Lighting Science Settles Litigation With Philips Electronics

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September 1, 2009 (FinancialWire) -- Lighting Science Group Corp. (OTC: LSCG) (Current Market Cap: $20.07 Mil.) said it has settled all of its commercial and intellectual property disputes with Royal Philips Electronics (NYSE: PHG) by way of a comprehensive agreement that revives the two companies former commercial alliance.

The agreement provides that trade in LED lighting products between the companies will be intensified, that LSG takes out a royalty bearing license to the Philips LED based Luminaires and Retrofit Bulbs licensing program, and that Philips will make a limited equity investment in LSG.

According to Lighting Science, the commercial relationship involves mutual sourcing and supplying of LED components and products. The details concerning the commercial arrangement and the patent license agreement are confidential.

The company said that an investment by Phillips of $5 million in LSG will be made in the form of a convertible note that will convert to preferred shares upon a planned rights offering by LSG.

Lighting Science also said the agreement provides for mutual releases for all claims relative to the past, including all intellectual property and commercial claims and all the pending cases between the companies will be dismissed.

Netherlands-based Royal Philips Electronics is engaged in the healthcare, lifestyle and lighting markets and employs around 116,000 employees in more than 60 countries.

Rancho Cordova, California-based Lighting Science Group designs, develops, manufactures and markets LED lighting solutions. LSG offers retrofit LED lamps in form factors that match the form factor of traditional lamps or bulbs and LED luminaires for a range of applications including public and private infrastructure for both indoor and outdoor applications.

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