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Luna Awarded Shape Sensing in Underwater Arrays

Luna Works with Office of Naval Research in ''DADS'' Sensor Array Enhancement

ROANOKE, Va.--(BUSINESS WIRE)--April 23, 2008--Luna Innovations Incorporated (NASDAQ: LUNA) announces the award of a contract to adapt its shape sensing technology for use in surveillance sensor arrays being developed as part of the Navy's new Deployable Autonomous Distributed System (DADS). This technology enhancement will provide the ability to detect and assess enemy threats in the ocean with greater accuracy. The $1.9 million award is under the Office of Naval Research (ONR).

"This contract illustrates how Luna's distributed sensing is a platform technology that can extend into a wide range of applications," commented Kent Murphy, Luna Innovations' Chairman and Chief Executive Officer. Our unique distributed fiber optic shape and position sensing cable can provide feedback of the dynamic shape and position of structures of interest. It is a perfect solution for dealing with the demanding positional challenges of underwater arrays."

DADS is a distributed surveillance system composed of independent nodes spread on the ocean floor. Each node uses multiple sensors connected together on a serial string for sensing and localization of targets. Knowing the location of each DADS sensor by monitoring the shape of the string as it lies on the bottom of the ocean is critical in surveillance operations. Luna's shape sensing fiber will be embedded into the array cable to provide improved shape estimation over existing methods.

Luna's goals in this ONR program include reducing the size of the shape sensor processor, reducing power consumption, and extending sensing range. "Luna's shape sensing technology is an important component in meeting the Navy's goals for the DADS program in the coming years," said Dana Hesse, Program Officer for ONR. "If proven in the underwater environment, this unique sensing technology will enable the Navy to retrieve more accurate information from future underwater arrays and it could substantially reduce weight and cost."

Luna's 'smart cable' sensor is minimally intrusive, light weight and can be used to monitor the dynamic 3-D shape of a structure to which it conforms. When embedded or surface attached, this cable will monitor the dynamic 3-D shape independent of the temperature or load environment. Because of its high-spatial resolution, this smart cable can also be used to track the exact position of an object attached to the end of the cable. Aside from ocean surveillance, Luna is also using this platform technology for position sensing and shape sensing solutions in medical and aerospace applications.

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. Luna 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: the technology’s ability to provide enhanced shape estimation, accuracy, and reduced weight and cost of underwater arrays. 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.

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

SOURCE: Luna Innovations Incorporated