LSI Industries Inc. Announces (1) Major National LED Crossover(r) Program and (2)...

LSI Industries Inc. Announces (1) Major National LED Crossover(r) Program and
(2) Agreement in Principle to Acquire Solid-State LED Engineering and
Manufacturing Business, and Comments On International LED Opportunities and
Balance Sheet

CINCINNATI, June 29, 2009 (GLOBE NEWSWIRE) -- LSI Industries Inc. (Nasdaq:LYTS)
today announced the following two developments:

* LSI has been selected by a major petroleum/convenience store
retailer to upgrade and re-image its canopy lighting, site lights,
and security lighting on a nationwide basis utilizing LSI's
recently introduced solid-state LED Crossover(r) lighting fixtures.
In addition, LSI's graphics division will retrofit exterior fascia
graphics lighting using LED technology for the convenience stores
as well as have responsibility for project management and
installation activities. The initial phase of this program will
involve the conversion of over 1,100 individual retail stores.
LSI believes this program represents the largest single national
conversion of conventional-to-LED based lighting ever undertaken.
Energy savings were a major motivation for this conversion program.
Work is already underway and revenues related to this new program
will favorably affect fiscal year 2010. Revenues for this phase
of the project are expected to be between $22 million and $23
million. Additional follow-on conversions for this customer's
stores not included in the initial phase are also possible later
in fiscal years 2010 and 2011.

* LSI has reached an agreement in principle to acquire a Columbus,
Ohio based business, ADL Technology and related companies, that
design, engineer, and manufacture custom designed circuit boards,
assemblies, and sub-assemblies used in various applications
including the control of solid-state LED lighting. Subject to
completion of due diligence and finalization of a definitive
purchase agreement, this acquisition is expected to close during
the next 30 days. The purchase price is expected to be
approximately $13 million, a significant portion of which is
expected to be shares of LSI's common stock, plus the assumption
of approximately $4 million of long-term debt. ADL has a history
of profitable operations and the acquisition is expected to be
accretive before giving effect to one-time transaction costs and
non-cash amortization expenses.
Robert J. Ready, President and CEO, commented, "These are two very positive
developments for LSI Industries. Working together, our lighting and graphics
business units were very effective in demonstrating to a major national customer
the fundamental advantages and attractiveness of converting to solid-state LED
lighting. Very clearly, the interest and momentum in LED-based lighting
solutions is growing rapidly. Evidence of this interest in LEDs is everywhere,
from trade shows to customer inquiries, to the popular press. LSI has taken the
necessary steps to become a leader in providing advanced solid-state LED
lighting products through its various Crossover(r) product lines which are
designed to serve its core niche markets as well as the broad commercial and
industrial lighting market. Naturally, we are very pleased to have been selected
to provide our new energy saving products for the largest-to-date national
rollout of solid-state LED lighting. I truly believe this is only the beginning
of what will become a dominant trend as the many benefits of LED lighting drive
the market.

"So as to further establish and advance our leadership position in LED lighting,
we made the decision to vertically integrate our capabilities in connection with
designing, engineering, and producing the solid-state electronics that control
and power LEDs. For the past two years, we and our Montreal-based engineers at
LSI Saco Technologies have been working with the talented engineering and
manufacturing people at ADL Technology. As part of the LSI family, ADL will
allow us to stay on the leading edge of product development while at the same
time providing opportunities to drive down manufacturing costs and control
delivery of key components. ADL's capabilities will also have applications in
our other LED product lines such as digital scoreboards, and advertising ribbon
boards and billboards. The owners of ADL will be joining the management team of
LSI and we look forward to many benefits from this continuing relationship as we
plan for the future and the resumption of growth in our markets and the general
economy."

