Vu1 Corporation Provides Sales, Manufacturing and Funding Update

Dear Fellow Shareholders:

We are thrilled by the strong response to the recent launch of the Vu1 R30 bulbs on Lowes.com. The site was flooded with orders such that we are already preparing a stronger national in-store launch to accommodate the high level of interest. In addition, we just received a follow-up purchase order (PO) from Lowes.com and expect to have the site restocked soon.

We thank everyone who purchased Vu1 R30 bulbs at Lowes.com or attempted to make a purchase. Thus far, the reviews on the site for the R30 have been outstanding; we urge you to continue reviewing the R30 bulbs on Lowes.com as you use it.

As a result of the strong initial reception to the product, we have received offers from both company insiders and people with whom we have existing relationships, to finance Vu1’s growth at terms we believe are in the best interest of all shareholders and better than what are currently available in the public capital markets. We have therefore decided to pull our current S-1 Registration and complete a private transaction that will give us the ability to fund the reorders we have received from Lowe’s.

I am also pleased to report that the products manufactured by Huayi Lighting have been internally qualified prior to the start of the Chinese New Year. This is a significant milestone achievement for Vu1 as we have been working intensely with Huayi Lighting since October to qualify our product. We have also been working with a number of local Chinese suppliers and because this is our second time developing a manufacturing line, we were able to avoid the usual pitfalls and in fact were able to achieve quality levels on some key sub-assemblies that far exceed our current production in the Czech Republic. We have also accomplished successful life testing on the various components.

We are very excited about these new production capabilities with Huayi Lighting and will begin mass production after the 15-day Chinese New Year celebration, which is expected to conclude on or around February 7th. Because all of the products for the nationwide Lowe’s store launch will come from this facility, the formidable production capabilities of Huayi Lighting will greatly support this rollout effort.
As always, we thank you for your continued support of Vu1.

Thank you,
Scott Blackstone
CEO, Vu1® Corporation

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