Lumera Awarded Contract for Development of Next Generation Passive Millimeter Wave Sensors

Business Wire, Nov 21, 2005

BOTHELL, Wash. -- Lumera Corporation (NASDAQ:LMRA), an emerging leader in the field of nanotechnology, announced today that it had signed a contract with the Pennsylvania State University Electro-Optics Center for development of polymer based electro-optic modulators for the detection of terahertz radiation, that is, passive radiation ranging from 30Ghz to 10THz. Lumera will deliver EO materials and modulators to the EOC. The contract was valued at approximately $400,000.

"This is another validation of the superior qualities of Lumera's polymer materials, modulators, and related devices," said Tom Mino, Lumera's Chief Executive Officer. "Penn State is a leading research University and its Electro-Optics Center engineers have done very sophisticated work for various government agencies and commercial organizations. We are proud to partner with the EOC in the development of this cutting edge technology."

Polymer materials exhibit unique properties within the terrahertz region. This region is highly sensitive to water and other polar compounds that are often strongly absorptive. On the other hand, many visually opaque and most dry, nonpolar, nonmetallic items such as plastic, paper glass, and cardboard, are quite transparent to THz.

These properties create a very promising opportunity for many types of noninvasive imaging where microwave techniques do not offer sharp enough resolution and x-rays are too dangerous.

Lumera's polymeric EO materials show great advantages for broadband RF signal transmission, up to the terahertz region, due to their ability of achieving large bandwidth with low driving voltages and processing capabilities in arrays of communication devices with low cross-talk.

About the Penn State Electro-Optics Center

The Electro-Optics Center serves as a national resource to advance electro-optics and related technologies by partnering with government and commercial customers for the primary benefit of the U.S. warfighter.

Created in 1999 under a cooperative agreement with the Office of Naval Research and managed by Penn State University, The Electro-Optics Center (EOC) promotes the development of electro-optic materials, components, and systems needed to advance the state-of-the-art in electro-optic science and technology for our defense forces. EOC-sponsored programs include research and development, manufacturing process development and improvement, and the active transfer of new and/or improved technology to its commercial partners. The EOC focuses its continuing efforts in the following:

EO Materials, Design, and Process Technology

Sensor Technology

Reliability and Failure Analysis

Laser Technology

Fiber Optics and Optoelectronics

Education and Outreach

Management Services

www.electro-optics.org

About Lumera

Lumera is an emerging leader in the field of nanotechnology. The company designs proprietary molecular structures and polymer compounds for a broad range of electro-optic, bioscience, RF and specialty nanotechnology applications. The company also has developed proprietary processes for fabricating such devices. For more information, please visit www.lumera.com

Certain statements contained in this release are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards and to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including its Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q.