<SEC-DOCUMENT>0001299933-11-001509.txt : 20110516
<SEC-HEADER>0001299933-11-001509.hdr.sgml : 20110516
<ACCEPTANCE-DATETIME>20110516161959
ACCESSION NUMBER:		0001299933-11-001509
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20110512
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20110516
DATE AS OF CHANGE:		20110516

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:		11847139

	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_41755.htm
<DESCRIPTION>LIVE FILING
<TEXT>
<!-- CoverPageHeader start -->
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> Energy Focus, Inc. (Form: 8-K) </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">
<!-- Comment1 -->
<A NAME="DOCUMENT_TOP">&nbsp;</A>
<P>
<!-- CoverPageHeader end --><!-- CoverPageTitle START -->
<A NAME="DOCUMENT_TOP">&nbsp;</A>
<HR NOSHADE>
<P>
<P ALIGN="CENTER">
<FONT SIZE="4">
		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
</FONT>
<BR>
<FONT SIZE="2">
	WASHINGTON, D.C. 20549
</FONT>
<P ALIGN="CENTER">
<FONT SIZE="5">
	FORM 8-K
</FONT>
<FONT SIZE="2">

</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="3">
	CURRENT REPORT
</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
</FONT>
</P>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="51%">
	&nbsp;
</TD>
<TD WIDTH="5%">
	&nbsp;
</TD>
<TD WIDTH="44%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Date of Report (Date of Earliest Event Reported):
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	May 12, 2011
</FONT>
</TD>
</TR>
</TABLE>
<BR>
</CENTER>
<!-- CoverPageTitle END --><!-- CoverPageRegistrant START -->
<P ALIGN="CENTER"><!-- -->
<FONT SIZE="6">
	Energy Focus, Inc.
</FONT>
<FONT SIZE="2">
<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="33%">
	&nbsp;
</TD>
<TD WIDTH="34%">
	&nbsp;
</TD>
<TD WIDTH="33%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Delaware
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	0-24230
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	94-3021850
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________________<BR>
	(State or other jurisdiction
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________<BR>
	(Commission
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
______________<BR>
	(I.R.S. Employer
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	of incorporation)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	File Number)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Identification No.)
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	32000 Aurora Road, Solon, Ohio
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	44139
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_________________________________<BR>
	(Address of principal executive offices)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
___________<BR>
	(Zip Code)
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">

<TR VALIGN="BOTTOM">
<TD WIDTH="51%">
	&nbsp;
</TD>
<TD WIDTH="5%">
	&nbsp;
</TD>
<TD WIDTH="44%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Registrant&#146;s telephone number, including area code:
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	440-715-1300
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
</FONT>
<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>
</P></FONT><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><!-- Item START -->
<P ALIGN="LEFT">
<FONT SIZE="2">
<B>
	Item 2.02 Results of Operations and Financial Condition.
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
On May 12, 2011, Energy Focus, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2011, 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, is 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><br>The written transcript, furnished with this Report as Exhibit 99.2, includes forward-looking statements within the meaning of the federal securities laws with respect to the Company's future operations and, as such, concerns matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in such statements. Refer to Energy Focus, Inc.'s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2010, its quarterly reports of Form 10-Q, and other periodic filings for a description of the foregoing and other factors that could cause actual results to differ materially from those in the forward-looking statements.<br>
</FONT>
</P>
<!-- Item END -->
<BR><BR><BR><BR><P ALIGN="LEFT" STYLE="FONT-SIZE: 10PT"></P><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><!-- SignatureHeader START -->
<P ALIGN="CENTER">
<FONT SIZE="2">
<B>
	SIGNATURES
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
	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.
</FONT>
</P>
<!-- SignatureHeader END --><!-- Signature START -->
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
<TD WIDTH="19%">
	&nbsp;
</TD>
<TD WIDTH="34%">
	&nbsp;
</TD>
<TD WIDTH="3%">
	&nbsp;
</TD>
<TD WIDTH="1%">
	&nbsp;
</TD>
<TD WIDTH="43%">
	&nbsp;
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD COLSPAN="3" VALIGN="TOP" ALIGN="LEFT">
<FONT SIZE="2">
	Energy Focus, Inc.
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
<I>
	May 16, 2011
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	By:
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Frank Lamanna
</I>
<BR>
</FONT>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<HR SIZE="1" NOSHADE>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Name: Frank Lamanna
</I>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Title: interim Chief Accounting Officer (principal accounting officer)
</I>
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<!-- Signature END --><!-- PageBreak START -->
<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><P ALIGN="CENTER">
<FONT SIZE="2">
	Exhibit&nbsp;Index
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="60%">
<TR VALIGN="BOTTOM">
<TD WIDTH="8%">
	&nbsp;
</TD>
<TD WIDTH="15%">
	&nbsp;
</TD>
<TD WIDTH="77%">
	&nbsp;
</TD>
</TR>

<BR>
<TR VALIGN="BOTTOM">
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Exhibit No.
</B>
</FONT>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Description
</B>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD NOWRAP ALIGN="CENTER">
<HR SIZE="1" NOSHADE>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="CENTER">
<HR ALIGN="LEFT" SIZE="1" WIDTH="88%" NOSHADE>
</TD>
</TR>





<TR VALIGN="BOTTOM">
<TD VALIGN="TOP" WIDTH="8%" nowrap>
<FONT SIZE="2">
<DIV ALIGN="LEFT">
	99.1
</DIV>
</FONT>
</TD>
<TD WIDTH="15%">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
Press Release dated May 12, 2011 - Energy Focus, Inc. Reports First Quarter 2011 Results
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP" WIDTH="8%" nowrap>
<FONT SIZE="2">
<DIV ALIGN="LEFT">
	99.2
</DIV>
</FONT>
</TD>
<TD WIDTH="15%">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
Transcript of Investor Conference Call Held on May 12, 2011
</FONT>
</TD>
</TR></TABLE></CENTER><!-- HTMLFooter START -->
</BODY>
</HTML>
<!-- HTMLFooter END -->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-99.1 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 14pt"><B>ENERGY FOCUS, INC. REPORTS FIRST QUARTER 2011 RESULTS</B></FONT>



<P align="left" style="font-size: 14pt"><FONT style="font-size: 12pt">SOLON, Ohio, May&nbsp;12, 2011 &#151; Energy Focus, Inc. (NASDAQ: EFOI) today announced financial
results for the first quarter ended March&nbsp;31, 2011 and forecast for second quarter.
</FONT>

