Luna Innovations Receives NASDAQ Extension

Luna Innovations Inc. announced that on Dec. 28, 2009, the company received notice from the NASDAQ Listing Qualifications Panel indicating that the panel has granted the company’s request for continued listing on The NASDAQ Capital Market pursuant to an extension through Jan. 13, 2010. The panel’s decision requires the company to demonstrate compliance with all applicable requirements for initial listing on The NASDAQ Capital Market upon its emergence from bankruptcy.

Jan. 13, 2010 represents the full extent of the panel’s discretion in this matter. While the company is hopeful that it will emerge from bankruptcy by Jan. 13, 2010, there can be no assurance that it will be able to satisfy the initial listing requirements, including the $4 per share bid price requirement, immediately upon emergence from bankruptcy.

In the event the company is not able to satisfy the initial listing requirements upon its emergence from bankruptcy, the company intends to take all appropriate actions to achieve compliance with the initial listing requirements as soon thereafter as possible. In such an event, the company would request that the NASDAQ Listing and Hearing Review Council grant the company a further extension of time to demonstrate compliance with the applicable initial listing requirements. However, there can be no assurance that NASDAQ would grant the company’s request for a further extension.