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Color Kinetics Projects 75% of Commercial Lighting to Be Led-Based By 2030

Color Kinetics Incorporated Press Release - 4/23/2007

High Brightness LEDs moving from portable applications like flashlights to general lighting use

LED Streetlighting from Cree

LED Streetlighting from Cree

BOSTON, Ma. - As people around the U.S.prepare to recognize Earth Day on April 22 , Color Kinetics Incorporated(Nasdaq: CLRK) today emphasized the role that new lighting technology willplay in mitigating energy strain, projecting that at least 75% of commercial lighting in the U.S. will be produced by energy-efficient LED sources by 2030*.

LEDs already deliver four times the efficiency of traditional incandescentand halogen light sources, while rapidly gaining ground on fluorescent and offering numerous benefits above and beyond all three.

The role of lighting as a chief energy drain and contributor to globalwarming has garnered international attention in recent weeks, including news of industry initiatives, incentives and even proposed legislation to ban inefficient incandescent sources. The Earth Day Network, official organizersof the annual event, proclaimed 2007 "the beginning of the end of the inefficient incandescent."

Though public attention has centered on the impact of replacing incandescent sources with compact fluorescent (CFL) in residential lighting,with today's prediction Color Kinetics is emphasizing the need to tackle inefficiencies in commercial lighting -- which is accountable for much higherenergy consumption overall than lighting in homes.

"With millions of lights burning nearly 24x7 in office buildings,hospitals, shopping malls, hotels and public places, it's no wonder that commercial buildings account for 51% of total energy consumption for lightingin the U.S. vs. 27% for residential," said Bill Sims , President and CEO, ColorKinetics. "This presents us with an enormous opportunity to leverage smarttechnologies, like LED lighting, to put a real dent in energy inefficiencies and in turn reduce the amount of emissions being pumped into our atmosphere."

Color Kinetics sees LED technology as the future of energy-efficient lighting, first for commercial spaces and eventually for residential applications as well. Performance trends suggest that LEDs have the abilityto ultimately leapfrog other efficient light sources, such as fluorescent, given their longer source life, durability, non-toxic materials, lack of radiated heat and UV, higher quality of light output and flexibility toaccommodate wide-ranging fixtures and form factors. Moreover, as inherentlydigital devices, LEDs produce light that can be intelligently controlled to dynamically customize environments, from restaurants and casinos to retailshops, homes and even automobiles.

Color Kinetics' intelligent LED lighting technology is already at work inover 15,000 installations worldwide, spanning every state in America and six of seven continents. The company's lighting systems have successfully displaced conventional sources in a number of applications where LEDs already win in terms of cost efficiency and visual impact. For example:

* LAX Gateway at Los Angeles International Airport replaced metal halide with an LED system, anticipating 75% less energy consumption.
* Hard Rock Hotel & Casino in Las Vegas replaced metal halide with an LED system, cutting annual energy costs from $18,000 to $1,900.
* The British Airways London Eye replaced fluorescent with an LED system, eliminating former maintenance costs and requirements while gaining the ability to produce color light and programmable effects.
* Bostonian shoe stores in the U.S. replaced fluorescent with an LED system, mitigating the need for frequent and costly lamp replacement, while also gaining the ability to easily adjust from "warm" to "cool" white light in its display shelves.
* Boathouse Row in Philadelphia replaced incandescent with an LED system, saving approximately $57,000 in annual operating costs due to reduced maintenance and energy consumption.

"The notion that LEDs are still relegated to flash lights, tail lights and electronic gadgets is a misconception. We can point to major landmarks,towers, bridges -- even the world's largest spherical building -- that are illuminated by our LED systems today," said Sims. "Color Kinetics was established for the very purpose of supplanting less efficient light sourceswith a new form of intelligent lighting based on LEDs. We're not simply responding to a timely trend. We've spent ten years solely focused on making LED sources viable as the right long-term solution."

Color Kinetics participates in several government and industry initiatives related to energy conservation. As a member of the Next Generation Lighting Industry Alliance, the company is helping to develop a technology roadmap for the U.S. Department of Energy (DoE), as well as Energy Star criteria for LEDlighting. In 2006 the company was awarded a $1.7 million grant by the DoE todevelop LED-based replacement lamps for 60-watt incandescent light sources that, with a four-fold increase in efficacy to 80-lumens per watt, would meetor exceed the efficacy of nearly all conventional light sources.

Reflecting the company's leadership role, Color Kinetics' VP of Innovation Kevin Dowling will make his 6th appearance as a featured presenter at theDoE's Solid-State Lighting Workshop in California on April 23 . At this meeting of technical, legislative and academic minds, energy efficiency and speeding the pervasive use of LEDs for illumination will be a major topic of discussion.

"We applaud any initiative, whether public or private sector, that brings attention to the need for energy-efficient lighting. Though adoption may beaided by government regulations, business consortiums, financial incentives, grass roots movements or other influencers, we believe that LEDs will ultimately win in the market based on their merits as a superior technology, as has been the case with so many disruptive technological innovations in the past," Sims concluded.

About Color Kinetics

Celebrating its 10th anniversary this year, Color Kinetics Incorporated(Nasdaq: CLRK) transforms environments through new, dynamic uses of light. Itsaward-winning lighting systems and technologies apply the benefits of LEDs asa 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

*Based on past penetration rates of other lighting technologies:Fluorescent lighting share of the U.S. commercial lighting market, Electronic ballasts share of U.S. lighting ballasts, and HID lighting share of the U.S.industrial lighting market.

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