<P align="left" style="font-size: 12pt">Financial and operating highlights for the first quarter of 2011 include the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net sales of $5.5&nbsp;million compared to $8.4&nbsp;million for the first quarter 2010.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The company finished the quarter with a balance sheet showing cash in the amount of $1.6
million and total shareholders&#146; equity of $4.4&nbsp;million.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash utilization for the first quarter of 2011 was $2.5&nbsp;million. Cash utilization for the
first quarter of 2010 was $0.7&nbsp;million.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operating expenses decreased 20.1% compared to the first quarter of 2010.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">The forecast for Q2 and 2011 include the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sales to exceed $8.0&nbsp;million in Q2 2011 versus $9.0&nbsp;million in Q2 2010. Sales of $35
million are anticipated for 2011.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Net cash utilization for Q2 2011 is expected to be less than $1&nbsp;million compared to a cash
inflow of $0.3&nbsp;million in Q2 2010.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The company expects to be net cash flow positive from operations in 2011.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">&#147;While first quarter sales were lower than last year due to contract timing in our solutions
business, I am pleased to report that solution sales are ramping up with Q2 overall sales expected
to exceed $8&nbsp;million,&#148; said Joe Kaveski, Energy Focus CEO. &#147;Furthermore, our products and our
military businesses performed well in Q1. With the addition of new energy savings products like
our recently introduced LED Retrofit Kit for Wallpacks, we expect our product businesses to
continue their good performance throughout the year.&#148;


<P align="left" style="font-size: 12pt">Energy Focus, Inc. will host a conference call on Thursday, May&nbsp;12, 2011 at 4:30 p.m. EDT (1:30
p.m. PDT) to review the first quarter 2011 financial results, followed by a Q & A session. The call
can be accessed by dialing (800)&nbsp;967-7140 (US and Canada) or (719)&nbsp;325-2405 (International/Local).
The conference ID number is 3352556. Participants are asked to call the assigned number
approximately 10 minutes before the conference call begins.


<P align="left" style="font-size: 12pt">A recording of the conference call will be available through the investor relations section of the
Company&#146;s web site at <U>http://www.energyfocusinc.com/investors/events/category/investors</U>
starting May&nbsp;12, 2011 and will remain available for 3&nbsp;months.


<P align="left" style="font-size: 12pt"><B>About Energy Focus, Inc.</B>


<P align="left" style="font-size: 12pt">Energy Focus, Inc. is a leading provider of energy efficient LED lighting products and turnkey
energy efficient lighting solutions, holding 74 relevant lighting patents. Our 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 Nashville, TN, Pleasanton, CA, and the United Kingdom. For
more information, see our web site at <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. 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.


<P align="left" style="font-size: 12pt">Media Contact:



<P align="left" style="margin-left:2%; font-size: 12pt">Energy Focus, Inc., Public Relations Office
<BR>
(440)&nbsp;715-1295
<BR>
<U>pr@energyfocusinc.com</U>


<P align="left" style="font-size: 12pt">Investor Contact:



<P align="left" style="margin-left:2%; font-size: 12pt">Brion Tanous
<BR>
CleanTech IR, Inc.
<BR>
(310)&nbsp;541-6824
<BR>
<U>btanous@cleantech-ir.com</U>



<P align="left" style="margin-left:2%; font-size: 12pt"><FONT style="font-size: 10pt">&nbsp;
</FONT>

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

<P align="center" style="font-size: 10pt"><B>ENERGY FOCUS,&nbsp;INC.<BR>
CONSOLIDATED BALANCE SHEETS</B><BR>
<B><I>(amounts in thousands except share and per share amounts)</I></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="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>March 31,</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>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2010</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"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><B>(unaudited)</B></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:30px; text-indent:-10px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,446</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,979</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Restricted cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accounts receivable trade, net of allowances of $237 in 2011</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:40px; text-indent:-10px">and $446 in 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Retainage receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Inventories, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,543</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Costs in excess of billings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Prepaid and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">632</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:40px; text-indent:-10px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Property and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,446</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Intangible assets, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,677</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Collateralized assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</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">53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</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 assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,374</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>LIABILITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,167</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,358</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Billings in excess of costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Current portion of long-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">498</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">481</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:40px; text-indent:-10px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,517</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">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Acquisition-related contingent liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Long-term borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,344</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:10px; text-indent:-10px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,716</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:10px; text-indent:-10px">Authorized: 2,000,000 shares in 2011 and 2010</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">Issued and outstanding: no shares in 2011 and 2010</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">&#151;</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:10px; text-indent:-10px">Authorized: 60,000,000 shares in 2011 and 30,000,000 in 2010</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">Issued and outstanding: 24,647,000 at March&nbsp;31, 2011 and</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">23,962,000 at December&nbsp;31, 2010</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">75,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,094</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">470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">423</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">(71,673</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(68,860</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,658</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:10px; text-indent:-10px">Total liabilities and shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,374</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,&nbsp;INC.<BR>
CONSOLIDATED STATEMENTS OF OPERATIONS</B><BR>
<B><I>(amounts in thousands except per share amounts)</I></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="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="7"><B>Three months ended</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>March 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>2011</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2010</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 align="right">$</TD>
    <TD align="right">5,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,357</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 align="right">4,301</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,962</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:20px; text-indent:-10px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,395</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>
</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 align="right">265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</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 align="right">1,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,619</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 align="right">1,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,679</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Valuation of equity instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,421</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Restructuring charges</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">26</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 operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,834</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,800</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:40px; text-indent:-10px">Loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,675</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,405</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>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other income (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(65</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(182</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(99</TD>
    <TD nowrap>)</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:10px; text-indent:-10px">Loss before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,808</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,569</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 nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</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:10px; text-indent:-10px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(2,813</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(3,570</TD>
    <TD nowrap>)</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">Net loss per share &#151; basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.17</TD>
    <TD nowrap>)</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">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>
</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 align="right">24,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,270</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">3




<!-- v.121908 -->
</BODY>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit2.htm
<DESCRIPTION>EX-99.2
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-99.2 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>ENERGY FOCUS, INC.</B></FONT>



<P align="center" style="font-size: 12pt"><B>Moderator: Brion Tanous<BR>
May&nbsp;12, 2011<BR>
3:30 pm CT</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 10pt">Operator: Good day everyone. Welcome to the Energy Focus First Quarter earnings release
conference. Today&#146;s program is being recorded. At this time for opening remarks I&#146;d like to
turn things over to Mr.&nbsp;Brion Tanous. Please go ahead sir.</FONT></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Brion Tanous: Thank you operator. I&#146;d like to welcome everybody to Energy Focus&#146;s fiscal 2011
first quarter earnings conference call. On this call the company&#146;s Chief Executive Officer,
Joe Kaveski will give a business update on the company&#146;s Solutions, products and military
businesses as well as provide an outlook for the second quarter. The company&#146;s interim Chief
Financial Officer, Eric Hilliard will then address the company&#146;s first quarter financial
results. We also have President John Davenport on the call with us this afternoon.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">Following prepared remarks we&#146;ll open it up for questions for the remainder of this call.
Before we get started I&#146;m going to read a disclaimer about forward-looking statements. This
conference may contain in addition to historical information forward-looking statements
within the meanings and the federal securities laws regarding Energy Focus. Forward-looking
statements include statements about plans, objectives, goals, strategies, future events and
performance and underlying assumptions and other statements that are different then
historical facts.



<P align="left" style="margin-left:3%; font-size: 10pt">These forward-looking statements are based on current management expectations and are subject
to risks and uncertainties that may result in expectations not being realized and may cause
actual outcomes to differ materially from expectations reflected in these forward looking
statements. Potential risks and uncertainties include change in demand for the company&#146;s
products, the impact of competition and government regulations and other risks contained in
statements filed from time to time with the SEC.



