Light Blue Optics signs exclusive licensing agreement and secures additional US$1 million in funding

Exclusive licensing agreement gives company strong IP position on miniature, full-colour laser projection systems.

Financing to accelerate product development programme.

CAMBRIDGE, UK

Light Blue Optics (LBO), the industry-leading developer of miniature laser projection technology, today announced the closing of a US$1 million extension to its seed funding round. 3i, the FTSE 100 listed global venture capital firm, led the round which also included investment from NESTA, the Cambridge Capital Group and business angels. The money will enable the Company to accelerate its product development programme, and follows the closure of a US$2.5 million seed funding round in July 2006, also led by 3i plc.

LBO has also announced signing an exclusive licensing agreement on a key patent with Cambridge Enterprise Ltd, the University of Cambridge’s technology commercialisation service. The patent is a method for real-time, full-colour holographic laser projection, and was invented in 2003 by LBO’s Director of Business Development, Dr Edward Buckley, and Chief Technology Officer, Dr Adrian Cable, while they were PhD students at the University of Cambridge.

Founded in 2004, LBO has developed an innovative projection system that uses laser light sources and diffractive techniques to deliver high-quality, real-time, full-colour video images in focus at all distances – even on curved or angled surfaces. This patented technology offers a unique combination of features and benefits including:
• Compact size
• Robust design with no moving parts
• Focus free operation
• Low power consumption
• Wide throw angle
• Simple, low cost manufacture

Dr Edward Buckley explained, “Light Blue Optics offers a unique and very elegant solution which meets the needs of a rapidly-growing market for projection-enabled applications. The efficiency, robustness and cost advantages of our technology make it ideally suited for deployment in multiple markets; including automotive, digital signage and consumer electronics.”

Since closing the US$2.5 million seed-funding round in July, Light Blue Optics has been building relationships with strategic customers and development partners. Laurence Garrett, 3i Partner said, “We have been very impressed by the traction LBO has gained with launch customers – it indicates a strong demand for LBO’s technology across a range of markets. At 3i, we invest in cutting-edge technology companies that have the potential to be market leaders. LBO is realising that potential and we’re pleased to support its accelerated product development programme by providing this additional funding.”

Light Blue Optics’ CEO, Dr Chris Harris said, “This funding demonstrates the significant confidence our investors have in LBO and our fast-paced technology roadmap. We’re particularly pleased to have reached a licensing agreement with Cambridge Enterprise. We now have a strong, clear IP position, and are ideally placed to become the world’s leading supplier of miniature laser projection systems.”

Notes to Editors:

Light Blue Optics (www.lightblueoptics.com)
Light Blue Optics (LBO) is a dynamic, privately-owned company based in Cambridge, UK. The company has developed a unique, patented technology which enables the realisation of ultra-miniature laser projection devices.

The power, robustness and cost advantages provided by this technology make it ideally suited for deployment in multiple markets; including automotive, digital signage and consumer electronics. LBO is funded by a group of investors including 3i plc, the FTSE 100 listed global venture capital firm.

3i plc (www.3i.com)
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.

3i’s Venture Capital business focuses on investing in scaleable start-up and early-stage businesses. The business currently manages over 200 investments across Europe, US, Asia and Israel, valued in excess of €1bn. 3i’s VC investments fall into four main industry sectors, including healthcare, telecommunications, software and electronics/semiconductors.

3i’s recent investments include TransMedics (organ transplant system), Sulake (gaming community), The Cloud (wifi), and DiBcom (mobile TV) with successful realisations for Domantis, Interhyp, KuDOS Pharmaceuticals, Arakis, dtms, RedDot, UbiNetics, CSR, Element5, Bookham and many others.

NESTA (www.nesta.org.uk)
NESTA is the National Endowment for Science, Technology and the Arts. We are working to transform the UK’s capacity for innovation. Our endowed funds of over £300m allow us to be a genuine risk-funder, to take a longer-term view and invest in the most promising new ideas and ventures. Underpinning our work is the fundamental view that successful innovation fuels long-term economic and social progress, and is an essential ingredient to the UK maintaining its competitive edge in the global market place.

Cambridge Capital Group (www.cambridgecapitalgroup.co.uk)
Cambridge Capital Group (CCG) is a private investor group comprising 40 successful entrepreneurs and experienced business leaders. It provides development funding for early stage technology based companies, primarily in Cambridge – the pre-eminent technology cluster in the UK. The founder members have been backing start-ups in the UK for the last 10 years. The group has a focus on spinouts from the University of Cambridge and other leading scientific institutions; the aim being to support disruptive technologies that show strong commercial promise and unique advantages to their market sectors. CCG invests on a syndicated basis with specialist business angels and early-stage venture capital funds. We can provide seed finance for prototype development or contribute to early-stage funding rounds for companies seeking to exploit their Intellectual Property.

Cambridge Enterprise (www.enterprise.cam.ac.uk)
Cambridge Enterprise (CE) provides a comprehensive knowledge and technology commercialisation service for University of Cambridge staff and students. In collaboration with researchers, CE manages intellectual property protection, carries out bespoke marketing, negotiates technology licences, consultancy contracts and other business agreements. For University staff and students interested in forming a company, CE offers start-up clinics, one-to-one mentoring, and access to investors and experienced management.

For further information, please contact:

Light Blue Optics:
Tamara Roukaerts
Marketing Manager
+44 (0)1223 421063
tamara.roukaerts@lightblueoptics.com

© Light Blue Optics Ltd 2006