Philips and Lighting Science Group Settle All Litigation

Agreement Includes Commercial Relationship, License by LSG, and Investment by
Philips

NEW YORK, Aug. 31 /PRNewswire-FirstCall/ -- Lighting Science Group Corporation
("LSG") and Royal Philips Electronics today announced that they have settled
all of their commercial and intellectual property disputes by way of a
comprehensive agreement that revives their former commercial alliance. The
agreement provides that trade in LED lighting products between the companies
will be intensified, that LSG takes out a royalty bearing license to the
Philips LED based Luminaires and Retrofit Bulbs licensing program, and that
Philips will make a limited equity investment in LSG.

The commercial relationship involves mutual sourcing and supplying of LED
components and products. The details concerning the commercial arrangement
and the patent license agreement are confidential. The investment of five
million United States dollars is in the form of a convertible note that will
convert to preferred shares upon LSG's planned rights offering. The agreement
also provides for mutual releases for all claims relative to the past,
including all intellectual property and commercial claims and all the pending
cases between the companies will be dismissed.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a
diversified Health and Well-being company, focused on improving people's lives
through timely innovations. As a world leader in healthcare, lifestyle and
lighting, Philips integrates technologies and design into people-centric
solutions, based on fundamental customer insights and the brand promise of
"sense and simplicity". Headquartered in the Netherlands, Philips employs
approximately 116,000 employees in more than 60 countries worldwide. With
sales of EUR 26 billion in 2008, the company is a market leader in cardiac
care, acute care and home healthcare, energy efficient lighting solutions and
new lighting applications, as well as lifestyle products for personal
well-being and pleasure with strong leadership positions in flat TV, male
shaving and grooming, portable entertainment and oral healthcare. News from
Philips is located at www.philips.com/newscenter.

About Lighting Science
Lighting Science Group Corporation designs, develops, manufactures and markets
LED lighting solutions that are environmentally friendlier and more energy
efficient than traditional lighting products. LSG offers retrofit LED lamps
in form factors that match the form factor of traditional lamps or bulbs and
LED luminaires for a range of applications including public and private
infrastructure for both indoor and outdoor applications. LSG's Custom
Solutions business unit designs, develops and manufactures custom LED lighting
solutions for architectural and artistic projects. LSG is headquartered in
Satellite Beach, Florida; LSG's Custom Solutions business unit is based in
Rancho Cordova, California; LSG's European operations are based in Goes, The
Netherlands; and, LSG has sales offices in Tokyo, Japan, Buckinghamshire,
England and Sydney, Australia. More information about LSG is available at
www.lsgc.com.

LSG Forward Looking Statements
Certain statements in this press release may constitute "forward-looking
statements" made under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The statements include, but are not limited to
statements regarding our expectations concerning management and our ability to
expand and develop our business and statements using terminology such as
"advance," "success," "will," "intensified," "revived," "would," "could,"
"expect," "intend," "plan," "anticipate," "believe," "potential,"
"opportunity," "greater," "help," or "extensive." Such statements reflect the
current view of LSG with respect to future events and are subject to certain
risks, uncertainties and assumptions. Known and unknown risks, uncertainties
and other factors could cause actual results to differ materially from those
contemplated by the statements. In evaluating these statements, you should
specifically consider various factors that may cause our actual results to
differ materially from any forward-looking statements. Readers should
carefully review the risk factors detailed under "Risk Factors" in our Form
10-K's, Form 10-Q's and other Securities and Exchange Commission filings.
These filings can be obtained by contacting LSG's Contact.

SOURCE Lighting Science Group Corporation

Media, Jon DiGesu, +1-603-770-5731, jon.digesu@lsgc.com, or Investors, Steve
Hamilton, +1-214-382-3650, steve.hamilton@lsgc.com, both of LSG; or Arent-Jan
Hesselink, +31-20-59-77415, arentjan.hesselink@philips.com, or David Wolf,
+1-212-536-0817, david.l.wolf@philips.com, both of Philips