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<SEC-DOCUMENT>0001299933-09-004623.txt : 20091119
<SEC-HEADER>0001299933-09-004623.hdr.sgml : 20091119
<ACCEPTANCE-DATETIME>20091119164426
ACCESSION NUMBER:		0001299933-09-004623
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20091113
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
FILED AS OF DATE:		20091119
DATE AS OF CHANGE:		20091119

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY FOCUS, INC/DE
		CENTRAL INDEX KEY:			0000924168
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC LIGHTING & WIRING EQUIPMENT [3640]
		IRS NUMBER:				943021850
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24230
		FILM NUMBER:		091196253

	BUSINESS ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139
		BUSINESS PHONE:		5104900719

	MAIL ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIBERSTARS INC /CA/
		DATE OF NAME CHANGE:	19940527
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_35224.htm
<DESCRIPTION>LIVE FILING
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<TITLE> Energy Focus, Inc. (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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<BR>
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	November 13, 2009
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	Energy Focus, Inc.
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	Delaware
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	0-24230
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	94-3021850
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	32000 Aurora Road, Solon, Ohio
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	&nbsp;
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	44139
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	&nbsp;
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	440-715-1300
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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<P ALIGN="CENTER">
<FONT SIZE="2">
	&nbsp;
</FONT>
<!-- CoverPageRegistrant END --><P><FONT SIZE="2">
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
</P>
<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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<B>
	Item 2.02 Results of Operations and Financial Condition.
</B>
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On November 16, 2009, Energy Focus, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2009, and hosted an investor call to discuss those results.<br><br>A copy of the press release is furnished with this Report as Exhibit 99.1 and is incorporated in this Report by reference. A copy of the written transcript of the investor conference call is also furnished with this Report as Exhibit 99.2 and is incorporated in this Report by reference.<br><br>The information under this Item in this Report, as well as Exhibits 99.1 and 99.2, are being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information under this Item in this Report, and those Exhibits, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933.<br>
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<B>
	Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
</B>
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<FONT SIZE="2">
On November 19, 2009, the Company issued a press release announcing that on November 13, 2009, it received a notification from the NASDAQ Listing Qualifications Department indicating that, for the last 30 consecutive business days, the bid price of the Company&#x2019;s common stock has closed below the minimum $1.00 per share requirement for continued listing on the NASDAQ Global Market under NASDAQ Listing Rule 5450(a)(1).  The Company, in accordance with NASDAQ Listing Rule 5810(c)(3)(A), has been provided 180 calendar days, or until May 11, 2010, to regain compliance with the minimum $1.00 per share requirement.  If at any time during this grace period the bid price of the Company&#x2019;s common stock closes at or above $1.00 per share for a minimum of ten consecutive days, the NASDAQ Stock Market will provide the Company with a written confirmation of compliance and the matter will be closed.  <br><br>If the Company does not regain compliance with Listing Rule 5450(a)(1) by May 11, 2010, the Company may
 be notified that its common stock is subject to delisting.  At that time, the Company may appeal NASDAQ&#x2019;s determination to delist its common stock to a Hearings Panel.  Alternatively, the Company also may consider applying to transfer its common stock to The Nasdaq Capital Market if it satisfies the requirements for initial inclusion set forth in NASDAQ Listing Rule 5505, with the exception of the bid price.  If its application is approved, the Company will be afforded the remainder of The NASDAQ Capital Market&#x2019;s second 180 calendar day grace period in order to regain compliance while on The NASDAQ Capital Market.<br><br>The Company believes that the closing bid price of its common stock on the NASDAQ Global Market will recover as the Company completes its transition into an integrated, turn-key, lighting, energy services provider and begins to provide growth to both its financial statement top and bottom lines. <br><br>On November 17, 2009, the Company was notified that its shareholder equity
 was below the listing standard of $10 million as per Rule 5450(b)(1)(A) as of the end of the third quarter.  On November 9, 2009, the Company exceeded the $10 million minimum shareholder equity requirement when it received the proceeds from its recently completed $3.75 million rights offering.  Thus, the Company's current shareholders' equity is in excess of the $10 million minimum requirement and the Company has regained compliance with this NASDAQ Rule.<br><br>A copy of the press release accompanies this Report as Exhibit 99.3 and is incorporated in this Report by reference.
</FONT>
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<B>
	SIGNATURES
</B>
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	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
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<FONT SIZE="2">
	Energy Focus, Inc.
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	&nbsp;&nbsp;
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<I>
	November 19, 2009
</I>
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	&nbsp;
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<I>
	By:
</I>
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	&nbsp;
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<I>
	Joseph G. Kaveski
</I>
<BR>
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</TD>
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<FONT SIZE="2">
	&nbsp;
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	&nbsp;
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<I>
	Name: Joseph G. Kaveski
</I>
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<I>
	Title: Chief Executive Officer
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	Exhibit&nbsp;Index
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	Exhibit No.
</B>
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	Description
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	99.1
</DIV>
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	&nbsp;
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<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
Press Release dated November 16, 2009 - Energy Focus, Inc. Reports Third Quarter 2009 Results
</FONT>
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	99.2
</DIV>
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	&nbsp;
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Transcript of Investor Conference Call held on November 16, 2009
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	99.3
</DIV>
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	&nbsp;
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<FONT SIZE="2">
Press Release dated November 19, 2009 - Energy Focus, Inc. Announces Notice from The NASDAQ Stock Market Regarding Non-Compliance with Continued Listing Requirements
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<TYPE>EX-99.1
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<FILENAME>exhibit1.htm
<DESCRIPTION>EX-99.1
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<TITLE> EX-99.1 </TITLE>
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<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>Exhibit&nbsp;99.1</B></FONT>