<P align="left" style="margin-left:3%; font-size: 10pt">All such forward-looking statements whether written or oral made on behalf of the company are
expressly qualified by these cautionary statements. And such forward-looking statements are
subject to risks and uncertainties and we caution you not to place undo reliance on these.



<P align="left" style="margin-left:3%; font-size: 10pt">With that, I&#146;d like to turn the call over to Mr.&nbsp;Joe Kaveski. Joe?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you Brion and thanks to everyone for joining Energy Focus&#146;s first quarter
2011 earnings call. Today I&#146;d like to off you some brief comments on our fist quarter results
and then provide you some insight into our anticipated second quarter performance.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">So to begin our first quarter revenues at $5.5&nbsp;million was clearly below our first quarter
results in 2010. However, we did exceed our $5&nbsp;million forecast in the first quarter. And as
we discussed during our last call we forecasted lower revenues due to the timing of some of
our Solutions contracts. Furthermore, we used $2.5&nbsp;million in cash in our first quarter. This
was slightly less then our $3&nbsp;million forecast. This cash usage was the result of lower sales
and extended payment terms associated with our early buy products sales promotion.



<P align="left" style="margin-left:3%; font-size: 10pt">The positive news is that we&#146;re beginning to see resolution to the contract timing issues and
as a result cash inflows are increasing. Also, we achieved some significant accomplishments
during our first quarter. Specifically, our overall gross profit margins improved nearly 5
percentage points when compared to our first quarter results of last year. We believe this
improvement was the result of our continuing focus on reducing our material costs, increasing
EFOI product content into our Solutions projects and further reductions in our manufacturing
cost resulting from the consolidation of our Solon manufacturing operation into our
(Maquiladora) in Mexico.



<P align="left" style="margin-left:3%; font-size: 10pt">Also, we have already received several new government contracts for R&D and Navy orders for
products totaling $2.5&nbsp;million. We were awarded a $600,000 development contract from NASA to
create a high performance LED solution as a retrofit replacement for a 1,000 watt metal
allied exterior fixture. We&#146;ve already demonstrated working prototype that uses less than
half the energy and achieves superior optical performance. The company received a $1&nbsp;million
contract from the Ohio Third Frontier program to develop a solar powered wall pack retrofit
fixtures for existing buildings.



<P align="left" style="margin-left:3%; font-size: 10pt">We achieved a $475,000 increase to our very high efficiency solar cell contract for optics
and coatings technologies that may also be used in our IntelliTube products. And, our
military team received a $446,000 order from the U.S. Navy for retrofit lights on two
destroyers. Finally, we introduced an LED retrofit kit for Wallpacks during the first
quarter. Our new retrofit kit was designed specifically with existing buildings in mind as it
offers a very low first cost, superior lighting performance, breeze to install and typically
a less than two year simple payback. Additionally, it uses an innovative thermal management
system that makes the product possible and for which Energy Focus awarded a utility patent.



<P align="left" style="margin-left:3%; font-size: 10pt">We&#146;re already utilizing and installing these kits into our Solutions projects. Initial
indications and orders from distributors, building owners and lighting retrofit and
maintenance contractors are very encouraging.



<P align="left" style="margin-left:3%; font-size: 10pt">Now as we look to the future I&#146;d like to reaffirm our year end forecast of $35&nbsp;million in
sales and to be net cash flow positive from continuing operations. For our second quarter
we&#146;re forecasting over $8&nbsp;million in sales and cash utilization to be less than $1&nbsp;million.
Currently, cash is tight. However; as I mentioned earlier, our revenues are ramping and
we&#146;re beginning to receive cash from those revenues.



<P align="left" style="margin-left:3%; font-size: 10pt">Finally, I&#146;d like to mention that we expect our gross profit margins to continue to improve
throughout the year.



<P align="left" style="margin-left:3%; font-size: 10pt">Now earlier this week Energy Focus received the ASTRUM Award at the MDB Bright Light&#146;s
Conference in New York City. I&#146;m mentioning this award because it recognizes companies on the
tipping point. That is, companies with technologies that have high commercial potential as
evidence by their substantial patent portfolios. We believe that the MDB Bright Lights
Conference got it exactly right.



<P align="left" style="margin-left:3%; font-size: 10pt">So in conclusion, I remain bullish on Energy Focus and look forward to the rest of 2011
beyond as we realize the potential of our IntelliTube<sup>TM</sup> and other energy savings
technologies.



<P align="left" style="margin-left:3%; font-size: 10pt">So now I would now like to turn the call over to Eric Hilliard our Chief Operating Officer
and interim Chief Financial Officer for further details on our first quarter results. Eric?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Eric Hilliard: Thank you very much Joe and good afternoon everyone. I&#146;d like to take to through a
review of our first quarter 2011 earnings results. Our first quarter revenues of $5.5&nbsp;million
are a decrease of $2.9&nbsp;million versus $8.5&nbsp;million in the first quarter a year ago. The
principal driver for the decline in our first quarter revenues was due to contract timing in
our Solutions business. However, we have received $3.4&nbsp;million in new contracts for which we
have begun recognizing revenue. Moreover &#151; I&#146;m sorry, excuse me &#151; moreover we saw a
substantial increase in revenues in March continuing into April.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">Gross margins for the first quarter were $1.2&nbsp;million a decrease of 17% or $236,000 versus
the first quarter in 2010. This decrease in gross profit dollars is a direct reflection of
reduced sales volume. However, our gross margins as a percent of sales increased 4 1/2% to
21% of sales in the first quarter of 2011 versus the prior year period when gross margins
were 16 1/2% of sales. This improvement in gross margin percentage for the quarter was driven
by lower costs in our Solutions, U.S. products and government businesses.



<P align="left" style="margin-left:3%; font-size: 10pt">Operating expenses for the first quarter was $3.8&nbsp;million a decrease of $1&nbsp;million from $4.8
million in the first quarter of 2010. Included in our 2010 results was a non cash charge of
$1.4&nbsp;million for the revaluation of equity instruments. Excluding this non cash charge our
operating expenses would have been an increase of $400,000. This is a result of increased
investments into IntelliTube, new products and channel development for the existing building
markets.



<P align="left" style="margin-left:3%; font-size: 10pt">Our first quarter net loss from operations narrowed to $2.7&nbsp;million versus a net loss of $3.5
million in the first quarter of 2010. Finally, we ended our first quarter with cash and cash
equivalents of $1.6&nbsp;million as compared to finishing our first quarter of 2010 with cash and
cash equivalents of $1.8&nbsp;million. During the first quarter we did utilize $2.5&nbsp;million of
cash and cash equivalents.



<P align="left" style="margin-left:3%; font-size: 10pt">And finally, the first quarter of 2011 resulted in decreased revenues and margin dollars,
however; increased gross margin efficiency as a percent of sales. Controlling the cash
spending is related to operating expenses and utilization of cash from operations while we
continue to invest in our IntelliTube technologies.



