Lighting Science Group

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Business Overview

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Snapshot of Lighting Science Group

LED value chain Luminaires

Retrofit lamps

Lighting Science is an LED technology leader currently focused on the enormous general illumination opportunity

Systems

Modules

Chips

Materials

Components

(1) Adjusted for non-cash sales incentive related to THD warrant; GAAP revenue is $21.3 million.

Early leader in LED general illumination with a sustainable position

−Technology leader

−More than one million retrofit lamps shipped in 2H ‘10 alone

−Tenured lighting industry professionals, as well as LED technology veterans

Differentiated focus and approach

Predecessor company founded in 2002

Headquartered in Satellite Beach, Florida

243 employees (152 in US) as of December 31, 2010

$20.8

$31.4

$53.2

$5.4

$23.2

2008 2009 2010 1Q10 1Q11

Annual and quarterly historical revenue

(1)

CAGR: 60.0% YoY Growth:

329.6%

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LSG is established in a critical position in the LED ecosystem

Technology leadership and recognition Dominant channel partners

Validation through large, discerning client listLeading supply chain expertise

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LSG is a leading provider of LED products for general illumination

Lighting Science has the technology, people and experience to sustain its position in the LED market

Wealth of industry experience

LSG is a pioneer in the industry, having sold LED-based lighting products for nearly a decade

Senior management team consists of long-tenured lighting industry professionals as well as LED technology veterans

R&D team includes ~50 research scientists and engineers with Ph.D.s or Masters degrees in a range of disciplines

Deep knowledge of the disciplines core to the development of leading LED products – underpinned by portfolio of 124 patents

Product offering

Broad but focused product portfolio

− At the forefront of cost and performance

− Offered first LED retrofit lamp to be ENERGY STAR qualified – currently offer 89 qualified lamps

46 new products and 478 SKUs launched in 2010

− 59 new product launches 2011 YTD

− Recently launched revolutionary infrastructure product lineup

Sold over 1 million LED retrofit lamps during 2H10 alone and expected to sell over 2 million lamps in 1H11

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Investment highlights

Leader in a multi-billion market opportunity in early

stages of transition – exceptional secular growth

Significant improvements in profitability through

transformational manufacturing and supply

chain initiatives

Unique position in LED general illumination: a

downstream, pure-play LED provider

Multiple, compelling growth drivers

Differentiated system-based approach and deep technology acumen

Deep market reach through multifaceted channel strategy and strong

relationships Broad but focused range of lighting products developed

with application-specific expertise

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Leader in an enormous multi-billion market opportunity in early stages of transition

Other78%

Lighting22%

Traditional97%

Traditional>95%

Total: ~$100bn

LED <5%

2009 U.S. grid electricity consumption 2009 global lighting market size

Total: ~$300bn

Source: Freedonia, Wall Street Equity Research

Lighting presents a vast opportunity to reduce energy consumption

Global lighting market is significantly underpenetrated by LEDs

The total addressable market for LED lighting products includes fixtures and lamps, as well as the enormous value of potential energy savings

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Differentiated system-based approach and deep technology acumen

System-based approach

Focused on the interrelationships between components and subsystems

In-house capabilities for critical components and subsystems

Modular approach to product development

Deep technology expertise

Over 120 issued and pending patents

Over 50 research scientists and engineers with advanced degrees

Distinguished CTO with decades of relevant R&D experience

Application-specific expertise

Extensive lighting industry expertise

Deep understanding of functionality under actual operating conditions

Knowledge of what attributes end users value for each application

Collaborative approach

Flat organizational structure

Research, design and manufacturing team collocated on the ‘Space Coast’

Industry-leading product performance Ability to manage product manufacturing complexity and cost Culture of innovation Nimble, quick to market Flexible component sourcing

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LSG’s broad offering enables targeted applications within a range of market segments

Government infrastructureGovernment

infrastructure

Schools and universitiesSchools and universities

Retail and hospitalityRetail and hospitality

OEMsOEMs

Infrastructure

Lamps

Commercial & architectural

Targeted marketsHighly tailored products

LSG targets applications across several markets for which the return on investment, total cost of ownership and other benefits currently present clear and compelling reasons for LED adoption

