Luna Awarded NIH Grant to Apply Nanotechnology to Allergy Treatment

Grant to Identify and Analyze Nanomedicine Prototypes for Treating
Allergies and Other Inflammatory Diseases
ROANOKE, Va.--(Business Wire)--
Luna Innovations Incorporated (NASDAQ:LUNA) announces the award of
a $1.6 million Research Project Grant (R01) from the National
Institutes of Health (NIH) to investigate the use of fullerene-based
nanomedicines as a pathway to treat allergies and other inflammatory
diseases. This novel research program may offer a new therapeutic
solution using fullerene compounds for treating allergies and other
conditions that play a central role in inflammatory reactions, such as
arthritis and multiple sclerosis. The study will include evaluating
Luna's exclusive nanomedicine prototypes.

Allergic conditions and other autoimmune diseases affect millions
of people worldwide. These diseases are induced in tissues that
contain mast cells (cells that line the surfaces of the skin, mouth,
nose, eyes, sinuses, and lungs) and basophils (cells that are in the
blood stream). Both cells contain histamine, the main cause of
inflammatory allergic diseases.

Fullerenes are a novel class of carbon molecules that have unusual
biological properties due to their unique structure. Luna's team of
scientists in Danville, Virginia are synthesizing a variety of
fullerenes to develop new or improved technologies to diagnose,
monitor, and treat certain medical conditions.

"Our fullerenes are spherical carbon nanomaterials that have been
modified to target sites within cells that amplify the immune
response," explained Dr. Chris Kepley, Principal Investigator of the
RO1 and nanoImmunology Group Leader at Luna. "We have discovered that
our fullerene prototypes block the noxious effects of allergies and
therefore may be a new way to control allergies and other diseases
that are largely due to mast cell and basophil responses. Because
these nanomedicine prototypes appear to work through a unique pathway,
it is possible they could combine with existing medicines and produce
a synergy, which makes a significant impact on these diseases."

In this program under the NIH's National Institute of General
Medical Sciences, Luna will explore whether fullerenes control
allergies by investigating the systemic, cellular and molecular
responses in vivo and in vitro. An interdisciplinary research team,
led by Dr. Kepley, has been assembled to accomplish these studies.
This team combines expertise in the chemical, physical and biological
sciences and state-of-the-art methodologies and models.

About Luna Innovations:

Luna Innovations Incorporated (www.lunainnovations.com) develops
and manufactures new-generation products for the healthcare,
telecommunications, energy and defense markets. Luna's products are
used to measure, monitor, protect and improve critical processes in
the markets we serve. Luna nanoWorks (www.lunananoworks.com) is a
division of Luna Innovations. With a world-class nanomaterial
manufacturing facility in Danville, Virginia, the nanoWorks Division
is developing products empowered by nanomaterials with applications in
diagnostics and therapeutics. Through its disciplined
commercialization business model, Luna has become a recognized leader
in transitioning science to solutions. The Company is headquartered in
Roanoke, Virginia.

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: Luna's
fullerene-based nanomedicine prototypes' ability to offer new
therapeutic solutions for treating allergies and other medical
conditions, and Luna's ability to develop new and/or improved
technologies to diagnose, monitor or treat medical conditions.

The company attempts, whenever possible, to identify
forward-looking statements by words such as "intends," "will,"
"plans," "anticipates," "expects," "may," "estimates," "believes,"
"should," "projects," or "continue," or the negative of those words or
comparable words.

Factors that could cause actual results to differ materially from
the expectations expressed in such forward-looking statements include,
but are not limited to: the safety of nanomedicine prototypes, whether
real or perceived, the potential limitations of regulatory
requirements in obtaining clearance by the U.S. Food and Drug
Administration or other regulatory agencies for the company's products
and the timeline for bringing any new drugs based on nanomaterials to
market. 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
Media Contact:
Karin Clark, 1-540-769-8400
kclark@lunainnovations.com
or
Investor Contact:
Qorvis Communications
Sally Beerbower, 1-703-744-7800
ir@lunainnovations.com

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