<P align="left" style="margin-left:3%; font-size: 10pt">And with that I would like to turn the call back to you Joe. Thank you.



<P align="left" style="margin-left:3%; font-size: 10pt">Thanks Eric. And now at this time I&#146;d like to open up the phone lines and invite our
listeners the opportunity to offer comments and ask questions. Operator?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: Thank you. At this time if you do have a question please signal us by pressing star 1 on
your Touch-tone telephone. Again for questions that is star 1. We&#146;ll pause for just a moment.
And again for questions, that is star 1.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">We&#146;ll go first to Allan Snider.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Hi gentlemen. A couple of questions if I may? Would you be attending the Light Fair
Show?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: We are not exhibiting at Light Fair, however; we will have staff on the ground
basically attending the fair and meeting with customers and perspective suppliers.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Yes, that&#146;s fine. The next question is could you address the situation with respect
to the shares of the Quercus Trust and David Gelbaum? How is &#151; can you comment on what&#146;s
transpired and what you anticipate and what effect this has having on the &#151; the price of the
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares in your opinion?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes, I&#146;d be delighted to Allan. Obviously we think it&#146;s not having a positive
effect on our share price and we are doing some things as a company to help with the
situation. First and foremost we have filed an S3 at the trust&#146;s request and expense and this
actually could help enable a large block sale versus continuing dribbled sales via Rule&nbsp;144.
And like we would do for any of our other shareholders, we have met and will meet with
potential investors that have expressed an interest in the Trust&#146;s position.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">And the last thing that we&#146;ve done which I believe is significant is we absolutely have put a
focus on increasing our visibility in terms of the investment community. In just the
beginning of this year we&#146;ve already attended and presented at four conferences, the Roth
conference, the Jeffries conference, the Kauffman conference and then last Tuesday, the MDB
conference to demonstrate the IntelliTube technology, talk about the real value in the
company and generate some interest in our stock as well. So those are just a few top of mind
things.



<P align="left" style="margin-left:3%; font-size: 10pt">But overall, yes we&#146;re concerned, we&#146;re working on it and we do think that it is having an
impact.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Okay, that&#146;s fine. Another question if I may? Could you tell me the status with
respect to naval orders? Are these more or less &#151; are you anticipating any near term or
timeframe with additional naval orders of any consequence or is this something that you just
have no &#151; no control over or no foresight into might transpire down &#151; down the road?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Sure. I think this is a great question and I would just start by saying that there
is absolutely a very high level of interest with the U.S. Navy to re-equip the US Navy fleet
with LED lighting. This is evidence by a couple of orders that we just received for $400,000
for LED lighting for two destroyers. Our goal is to relight the entire fleet and we believe
that we are the company that&#146;s well equipped and positioned to do this. We&#146;re the only company
that we know of that today has six certified products families between 20 to 30 (sku&#146;s)
already certified by the Navy.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">The U.S. Navy has extremely high barriers to entry from a technical perspective and of course
our IntelliTube technology, which we are very bullish on, has been well received by the Navy
as evidence by our contracts to replace T5 lighting in the Virginia class nuclear attack
submarines. It has been very well received and absolutely offers the lowest cost and highest
performance solution for Navy vessels as well as commercial buildings.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Right, also &#151; I&#146;m sorry, go ahead.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Having &#151; I&#146;m sorry, just one last thought there.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Sure.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Having just said all of that Allan, it is the government and, you know, we are
still kind of looking to see how the economy and budget reductions might affect the department
of defense budget and moving forward with great haste to convert the fleet to LED lighting.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">However, we &#151; we believe that we will see a substantial increase in our 2011 military sales.
I want to make a point of saying this we are out of the research into a new technology,
convincing them it&#146;s viable and then change their specifications stages. These are behind us
now. We are actually shipping product.
<BR>
Now, we continue to get R&D contracts that are for very advanced research, what I would call,
lighting technologies or strategies that you would apply in the military fixtures. For
example, there&#146;s one called circadian rhythms for instance which affects the body&#146;s circadian
rhythm which affects and productivity in your sleep cycles. However, we are at the stage
where we&#146;re actually shipping products. Having said that, again we believe we&#146;re going to see
a substantial increase in our 2011 sales and have a really nice foundation for 2012 and
beyond.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Well looking forward to that. That &#151; that sounds great. Other question relates to
the solar project that you&#146;ve been involved with having gotten some additional funding
recently. Is there any anticipated approximate completion date for that project so that it
could ultimately go commercial?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes Allen. Just to restate where we are in phase three of a government funded solar
project, it&#146;s funded to I believe to $100&nbsp;million and called VHESC or very high efficiency
solar cell. Phase three is less about art and science and more about how do we produce the
technology very cheaply for commercialization. Having said that, the program was scheduled to
complete in the June timeframe of this year. However, we just received a $475,000 extension
that will bring us roughly to the end of the year.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">We are currently evaluating our options for commercializing this solar technology. We could
be well named the commercializing entity. VHESC includes a consortium of other companies and
I believe that we are well positioned to be named the commercialization entity should we
choose to go down that path. So...


