Luna Awarded $3.9M for Nanotechnology Applications in Medicine and Alternative Energy...

Luna Awarded $3.9M for Nanotechnology Applications in Medicine and Alternative Energy for Defense

Diagnostics, Therapeutics and Organic Solar Cell Research Contract
with the Air Force Research Laboratory
ROANOKE, Va.--(Business Wire)--
Luna Innovations Incorporated (NASDAQ:LUNA) has been awarded a
$3.9 million subcontract, from General Dynamics Information Technology
in support of the Air Force Research Laboratory (AFRL) to continue
work improving the performance of nanomaterials for military
applications. In this program, Luna's product development team will
evaluate prototypes using their exclusive nanomaterials applied to
real-world conditions. Demonstrations of the commercial viability of
proposed nanotechnologies will include diagnostics and therapeutics
for military medicine and alternative energy solutions using organic
solar cells.

"By manipulating the properties of our proprietary nanomaterials,
we can tune the materials to fit desired applications," said Charles
Gause, Vice President of Corporate Development at Luna Innovations.
"To date, we have produced 27 different species of our Trimetasphere
molecule and to maximize the potential of this carbon nanomaterial
technology, proof-of-concept via application-specific testing and
prototyping is necessary."

Prior and ongoing funded research has demonstrated that the use of
Luna's exclusive carbon nanomaterials could dramatically enhance
magnetic resonance imaging (MRI) while reducing the potential toxic
side effects prevalent with existing chelate-based contrasts agent.
"This program will continue to build on our past progress in medical
imaging," said Gause. "We also hope to further advance our carbon
nanomaterials for military medical applications and investigate new
areas such as the promotion of wound healing."

Through this program Luna also plans to further demonstrate the
enhancement of organic solar cells as a potential alternative energy
solution. Increasing efficiencies of light conversion to electrical
energy of organic solar cells is required to make them commercially
viable. The company has made advances on a key parameter, known as
"open circuit voltage", or Voc, that is essential for improving
organic solar cell efficiency. "Luna has already increased Voc by 35%
over the standard reference devices," added Gause. "In this final
phase of the program we will continue working towards the achievement
of even higher efficiencies in order to make organic solar cells
commercially viable."

"This program is vital to Luna's growth in the area of
nanomaterial commercialization," stated Kent Murphy, Luna Chairman and
CEO, "We will focus on delivering for our defense customer and keep an
eye on driving the opportunity for further product development in the
private sector."

About Luna Innovations:

Luna Innovations Incorporated (www.lunainnovations.com) develops
and manufactures new-generation products for the healthcare,
telecommunications, energy and defense markets. Our products are used
to measure, monitor, protect and improve critical processes in the
markets we serve. Through its disciplined commercialization business
model, Luna has become a recognized leader in transitioning science to
solutions.

Forward Looking Statements:

This release includes information that constitutes
"forward-looking statements" made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including statements regarding, but not limited to: 1) Luna's ability
to demonstrate the commercial viability of nano material technologies
including diagnostics and therapeutics and alternative energy
solutions; 2) Luna's ability to enhance magnetic resonance imaging
while reducing potential toxic side effects; 3) Luna's ability to make
organic solar cells commercially viable; and 4) Luna's potential
growth in the area of nanomaterial commercialization and product
development. Statements that describe the Company's business strategy,
goals, prospects, opportunities, outlook, plans or intentions are also
forward looking statements. Actual results may differ materially from
the expectations expressed in such forward-looking statements as a
result of various factors, including risks and uncertainties set forth
in the company's periodic reports and other filings with the
Securities and Exchange Commission. Such filings are available at the
SEC's website at http://www.sec.gov, and at the company's website at
http://www.lunainnovations.com. The statements made in this release
are based on information available to the company as of the date of
this release and Luna Innovations undertakes no obligation to update
any of the forward-looking statements after the date of this release.

Luna Innovations Incorporated
Karin Clark, 1-540-769-8400
kclark@lunainnovations.com
or
Investor Contact:
Qorvis Communications
Sally Beerbower, 1-703-744-7800
ir@lunainnovations.com

Copyright Business Wire 2008