<P align="center" style="font-size: 12pt"><FONT style="font-size: 14pt"><B>ENERGY FOCUS, INC. REPORTS THIRD QUARTER 2009 RESULTS</B></FONT>



<P align="left" style="font-size: 14pt"><FONT style="font-size: 12pt">SOLON, Ohio, November&nbsp;16, 2009 &#151; Energy Focus, Inc. (NASDAQ: EFOI) today announced financial
results for the third quarter ended September&nbsp;30, 2009.
<BR>
Financial and operating highlights include the following:
</FONT>

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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net sales from continuing operations of $3.0&nbsp;million for the third quarter 2009
decreased 9.1%, with respect to second quarter 2009 net sales from continuing operations of
$3.3&nbsp;million and 47.4% versus third quarter 2008 net sales from continuing operations of
$5.7&nbsp;million.</TD>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash utilization increased during the third quarter of 2009 to $2.3&nbsp;million, compared to
$1.2&nbsp;million for the second quarter of 2009 and a cash accretion of $193,000 for the third
quarter of 2008. The company finished the third quarter with cash in the amount of $3.3
million (which includes $0.2&nbsp;million of cash belonging to its German subsidiary, which has
been classified as discontinued operations in its consolidated financial statements) and
total shareholders&#146; equity of $9.5&nbsp;million.</TD>
</TR>

</TABLE>


<P>
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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The net loss in the quarter was $2.7&nbsp;million ($0.17 per share) compared to a net loss of
$2.3&nbsp;million ($0.16 per share) in the second quarter of 2009, an increase of $269,000.</TD>
</TR>

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<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operating expenses were reduced $181,000 (net of a restructuring expense of $125,000)
for the quarter compared to the second quarter of 2009 and $428,000, or 13.4% compared to
the third quarter of 2008. Continued reductions in expenses are expected in Q4.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">&#147;Sales are running about 47% year over year and, unfortunately, are not expected to improve soon
given that the principal source of these sales is our legacy businesses that are so dependent on
new residential and commercial construction &#151; in particular our pool business that is tied strongly
to new construction in the residential housing market&#148;, said Joe Kaveski, Energy Focus CEO. &#147;This
underlines the appropriateness of our strategy to exit these businesses and refocus the company&#146;s
resources to provide turnkey lighting energy services to the growing public sector existing
building market.&#148;


<P align="left" style="font-size: 12pt">&#147;We spent $2.3&nbsp;million cash this quarter which included expenses of about $1.0&nbsp;million for
restructuring and debt pay down, as well as legal and accounting fees associated with our rights
offering, acquisition and divestiture efforts. Cash use for normal operations of $1.3&nbsp;million
declined about $100,000 compared to the last quarter due to continued reductions in overhead,&#148;
continued Mr.&nbsp;Kaveski. &#147;Cash usage for normal operations is expected to continue to decline in the
fourth quarter with continued improvements in efficiency.&#148;


<P align="left" style="font-size: 12pt">&#147;In addition we&#146;ve made significant progress on our plan to acquire a lighting retrofit business
with the successful completion of our rights offering which will provide funding for the
acquisition,&#148; added Mr.&nbsp;Kaveski. &#147;We&#146;ve recently received an additional $3.2&nbsp;million in new
government contracts and have made our first sales through the GSA Federal Supply Schedule.&#148;


<P align="left" style="font-size: 12pt">Energy Focus, Inc. management will host a conference call today, Monday, November&nbsp;16th at 4:30 p.m.
EDT (1:30 p.m. PDT) to review the third quarter, 2009 financial results and other corporate events,
followed by a Q & A session. Dialing 1-877-604-9668 (US/Canada) or 1-719-325-4812
(international/local) can access the call. The conference ID number is 6142751. Participants are
asked to call the assigned number approximately ten minutes before the conference call begins.


<P align="left" style="font-size: 12pt">The conference call will also be available over the Internet at
http://www.energyfocusinc.com/investors/events/category/investors in the Investor Relations area of
the site. A replay of the conference call will be available two hours after the call for the
following seven days by dialing 1-877-604-9668 (US/Canada) or 1-719-325-4812 (international/local)
and entering the following pass code: 6142751. Also, an instant replay of the conference call will
be available over the Internet at http://www.energyfocusinc.com/investors/events/category/investors
on November&nbsp;16, 2009 and will remain available for one year in the Investor Relations area of the
site.