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: So there are &#151; I&#146;m sorry &#151; so there are a number of companies that would be
candidates to get the commercialization nod or we just one company or a number of companies?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: There are about &#151; John help me with this &#151; I guess about less than a half a dozen
other companies that I would call key members.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: There are three or four viable candidates. Right now they&#146;re looking to us as
their likely choice as the commercialization candidate. That conclusion has not been finalized
but it will be in the next couple of months by the &#151; probably by the next quarter call. So
we&#146;ll &#151; we&#146;ll give you an update on that then. That&#146;s one of the things that&#146;s factoring into
how we approach commercialization of solar.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">I would remind you that we have our first solar commercialization project underway. We were
funded earlier this year by the State of Ohio to develop this outdoor self standing solar LED
light which combines really our LED lighting low energy consuming LED lighting technology
with solar. We&#146;re going to start that with using more conventional solar but it could very
well benefit our energy efficient solar technologies.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Well with respect to this (VHESC)&nbsp;program, if you were to be officially designated
were there &#151; would there be immediate implications or positive ramifications for that
announcement?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: Yes, well we &#151; we need to understand what the nature of that is. That won&#146;t be
commercialized this year. We&#146;re in what Joe described as the government&#146;s view of the
commercialization phase. It&#146;s really creating technology that is cost viable. That doesn&#146;t
mean that you have products. A product development phase wouldn&#146;t begin before 2012.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: But if &#151; if you were designated as I said so would then &#151; you would then be hooked
up with a larger company or companies?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: That&#146;s one of the possibilities. We&#146;ll give you more insight as we have gained
that ourselves.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Okay and the opposite side, if you don&#146;t get that certification or that
qualification what does that mean in terms of moving forward with it. That you&#146;re just a party
to the development but you don&#146;t go beyond that point? Is that...</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: No, we would participate on it because we are named on the patents. We&#146;d
participate on a royalty basis. So there would be something coming from it either way.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Right.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: And Allan, I&#146;d like to make one other point and that is that in terms of our R&D
efforts today and what we do. We are now very, very focused. If we cannot see a clear path
from either a product being developed from or a specialty technology or coating coming out of
our R&D that that we could not commercialize in the existing buildings, then we are taking
pass on the R&D project. And (VHESC)&nbsp;is a clear example where, although it&#146;s in the solar
space, there were many inventions in terms of coatings, constructs and optics that clearly
have relevance and importance towards our IntelliTube technology. So, we benefit from that if.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: I understand. Okay I appreciate that and I just want to go back to the Quercus
Trust/Gelbaum here.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes sir.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: If that were to be finalized somehow it&#146;s hard to anticipate the reaction in the
marketplace but I think a lot of shareholders are fully aware of the potential or assuming
pressure on the stock. And so you&#146;re in a position now where you&#146;re not going to have, I
assume, any buyers of the security in any quantity until this thing is cleared up. So I &#151; I
just assume that you&#146;re making as, you know, as valiant an effort to get this thing rectified
and completed.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: I can assure you that we are. We clearly understand the situation and implications.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Okay, it &#151; it must be painful for you as well as it is for the shareholders. I
assume that&#146;s sort of a no brainer. And I think one last ques- well actually two last
questions. The Cree Company announced yesterday a new LED of like 1000 lumen and they said it
was a major item for them. How does that affect you or is it beneficial to you or &#151; or what
effect in any way does it have on Energy Focus?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Well, I am going to kick this off and then see if John has any additional comments.
But to Energy Focus, it is absolutely excellent.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Great.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Our whole approach, which is radically different from the rest of the industry, is
to basically develop a plug and play replacement for a four foot linear florescent lamp that
first and foremost offers a great return on investment to building owners in helping them
lower the cost of owning and operating their building and offers great optical performance.
Having said that, what makes our ability to produce this product for a lower cost then anybody
else is that our design uses one very high powered LED, which basically shines into a very
special engineered plastic rod that effectively emits light very diffusely and uniformly down
the tube just like a florescent lamp would.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Right.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Having said that, the advances in these higher powered LED&#146;s allow this construct
(approach)&nbsp;to go from maybe a four foot limitation today, to a five foot and maybe an eight
foot limitation. So it just opens up more applications and more market for us.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: ((Inaudible)) extremely positive, extremely.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Very positive. The other point that I would like to make is a he firm that has
published a lot of research on the LED Cleantech space is Canaccord Adams. And just a couple
months ago, basically Canaccord Adams came out and said that they anticipate a 30% price
reduction in the cost of LED&#146;s themselves in the second half of this year. That&#146;s great for
us. Energy Focus does everything but manufacture the LED itself and the LED represents the
highest cost component of IntelliTube.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">So again, we&#146;re driving quicker than we thought towards a product that offers a great ROI
over the standard best in class florescent solution. That&#146;s number one.



<P align="left" style="margin-left:3%; font-size: 10pt">And number two, tying back to the higher powered devices, Canaccord Adams also suggests that
one of the early markets to transform is the exterior lighting market. Having higher powered
devices and more efficacious to compete against metal halide technology is absolutely needed
and excellent. So everything that we&#146;re seeing that&#146;s going on in the LED chip space is
really just creating opportunity for Energy Focus.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Well that&#146;s exciting, that really sounds great. I appreciate that answer. And I
have my final question &#151; I&#146;m hogging all the time here but, given your cash position where
there&#146;s a diminishment of cash are &#151; have you addressed this at this point? Do you have any
lines open to you where you&#146;d have need you could easily access them or is this something
you&#146;re addressing or just could you briefly address that ((inaudible)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes, so again kind of going back, cash is tight, no doubt about it. But, I would
like to reinforce something that I talked about many times and it&#146;s factual. And that is that
the Solutions business is different from a typical contracting business because by and large
it&#146;s a pay when paid type of scenario. So when receive money then our suppliers expect to be
paid their money. So that helps out in terms of not needing as much working capital as you
would think a company our size would need.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: I see.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Having said that, we are as I mentioned beginning to see as we expected the ramp in
sales and we&#146;re beginning to harvest the cash out of those sales. And so sure, I&#146;d love to
have more cash but the situation is actually improving. And we had a significant payout in
payables during our first quarter. So, you know, all this factors in but I hope that provides
you some insight.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Allan Snider: Yes it does, sir. I appreciate it. I have as they say no further questions. And I
do appreciate your time and I wish you ever ((inaudible)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much Allan so...</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: That&#146;s terrific, so maybe we have time for more questions I hope?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: Yes, we&#146;ll go next to (Tom Sheahan).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Tom Sheahan: Hi guys, how are you.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Good afternoon Tom. Great to hear from you.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Tom Sheahan: Great to hear you. I love your technology, let&#146;s just start there. And it looks
like we should all do whatever we can to get you quicker access to cash. My question is
related to Lighting Science Group and Lexus Lighting, two of your peers that appear to have
some pretty aggressive global expansion plans. And I wonder if you might be able to share with
us Joe if you have any plans yourself for global. I don&#146;t think just a London office really
qualifies you as global. But if you have anything to share with us, we&#146;d really appreciate it.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Sure. You know, we&#146;re a little bit different in terms of our strategy from other
lighting manufacturers.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">The firms that you mentioned basically have focused their attention on what might appear to
initially be a more ripe portion of the market. Yet, it is fraught with competition. What
I&#146;m speaking specifically to is the replacement market for the A19 incandescent lamp where
today&#146;s A19 lamp&#146;s efficiency is maybe 12 watts per lumen.



<P align="left" style="margin-left:3%; font-size: 10pt">Having said that, the A19 represents a small part of the actual commercial building market
opportunity. What I mean by that is that the U.S. government suggests that there&#146;s over 70
billion square feet of lighted space non-residential lighted space. Less than 25% of that
space lighting with technology such as the A19 lamp, the PAR30 lamps, spotlights, and
exterior lights. About seventy-five percent is basically what I would call linear fluorescent
lamps. So linear florescent is the much larger portion of the commercial building market
opportunity. And that&#146;s where Energy Focus has clearly set its sights.



<P align="left" style="margin-left:3%; font-size: 10pt">And we&#146;ve done that because of the market opportunity itself and because &#150; I might be a
little bias &#151; we have a better approach and that approach is IntelliTube. In the existing
buildings, the value driver is not necessarily a low first cost but rather a better return on
investment (total cost of ownership). And so, as we evaluated getting into the retail sector,
we concluded that consumers are going to be slow to buy a $10 or $20 light bulb when they
have an alternative that may be anywhere from 50 cents to two bucks for a compact florescent.



<P align="left" style="margin-left:3%; font-size: 10pt">And in the retail space is clearly dominated by the major manufacturers, GE, Phillips and
Sylvania. And we clearly see that they are focused on the retail market as well. Okay, so
having said that, our product strategy is focused on IntelliTube and the replacement linear
florescent market opportunity that exists in commercial buildings. IntelliTube is the
absolute highest performance lowest cost way to get LED lighting into an existing building
and offers a great return on investment.



