New Opportunity in Consumer Products

Spectra Systems Corporation

("The Company" or "Spectra Systems")

New Opportunity in Consumer Products

Spectra Systems, a leading supplier of authentication technology for banknotes, brand authentication and tax stamps, is delighted to announce a five year agreement with LMI Packaging Solutions of Pleasant Prairie, Wisconsin to incorporate Spectra Systems authentication technology into LMI produced coffee K-cup lids.

Spectra System's coating formulation will allow coffee suppliers producing their K-cup lids at LMI Packaging Solutions to have complete functionality in the Keurig K-cup system which uses internal sensors that allow it to only work with specific material signatures printed on the K-cups. Under the agreement, Spectra Systems must supply its technology for K-Cups exclusively to LMI Packaging Solutions for the first 18 months.

Dr. Nabil Lawandy, CEO of Spectra Systems, stated: "This agreement with LMI has validated our ability to provide security products in the consumer products market where an increasing number of manufacturers are using sensors to lock their hardware with the associated consumables. Working with LMI has been one of the smoothest product developments we have had and we are confident in their ability to attract more customers to their lids that use our materials."

"We are confident that over time this new line will grow into a stable source of revenue and profit. The total global K-Cup market in which LMI is participating is already over 10 billion units per year."

Enquiries:

Spectra Systems Corporation

Dr. Nabil Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700

WH Ireland Limited

Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650