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Product overview

LAMPS

Broad range of LED retrofit lamps that interface with existing fixtures and sockets

Exhibit consistent color, excellent light distribution and brightness

Marketed under LSG’s ‘DEFINITY’ brand and also sold on a co-branded and private label basis

INFRASTRUCTURE LUMINAIRES

Combine energy efficiency, long life, high lumen output and excellent light distribution

Targeted applications: parking facilities, outdoor areas, warehouses and manufacturing areas

COMMERCIAL, ARCHITECTURAL AND

RESIDENTIAL LUMINAIRES

Designed for retail display applications and offer high customization

Excellent color and temperature control for high value and perishable products

Also offer LED-based spot, accent, recessed, pendant and track lighting, which offer uniform illumination and energy efficiency

CUSTOM LIGHTING SOLUTIONS

Custom LED lighting solutions for architects, lighting designers and research projects

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LampsInfrastructure andluminaries

Broad market reached through multifaceted channel strategy and strong relationships

Multi channel strategy leveraging on established lighting distribution channels

Co-branded

Private label

Direct sales

Distributors

Independent Sales Agents

International partners

Currently US-focused with growing international footprint

Unique sales organization that supports the Company’s channel strategy

Multi channel strategy leveraging on established lighting distribution channels

Co-branded

Private label

Direct sales

Distributors

Independent Sales Agents

International partners

Currently US-focused with growing international footprint

Unique sales organization that supports the Company’s channel strategy

VP ProfessionalSales

VP StrategicAccounts

Account focused Project focused

Commercial, architecturaland residential luminaries

Product families

National Accounts

Public InfrastructureStrategic Accounts

Commercial & Industrial

Rebate strategysupports all

sales activities

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LSG has key customers within its end markets

GovernmentInfrastructureGovernment

Infrastructure

LABSL and DPW

NYC Design Competition

Orlando Public Works

LABSL and DPW

NYC Design Competition

Orlando Public Works

Schools andUniversitiesSchools andUniversities

Retail andHospitalityRetail andHospitalityCommercialCommercial

Related PropertiesRelated

Properties

S O

Private Label &OEMs

Private Label &OEMs

Other Major Lighting Brands

Other Major Lighting Brands

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In addition to improving system efficacy, LSG’s approach has a meaningful impact on manufacturing cost and product lifetime

Designing a leading LED system requires a deep understanding of numerous technologies

Packaged LED

Overall lamp efficacy, light output,

quality and lifetime driven by interoperability of packaged LED with other components

Optics

Determines intensity,

direction and spread of light – tuned to packaged LED and intended application

Intelligent controls

Leverages digital functionality of LEDs

and enables enhanced features Requires understanding of

complementary technologies

Power supply

Drives LED and

luminaire efficacy and regulates light output through management of power to packaged LED

Thermal

Effective heat dissipation

required for efficient performance of LED package and electronics – reduces color shift and improves overall device lifetime

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Heat sink25%

Other (optics,

labor etc.)20%

AC-DC power25%

Packaged LED30%37.7%

15.3%

8.7%

5.5%

8.1%

2010Luminaire

efficacy status

Core epi Phosphor System-levelloss channels

2020Luminaire

efficacy target

Enhancement in systems will drive improvements in LED lighting in the future

The majority of expected improvement is to come from

outside of the LED(1)

Source: U.S. Department of Energy (Solid State Light, Research and Development: Multi-year Program Plan, May 2011).(1) LSG’s technology roadmap includes development of remote phosphors.(2) Includes internal non-radiative, extraction efficiency, and current droop (peak vs. 35A / cm2).(3) Includes Phosphor conversion, scattering / absorption / color mixing, and electrical efficiency.(4) Includes LED thermal stability, phosphor thermal stability, LED driver and fixture and optical efficiency.