<P align="left" style="margin-left:3%; font-size: 10pt">In terms of globalization, we actually do have a subsidiary, a wholly owned subsidiary based
out of the UK that does cover the rest of the world. They historically covered the
construction marketplace, where they were an early adopter into decorative LED. We are now
transitioning them into the existing building market where they are basically focusing on
what I would call large energy services companies and lighting maintenance companies that are
into existing commercial buildings where the customer will value the superior economic
returns of our IntelliTube technology.



<P align="left" style="margin-left:3%; font-size: 10pt">So at this point in time that is the strategy that we are actualizing to position the rest of
world into for our IntelliTube technology. We do have on-going in-house discussions on how we
go beyond that internationally but it&#146;s just too early to bring forward any new strategies at
this point in time.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Tom Sheahan: Thanks Joe, keep those discussions coming and there&#146;s a lot of smoking mirrors
involved with your competitors and talking about all of the work they&#146;re doing in China and
other areas. And I really appreciate the response. Thank you.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much Tom. Okay, operator do we have another caller?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: Yes, we&#146;ll go next to Bill Hardy.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: Yes, hi guys greeting from Dallas. My &#151; my question Joe is has to do with a balance
sheet question. And at the end of 2010 you had accounts receivable of $6&nbsp;million 236 thousand
to be &#151; be precise. Given that the payment of contract has been delayed what &#151; what is that
balance sheet figure at the end of the first quarter of &#151; of 2011?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Well the &#151; the accounts receivable balance was $3&nbsp;million 640 thousand.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: Okay, so in other words it&#146;s actually gone down?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes it has.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: But that&#146;s the stakes of the fact that there&#146;s not a surplus there to contribute to
the second quarter. You see what I mean? I&#146;m looking for how do you stimulate revenue coming
into the second quarter without a carry over balance of accounts receivable that would have
increased during the first quarter because contracts were not paid in a timely fashion or...</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Sure.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: So there&#146;s something mirroring that. I &#151; I would have expected that the accounts
receivables would have gone up and then you could work those down during the second quarter.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Bill I &#151; I understand your question and I think it&#146;s a really good question and a
large part of the answer lies in the Solutions contracts that we receive. What I mean by that
is that once we actually receive a solutions contract, the first thing that we do is to
quickly finalize engineering and then basically procure materials from mostly third parties
which are delivered to the job sites anywhere from 15 to 45&nbsp;days later. Basically, at the time
that we deliver those materials we&#146;re able to recognize revenue number one, and we are, if we
haven&#146;t done so already, issuing an invoice or bill for the material.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">And so a large portion of these Solutions contracts, which tend to be very large in nature,
have a large portion of the revenue recognized and a receivable generated within 30 or so
days of the contract being received.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: Oh okay, so &#151; so then the second quarter is going to be driven by the number of
contracts you can &#151; can get and those will be turned over fairly rapidly. And is there any way
you have to tell us investors how those contracts are &#151; are aggregating through the first six
weeks of &#151; of the quarter?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Well I&#146;ve already said that in the second quarter we expect to go from $5 1/2
million to over $8&nbsp;million. We&#146;ve also announced that we&#146;ve already received $3.4&nbsp;million
worth of new Solutions contracts. So at this point coupled with the fact that we feel very
confident and that we&#146;ve announced publicly that our revenues will continue to ramp, that&#146;s
kind of information that we can provide for our investors that you can see already.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Bill Hardy: True, okay, you know, I guess I was looking for some bright ray of hope that would,
you know, indicate that there&#146;s a backlog of accounts receivable to be mined but I &#151; I can
understand what you&#146;re saying and thank you for your answer.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much Bill.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: We&#146;ll move next to Blake Tobias.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Good afternoon Blake.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Blake Tobias: Good afternoon, hi Joe. Great series of questions from Allan there. I learned a
lot. So thank you Allan and thanks for your answers Joe. Just one quick question about
IntelliTube. My understanding is that represents a, you know, a fairly significant goal for
the company. I&#146;m wondering in terms of IntelliTube what &#151; what do you see as the significance
in terms of the bottom line and when do you see that Joe if you could respond?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Sure, well a couple of things about IntelliTube. First of all we know the
technology works. I mean it is fundamentally what is sailing in the Virginia Class subs now
and it&#146;s embedded into a sailor&#146;s berth light. So, you know the technology works. It&#146;s great.
Clearly the U.S. military has expressed a preference for it. Now what we&#146;ve also said is that
we expect that we will be releasing it commercially by the later part of this year or the
first part of next year.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">I with investors publicly that IntelliTube&#146;s price is highly dependent upon the cost of the
LED chip. And over the next five years, we&#146;re going to see the price of LED&#146;s go way down as
we are already seeing and that their performance will go way up. Why that&#146;s important is
because in areas of the country that have very high utility rates like the west coast, Texas,
New England states &#151;  the economic value equation brought by IntelliTube, even at an
initially higher price, will be there where it provides them a great return on investment for
buildings that tend to be lighted longer than other ones.



<P align="left" style="margin-left:3%; font-size: 10pt">For example, a hospital versus a school district will see the hospitals will be the earlier
adopters especially in the high energy rates. So, IntelliTube will not be a product that
coming right out of the shoot creates tremendous economic value across all markets. It will
be for many markets and as the price of that LED comes down subsequently over the next couple
years, then it becomes a product that will create more economic value then a linear
florescent across what I would call all markets.



<P align="left" style="margin-left:3%; font-size: 10pt">So, you know, this year IntelliTube we&#146;ve stated is not going to be a major factor in terms
of revenues but we&#146;re very optimistic towards 2012 and beyond. And what I also what I would
mention relative to the revenues is gross profit margins. Today in our Solutions business,
which last year approached $20&nbsp;million in sales, has product content around anywhere from 40
to 50% of the total revenue. Within that product content there is primarily two main items,
florescent lamps and ballasts, that we procured from the major manufacturers.



<P align="left" style="margin-left:3%; font-size: 10pt">As IntelliTube comes online we will begin to replace those outside purchased florescent tubes
and ballasts with our own product, IntelliTube, and as a result Energy Focus gets a great
launch pad and captive customer for the product as well as the ability to keep the
manufacturing margin in-house that is currently benefitting GE, Sylvania and Phillips. So,
not only will we have a significant effect on our revenues but also on our margins.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Blake Tobias: Great, thank you Joe, appreciate it.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: We&#146;ll go next to Peter Field.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Peter Field: Thank you, good afternoon gentlemen. Thanks for taking my call.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Absolutely, thanks ((inaudible)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Peter Field: I have a very mundane question, the answer to which I think I know but it would
reassure me if I could have some confirmation from you. In the 10K you had a note about
collateralized assets where you talk about that $2&nbsp;million of cash collateral related to the
surety bond program.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Absolutely, yes sir.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Peter Field: Yes and I think that that&#146;s been satisfied elsewhere. I just want to confirm that
it&#146;s not part of the remaining $1 1/2&nbsp;million in cash and cash equivalents that you have on
the balance sheet right now.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Great question and I&#146;ll give you some reassurance. It absolutely is not part of the
$1.5&nbsp;million and it is actually on the balance sheet as a collateralized assets. So it is
separate from cash. Just for everyone&#146;s benefit, in our Solutions business we provide turnkey
lighting upgrades into existing government facilities. To perform these contracts, the
government requires us to provide performance and payment bonds during the term of the
installations and about a month or two after those contracts end.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">When we got into this business it was 2009, it was very challenging to be able to get bonding
because of the condition of the financial markets coupled with our five plus years of
financial losses. We were very fortunate to align ourselves with a company that was willing
to go with us. This company had served the previous owner for many, many years. But one of
the consequences was is that we had to literally take $2&#043; million of our cash and sit it over
at our bonding company.



