Energy Focus Receives Another Record Order for the U.S. Navy

SOLON, Ohio, Oct. 7, 2014 -- Energy Focus, Inc. (EFOI), a leader in LED lighting technologies, today announced that the Company has received a $7.9 million order for the United States Navy—its second large order for the Navy in less than 30 days. This order is expected to be delivered throughout the first half of 2015, and is now the single largest in the Company's history, topping the $7.7 million order received in September.

As with the $7.7 million order received last month, this $7.9 million order is entirely for Energy Focus' military Intellitube(R) LED retrofit tubes. This industry's only true plug-and-play technology based on proprietary and patented circuit designs allows for direct fit into existing fluorescent sockets with or without the ballast in place. To date, the military Intellitube(R) is now installed on approximately 160 naval vessels in the U.S. Navy fleet. Upon delivery of this order in the first half of 2015, the U.S. Navy will have converted just over 10% of its fluorescent tubes with Intellitube(R).

"We have worked diligently to gain the confidence and recognition of the Navy for our LED lighting products and are optimistic that the Navy fleet's transformation into LED lighting will continue to expand," said Eric Hilliard, President and Chief Operating Officer of Energy Focus. "We are particularly pleased that based upon the 2015 Department of Defense Appropriations Bill, the Senate appropriations committee commends the U.S. Navy for its increasing use of LED lighting throughout the fleet, and encourages the Navy to continue these conversion activities."

"It is evident the U.S. Naval command is enthusiastic and supportive of the conversion to LED lighting, and we are extremely honored to be the Navy's partner to drive this conversion at an accelerating pace," said James Tu, Executive Chairman and Chief Executive Officer of Energy Focus. "As is typical in disrupting technologies, now that the market penetration rate for Navy combat ships is surpassing 10%, we look forward to faster, broader and less seasonal adoption of LED lighting by the Navy in the coming quarters and years."

"In addition, now with proven energy savings, maintenance savings, and higher quality of light resulting in better working conditions for the sailors, we believe the Navy's pioneering and aggressive LED adoption will catalyze LED adoption to additional U.S. government constituencies, including the Military Sealift Command, Coast Guard, military bases and other federal agencies. We are excited to leverage our proven credentials, government sales and distribution networks, as well as our technological leadership in tubular LEDs—now listed on the GSA Schedules—to expand our market reach and leadership in the government market," concluded Mr. Tu.

For more information on Energy Focus lighting solutions, please visit www.EnergyFocusInc.com.

Forward-Looking Statements

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Generally, these statements can be identified by the use of words such as "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from Energy Focus' forward-looking statements. These risks and uncertainties include, but are not limited to: the timing of the shipment of orders in our backlog, the benefits and performance of our lighting products; our ability to expand our sales with existing customers and other customers in the maritime market; growth in the markets into which Energy Focus sells; conditions of the lighting industry and the economy in general; statements as to our competitive position; the development and marketing of new products; relationships with the U.S. Navy, customers and distributors; trends in the price and performance of light-emitting diode ("LED") lighting products; and our strategy with regard to protecting our proprietary technology. For more information about potential factors that could affect the financial results of Energy Focus, please refer to the Company's SEC reports, including its Annual Reports on Form 10-K 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.

About Energy Focus, Inc.

Energy Focus, Inc. is a leading provider of energy efficient LED lighting products, turnkey energy efficient lighting solutions and a developer of energy efficient lighting technology. Our solutions provide energy savings, aesthetics, safety and maintenance cost benefits over conventional lighting. Our long-standing relationship with the U.S. Government continues to enable us to provide energy efficient LED lighting products to the U.S. Navy and the Military Sealift Command fleets.

Customers include national, state and local U.S. government agencies as well as Fortune 500 companies and many others commercial and industrial clients. Company headquarters are located in Solon, Ohio and the United Kingdom. For more information, see our web site at www.energyfocusinc.com.

Energy Focus, Inc.
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