Light Blue Optics Raises US$26 Million to Accelerate Development of Laser-Based Miniature Projection Systems

Light Blue Optics (LBO), the industry-leading developer of
holographic laser projection technology, today announced closing a
US$26 million Series 'A' funding round, led by Earlybird Venture
Capital and Capital-E. Existing investors 3i plc, who led LBO's US$3.5
million seed-funding round, and NESTA also participated.

News of this Series 'A' funding round follows LBO's release of
engineering samples to key customers and strategic development
partners from July 2007. The money will enable LBO to accelerate its
product development and commercialisation programme towards the
high-volume manufacture of miniature projection systems for deployment
in a range of markets including automotive, digital signage and
consumer electronics. The Company estimates that the total available
market for miniature projection systems will exceed $5 billion by
2012.

Founded in 2004, LBO has developed an innovative holographic laser
projection technology that allows full colour, high-quality video
images to be projected onto flat or curved surfaces. LBO's novel
approach to projection delivers a unique combination of enabling
features including an ultra-wide throw angle, in-built laser speckle
reduction, infinite focus, low power consumption, no moving parts and
a robust design that naturally lends itself to miniaturisation and low
cost manufacture.

Earlybird Partner, Wolfgang Seibold said, "LBO has all the
hallmarks of a great investment; an innovative technology with
distinct competitive advantage in a range of high-volume markets,
coupled with a strong IP portfolio and a talented team. The Company is
an excellent fit for Earlybird's latest investment fund and we are
pleased to announce our participation in this important financing
round."

3i Director, Stephen Lowery added, "This $26 million investment is
one of the most significant European Series 'A' investments in the
last five years - testament to the remarkable progress LBO has made
with its partners and customers over the past 12 months. Having
supported the Company since its seed-round, we are delighted to
demonstrate our continued support with this additional investment."

Capital-E Partner, Rudi Severijns commented, "LBO impressed us
with its unique holographic laser projection technology which we
believe can take a significant share of a rapidly emerging market for
miniature projection systems. LBO clearly has the potential to become
industry leaders, and Capital-E is pleased to join the Company's
existing investors."

Light Blue Optics' CEO, Dr Chris Harris said, "The closure of this
US$26 million funding round will allow us to accelerate our product
development and commercialisation programme towards the high-volume
manufacture of miniature projection systems. LBO has world-beating
technology, excellent customer traction across a wide range of
markets, a strong investor syndicate and is ideally placed to become
the world's leading supplier of miniature projection systems."

Notes to Editors

Light Blue Optics (http://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
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 and consumer
electronics.

LBO is funded by a group of investors including 3i plc., Earlybird
Ventures and Capital-E.

3i plc (http://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 EUR 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.

Capital-E (http://www.capital-e.be)

Capital-E is an early stage venture fund focused exclusively on
micro- and nano-electronics related start-ups in Europe. Through its
entrenched relationship with IMEC, the largest independent research
centre in micro- and nano-electronics in Europe, the fund and its
ventures can directly rely on the support of over 1300 specialised
scientists and engineers, as well as leverage on IMEC's 500+ worldwide
industrial partners such as NXP, Infineon, STMicroelectronics, Intel,
Matsushita/Panasonic, Texas Instruments, Samsung and TSMC to speed-up
the process of market entry. The fund is managed by an independent
team with a balanced mix of entrepreneurial, industrial and VC
experience.

Earlybird (http://www.earlybird.com)

Earlybird Venture Capital, established in 1997, is one of Europe's
leading technology investors. With approximately EUR 370 million under
management, Earlybird seeks to invest in European technology enabled
high growth companies which are driven by outstanding management teams
backed by international syndications to broaden the access to customer
and capital markets. Earlybird invests primarily in early stage
technology companies which have their origins in Europe with the
current investment focus on software, semiconductor, communication,
cleantech, medtech and biotech platform technologies.

The Earlybird team creates value by understanding their target
investment sectors well and working closely with each management team.
Earlybird strongly supports the development of each company by
professionalizing and shaping management teams, providing strategic
and product advice, creating international investor syndicates,
effecting corporate introductions and being closely involved in
achieving appropriate exits.

Six of Earlybird's high-tech investee companies have floated on
various European stock exchanges over the last two years: Interhyp,
Tipp24 and Wilex (all Prime Standard, Frankfurt), Esmertec (Swiss
Exchange, Zurich), Entelos (London Stock Exchange) and NoemaLife
(Borsa Italiana, Milan). Interhyp returned more than 50x the original
Earlybird investment. In addition, Earlybird supported element 5 in
its acquisition by Digital River, Identify in its acquisition by BMC
Software and Alantos in its sale to Amgen for $300M USD.

NESTA (http://www.nesta.org.uk)

NESTA is the National Endowment for Science, Technology & the
Arts. With endowed funds of over GBP 300 million, our mission is to
transform the UK's capacity for innovation. We do this in three main
ways: by working to build a more pervasive culture of innovation in
this country; by providing innovators with access to early stage
capital; and by driving forward research into innovation, with a view
to influencing policy.