Supply Agreement

20 September 2012

PhotonStar LED Group Plc

Supply agreement

PhotonStar LED Group plc (AIM: PSL, "PhotonStar" or "the Group"), the British designer and manufacturer of smart LED lighting solutions, has announced a rolling one year exclusive supply agreement with a major UK house builder, to supply LED lighting fixtures for all of the developer's new homes. The products will be supplied through UK wholesalers.

In the last year, the house builder completed 1500 homes, and is forecasting continued growth. All new properties will be subject to new legislation requiring improvement in energy efficiency including lighting.

The new legislation - Code for Sustainable Homes is an environmental impact rating system for housing in England and Wales. The first level (3) of the code has recently become mandatory on all new properties, with increasing targets for CO2 emission reduction over the next four years. Developers have a number of choices on how they will achieve these reductions.

Following extensive testing over a one year trial, PhotonStar was able to successfully demonstrate cost effective (on a cost per plot basis) CO2 emission reduction in multiple property types through a lighting upgrade.

The financial terms of this contract have not been disclosed, but are expected to have an increasing impact as the House Builder moves to the new property designs.

James Mckenzie,CEO of PhotonStar LED Group PLC, commented

"We are delighted that they have now received the endorsement of a major UK house builder. It also serves as a credible introduction into new wholesale stockists"

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Note to editors

PhotonStar LED Group PLC ("PhotonStar" or the "Group") is a British designer and manufacturer of smart LED lighting solutions. The Group's proprietary technology seamlessly integrates LEDs, sensors and controls to provide intelligent lighting for commercial and architectural applications which benefit from greater CO2 reduction, lower cost of ownership & improved functionality compared to other available light sources.

Photonstar's lighting products have won numerous awards for performance, innovation and reliability, and are unique in the industry for the use of recycled, and recyclable materials, which means they have 90% less embodied CO2 than equivalent products providing the same levels of illumination.

PhotonStar comprises two divisions: LED Lighting Fixtures which works with lighting designers, architects, house builders, facilities management companies and sustainability consultants to provide intelligent, high-end LED lighting solutions for the commercial and architectural market, and LED Light Engines which provides LED lighting solutions for specialist applications such as film & television production lighting, UV curing and medical applications.

PhotonStar is based in Romsey, Hampshire with manufacturing in Wales. The Group was admitted to AIM in December 2010.