Vu1® Expects to Significantly Decrease Operating Expenses & Improve Margins; Lower Cost/Bulb
Capital Expenditures will be Dramatically Reduced; Focused Marketing Plan will make Consumers Aware of Electron Stimulated Luminescence™ (ESL) Light Bulbs
NEW YORK, Oct. 6, 2011 – Vu1® Corporation (OTCBB: VUOC), a developer and manufacturer of mercury-free, energy-efficient, general illumination lighting technology, today announced it has signed a five year manufacturing agreement with Huayi Lighting Company Limited (“Huayi”). Per the manufacturing agreement, Huayi will have exclusivity for the first two years and over the full term will supply the Company with 250 million units (bulbs), commencing January 1, 2012.
Huayi, a leading lighting manufacturer, is located in China’s “lighting capital” GuZhen, ZhongShan City, and will use its state-of-the-art manufacturing facilities to commence production of Vu1® ESL bulb in the fourth quarter of 2011 with initial shipments scheduled for January 1, 2012. Huayi, founded in 1986 has 200,000 square meters (2,152,000 square feet) of manufacturing capacity and was widely praised for its lighting of Beijing’s famous National Stadium (popularly known as the ‘birdnest’ stadium) during the 2008 Summer Olympic Games.
Vu1® disruptive lighting technology – Electron Stimulated Luminescence™ (ESL) – uses accelerated electrons to stimulate phosphor to create light, making the surface of its bulbs glow thus providing a natural light quality. In addition to being energy efficient, Vu1® light bulbs are also mercury-free and have a long bulb life of 11,000 hours. Per the manufacturing agreement, Huayi will supply the Company with bulbs of various sizes, including R30, R40, PAR38, G25 and A19.
“This is truly a transformative event for Vu1® – something the Company had always envisioned, and something I view as essential if we want to effectively compete with the other lighting platforms, namely CFL and LED,” commented Dr. Scott Blackstone, Vu1® Chief Executive Officer. “As we have repeatedly demonstrated, our ESL light bulbs have greater technological and practical advantages compared to these competing platforms, and now with the additional manufacturing resources, we will aggressively implement our marketing strategy to make consumers more aware of these benefits: superior light quality, energy-efficient and mercury free.”
“We have watched with keen interest Vu1® development of its ESL lighting technology, and, more recently, the great progress its management team has made to position the company for growth and success,” commented Cai, Defu, Director, Huayi Lighting Group. “I believe Vu1® ESL light bulb addresses a number of consumer concerns, and Huayi is an ideal partner because our state-of-the-art operations and lighting expertise allow us to get up to speed fairly quickly and we have the scale to continually ramp up to meet future demand.”
The Company has been building inventory at Sendio, its wholly-owned research and manufacturing subsidiary located in The Czech Republic, with expected shipments scheduled for the fourth quarter of 2011.
“It is the collective responsibility of the Board and senior executives to ensure that we are maximizing the potential of our assets to achieve success and provide above average returns on investment for our shareholders,” commented William B. Smith, Vu1® Chairman. “Therefore, we are continuing to evaluate Sendio to determine how, and in what capacity, it can continue to be a valued asset for us going forward.”
About Vu1® Corporation
New York City-based Vu1® Corporation is dedicated to applying its technology to produce energy efficient, environmentally friendly lighting solutions worldwide. Vu1® has developed a new energy efficient light bulb to provide the consumer market with the first affordable, non-toxic light bulb with features consumers are demanding and not receiving from existing products. Learn more about Vu1® at www.Vu1®.com. For the latest news, find Vu1® on Facebook and follow us on Twitter.
About Huayi Lighting Company Limited
Established in 1986, Huayi Lighting Group Co., Ltd. is located at the “China Lighting Capital”, Guzheng town, Guandong province. With years of dedicated efforts, Huayi Group has grown into a specialized cooperation of luminaire fixtures with large amounts of export turnover. Huayi Group has implemented a strict QC system and has obtained ISO9001, CE and UL certificates. We also place great emphasis on employee’s training and enterprise’s culture establishment. Today, under modern management and rigorous quality control systems, each lamp from our company is a masterpiece and the dedication of Huayi people. Learn more about Huayi at www.huayilighting.com.
For investor inquiries, please contact Michael Polyviou at (212) 885-0453. For product and sales inquiries, please contact Chris Reilly at (704) 929-7872.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements including, but not limited to, our ability to obtain the necessary funding required for our operations, the future demonstration and commercial availability of our light bulb, independent testing laboratories certification results, timing for bulb production, manufacturing capability of our facility, future interest of channel partners and distributors, our strategic planning and business development plans, future applications of the technology, the viability, pricing and acceptance of our products in the market.. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, as well as the risks and other factors set forth in our periodic filings with the U.S. Securities and Exchange Commission (including our Form 10-K for the year ended December 31, 2010 and our other periodic reports as filed from time to time).