18.07.2006 Overview

OSRAM Opto Semiconductors and Lighting Science Group to collaborate on new high-tech lamps

New LED-based MR-16 and R-30 Lamps Offer Advanced Lighting Alternatives for Industrial, Commercial and Consumer Marketplaces

SAN JOSE, CA and DALLAS, TX - (July 18, 2006) - OSRAM Opto Semiconductors, one of the worldwide leaders in light-emitting diode (LED) technology, and the Lighting Science Group Corporation (OTCBB: LSGP), a leading designer and marketer of super energy efficient LED lighting solutions, today announced the OSRAM Opto Semiconductors OSTAR Lighting product will be utilized on the LSGP's new LED-based MR-16 lamp and an R-30 lamp for use in the estimated multi-billion dollar industrial, commercial and consumer industries. These new energy-efficient lamps offer a direct alternative to the highly popular MR-16, or metalized reflector halogen lamp, currently used in the marketplace.

The collaboration between OSRAM and LSG is a timely response to escalating concerns over rising energy costs and environmental quality, because LED light sources require 80 percent less energy than incandescent bulbs and do not contain mercury as found in compact fluorescent bulbs. Significant energy savings are possible with the introduction of the MR-16 and the R-30 lamps from LSG for industrial and commercial use, especially in shopping malls, kiosks, museums, and office complexes where the benefit of replacing conventional lighting over hundreds of thousands of square feet can add up quickly.

"This is an exciting time to be entering into a working relationship with an innovative leader like Lighting Science Group. We see this relationship as the beginning of many successful collaborations where we can join in leveraging our core competencies," Tom Shottes, President and CEO, OSRAM Opto Semiconductors Inc, said. "This collaboration with LSG immediately extends the use of OSRAM’s advanced LED technology and components from the automotive sector into the industrial, commercial, and consumer down lighting markets."

"This coordination with OSRAM Opto Semiconductors enables us to design and bring to market new, state-of-the-art lamps with superior performance for the general illumination market," said Ron Lusk, Lighting Science Group's chairman and CEO. "OSRAM's industry leading package density and performance is an excellent match for our solid state light bulb and fixture designs. We're so pleased with our initial testing that we are already looking at expanding the use of OSRAM OSTAR to some of our other high output, energy efficient product lines. This synergy with OSRAM is sure to open new doors that will benefit our customers as well as expand the market adoption of LED lighting," he added.

OSRAM Opto Semiconductors will provide its recently introduced OSTAR six-chip series LED containing its advanced, patented ThinGaN technology for LSG to incorporate with its patented Optimized Digital Lightingä (ODL) technology. The finished lamp will enable long-life, super efficient, high output solid state lighting in challenging packages.

The MR-16 lamp from LSG will contain a single OSTAR six-series chip design with lens, whereas the R-30 lamp will contain three OSTAR six-series chip designs with lens. The OSTAR’s unique chip design ideal for down lighting as it delivers exceptional brightness from a very small source. Its hexagonal shape also enables more LEDs to be linked together in space-saving, high-intensity packages. At 420 lumens and an operating current of 700 milliamps (mA), a single OSTAR with lens is brighter than a 20-watt (W), low-voltage halogen lamp. According to Lag's current testing of the combined technologies, the MR-16 lamp from LSG will offer a lumen output maintained at 70 percent capacity over an estimated life of 50,000 hours or approximately six years.

The relationship between OSRAM and LSG covers the use of the OSTAR for the development of the MR-16 lamp and the R-30 lamp from LSG. The lamps are currently in production and are available for purchase online at http://store.lsgc.com, through distributors and big box retailers. The estimated retail price of the MR-16 from LSG is $39.99, and the price for the R-30 from LSG is $89.99.

About OSRAM Opto Semiconductors
OSRAM Opto Semiconductors is a wholly owned subsidiary of OSRAM, one of the world's two leading lighting manufacturers. It offers its customers solutions based on semiconductor technology for lighting, sensor and visualization

applications. The company operates sites in Regensburg (Germany), San Jose

(USA) and Penang (Malaysia). For the fiscal year ending in September 2005, the more than 3,500 employees of OSRAM Opto Semiconductors achieved a sales volume of 452 million euros. For more information, visit www.osram-os.com.

About Lighting Science Group Corporation
Lighting Science Group Corporation (www.lsgc.com) designs and sells energy efficient and environmentally friendly lighting solutions based on its proprietary Optimized Digital Lighting™ (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 low bay fixtures for parking garages and industrial facilities, MR-16, R30, R25, G11, G25, candelabra and flame tip bulbs which can be purchased at www.lsgc.com.