we have been actively developing an international presence for our LED product lines

So as to further establish and advance our leadership position in LED lighting, we made the decision to vertically integrate our capabilities in connection with designing, engineering, and producing the solid-state electronics that control and power LEDs. For the past two years, we and our Montreal-based engineers at LSI Saco Technologies have been working with the talented engineering and manufacturing people at ADL Technology. As part of the LSI family, ADL will allow us to stay on the leading edge of product development while at the same time providing opportunities to drive down manufacturing costs and control delivery of key components. ADL's capabilities will also have applications in our other LED product lines such as digital scoreboards, and advertising ribbon boards and billboards. The owners of ADL will be joining the management team of LSI and we look forward to many benefits from this continuing relationship as we plan for the future and the resumption of growth in our markets and the general economy."

As I have stated in past conference calls, we have been actively developing an international presence for our LED product lines. I am pleased to say we now have our first UK based prototype installation in place and initial reports indicate the customer is extremely pleased with the results. . As more sites are converted to LSI's LED lighting fixtures, we will be putting in place a very aggressive marketing and sales direction. We see the opportunity for solid-state LED lighting to serve both the domestic and international markets. This rather dramatically expands our potential for higher sales and profits as we address export sales. We continue to place high value on maintaining a sound and conservative balance sheet. This will also be true after the ADL acquisition, as a significant form of consideration is expected to be LSI's common stock.

LSI Industries is an Image Solutions company, dedicated to advancing solid-state LED technology in lighting and graphics applications. We combine integrated technology, design, and manufacturing to supply high quality, environmentally friendly lighting fixtures and graphics elements for commercial, retail and specialty niche market applications. LSI is a U.S. manufacturer with marketing / sales efforts throughout the world with concentration currently on North American, South American, Asian, Australian, New Zealand and European markets.