Mr. Ready went on to say, "As I have stated in past conference calls, we have
been actively developing an international presence for our LED product lines. I
am pleased to say we now have our first UK based prototype installation in place
and initial reports indicate the customer is extremely pleased with the results.
. As more sites are converted to LSI's LED lighting fixtures, we will be putting
in place a very aggressive marketing and sales direction. We see the opportunity
for solid-state LED lighting to serve both the domestic and international
markets. This rather dramatically expands our potential for higher sales and
profits as we address export sales. We continue to place high value on
maintaining a sound and conservative balance sheet. This will also be true after
the ADL acquisition, as a significant form of consideration is expected to be
LSI's common stock. Our balance sheet at March 31, 2009 included current assets
of $89.8 million, current liabilities of $17.1 million and working capital of
$72.7 million. The current ratio was 5.26 to 1. The Company has shareholders'
equity of $131.1 million, no long-term debt, and has borrowing capacity on its
commercial bank facilities as of March 31, 2009 of $47 million."

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:

This document contains certain forward-looking statements that are subject to
numerous assumptions, risks or uncertainties. The Private Securities Litigation
Reform Act of 1995 provides a safe harbor for forward-looking statements.
Forward-looking statements may be identified by words such as "estimates,"
"anticipates," "projects," "plans," "expects," "intends," "believes," "seeks,"
"may," "will," "should" or the negative versions of those words and similar
expressions, and by the context in which they are used. Such statements are
based upon current expectations of the Company and speak only as of the date
made. Actual results could differ materially from those contained in or implied
by such forward-looking statements as a result of a variety of risks and
uncertainties. These risks and uncertainties include, but are not limited to,
the impact of competitive products and services, product demand and market
acceptance risks, reliance on key customers, financial difficulties experienced
by customers, the adequacy of reserves and allowances for doubtful accounts,
fluctuations in operating results or costs, unexpected difficulties in
integrating acquired businesses, and the ability to retain key employees of
acquired businesses and any other factors that may be identified in our reports
filed with the Securities and Exchange Commission, including our Form 10-K. The
Company has no obligation to update any forward-looking statements to reflect
subsequent events or circumstances.

About the Company

LSI Industries is an Image Solutions company, dedicated to advancing solid-state
LED technology in lighting and graphics applications. We combine integrated
technology, design, and manufacturing to supply high quality, environmentally
friendly lighting fixtures and graphics elements for commercial, retail and
specialty niche market applications. LSI is a U.S. manufacturer with marketing /
sales efforts throughout the world with concentration currently on North
American, South American, Asian, Australian, New Zealand and European markets.

Building upon its success with the Crossover(r) LED canopy fixture, LSI's
Lighting Segment is committed to producing affordable, high performance, energy
efficient lighting products, including solid-state LED light fixtures, for
indoor and outdoor use. The Graphics Segment designs, produces, markets and
manages a wide array of custom indoor and outdoor graphics programs including
signage, menu board systems, decorative fixturing, LED displays and digital
signage, and large format billboard and sports screens using solid-state LED
technology. In addition, we provide design support, engineering, installation
and project management for custom rollout programs for today's retail
environment. The Company's technology R&D operation located in Montreal, Canada
designs, produces and supports high performance light engines and large format
billboard, sports and entertainment video screens using solid-state LED
technology.

LSI's major markets are the commercial / industrial lighting, petroleum /
convenience store, multi-site retail (including automobile dealerships,
restaurants and national retail accounts), sports and entertainment markets. LSI
employs approximately 1,200 people in facilities located in Ohio, New York,
North Carolina, Kansas, Kentucky, Rhode Island, Tennessee, Texas and Montreal,
Canada. The Company's common shares are traded on the NASDAQ Global Select
Market under the symbol LYTS.

The LSI Industries Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3646

Additional note: Today's news release, along with past releases from LSI
Industries, is available on the Company's internet site at
www.lsi-industries.com or by email or fax, by calling the Investor Relations
Department at (513) 793-3200.

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CONTACT: LSI Industries Inc.
Bob Ready, Chief Executive Officer and President
Ron Stowell, Vice President, Chief Financial
Officer, and Treasurer
(513) 793-3200