<P align="left" style="font-size: 12pt">About Energy Focus


<P align="left" style="font-size: 12pt">Energy Focus, Inc. is a leading supplier of energy efficient lighting solutions. These solutions
provide energy savings, aesthetics, safety and maintenance cost benefits over conventional
lighting. Our long-standing relationship with the United States Government includes numerous
research and development projects for the DOE and DARPA, creating energy efficient LED lighting
systems for the United States Navy fleet and the next generation Very High Efficiency Solar Cell.
Customers include supermarket chains, the United States government, state and local governmental
agencies, retail stores, museums, theme parks and casinos, hotels, swimming pool builders and many
others. Company headquarters are located in Solon, OH, with additional offices in Pleasanton, CA,
the United Kingdom, and Germany. For more information, see <U>http://www.efoi.com</U>.
<BR>
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking statements include
statements regarding our future business outlook, our products, our solutions, and our/or our work
with leading customers including governmental agencies. Investors are cautioned that all
forward-looking statements involve risks and uncertainties. Actual results may differ materially
from the results predicted. For more information about potential factors that could affect Energy
Focus financial results, please refer to the Company&#146;s SEC reports, including its Annual Report on
Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as
of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any
forward-looking statements.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="61%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Media Contact:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investor Contact:</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Focus, Inc., Public Relations Office<BR>
(440)&nbsp;715-1295<BR>
pr@efoi.com
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CleanTech IR, Inc.<BR>
310-541-6824<BR>
btanous@cleantech-ir.com</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt"><FONT style="font-size: 10pt"><B>ENERGY FOCUS, INC.<BR>
CONDENSED<BR>
CONSOLIDATED BALANCE SHEETS</B><BR>
<B><I>(amounts in thousands)</I></B></FONT><FONT style="font-size: 12pt"></FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,568</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Restricted cash held in certificates of deposit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Accounts receivable trade, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,617</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Inventories, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,539</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Prepaid and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Current assets of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,035</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Fixed assets net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">23,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>LIABILITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,602</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Credit line borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,904</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Current portion of long-term bank borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Current liabilities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,395</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other deferred liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Long-term bank borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,721</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>SHAREHOLDERS&#146; EQUITY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Preferred stock, par value $0.0001 per share:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Authorized: 2,000,000 shares in 2009 and 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Issued and outstanding: no shares is 2009 and 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Common stock, par value $0.0001 per share:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Authorized: 30,000,000 shares in 2009 and 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Issued and outstanding: 15,079,0000 in 2009 and
14,835,000 in 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accumulated other comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accumulated deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(57,336</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(49,328</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,915</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total liabilities and shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">23,636</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->


<P align="center" style="font-size: 10pt"><B>ENERGY FOCUS, INC.<BR>
CONDENSED<BR>
CONSOLIDATED STATEMENTS OF OPERATIONS</B><BR>
<B><I>(amounts in thousands except per share amounts)</I></B><BR>
<B>(unaudited)</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>Three months ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine months ended</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>September 30,</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,838</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,688</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Operating expenses:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Research and development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">599</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Sales and marketing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,288</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">General and administrative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Restructuring</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,905</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,578</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,425</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,426</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,217</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other income (expense):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other (expense)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(88</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Interest (expense)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(21</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Loss from continuing operations before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,687</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,434</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,408</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,166</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Provision for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(40</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(120</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net loss from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(2,687</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,474</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(7,408</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">(6,286</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Discontinued operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Income (loss)&nbsp;from operations of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(110</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(386</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Provision for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Income (loss)&nbsp;from discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(110</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(386</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(2,618</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,584</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(8,008</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(6,672</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net loss per share &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.17</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.54</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.48</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Shares used in computing net loss per share -</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,946</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>Exhibit&nbsp;99.2</B></FONT>



<P align="center" style="font-size: 12pt"><B>ENERGY FOCUS, INC.</B>



<P align="center" style="font-size: 12pt"><B>Moderator: Joe Kaveski<BR>
November&nbsp;16, 2009<BR>
3:30 pm CT</B>



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    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 10pt">Operator: Good day and welcome to the Energy Focus Quarterly Earnings Release Conference
Call. Today&#146;s conference is being recorded.</FONT></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">At this time, I&#146;d like to turn the conference over to Joe Kaveski, CEO. Please go ahead.


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    <TD>Joe Kaveski: Thank you, Stephanie and thanks everyone, thank you to our listeners for joining
Energy Focus&#146;s third quarter earnings call. I&#146;d like to start today by reviewing our
company&#146;s Safe Harbor statement.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Please note that today&#146;s discussion may contain some statements that may be considered
forward-looking in nature. These forward-looking statements may include comments relating
to 2009 and beyond financial projections or other comments relating to the company&#146;s
strategic plans, objectives, expectations or intentions.



<P align="left" style="margin-left:4%; font-size: 10pt">These matters do involve risks and uncertainties and actual results may differ materially
from those projected or implied in the forward-looking statements. Factors that could cause
actual results to materially differ from the forward-looking statements in this presentation
are set forth in our most recent annual report on Form 10-K.



<P align="left" style="margin-left:4%; font-size: 10pt">So with the housekeeping over with, I&#146;d like to begin today and make a few brief comments
concerning our third quarter financial results then turn the call over to Nick Berchtold for
a deep-dive on the numbers. Nick will then turn the call back over to me for some
concluding remarks.



<P align="left" style="margin-left:4%; font-size: 10pt">As you probably read in our press release today, our performance remains depressed as we
have been working through the difficulties of selling into the residential pool market and
the commercial new construction industry. As I&#146;ve previously stated, our sales remained
between 40 to 50% off last year and I don&#146;t see this changing until we complete our
transformation into serving the existing public sector building market.



<P align="left" style="margin-left:4%; font-size: 10pt">This is further reinforced by the American Institute of Architects&#146; recent Architects
Billing Survey that indicates the commercial construction industry is still continuing to
shrink. Furthermore, the CEO of Pool Corporation, one of the largest pool companies in the
U.S. recently commented that it really doesn&#146;t see a recovery in the pool and irrigation
business beginning until 2011.



<P align="left" style="margin-left:4%; font-size: 10pt">Clearly the pool and commercial construction industries are difficult markets for the
foreseeable future. And this is exactly why we have accelerated our plan to move out of
these industries and into the existing public building market where we can provide
comprehensive lighting retrofit solutions that help them leverage stimulus money to
modernize their facilities while reducing energy consumption.



<P align="left" style="margin-left:4%; font-size: 10pt">So before we talk about our progress on our plan, I would like to turn the call over to Nick
Berchtold, our Chief Financial Officer, to review our third quarter results. Nick?


