LSI Industries Inc. Reports Operating Results for the First Quarter Ended September 30, 2012, and Declares Regular Quarterly

LSI Industries Inc. Reports Operating Results for the First Quarter Ended
September 30, 2012, and Declares Regular Quarterly Cash Dividend

CINCINNATI, Oct. 25, 2012 (GLOBE NEWSWIRE) -- LSI Industries Inc.
(Nasdaq:LYTS) today:

  *reported first quarter net sales of $74,719,000, an increase of 14% as
    compared to $65,495,000 in the same period of the prior fiscal year;
    
  *reported first quarter net income of $1,830,000 or $0.08 per share,
    increases of 38% and 60%, respectively, as compared to $1,324,000 or $0.05
    per share for the same period of the prior fiscal year; and
    
  *declared a regular quarterly cash dividend of $0.06 per share payable
    November 13, 2012 to shareholders of record November 6, 2012.

Financial Highlights                              Three Months Ended
(In thousands, except pershare data; unaudited) September 30
                                              2012    2011    % Change
                                                               
Net Sales                                         $74,719 $65,495 14%
                                                               
Operating Income                                  $ 3,027 $ 2,178 39%
                                                               
Net Income                                        $ 1,830 $ 1,324 38%
                                                               
Earnings Per Share (diluted)                      $ 0.08  $ 0.05  60%

                              
                    9/30/12  6/30/12
Working Capital      $ 84,719   $ 83,702
Total Assets         $179,520   $175,226
Long-Term Debt       $nil      $nil
Shareholders' Equity $150,226   $149,368

First Quarter Fiscal 2013 Results

Net sales in the first quarter of fiscal 2013 were $74,719,000, an increase of
14% as compared to last year's first quarter net sales of
$65,495,000.Lighting Segment net sales increased 13.5% to $55,791,000 with
sales to national accounts and niche markets increasing 17.0%, sales to the
Commercial / Industrial lighting market decreasing 7.2%, sales of $4,273,000
related to LED video screens increasing significantly, and lighting sales to
the international markets of $3,740,000 increasing 22.1%.In the other
reportable business segments, Graphics Segment net sales increased 2.5% to
$10,745,000, Electronic Components Segment net sales increased 30.7% to
$5,754,000 and net sales of the All Other Category increased 69.6% to
$2,429,000.The Company's first quarter net sales to the Petroleum /
Convenience Store market were approximately $19.7 million, representing a $2.8
million or 17.3% increase over the same period of the prior year.Fiscal 2013
first quarter net income of $1,830,000, or $0.08 per share, increased 38.2%
and 60%, respectively, as compared to fiscal 2012 first quarter net income of
$1,324,000, or $0.05 per share.Earnings per share represents diluted earnings
per share.

Balance Sheet

The balance sheet at September 30, 2012 included current assets of $111.3
million, current liabilities of $26.6 million and working capital of $84.7
million, which includes cash of $15.9 million.The current ratio was 4.2 to
1.The Company has shareholders' equity of $150.2 million, no long-term debt,
and has borrowing capacity on its commercial bank facilities as of September
30, 2012 of $35 million.With continued strong cash flow, a sound and
conservatively capitalized balance sheet, and $35 million in credit
facilities, LSI Industries believes its financial condition is sound and
capable of supporting the Company's planned growth, including acquisitions, if
any.

Cash Dividend Actions

The Board of Directors declared a regular quarterly cash dividend of $0.06 per
share payable November 13, 2012 to shareholders of record as of November 6,
2012.The indicated annual cash dividend rate for fiscal 2013 is $0.24 per
share.The declaration and amount of any cash and stock dividends will be
determined by the Board of Directors in its discretion based upon its
evaluation of earnings, cash flow requirements and future business
developments and opportunities, including acquisitions, if any.

Company Comments

Robert J. Ready, Chief Executive Officer, commented, "The fiscal year is off
to a respectable start with first quarter net sales, operating income, net
income, and diluted earnings per share up significantly over the same period
of the prior year.Our focus on introducing and promoting energy-efficient
solid-state LED lighting products continues to drive sales
growth.Approximately 35% of the Lighting Segment net sales during the first
quarter were solid-state LED lighting products.Our recently installed
electronic scoreboard for the University of Arkansas (the second largest
dedicated collegiate football stadium scoreboard and video screen in the
United States) represented an additional $4.2 million of LED product net sales
for the Lighting Segment, and received strong favorable reviews from our
customer and their specifying consultant.We plan to do more in this
marketplace.The Graphics business was improved during the quarter and this
business segment is expected to gain strength during the remainder of the
fiscal year.We are now involving the sales team of recently acquired Virticus
in customer presentations to offer wireless controls and communication.This
is an important technology capability to have in addressing both new
installations and the energy focused retrofit business of either LED lighting
or traditional lighting.We continue to maintain a strong and debt-free
balance sheet.As earnings increase, we will give consideration to increasing
our regular cash dividend rate.

"We cordially invite you to attend our Annual Shareholders' Meeting which will
be held at our Corporate headquarters on November 15^th at 10:00 a.m.We will
have some exciting new products and technologies to introduce and
demonstrate."

