfolio.

“We believe that demand for LED-based lighting products will continue to increase as the technology progresses and becomes even more competitive with traditional light sources,” said Ben Fan, Chairman, Neo-Neon. “As LED technology grows increasingly important to our business, we believe it’s important to align with Color Kinetics, whose pioneering R&D and resulting intellectual property are well established.”

“This agreement marks another strong win for our growing licensing business, which leverages nearly ten years of investment, research and development as the foundation of our IP,” said Bill Sims, President and CEO, Color Kinetics. “We believe the market for LED lighting is very broad and can sustain many players. We therefore welcome the opportunity to enable companies like Neo-Neon who want to take advantage of our inventions in the fast-growing LED lighting space. At the same time, this agreement provides a measure of protection for our Lighting Systems business by requiring a special royalty rate on sales of products that resemble our own.”

Color Kinetics today holds 58 issued patents that range from core technology and products to high-level control systems, complete lighting systems, applications, environments and methods of use.

About Color Kinetics
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, China, and Japan. More information is available at www.colorkinetics.com.

About Neo-Neon
Neo-Neon is one of the world's leading decorative lighting manufacturers. The company is primarily engaged in the research and development, design, manufacturing and distribution of incandescent-based decorative lighting products, LED-based decorative lighting products and entertainment lighting products. Its product range covers more than 10,000 models of lighting products to cater to the varied and changing needs of its customers. The company is located in Heshan, Guangdong Province, China.

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