<P align="left" style="margin-left:3%; font-size: 10pt">This was always done to initially get the bonding itself and through our discussions with the
surety company it&#146;s always been the goal that as our financial performance improves then the
collateral will be coming back to the company. And so we&#146;re working toward that end. But it
is not part of the cash.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Peter Field: Great, thank you very much, mission accomplished. Keep up the good work.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much. Have a great evening.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Peter Field: Thank you.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: We&#146;ll hear now from Thomas Murphy.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Thomas Murphy: Good afternoon guys.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Good afternoon Thomas.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Thomas Murphy: First of all I appreciate you going through so many questions. This is definitely a
marathon Q & A and I think the insights you guys are able to provide are very helpful.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

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

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Thomas Murphy: The &#151; the question I have is with regard to the total naval retrofit opportunity. I
think you shareholders kind of view that is the Holy Grail so to speak, you know, for the year
and beyond. So I was wondering if you could comment whether or not you and the rest of the
executive team kind of view that as the Holy Grail and also if you&#146;ve put a &#151; a number on the
total opportunity for the naval fleet in terms of revenue?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Sure, Thomas that is a really good question and to answer it is, the Navy is very
important to us. But ultimately it is not the Holy Grail.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">The Navy is very important to us for many reasons. The first one is it is a very nice market.
Their compelling reason to reequip the U.S. fleet with LED lighting is that on non-nuclear
vessels electricity cost is north of 55 cents a kilowatt hour and that florescent tubes don&#146;t
last their standard life as they would in just a stationary building because of vibration.
There&#146;s the major driver for them to want to do LED lighting. That&#146;s why they&#146;ve been working
to develop it for so long.



<P align="left" style="margin-left:3%; font-size: 10pt">Our conservative market estimate is about a $300&nbsp;million opportunity that could be harvested
should the Navy turn on the switch in a relatively short period of time. Three years, maybe
five. It&#146;s a great opportunity with high barriers to entry and a customer where we have
demonstrated time in and time out that we can perform and have delivered these advanced
lighting solutions that exceed their military specifications.



<P align="left" style="margin-left:3%; font-size: 10pt">So number one is the market opportunity; number two is basically we view a navy vessel really
as a large building and we see it as an opportunity to actually have someone else pay for our
product development. Everything that we&#146;re doing right now for the Navy has a direct
connection to a product that we are or will be selling in the commercial market. So, having
our product development paid by the Navy is absolutely huge.



<P align="left" style="margin-left:3%; font-size: 10pt">Ultimately though, that brings us to the last thing which was your question about the Holy
Grail which for us is the existing commercial building market. The best way to explain why
it&#146;s the Holy Grail is that it represents 70&#043; billion square feet of lighted space.
Seventy-five percent of it lighted with linear fluorescents lamps. And, the driver for our
customer to upgrade the lighting in that building is purely economics. He wants to free up
cash flow that he can apply towards the core business.



<P align="left" style="margin-left:3%; font-size: 10pt">And the fact of the matter is there is no other approach available to an existing building
owner that provides a lower first cost then simply taking out the florescent tubes, jumpering
the ballast out of the circuit, and putting in new Intelligent LED tube. In contrast, other
LED manufacturers want you to pay a higher first cost for a whole new LED fixture that would
require a licensed electrician to spend more time taking out the existing fixture to put in
the new LED fixture. So you pay a higher wage scale and spend more time replacing the
fixture then you would just replacing the tubes.



<P align="left" style="margin-left:3%; font-size: 10pt">So as a result, we can match in every way the performance of a new LED fixture replacement
with IntelliTube. We can bring forth features that I haven&#146;t heard the other fixture
manufacturers really talking about which is a direct result in some of the research we&#146;ve
done for the Navy. And better yet, do it with at least twice the ROI or 1/2 the simple
payback of anyone else. And so that&#146;s why we&#146;re very excited and &#151; and that&#146;s why it
represents the Holy Grail for us.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Thomas Murphy: Great, I &#151; I appreciate that explanation. Thanks guys.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Thank you very much. I know we&#146;re running long. Could we &#151; is there one more
question?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: Yes, our last question will come from Gary Cavanah.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Good afternoon Gary or maybe its evening.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Afternoon. Very, very interesting and very much appreciate your patience in
answering all these long questions. I have many, many questions and I&#146;ll try and keep it
short. My first one is kind of maybe a little bit of an add question but it seems like it&#146;s
pretty important when you&#146;re focusing on the commercial &#151; in the commercial areas. I think
most of the commercial areas use one white (all bright) although some of them could use cool
white.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">How do you &#151; how do you adjust the &#151; the correlation of the IntelliTube to match or maybe -
maybe it&#146;s just already matching very closely with what the &#151; what is required in the
commercial atmosphere whereas they don&#146;t want to change the color of clothing or whatever
that&#146;s ((inaudible)) on the shelf? What &#151; can you give us a little idea on that?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: I&#146;d love to in fact I&#146;d like John Davenport, our President, to (along with Roger
Buelow who to heads our technology efforts to) &#151; to give it a stab for you.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: Well sure, color is important for various markets. For example, the U.S. &#151; U.S.
Navy color temperature is 4100 degree K and it&#146;s got a very stringent and narrow specification
which of course we need or we couldn&#146;t be sending products along. That color is governed in a
couple of ways it can be done. One way at which is what we&#146;re doing primarily now is &#151; is with
the LED itself. The phosphor that goes with the LED determines the color. We sell LED
products that run the color gamut.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">For example, we sell products to museums where we very closely match the color quality and
low color, yellow color temperature of incandescent. We do that because that&#146;s what museums
are used to and what they desire and in fact the home environment is like that &#151; no problem.
We also have high color temperature applications which we tend to use outdoors, 6500 degrees
K. Those are very useful because they take advantage of the color sensitivity of the eye
which at night in particular is more sensitive to the higher color temperatures, the blue end
of the spectrum if you will.