Non-GAAP Financial Measures

This press release includes adjustments to GAAP net income for the three
months ended September 30, 2011.Adjusted net income and earnings per share,
which excludes the impact of a goodwill impairment, are non-GAAP financial
measures.We believe that it is useful as a supplemental measure in assessing
the operating performance of our business.This measure is used by our
management, including our chief operating decision maker, to evaluate business
results.We exclude this non-recurring item because they are not
representative of the ongoing results of operations of our business.Below is
a reconciliation of this non-GAAP measurement to the net income reported for
the period indicated.

(in thousands, except per share data;        First Quarter
unaudited)
                                                     Diluted         Diluted
                                             FY 2013 EPS      FY 2012 EPS
Reconciliation of net income to adjusted net                        
income:
                                                                   
Net income as reported                      $1,830   $0.08    $1,324  $0.05
                                                                   
Adjustment for goodwill impairment,          --      --      258     0.01
Inclusive of the income tax effect
                                                                   
Adjusted net income and earnings per share   $1,830   $0.08    $1,582  $0.06

"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, whether expressed or implied, 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 over which the
Company may have no control.These risks and uncertainties include, but are
not limited to, the impact of competitive products and services, product
demand and market acceptance risks, potential costs associated with litigation
and regulatory compliance, reliance on key customers, financial difficulties
experienced by customers, the cyclical and seasonal nature of our business,
the adequacy of reserves and allowances for doubtful accounts, fluctuations in
operating results or costs whether as a result of uncertainties inherent in
tax and accounting matters or otherwise, unexpected difficulties in
integrating acquired businesses, the ability to retain key employees of
acquired businesses, unfavorable economic and market conditions, and the
results of asset impairment assessments.You are cautioned to not place undue
reliance on these forward-looking statements.In addition to the factors
described in this paragraph, the risk factors identified in our Form 10-K and
other filings the Company may make with the SEC constitute risks and
uncertainties that may affect the financial performance of the Company and are
incorporated herein by reference.The Company does not undertake and hereby
disclaims any duty to update any forward-looking statements to reflect
subsequent events or circumstances.

About the Company

Leadership.Strength.Innovation.Those are the key values behind the smart
vision upon which LSI Industries Inc. was founded when established in
1976.Today LSI demonstrates this in our dedication to advancing technology
throughout all aspects of our business. We are a vertically integrated
manufacturer who combines integrated technology, design and manufacturing to
produce the most efficient, high quality products possible.Everything we
build is done right here in one of our US plants.

We are committed to advancing solid-state technology to make affordable, high
performance, energy efficient lighting and custom graphic products that bring
value to our customers.We have a vast offering of innovative solutions for
virtually any lighting or graphics application.In addition, we can provide
sophisticated lighting and energy management control solutions to help
customers manage their energy performance.Further, we can provide design
support, engineering, installation and project management for custom graphics
rollout programs for today's retail environment.

LSI is a U.S. manufacturer with marketing / sales efforts throughout the world
with concentration currently on North America, Latin America, Australia, New
Zealand, Asia, Europe and the Middle East.Our major markets include the
commercial / industrial lighting, petroleum / convenience store, multi-site
retail (including automobile dealerships, restaurants and national retail
accounts), sports and entertainment markets.Headquartered in Cincinnati,
Ohio, LSI has facilities in Ohio, Kansas, Kentucky, New York, North Carolina,
Oregon, Rhode Island, 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

For further information, contact either Bob Ready, Chief Executive Officer, or
Ron Stowell, Vice President, Chief Financial Officer, and Treasurer at (513)
793-3200.

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.

Condensed Consolidated Statements of Income                           
                                                 
(in thousands, except pershare data; unaudited) Three Months Ended
                                                  September 30
                                                 2012      2011
                                                          
Net sales                                         $ 74,719  $ 65,495
                                                          
Cost of products and services sold                56,848    50,031
                                                          
Gross profit                                      17,871    15,464
                                                          
Selling and administrative expenses               14,844    13,286
                                                          
Operating income                                  3,027     2,178
                                                          
Interest expense, net                             20        40
                                                          
Income before income taxes                        3,007     2,138
                                                          
Income tax expense                                1,177     814
                                                          
Net income                                        $ 1,830   $ 1,324
                                                          
Income per common share                                   
Basic                                             $ 0.08    $ 0.05
Diluted                                           $ 0.08    $ 0.05
                                                          
Weighted average common shares outstanding                 
Basic                                             24,304    24,294
Diluted                                           24,373    24,360

                                                   
Condensed Consolidated Balance Sheets               
(in thousands, unaudited)            September 30, June 30,
                                      2012           2012
Current Assets                        $111,332       $106,623
Property, Plant and Equipment, net    42,682         42,526
Other Assets                          25,506         26,077
                                     $179,520       $175,226
                                                   
Current Liabilities                   $ 26,613       $ 22,921
Long-Term Debt                        --             --
Other Long-Term Liabilities           2,681          2,937
Shareholders' Equity                  150,226        149,368
                                     $179,520       $175,226

CONTACT: BOB READY OR
         RON STOWELL
         (513) 793-3200

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