Luna Innovations Receives NASDAQ Extension

 ROANOKE, Va., Jan 04, 2010 -- Luna Innovations Incorporated (NASDAQ: LUNA) today announced that on December 28, 2009, the Company received notice from the NASDAQ Listing Qualifications Panel (the "Panel") indicating that the Panel has granted the Company's request for continued listing on The NASDAQ Capital Market pursuant to an extension through January 13, 2010. The Panel's decision requires the Company to demonstrate compliance with all applicable requirements for initial listing on The NASDAQ Capital Market upon its emergence from bankruptcy. January 13, 2010 represents the full extent of the Panel's discretion in this matter. While the Company is hopeful that it will emerge from bankruptcy by January 13, 2010, there can be no assurance that it will be able to satisfy the initial listing requirements, including the $4 per share bid price requirement, immediately upon emergence from bankruptcy. In the event the Company is not able to satisfy the initial listing requirements upon its emergence from bankruptcy, the Company intends to take all appropriate actions to achieve compliance with the initial listing requirements as soon thereafter as possible. In such an event, the Company would request that the NASDAQ Listing and Hearing Review Council grant the Company a further extension of time to demonstrate compliance with the applicable initial listing requirements. However, there can be no assurance that NASDAQ would grant the Company's request for a further extension.

About Luna Innovations:

Luna Innovations Incorporated ( www.lunainnovations.com) is focused on sensing and instrumentation, and pharmaceutical nanomedicines. Luna develops and manufactures new-generation products for the healthcare, telecommunications, energy and defense markets. Its products are used to measure, monitor, protect and improve critical processes. Through its disciplined commercialization business model, Luna has become a recognized leader in transitioning science to solutions. Luna is headquartered in Roanoke, Virginia.

Forward Looking Statements:

This release includes information that constitutes "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements regarding, but not limited to the ability to meet the conditions precedent to settlement and obtain adequate plan confirmation in Chapter 11 reorganization and pay all of Luna's creditors. Statements that describe the Company's business strategy, goals, prospects, opportunities, outlook, plans or intentions are also forward looking statements. Actual results may differ materially from the expectations expressed in such forward-looking statements as a result of various factors, including risks and uncertainties set forth in the company's periodic reports and other filings with the Securities and Exchange Commission. Such filings are available at the SEC's website at http://www.sec.gov, and at the company's website at http://www.lunainnovations.com. The statements made in this release are based on information available to the company as of the date of this release and Luna Innovations undertakes no obligation to update any of the forward-looking statements after the date of this release.

Investor Contact:
Luna Innovations Incorporated
Dale Messick, 540-769-8400
[email protected]