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    <TD>Nicholas Berchtold: Thanks, Joe. And I&#146;d like to thank you again, our listeners, for joining our
conference call today. And I will now provide you with an overview of the results obtained
during the third quarter, 2009. Specifically I&#146;ll be reviewing the divestiture of, and
accounting treatment for, our German subsidiary LBM GmbH, third quarter revenues and gross
profits, third quarter operating expenses, net income and earnings per share, and then
selected working capital items, and finally the status of our current bank relationship.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">So first let me discuss the divestiture and the related accounting treatment of the
company&#146;s German subsidiary. As previously announced, the company has been evaluating each
of its business units in correlation to the company&#146;s strategic objective of becoming a
leading provider of turnkey comprehensive energy efficient lighting systems. During the
third quarter 2009, the company entered into a letter of intent to sell its German
subsidiary and as a result of signing this letter of intent, the company has classified in
its 10-Q the results of its German subsidiary as a discontinued operation. All associated
results of operations, financial position and cash flows have been separately recorded on
the 10-Q as appropriate.



<P align="left" style="margin-left:4%; font-size: 10pt">The company does expect to complete the transaction for this business unit in the fourth
quarter of 2009 subject to regulatory approvals and customary closing conditions. And
further, the company continues to explore and analyze the potential divestiture of other
business units within its portfolio and will provide additional information to the public as
appropriate.



<P align="left" style="margin-left:4%; font-size: 10pt">So next let me discuss third quarter revenues. The third quarter financial results continue
to reflect the challenging environment which confronts both our company as well as the
global economy and continues to reinforce our absolute need to dramatically change the
strategic focus of our business.



<P align="left" style="margin-left:4%; font-size: 10pt">Specifically, third quarter revenues were $3,536,000 including discontinued operations,
which represented a 44.3% decline from third quarter 2008 revenues of 6,357,000. Third
quarter revenues from continuing operations were 3,023,000 which represented a 46.9% decline
from third quarter 2008 revenues of $5,691,000.



<P align="left" style="margin-left:4%; font-size: 10pt">It is important to note that approximately $691,000 of this year-over-year decline was the
direct result of the devaluation of the British pound relative to the U.S. dollar which
resulted in lower U.S. dollar reported revenues coming from our U.K. operation. To put in
perspective, in 2008, average reported exchange rates on a year-to-date basis was $1.94 per
British pound versus the 2009 average reported exchange rate on a year-to-date basis of
$1.54 per pound.



<P align="left" style="margin-left:4%; font-size: 10pt">Additionally, although third quarter 2009 revenues from our government business unit were
nominal, the company did invoice and expects to collect approximately $800,000 in government
revenues in the fourth quarter of 2009.



<P align="left" style="margin-left:4%; font-size: 10pt">So next let me discuss gross profit. The third quarter gross profit excluding discontinued
operations was $323,000 or 10.6% of revenues versus $1,779,000 or 32.1% of revenues for the
comparable quarter of 2008. Third quarter 2009 gross profit does include a non-cash
inventory charge of $180,000 resulting from the revaluation of selected inventory on hand in
the United States. Excluding this non-cash charge, third quarter 2009 gross profit
increased to 16.6%.



<P align="left" style="margin-left:4%; font-size: 10pt">Again, approximately $290,000 of this year-over-year decline in gross profitability was the
direct result of the devaluation of the Great British pound relative to the U.S. dollar
which resulted in lower U.S. dollar reported gross profitability from our U.K. operation.



<P align="left" style="margin-left:4%; font-size: 10pt">Additionally during the quarter, the company effectively completed its relocation of all
manufacturing operations to its Mexico facility for which it recorded a $125,000
restructuring reserve.



<P align="left" style="margin-left:4%; font-size: 10pt">And next, I&#146;d like to discuss operating expenses with you. Third quarter 2009 operating
expenses excluding discontinued operations and restructuring charges decreased $428,000 or
13.3% from the third quarter 2008 levels. It is important to note that included in the
third quarter 2009 operating expense results are $289,000 of one-time acquisition and equity
finance related professional services and legal fees. Third quarter 2009 operating expenses
declined 22.3% excluding the impact of these charges resulting from significant reductions
in headcount and non-project specific overhead expenses.



<P align="left" style="margin-left:4%; font-size: 10pt">Putting it into a different perspective, on a year-to-date 2009 basis, operating expenses
excluding discontinued operations and restructuring charges have decreased $2,366,000 or
22.7% for the 9&nbsp;months ended September&nbsp;30, 2009. In this regard, the company will continue
to aggressively manage all operating expenses as it executes its transition into a turnkey
energy-efficient lighting systems provider.



<P align="left" style="margin-left:4%; font-size: 10pt">And now I&#146;d like to comment briefly on net income and earnings per share. The net loss for
the 3&nbsp;months ended September&nbsp;30, 2009 was $2,618,000 which equates to a 17-cent loss per
share. This is compared to a third quarter 2008 loss of $1,584,000 which equates to an
11-cent per share loss for the third quarter of 2008. I&#146;d also like to note that on October
30, 2009, the company did complete a rights offering whereby it successfully sold 4,998,880
shares of its common stock. Total shares outstanding after the issuance of those shares now
stands at 20,077,859 shares which would make the pro-forma net loss for the third quarter
equal to 13 cents per share.



<P align="left" style="margin-left:4%; font-size: 10pt">And now I&#146;d like to spend a few minutes reviewing selected balance sheet items. I&#146;m pleased
to report that the company continues to make progress from its intense focus on cash and
working capital management. From an accounts receivable standpoint, the company continued
to improve accounts receivable velocity versus both third quarter 2008 and the second
quarter 2009 metrics. Accounts receivable velocity improved 32.4% to 35.8&nbsp;days sales
outstanding at the end of the third quarter 2009 versus 53&nbsp;days at the end of the third
quarter 2008. Similarly, accounts receivable velocity improved 22.0% versus the second
quarter of 2009&nbsp;days sales outstanding. And as discussed previously, the intense focus on
cash management continues to permeate our entire organization and these accounts receivable
results reinforces our commitment to the preservation of working capital.



