Luna receives second payment of $6 million from Intuitive Surgical

  Luna receives second payment of $6 million from Intuitive Surgical

Second tranche released in accordance with agreement struck earlier this year

Business Wire

ROANOKE, Va. -- April 24, 2014

Luna Innovations Incorporated (NASDAQ: LUNA), which develops and manufactures
new-generation products for the telecommunications, aerospace, automotive,
energy, and defense markets, today announced that it has received the second
payment of $6 million as originally agreed upon with Intuitive Surgical, Inc.

The payment is related to the sale of Luna’s shape-sensing technology for
medical applications that was executed with Intuitive in January of this year.
In accordance with the terms of the deal, Luna has now received a total of $12
million from Intuitive and may receive up to an additional $18 million in the
future upon the achievement of certain technical milestones and commercial
measures.

The sale, which may generate proceeds of up to $30 million, has enabled Luna
to focus on the growth potential of its fiber-optic sensing business,
specifically toward serving the strain & temperature sensing industries
through its ODiSI product line.

“Completing the transaction with Intuitive provided two key benefits for us,”
said Luna President and CEO My Chung. “First, it gave us the opportunity to
monetize the shape-sensing technology in the medical area on an accelerated
pace, having received $12 million in the first half of the year. Second, it
has allowed us to concentrate our focus and devote the necessary resources to
drive the increased adoption of our solutions for fiber optic sensing of
strain and temperature. We have targeted a portion of the proceeds to further
expand our sales force, enhance our marketing efforts and continue to improve
the functionality of our ODiSI platform.”

With strain and temperature sensing now as its key focus, Luna will continue
to develop technological solutions for a growing market. Its core team of
engineers is driving technological improvements as Luna continues to focus on
marketing the ODiSI platform in automotive, aerospace and energy applications.

Additionally, Luna will continue to sell its test and measurement products to
the telecommunications industry, as well as develop an ongoing pipeline of
technologies through its contract research division.

About Luna

Luna Innovations Incorporated (www.lunainc.com) is a public company composed
of scientists, engineers, and business professionals developing and
manufacturing a new generation of technologies and products. It has been
successful in taking innovative technologies from applied research to product
development and ultimately to the commercial market, driving breakthroughs in
fields such as aerospace, automotive, telecommunications, healthcare, energy,
and defense.

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 potential future receipt of deferred and contingent
payments in connection with the transaction with Intuitive; Luna’s focus on
markets outside of the medical industry; the uniqueness of Luna’s technology
and intellectual property; potential for future commercialization of its
technologies; the competitive advantage afforded by Luna’s technology; the
potential efficacy of Luna’s technology; growth potential of certain markets
and potential benefits of the incorporation of Luna’s shape-sensing technology
in robotic and non-robotic surgery and Intuitive’s ability to improve the
delivery of healthcare by virtue of the transaction. 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 the ability of the
technology transferred to Intuitive to achieve certain technical
specifications that are required for triggering future payment under the asset
purchase agreement, Intuitive’s successful development of surgical systems
incorporating the Luna technology; approval of such systems for marketing by
the United States Food and Drug Administration and similar foreign regulatory
bodies; market adoption of Intuitive surgical systems incorporating Luna
technology; uncertainties regarding the growth of the markets for the
company’s temperature and strain sensing technology outside of the medical
industry; technical and scientific difficulties; issues that might arise in
any particular business relationship; and 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.lunainc.com.
The statements made in this release are based on information available to the
company as of the date of this release and Luna undertakes no obligation to
update any of the forward-looking statements after the date of this release.

Contact:

Luna Innovations Incorporated
Dale Messick, 1-540-769-8400
IR@lunainc.com
 
Press spacebar to pause and continue. Press esc to stop.