Core epi represents

only 8.7% of the expected improvement

Package and luminaire loss channels and efficiencies Illustrative bill of material for an LED system

(2) (3) (4)

Packaged LEDs represent ~30% of overall system cost, indicating that greater cost-down

potential lies beyond the package

LSG has the technology expertise and system integration capabilities to realize the anticipated improvements in efficacy

LSG has the technology expertise and system integration capabilities to realize the anticipated improvements in efficacy

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Technology case study: A19 60W replacement lamp comparison

151 parts80 parts

LSG 60W Equivalent Philips 60W Equivalent

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Examples of areas of focus underpinningLSG’s technology roadmap

LED Thermal management

Power supplies Optics

Remote phosphor

Improved efficiency – better ability to tune phosphor

Limits color shifting over time

Plasma / MEMs cooling

Enables supply chain and manufacturing efficiencies

Reduces material cost

Improves aesthetics

Reduces mass

Onboard power supply

Dramatically fewer components

− Reduces material cost

− Higher reliability

− Smaller form factor

Longer lifetime

Better performance

MEMs optics

Improves LED lighting product performance

Enables more and dynamic control of beam

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~50 R&D professionals with advanced degrees

124 issued and pending patents

“Space Coast” location

LSG is a driver of technological innovation for lighting, as reflected by its strong partnerships

Collaboration with technology partners has broadened technical expertise and enhanced ability to anticipate and address novel applications for LED lighting

The partnership between Lighting Science and Google has produced a ~$35 LED bulb expected to be in stores by the end of the year

The bulb builds in low-cost wireless networking for Android and can be wirelessly controlled by any Android device

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Technology expertise and system integration capabilities in place to improve efficacy

Shifting production to lower labor cost geographies

Relationships with strategic vendors to reduce material costs

Partnership with Dixon Technologies to expand into India’s $1.8 billion lighting market

Partnership with Shanghai Automotive to bring high performance, low cost LED infrastructure lights to Eastern China

Drivers of growth strategy

Lead the innovation of lighting applications through intelligent controls

Exploit the ubiquity of lighting and market shift toward energy-efficient lighting

Broaden product portfolio to address larger universe of applications

Continue to drive adoption of LED general lighting products by continually improving performance and reducing cost

Expand internationally through partnership strategy

Enhanced investment in sales and distribution channels

Example: ~$35 LED bulb that can be controlled wirelessly by Google Android devices

The worldwide general lighting market is vast, at ~$100 billion today

LED market share of general lighting market expected to grow rapidly

Rapidly introducing new SKUs with 59 introduced in 2011 YTD

Product portfolios across all segments are being expanded

Added experienced lighting professionals to direct sales force and the sales team that manage retail and OEM partners

Current pipeline of sales opportunities: over $100 million and growing

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Strong management team

Jim Haworth 18 years of lighting industry experience in marketing, operations, manufacturing and general management

Vice President of marketing and strategy at Philips Lighting

President and CEO of JJI Lighting Group

Leading mind in the science and technology of lighting

Founder of Lighting Science Group

38 patents in the field of solid state lighting

Selected as a “Champion of Change” by the White House in May 2011

15 years of senior-level experience in accounting positions at public companies

Vice President and CFO of internal division at HD Supply

Assistant Corporate Controller at Hughes Supply

10 years of production and logistics experience managing manufacturing operations in automotive, electronics, furniture and metals industries

Senior operating positions at Acuity, Delphi, Shapes and Rowe Fine Furniture

11 years of experience in product development and engineering

Director of Product Management and Engineering for Acuity Brands Lighting, Holophane Division

Engineering Manager at Thomas & Betts

Experience in a variety of technology organizations in multiple industries, including automotive and remote asset management

COO of StreetSmart Technology

VP and GM for Acuity Brands’ ROAM business

Greg Kaiser

David Henderson

Fred Maxik

John Stanley

Edward Russ

CEOCEO CTO & FounderCTO & Founder

CFOCFO COOCOO

CDOCDO CBDOCBDO

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Investing for continued & long-term growth

Investments and new-hires in sales & marketing

Enhanced balance sheet improves commercial relationships and partnerships

Continued investments in technology and product innovation

Strong revenue growth

LED penetration driving massive TAM growth

LSG continuing to expand channel relationships and introduce new products, capturing market share

Increasingly strong indications from customers focused on ramping volume and expanding LED product range

Demonstrable path to margin improvement

LSG developed supply chain to anticipate surging demand

Manufacturing efficiencies and shift to lower-cost geographies

Design improvements along with reduced materials costs

Opportunity to leverage existing operating cost structure for expected ramp-up in sales

Attractive financial model

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