<P align="left" style="margin-left:4%; font-size: 10pt">From an inventory perspective, inventory on hand net of reserves from continuing operations
decreased $864,000 from its December&nbsp;31, 2008 level. Excluding the previously mentioned
$180,000 U.S. operations inventory impairment charge recorded at September&nbsp;30, 2009, the
reduction in inventory was still an impressive $684,000 or 12.3%. Unfortunately,
improvements in the inventory velocity did not continue at the levels expected as sales
volumes continued to be significantly depressed from 2008 levels and the company&#146;s continued
development and introduction of new products into the market.



<P align="left" style="margin-left:4%; font-size: 10pt">In terms of our banking relationship, on November&nbsp;9, 2009, the company received an informal
notification that Silicon Valley Bank, its current lender, intends to extend the company&#146;s
current line of credit facility through the end of 2009. This extension will facilitate the
company&#146;s ability to continue to pursue other means of financing. Although we have not yet
received the final documents for signature, we anticipate the execution of these documents
within the next 2&nbsp;weeks.



<P align="left" style="margin-left:4%; font-size: 10pt">Related to external debt, during the third quarter of 2009, the company reduced its
third-party debt by an additional $530,000 from its June&nbsp;30, 2009 levels and $917,000 from
its December&nbsp;31, 2008 levels. Total outstanding third party debt as of September&nbsp;30, 2009
was $1,365,000 and represented a pay down of approximately $1,572,000 from September&nbsp;30,
2008 levels.



<P align="left" style="margin-left:4%; font-size: 10pt">Related to cash and cash equivalents, at the end of the third quarter of 2009, cash and cash
equivalents on hand were $3.1&nbsp;million excluding cash from discontinued operations.
Including cash from discontinued operations, our cash and cash equivalents on hand were $3.3
million.



<P align="left" style="margin-left:4%; font-size: 10pt">Cash usage for the third quarter 2009 from continuing operations was $2.3&nbsp;million which
included approximately $1&nbsp;million of restructuring, acquisition, equity financing and bank
debt reduction related payments. Further, as stated earlier, the company&#146;s cash position
did increase by $3,749,000 in November&nbsp;2009 as a result of the recently completed rights
offering.



<P align="left" style="margin-left:4%; font-size: 10pt">So in closing, although third quarter revenues continued to be a significant disappointment,
the company continued to show improvements in cost structure and working capital velocity.
Concurrently, the company implemented multiple strategic and tactical initiatives designed
to support and fund its corporate strategy. We will continue to position the company for
the global economic recovery and we will continue to restructuring the strategic footprint
of Energy Focus to ensure its sustainability into 2010 and beyond. And now I&#146;d like to turn
the conference call back over to Joe Kaveski. Thank you.


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    <TD width="1%">&nbsp;</TD>
    <TD>Joe Kaveski: Thanks, Nick. And now let&#146;s put the past behind us and look to the present and our
exciting future. I&#146;d like to now update you on our progress on our five-point plan for
profitable growth by transforming our company into an integrated lighting energy systems and
solutions provider serving the existing building market.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">First, we continue to make progress on reducing our fixed costs. As Nick previously
discussed, we are favorable in the third quarter by 13% and almost 23% year-to-date
excluding discontinued operations and restructuring charges. I commit to you that we&#146;re not
done and we will continue to reduce our overhead as we go forward.



<P align="left" style="margin-left:4%; font-size: 10pt">Second, we have made good progress towards potentially divesting our pools and our
decorative lighting business units. As Nick stated, we have reported our LBM business unit
as a discontinued operation and anticipate closing on the sale of this business in the late
November/early December timeframe. Also, we have received a number of offers that are under
consideration for our pool business. We are optimistic that this transaction can be
completed by the end of the year.



<P align="left" style="margin-left:4%; font-size: 10pt">Third, we have made major strides in refocusing our R&D efforts towards endeavors that
create commercial products for existing buildings. During our recent rights offering road
show, we demonstrated a working LED plug-and-play replacement for a 4-foot linear
fluorescent lamp that included embedded controls.



<P align="left" style="margin-left:4%; font-size: 10pt">We also received two recent contracts totaling $3.2&nbsp;million to support the commercialization
of DARPA&#146;s very high efficiency solar cell technology and we received our first major order
for LED outdoor lighting primarily funded by stimulus money utilizing our GSA federal supply
schedule listing.



<P align="left" style="margin-left:4%; font-size: 10pt">Fourth, the company raised approximately $3.75&nbsp;million through a broad participation in our
rights offering. I would like to take this opportunity to thank all of our investors who
participated in this offering. The money raised in this offering will enable the
acquisition of a sales delivery channel into the existing public building market which is
exploding right now.



<P align="left" style="margin-left:4%; font-size: 10pt">And fifth and finally, speaking of acquisitions, we did announce the letter of intent to
acquire the Stone Rivers Companies which is a premier lighting energy retrofit and services
company. As I communicated during our rights offering, SRC has a fantastic relationship
with the major ESCOs and a very, very robust sales proposal pipeline, which will be
generating revenue for the company in the first quarter of 2010.



<P align="left" style="margin-left:4%; font-size: 10pt">We&#146;re now working to complete our detailed diligence and finalizing the definitive
agreement. We anticipate closing this transaction within the next 30&nbsp;days. So before I
open up the lines for questions, I&#146;d like to summarize my comments by saying again that in
light of our current sales channels, this is a very difficult business environment for
Energy Focus and our results clearly demonstrate this.



