Lighting Science Group Announces a Distribution Agreement With Philips Solid State Lighting

Lighting Science Group Corporation (LSG) (OTC Bulletin Board: LSGP), a leading provider of energy- efficient and environmentally responsible LED lighting solutions announced today that it signed a distribution agreement with Philips Lighting Company, a division of Philips Electronics North America Corporation, an affiliate of Royal Philips Electronics (NYSE; PHG, AEX; PHI), whereby Philips will market and distribute the Company's patented LED lowbay lighting products for sales and distribution under Philips' brand. Concurrent with this agreement, Philips placed an initial order for lowbay lights, which are expected to be delivered in the first and second quarters of 2007. This is the second agreement announced by LSG in the past 30 days.

"Annual sales of lighting products in the United States are estimated to be $12 billion and are predominantly based on a 130-year-old technology. I firmly believe that LEDs are the future of commercial, residential and industrial lighting, providing cost-effective, long lasting and environmentally friendly lighting solutions," said Ron Lusk, chairman and chief executive officer of Lighting Science Group. "We believe that this relationship with Philips, one of the largest lighting manufacturers in the world, further validates LSG's market leading technology and the growing adoption of LED products. Additionally, LSG has seen steady growth in the sale of its products as we introduce new products into the market."

As previously announced, LSG realized revenue of approximately $125,000 in the third quarter 2006. LSG estimates its fourth quarter 2006 revenue to be approximately $175,000. Thus far in January 2007, the company estimates that it has recorded revenue from shipments and has currently unfilled purchase orders for an aggregate of approximately $525,000, including the initial purchase order placed by Philips.

In addition to the lowbay product, LSG is the first company to market a high-output, dimmable, Edison-base white-LED light bulb. The company currently has 25 patents in the LED lighting space and a product portfolio comprised of 30 different SKUs. Lasting up to 50 times longer than incandescent light bulbs, LED bulbs typically pay for themselves in less than two years and do not contain hazardous materials such as mercury that is commonly found in fluorescent and compact fluorescent products.

Lowbay lighting fixtures are typically used in parking garages, and industrial and commercial settings, and installed at ceiling heights of [16] feet or less. The lights provide optimal luminosity over designated areas, which the Company believes create a safer, more productive work environment.

About Lighting Science Group Corporation

Lighting Science Group Corporation (http://www.lsgc.com) designs and sells highly energy efficient and environmentally friendly lighting solutions based on its proprietary Optimized Digital Lighting(TM) (ODL(R)) 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 lowbay fixtures for parking garages and industrial facilities, MR-16, R30, R25, R20, R16 (elevator light), G11, G25, S6, candelabra and flame tip bulbs which can be purchased at http://store.lsgc.com.

Certain statements in the press release constitute "forward-looking statements" relating to Lighting Science Group Corporation within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our business strategy and our financing plans are forward-looking statements. In some cases you can identify forward-looking statements by terminology such as "may," "will," "would," "should," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements. "Lighting Science," "Optimized Digital Lighting" and "ODL" and the LSG concentric ovals are trademarks of Lighting Science Group Corporation. Readers should carefully review the risk factors described above and in other documents filed by the Company with the SEC. Readers are specifically directed to the discussion under "Risk Factors" in the Company's Registration Statements on Form SB-2.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 121,700 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at http://www.philips.com/newscenter.

Company Investor Relations / Public Relations

Contact: Contacts:

Lighting Science Group Corporation KCSA Worldwide

Ron Lusk Jeffrey Goldberger / Lewis Goldberg

Chairman & CEO 212.896.1249 / 212.896.1216

214-382-3630 jgoldberger@kcsa.com /

lgoldberg@kcsa.com

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