Light Blue Optics Announces Joint Development Agreement with Thales

Light Blue Optics (LBO), the industry-leading developer of
miniature projection systems, today announced a joint agreement to
develop a range of display products with Thales, the world-class
aerospace & defence company. Under the agreement, LBO will provide
Thales with engineering samples of their miniature projection system
in a collaboration to produce advanced displays that meet the
high-performance and demanding safety requirements of cockpit
applications.

LBO's patented holographic laser projection technology delivers
large, full-colour, high-quality video images in focus at all
distances - even on curved or angled surfaces. LBO's Director of
Business Development and co-founder Dr. Edward Buckley explained,
"LBO's proprietary projection technology provides a range of benefits
including exceptional levels of brightness and a robust, lightweight
optical architecture that is highly tolerant to a range of
microdisplay defects. Such differentiating advantages make our
technology ideal for use in safety critical markets such as aerospace
& defence and automotive."

Bruno Vazzoler, Thales' Vice President General Manager of Cockpit
Interactive Solutions said, "At Thales, we are permanently looking for
leading-edge technologies with ground-breaking capabilities, and are
therefore delighted to announce this development agreement with Light
Blue Optics. We have identified a range of early revenue opportunities
for LBO's technology and look forward to delivering these advances in
display technology to customers in the near term."

Light Blue Optics' CEO, Dr. Chris Harris said, "This development
is a strategic collaboration that will bring LBO's unique command of
holographic laser projection together with Thales' unrivalled
understanding of human interaction with information display systems.
Coupling our flexibility with Thales' tremendous engineering capacity
opens up a range of near-term opportunities in aerospace & defence,
and we anticipate it will form the basis of a long-term relationship."

Notes to Editors:

Light Blue Optics (www.lightblueoptics.com)

Light Blue Optics (LBO) is a dynamic, privately-owned company,
developing miniature projection systems.

LBO's patented holographic laser projection technology delivers
large, full-colour, high-quality video images that remain in focus at
all distances. The technology's efficiency, small form factor,
robustness and cost advantages make it ideally suited for deployment
in multiple markets including automotive, digital signage, aerospace &
defence and consumer electronics.

LBO is funded by a group of investors including 3i plc, the FTSE
100 listed global venture capital firm.

About Thales (www.thalesgroup.com)

Thales is a leading international electronics and systems group
serving defence, aerospace and security markets worldwide, supported
by a comprehensive services offering. Thales offers a capability
unmatched in Europe to develop and deploy critical information
systems. Thales employs 70,000 people in 50 countries and generated
revenues of EUR 10.3 billion in 2006.