<P align="left" style="margin-left:4%; font-size: 10pt">However, it is clear that our five-point plan to transform the company into an integrated
lighting energy services provider is the right path at the right time to ensure sustainable
and profitable growth. And finally, I remain excited about the future of Energy Focus and
feel that we are well on track to complete our transformation by the end of 2009 and be able
to show positive results early in 2010.



<P align="left" style="margin-left:4%; font-size: 10pt">So at this time, I&#146;d like to open up the telephone lines for discussion. Operator?


<P>
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    <TD>Operator: Thank you. The question-and-answer session will be conducted electronically. If you
would like to ask a question, please do so by pressing the star key followed by the digit 1 on
your touchtone telephone. If you are using a speakerphone, please make sure your mute
function is turned off to allow your signal to reach our equipment. Once again, please press
star 1 on your touchtone telephone to ask a question.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">And we&#146;ll the first question from Robert Smith with Center for Performance Investing.


<P>
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    <TD>Robert Smith: Hi, good afternoon.</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: Hi, Robert.</TD>
</TR>

</TABLE>


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    <TD>Robert Smith: Can you tell me something about the Stones River Companies numbers?</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: Stones River Companies, we had shared that they are one of the major lighting
retrofit companies that support the energy services companies in their performance contracting
with public sector. We have not given specific numbers relative to their size, however, I
would share with you that in terms of their pipeline, it&#146;s a major pipeline with the majority
of the ESCOs that is literally receiving contracts as we speak.</TD>
</TR>

</TABLE>


<P>
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    <TD>Robert Smith: Are they profitable?</TD>
</TR>

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    <TD>Joe Kaveski: They are profitable, absolutely.</TD>
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    <TD>Robert Smith: The way I read the economy, the banks are not loosening on lending, so you guys are
really up against it as far as continuing &#150; extension &#150; you know my own fears about this and
my question is, can you somehow accelerate the expense cuts? I mean, is there a possibility
of placing executive salaries on hold or (putting them in abeyance) until the end of the year?</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: OK. Robert, you&#146;ve made a couple of statements there that I&#146;d like to comment to
and then answer your question.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">The first one deals with lending. The great news is that the public sector market primarily
uses tax-exempt municipal leases to fund their contracts. Even in this depressed economic
environment, that has not been a problem for public sector. They are actually able to get
these tax-exempt municipal bonds, if you will, or these tax-exempt leases to fund
energy-efficient projects.



<P align="left" style="margin-left:4%; font-size: 10pt">The second component I&#146;d add to that is we are just now beginning to see stimulus money
trickle into the public sector hands, and so that is primarily why all of the ESCOs who SRC
serves at the current moment are beginning to really accelerate their awards of contracts
because of the awards they&#146;ve received from the public sector. So that&#146;s number one.



<P align="left" style="margin-left:4%; font-size: 10pt">Number two is, you asked about our overhead, and what I would share with you is that we are
doing everything that we can to accelerate the rationalization of our business and into the
transformation of where we&#146;re headed, and specifically management has already taken salary
reductions and we see that continuing into 2010.


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    <TD>Robert Smith: And your relationship with SVB, I mean is &#150; what happens after the end of the year?</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: Robert, I&#146;m going to take a stab at that, and if Nick wants to add, he&#146;ll offer a
little more. But I&#146;ve got to tell you, I am encouraged that SVB continues to in essence work
with us and extend that the line of credit. In parallel, we are also pursuing other potential
replacement facilities. But the mere fact that they are willing to extend is a very
encouraging sign to me.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">So, Nick, maybe you want to add something?


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    <TD>Nicholas Berchtold: Yes, let me add to that. Robert, just to mirror what Joe said, Silicon Valley
Bank has worked with us and again most recently by working with us to extend to the end of the
year that great good news for us. Also, I want to make it clear, and while I&#146;m not going to
give names, we have received two other replacement line of credit offers that we as a company
chose not to pursue for a variety of reasons.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">We are exploring additional and different types of financing structures other than
traditional commercial bank lending and we feel comfortable that we have some investors who
are interested in pursuing a replacement line or replacement debt instrument, and we are
working aggressively on those, and we&#146;ll have more to report.


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    <TD>Robert Smith: How long do you think your recent financing will (carry you)?</TD>
</TR>

</TABLE>


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    <TD>Nicholas Berchtold: In terms of Silicon Valley Bank?</TD>
</TR>

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    <TD>Robert Smith: No, with the rights offering and the money &#150; how long you know will it (carry you)
into 2010?</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: Well, Robert, I think it&#146;s what we need to get us into 2010 and to do exactly what
I communicated in the rights offering, and that was actually generate cash in 2010 and achieve
significantly higher sales. You know we are significantly reducing our burn. You know we are
talking about that we will be selling our businesses and we anticipate having those completed
by the first of the year.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">And so for that matter you know we gave yearend guidance and said that we&#146;d have a large
portion of revenue from the acquisition begin to be harvested in the first quarter of 2010.
So when you put all that together, I believe that it&#146;s sufficient.


