Picometrix® Division of Luna Announces $2.8 Million in Orders

100G High-Speed Optical Receivers for Delivery in 2016

(ROANOKE, VA, October 11, 2016) – Luna Innovations Incorporated (NASDAQ: LUNA) today announced that its Picometrix^® division received $2.8 million of follow-on purchase orders from a leader in the telecommunications industry for its 100G Intradyne Coherent Receivers (ICR). The ICR is an important component that enables high-speed optical communications in long haul and metro networks to support the increasing global bandwidth demand.

The Picometrix division of Luna is a leading designer and manufacturer of optical receivers for bandwidth-intensive, high-speed communications networks in the long haul and metro markets and an integrated supplier of avalanche photodiodes (APDs) and PIN photodetectors for the Fiber-to-the-Home (FTTH), Wireless, and Data Center markets. Picometrix is also a leading supplier for the communications test and measurement market.

“These orders, to be delivered in the fourth quarter of 2016 represent follow-on orders to our October 2015 announcement. The Picometrix 100G ICR product platform represents an important opportunity in the growing high-speed long haul and metro markets,” said My Chung, president and chief executive officer of Luna. “The increased level of deployment of new 100G fiber-optic long haul and metro networks in Asia is creating significant demand for our high-speed optical receiver and detector products. We believe we will see continued growth of this product line as the network is being built out.”

About Luna

Luna Innovations Incorporated (www.lunainc.com) is a leader in optical technology, providing unique capabilities in high speed optoelectronics and high performance fiber optic test products for the telecommunications industry and distributed fiber optic sensing for the aerospace and automotive industries. Luna is organized into two business segments which work closely together to turn ideas into products: a Technology Development segment and a Products and Licensing segment. Luna’s business model is designed to accelerate the process of bringing new and innovative technologies to market.

Forward-Looking Statements

The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include the company's expectations regarding the company’s future financial performance, operating results and future growth of the company’s business, potential demand for the company's high speed optical receiver and detector products, and potential for improved financial performance. Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of the company may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors. These factors include, without limitation, failure of demand for the company’s products and services to meet expectations, technological challenges and those 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 www.sec.gov and at the company’s website at www.lunainc.com. The statements made in this release are based on information available to the company as of the date of this release and Luna undertakes no obligation to update any of the forward-looking statements after the date of this release.

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Investor Contact:
Dale Messick, CFO
Luna Innovations Incorporated
Phone: 1.540.769.8400