Energy Focus Inc. Offers Californians High-Efficiency Products to Help Utilities Slash Energy Use

SOLON, Ohio, Jan. 10 /PRNewswire-FirstCall/ -- Energy Focus, Inc. (NASDAQ: EFOI) , the global leader in energy-efficient lighting technologies, can help Californians meet the State's ambitious energy conservation goals.

According to the January 9, 2008, edition of Wall Street Journal, California is aggressively developing innovative ways to inspire energy conservation, including the widespread distribution of compact fluorescent lightbulbs (CFLs) that use about a quarter of the energy of incandescent bulbs. By comparison, Energy Focus's high-efficiency lighting systems, including its award-winning LED and metal-halide systems, save as much as 80% of the energy of incandescent and even fluorescent bulbs, offering California consumers a bright, efficient alternative to the "twisty."

"For homeowners, retailers and businesses, energy-efficient lighting is about far more than simply low wattage," said John Davenport, CEO of Energy Focus Inc. "It's about bright, warm, white light that accents retailers' products; it's about creating mood and atmosphere. It's about saving energy through lost cost controls. Energy Focus products deliver these attributes in the most energy efficient package available."

Energy Focus Inc. has a track record of providing energy solutions to the California lighting market. In 2006 Southern California Edison performed a comparative field study of Energy Focus EFO-ICE, Energy Focus's fiber optic lighting system for refrigerated supermarket display cases, and state-of-the-art fluorescent lighting. Results showed that EFO-ICE required only 1/3 the energy of fluorescent lighting while providing comparable luminance. The Albertsons grocery store chain, recognizing the energy saving potential, has installed EFO systems in California as well in other states.

But lighting is not the only area in which Energy Focus can help Californians. As of January 1, 2008, the state mandated new energy conservation rules regulating swimming pool pumps. According to the California Public Utilities Commission, pool pumps are the third largest user of residential electricity in California. There are perhaps 500,000 residential pools with pool pumps that are responsible for 1.3 billion kWh per year and a potential demand of as much as 750 MW in the Southern California Edison service area alone.

To meet this challenge, Energy Focus's Fiberstars Pool and Spa division has developed a Wireless Pool Control (WPC) system that makes saving energy and money by managing pool pumps easy and inexpensive.

"Pool pumps have traditionally been one of the most inefficient electronic products on the market," said Steve Gasperson, Vice President of Sales and Marketing for Energy Focus Inc. "The Fiberstars WPC, which meets or exceeds all of California's relevant mandates, allows consumers to remotely control their two-speed pool pumps. Our unique wireless handset (which can also operate pool lights) offers consumers a extremely convenient way to radically reduce their energy consumption and costs."

California is not the only state establishing energy conservation initiatives. On January 1, 2008, new lighting and appliance efficiency regulations went into effect in Arizona, Connecticut, Oregon, Massachusetts, New Jersey and Washington. And the "Energy Independence and Security Act of 2007" signed into law by President Bush on December 19, 2007, mandates that by 2020, lightbulbs must be 70% more efficient than today.

"Energy Focus lighting systems already exceed the efficiency targets mandated for the year 2020," added John Davenport, "and we are dedicated to developing the most forward-thinking sustainable lighting technologies available.

About Energy Focus, Inc.

Energy Focus, Inc. (NASDAQ: EFOI) designs, develops, manufactures and markets lighting systems for wide-ranging uses in both the general commercial and the pool and spa lighting markets. Energy Focus EFO(R) systems offer energy savings, heat dissipation and maintenance cost benefits over conventional lighting for multiple applications. The Company's headquarters are located at 32000 Aurora Rd., Solon, Ohio. The Company has additional offices in California, the United Kingdom, and Germany. Telephone: (440) 715-1300. For more information, see http://www.energyfocusinc.com.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the business outlook for 2007 and thereafter, future pool market sales, and the potential growth of EFO sales based upon its energy savings over halogen and fluorescent lights. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Actual results may differ materially from the results predicted. Risk factors that could affect the Company's future include, but are not limited to, a slowing of the U.S. and world economies and its effect on Energy Focus' markets, failure to develop marketable products from new technologies, failure of EFO or other new products to meet performance expectations, unanticipated costs of integrating acquisitions into the Energy Focus operation, delays in manufacturing of products, increased competition, other adverse sales and distribution factors, and greater than anticipated costs and/or warranty expenses. For more information about potential factors which could affect Energy Focus financial results, please refer to the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2006, and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any forward- looking statements.