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    <TD>Robert Smith: So you said that you expected profitability early in 2010, what do you mean by
early?</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: Well, I did not say I would expect profitability &#150; I haven&#146;t given guidance there,
Robert. What I did say was that we&#146;d generate cash ...</TD>
</TR>

</TABLE>


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    <TD>Robert Smith: I thought that was one of your statements.</TD>
</TR>

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    <TD>Joe Kaveski: Well, then I&#146;d like to clarify that. What I did say was that as it relates to the
acquisition of SRC, there&#146;s a significant amount of work within their pipeline that will begin
to revenue out early in 2010. And you know that&#146;s good cash flow, good cash-generating
activity.</TD>
</TR>

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    <TD>Robert Smith: OK, I&#146;ll step back in the queue. Thank you.</TD>
</TR>

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    <TD>Joe Kaveski: Thank you, Robert.</TD>
</TR>

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    <TD>Operator: Once again, please press star 1 on your touchtone telephone to ask a question. And
we&#146;ll take a question from Seth Gelsthorpe with Welch & Forbes.</TD>
</TR>

</TABLE>


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    <TD>Seth Gelsthorpe: Good afternoon.</TD>
</TR>

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    <TD>Joe Kaveski: Good afternoon.</TD>
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    <TD>Seth Gelsthorpe: I guess I want &#150; I still want more information about Stones River Companies.
And maybe there&#146;s a different way to ask about it.</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: OK.</TD>
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    <TD>Seth Gelsthorpe: Stones River Companies appears to be in many different electrical related
businesses, they&#146;re an electrical construction company, a lighting and a service company.
They do the energy services stuff.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Is this all now going to be part of Energy Focus or is this part of it or is it just a part
of it? That&#146;s the energy services part. So maybe you could just describe in a qualitative
sense more exactly what parts of this company are going to become part of Energy Focus and
just exactly what they&#146;re going to be doing.


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    <TD>Joe Kaveski: Thank you, Seth; I appreciate that ...</TD>
</TR>

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    <TD>Seth Gelsthorpe: I don&#146;t know if I asked that very well, but I think you get the gist.</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: I do and thanks, Seth, for asking that question, and for giving me the opportunity
to clarify it.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">Yes, Stones River Companies has many sister companies including an electrical contracting
company. The entity that we are potentially acquiring is actually their lighting energy
solutions and retrofit business. What these folks do is they have very qualified auditors
that go out and audit existing buildings. They will come back and they will then physically
cost what it takes for that building owner to operate and maintain those lighting systems
from an energy perspective and an operating maintenance perspective, then they will design a
new improved lighting system for the building. They&#146;ll calculate the energy savings and the
cost savings involved in the new lighting systems. And then what they will do is once they
physically receive a contract, they will procure the materials for installation with &#150; for
that new improved lighting design, and then they will provide the project management of
electrical subcontractors to physically install those retrofits. So they do not have
electricians on staff. So it &#150; they act very much like a general contractor might in a new
construction industry, but they are keenly focused on energy &#150; lighting energy efficient
improvements in the existing building marketplace.


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    <TD>Seth Gelsthorpe: OK, let me ask a follow-up question then. You spoke of them as a major
subcontractor to larger ESCOs, so is this half their business, 100% of their business? In
other words, do they go out and do just lighting refits for some customers?</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">And then with other customers, they do lighting refits but it&#146;s part of a total refit, part
of a bigger energy services contract? So are they the prime contractor, are they a
subcontractor, or is there a percentage breakdown? Or how does all that work?


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    <TD>Joe Kaveski: Sure. Seth, the best way I could explain this is that the public sector entities
are encouraged to utilize specific legislation called Energy Savings Performance Contracts, it
exists within at least 39 of the states. That allows these public sector entities to procure
building improvements that are paid for out of the energy and operating savings that the new
improvements create.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">They &#150; these public sector clients utilize this legislation by contracting through request
for proposals to a select group of what are called energy service companies &#150; these are
large entities like Johnson Controls, Honeywell, Siemens &#150; they will bundle lighting with
HVAC improvements and new roofs, and in essence they sell the bundle to the ultimate entity,
the governmental entity.



<P align="left" style="margin-left:4%; font-size: 10pt">The great news is that lighting represents about 20% of their bundle, so it&#146;s a huge
opportunity with the ESCOs, and by the way, that market today stands at about $5&nbsp;billion of
work being done by the ESCOs in the U.S. and they anticipate that to go up to a minimum of
$20&nbsp;billion by 2020.



<P align="left" style="margin-left:4%; font-size: 10pt">But anyhow, so when the ESCOs then subcontract the lighting portion of the agreement to
lighting retrofit companies like SRC who will then support them in the design and the
installation of those &#150; that improved lighting program, the majority, including SRC, do not
physically install again the improvements themselves, they will subcontract that out.



<P align="left" style="margin-left:4%; font-size: 10pt">So in the case of where SRC stands in &#150; with its sister companies, one of its sister
companies is an electrical contractor that was really focused on new construction
marketplace as well as installing for instance energy management systems into existing
buildings. Another company that is within the fold there is really a services business,
they do lighting maintenance for a lot of the big bucks retailers.



<P align="left" style="margin-left:4%; font-size: 10pt">And then there&#146;s SRC which provides that, really, that energy solutions focus that may
leverage those other two companies but you know it really is focused on the energy solutions
and the design and the materials and the project management aspect and the contracting
aspect which then they subcontract out to electrical contractors like SRE which is a sister
company of SRC.


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    <TD>Seth Gelsthorpe: Right, OK. So when we hear about a backlog or a bidding activity, primarily
what that is, is the larger integrated energy services companies bidding out to Stones River
and perhaps others to pick up the lighting part of a bigger contract? Is that really where
the business is coming from?</TD>
</TR>

</TABLE>


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    <TD width="1%" nowrap align="right">&nbsp;</TD>
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    <TD>Joe Kaveski: Pretty close, Seth, except with maybe one qualifier on it. And that one qualifier
is, is that the large ESCOs, they, more times than not, do not bid out their electrical
portions. What they will do is they will team with a lighting ESCO, their favorite lighting
ESCO who they&#146;ve worked with for the last 10, 20&nbsp;years, that they can count on and doing a
great job in the audit and a great job in the installation.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">And so you know the majority of the work that is let by these lighting retrofit companies,
they have been asked by the ESCOs to go develop a project, go put together the lighting
piece of the proposal, and when the ESCO is awarded the job, then SRC for instance is
awarded the job.


