Grant of Options and Issue of Equity

PhotonStar LED Group plc

Grant of Options and Issue of Equity

Grant of Options

PhotonStar LED Group plc (AIM: PSL, "PhotonStar", "the Company" or "the Group"), the British designer and manufacturer of smart LED lighting solutions, announces that on 25 October 2012, pursuant to the Company's Enterprise Management Investment Scheme 2007, it awarded a total of 4,449,000 options to acquire ordinary shares of 10 pence each in the Group ("Options") to Directors and employees of the Group. Of the total, Directors were awarded 2 million Options on the terms detailed below:

The Options will be granted over a three year period on the anniversary of the announcement date, in equal annual instalments of one third per annum, and are subject to satisfaction of certain performance criteria. The Options vest when the performance criteria have been met and expire on the 10th anniversary of the date of the grant.

The exercise price is based on the mid -market price at market close on 25 October 2012.

Following this grant of Options PhotonStar now has a total of 14,962,532 outstanding Options, representing 15.2 per cent. of the issued share capital of the Company.

Issue of Equity

Furthermore, PhotonStar announces that, pursuant to the exercise of options by two employees, 581,218 new ordinary shares of 10 pence each ("Ordinary Shares") have been issued and allotted. Application has been made for the new Ordinary Shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on 2 November 2012. Following Admission, the Company will have 99,338,930 Ordinary Shares in issue. The total number of voting rights will therefore be 99,338,930. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosures and Transparency Rules.

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Note to editors

About PhotonStar LED Group PLC

PhotonStar LED Group PLC ("PhotonStar" or the "Group") is a British designer and manufacturer of smart LED lighting solutions. The Group's proprietary technology seamlessly integrates LEDs, sensors and controls to provide intelligent lighting for commercial and architectural applications which benefit from greater CO2 reduction, lower cost of ownership & improved functionality compared to other available light sources. PhotonStar's lighting products have won numerous awards for performance, innovation and reliability, and are unique in the industry for the use of recycled, and recyclable materials, which means they have 90% less embodied CO2 than equivalent products providing the same levels of illumination.

PhotonStar comprises two divisions: LED Lighting Fixtures which works with lighting designers, architects, house builders, facilities management companies and sustainability consultants to provide intelligent, high-end LED lighting solutions for the commercial and architectural market, and LED Light Engines which provides LED lighting solutions for specialist applications such as film & television production lighting, UV curing and medical applications.

PhotonStar is based in Romsey, Hampshire with manufacturing in Wales. The Company was admitted to AIM in December 2010.