<P align="left" style="margin-left:3%; font-size: 10pt">IntelliTube offers one final and really important difference for adjusting color. We can
because, we deliver the light to the IntelliTube rod, that rod can mix colors. We can have a
multi-colored device deliver light in whatever color proportion we would like. So we can take
the same light bulb and we can actually change the color in the environment that you have. So
one SKU if you will could serve a school at 4100 K, a commercial installation at 3500 K or
even work in the home at 3000 K simply by itself adjusting to that environment. &#150;We think
that it&#146;s a breakthrough kind of approach to lighting.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes, and I just wanted to couple one other thing to this and that is our ability to
actually change the color of the lamp. IntelliTube has tremendous applications in the smart
grid environment where we can actually, since each lamp has its own IP address, reduce the
light levels in buildings through the internet. But not only can you reduce the light levels
you can actually change the color of the lamps to be more blue/green in spectrum, more akin to
sunlight.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">And the net result of that is we can dim to lower levels without an impact per say on the
occupants within that building and actually get more energy savings as a result of that. So
it&#146;s a tremendously important feature for a smart grid demand response application.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: That &#151; that&#146;s a wonderful differentiator. Is that &#151; now is that something that &#151; it
does have an IP address or just simply hooked up to local internet network and &#151; and then it&#146;s
addressable and when that &#151; when the load is required to come down it &#151; it complies to that
demand.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: So the answer to your question as to all of those is yes. IntelliTube has an
embedded system on a chip that&#146;s part of a wireless mesh network. It&#146;s an open protocol. One
of the protocols that we have is called (Zigbee). You can do it through your existing building
management system or it could be accessed though the ISO, through the internet, so.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: So your electrical contracts with the &#151; the electric company you could actually
dispatch &#151; let them dispatch to your lighting or to the lighting in the building. And &#151; and by
doing that you &#151; you maintain the visible coloration as good as possible under that scenario
where you are actually reducing the power output with the LEDs. Is that &#151; am I getting that
correct?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: You&#146;re getting it correct.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Okay.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: You&#146;re right.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Now what you&#146;re talking about here speaks to my next question and that&#146;s return on
investment and I&#146;m &#151; I&#146;m ((inaudible)) to what you have said earlier about, you know, areas
having higher power costs obviously getting a quicker ROI. But could you speak to that a
little bit. I know that the ROI is probably going &#151; it&#146;s going to improve over time as
technology improves. Just &#151; some of the people talked today about some of the new lighting
from Cree and whatever that would hopefully help to do that unless the price is too high.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">But could you kind of speak to what you&#146;re feeling is on where this is going? And by the way,
I really think this was a very wise choice picking on commercial especially now understanding
what we&#146;re talking about here, the specifications of these fixtures. I&#146;m saying that&#146;s the
differentiator, is that a clear differentiator from your standpoint or is everybody else
doing it?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Well I &#151; I&#146;ve yet to see real evidence of everybody else really focusing on that.
They&#146;re focusing on LED fixtures is what we see as the primary alternative to a linear
florescent lamp. ((inaudible)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: You know, under ROI the return on investment for...</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Yes, in &#151; in terms of the ROI you &#151; you basically have different simple paybacks or
ROIs for different markets. So for instance, in the private sector in a decent economy a three
year simple payback is pretty much a good target to go for and of course, as large companies
manage their earnings today through the reduction in CAPEX they want actually a shorter simple
payback.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">On the other hand, the public sector simple paybacks can be well north of that. And in fact,
Johnson Controls, one of the largest energy services companies, gave a presentation last year
and they showed a table where they showed the typical simple payback in their government
contracts anywhere from three to ten years. So, different markets have different desires.
Our existing LED based products today typically have a three year simple payback or less. And
that&#146;s really where our focus is. To beat linear florescent with IntelliTube and to make it
a great ROI compared to the best in class linear fluorescents today. And that&#146;s why we&#146;re
very excited. We see it, we see it.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: Yes, let me just, this is John. I&#146;ll say one thing about this Wallpack that we
introduced. That Wallpack pays for itself in less than two years. That single product can
generate $100 &#151; $100 of electrical energy savings in a year. That&#146;s what we&#146;re looking for in
our products. That&#146;s what makes them work.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: That&#146;s great. Yes, now you &#151; you talk about Johnson Controls, do you have a package
that interfaces with any other systems for, you know, power reduction or &#151; or I can&#146;t remember
what they call it now, there&#146;s a term for it but anyway when the utility wants &#151; wants you to
cut back and they give you a better rate for doing it through &#151; for being in that class.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Right. Well quite simply in the HVAC industry most of the existing building
management or energy management systems are now being designed to an open protocol. In the
case of the building management industry, JCI, Siemens, Honeywell, Trane, all of them
basically have or have an option to use an open protocol standard called BacNet. And inherent
to the design of IntelliTube is this plug and play compatibility into existing BacNet systems
as just one example of that ability with open protocol systems.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Oh, I got you, okay. One more question I wanted to ask you in terms of the
government jobs that you&#146;ve gotten, do you have any percentage of wins on the contracts that
you&#146;ve bid that you would be willing to share with us?</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: I&#146;m going to let John, since he&#146;s been at this a lot longer than I have best
equipped to answer that question.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>John Davenport: Yes, we are very, very fortunate; we have an extremely high percentage of wins.
When I was at GE proposing an idea, if we got 50% awarded we thought that was fantastic and
that&#146;s actually above the industry average. We are typically in the over 85% here. I think
that&#146;s a real tribute to Roger and the entire technology team in terms of the success rates
they&#146;ve earned&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as well as the timeliness of the proposals feeding technology and
products into both into what we desire commercially as well what is needed for the U.S.
government. Energy conservation, the &#147;neegawatt&#148; concept, works in both sectors. So it&#146;s
really been very, very good.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Do you have services components to your business? I thought I remembered that but
maybe I&#146;m wrong.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: We acquired a company at the end of 2009 called Stones River Company and they are a
premier lighting design and implementation of lighting for existing buildings. So their
capability is to go into existing facilities, basically audit all of the existing lighting,
create a cost profile from an energy and operating cost and then develop an improved design
with a financial performa that ultimately a building owner can &#151; can make a decision on and
then we actually oversee and procure the materials and install it for them.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">So it&#146;s a comprehensive approach to implementing these lighting solutions for our customers.
And very, very successful I might add. So, the one thing I would mention to you...


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: ((inaudible)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: ((inaudible)) yes, sir. That&#146;s correct, that&#146;s correct. So, excellent.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Gary Cavanah: Well guys, you&#146;ve been really, really patient and I really appreciate it. And if
there&#146;s anything else you want to add I&#146;d be most happy to listen but I don&#146;t want to take
anymore of your time here myself.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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>Joe Kaveski: Okay. Well thank you very much for your call and your questions today.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">So, I guess operator what I&#146;d like to do is conclude our call today. But before I do I&#146;d
really like to thank everyone who participated for you time and your interest in Energy
Focus. I&#146;d be remiss if I didn&#146;t recognize the tremendous contribution of all of Energy
Focus&#146;s employees worldwide whose ongoing commitment, dedication to serving their customer
needs where ultimately I believe give our shareholders the return that they deserve.



<P align="left" style="margin-left:3%; font-size: 10pt">So with that, I&#146;d like to thank you again and wish you a good evening.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<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: Thank you. That concludes today&#146;s conference. Thank you all for joining us.</TD>
</TR>

</TABLE>


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




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




<!-- v.121908 -->
</BODY>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