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    <TD>Seth Gelsthorpe: Got it. Thank you very much.</TD>
</TR>

</TABLE>


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    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Joe Kaveski: Thank you, Seth.</TD>
</TR>

</TABLE>


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    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator: And it appears there are no further questions at this time. Mr.&nbsp;Kaveski, I&#146;d like to
turn the conference back over to you for any additional or closing remarks.</TD>
</TR>

</TABLE>


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    <TD>Joe Kaveski: OK. Well, then I guess at this time I&#146;d like to conclude the call today by once
again thanking all of our shareholders and employees who continue to contribute beyond the
call of duty in helping realize the true potential of Energy Focus.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt">I thank you again for your continuing support and look forward to our next call when we&#146;ll
review our year-end financial results and our progress in transforming our company into an
integrated lighting energy services provider for the existing building markets. Thank you.


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator: This concludes today&#146;s conference. Thank you for your participation.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">END




<P align="center" style="font-size: 10pt; display: none">




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<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>Exhibit&nbsp;99.3</B></FONT>



<P align="center" style="font-size: 12pt"><FONT style="font-size: 14pt"><B>Energy Focus, Inc. Announces Notice from The NASDAQ Stock Market Regarding Non-Compliance with<BR>
Continued Listing Requirements</B></FONT>



<P align="left" style="font-size: 14pt"><FONT style="font-size: 12pt"><B>Solon, OH </B>&#150; November&nbsp;19, 2009 &#150; Energy Focus, Inc. (NASDAQ: EFOI), a leader in providing
energy efficient lighting solutions, today announced it received a notification from the NASDAQ
Listing Qualifications Department providing notification that, for the last 30 consecutive business
days, the bid price of the Company&#146;s common stock has closed below the minimum $1.00 per share
requirement for continued inclusion under NASDAQ Listing Rule&nbsp;5450(a)(1) and that the Company&#146;s
shareholder equity was below the listing standard of $10&nbsp;million as per Rule&nbsp;5450(b)(1)(A).as of
the end of the third quarter.
</FONT>

<P align="left" style="font-size: 12pt">&#147;On November&nbsp;9, 2009, the Company exceeded the $10&nbsp;million minimum shareholder equity requirement
when it received the proceeds from its recently completed $3.75&nbsp;million rights offering. The
Company also believes that its stock market price will recover as it completes its transition into
an integrated turnkey lighting energy solutions provider and begins to provide growth to both the
top and bottom line,&#148; said Joe Kaveski, Energy Focus CEO.


<P align="left" style="font-size: 12pt">Energy Focus, in accordance with NASDAQ Listing Rule&nbsp;5810(c)(3)(A), has been provided 180 calendar
days, or until May&nbsp;11, 2010, to regain compliance with the minimum $1.00 per share requirement. If
at any time during this grace period the bid price of the Company&#146;s common stock closes at or above
$1.00 per share for a minimum of ten consecutive days, the NASDAQ Stock Market will provide the
Company with a written confirmation of compliance and the matter will be closed.


<P align="left" style="font-size: 12pt">If the Company does not regain compliance with Listing Rule&nbsp;5450(a)(1) by May&nbsp;11, 2010, the Company
may be notified that its securities are subject to delisting. At that time, the Company may appeal
NASDAQ&#146;s determination to delist its securities to a Hearings Panel. Alternatively, the Company
also may consider applying to transfer its securities to The Nasdaq Capital Market if it satisfies
the requirements for initial inclusion set forth in NASDAQ Listing Rule&nbsp;5505, with the exception of
the bid price. If its application is approved, the Company will be afforded the remainder of The
NASDAQ Capital Market&#146;s second 180 calendar day grace period in order to regain compliance while on
The NASDAQ Capital Market.


<P align="left" style="font-size: 12pt">About Energy Focus


<P align="left" style="font-size: 12pt">Energy Focus, Inc. is a leading supplier of energy efficient lighting solutions. These solutions
provide energy savings, aesthetics, safety and maintenance cost benefits over conventional
lighting. Our long-standing relationship with the U.S. Government includes numerous research and
development projects for the DOE and DARPA, creating energy efficient LED lighting systems for the
U.S. Navy fleet and the next generation Very High Efficiency Solar Cell. Customers include
supermarket chains, the US government, state and local governmental agencies, retail stores,
museums, theme parks and casinos, hotels, swimming pool builders and many others. Company
headquarters are located in Solon, OH, with additional offices in Pleasanton, CA, the United
Kingdom, and Germany. For more information, see <U>www.energyfocusinc.com</U>.


<P align="left" style="font-size: 12pt">Forward-looking statements in this release are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking statements include
statements regarding our future business outlook, our products, our solutions, and our/or our work
with leading customers including governmental agencies. Investors are cautioned that all
forward-looking statements involve risks and uncertainties. Actual results may differ materially
from the results predicted. For more information about potential factors that could affect Energy
Focus financial results, please refer to the Company&#146;s SEC reports, including its Annual Reports on
Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as
of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any
forward-looking statements.

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Focus, Inc., Public Relations Office<BR>
(440)&nbsp;715-1295<BR>
pr@energyfocusinc.com
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CleanTech IR, Inc.<BR>
(310)&nbsp;541-6824<BR>
btanous@cleantech-ir.com</TD>
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