Orion Energy Systems: Buys Mirro Facility for Future Growth

Contact:
Steve Heins, Orion Energy Systems, 920-892-9340, ext. 226

Purchase 30 Acres and 260,000 Square Foot Distribution Center

June 1, 2004. Plymouth, WI. Orion Energy Systems announced that it has completed the purchase of 30 acres of land and a large distribution center in Manitowoc, WI, previously used by Newell Rubbermaid for its Mirro division. Orion expects to use the distribution center to continue the rapid expansion of its energy efficient lighting business and to offer new products and services in the national energy marketplace.

In the midst of a manufacturing recession, Orion’s employment has gone from 18 to 81 employees in the last 27 months. This number does not include a national sales network through organizations such as Yale Lift Trucks dealerships and Fastenal that are reselling Orion products contractors and end-users. Nor does it include Orion’s own plans to expand its direct sales force.

”This acquisition will allow us the necessary flexibility and capacity to take Orion to the next level,” stated Neal Verfuerth, president of Orion. “We now have ample room for four major components of our business model: manufacturing, distribution, reclamation and recycling. We view this facility as key to serving Orion’s expanding national customer base.”

Through a newly created subsidiary, Orion will begin reclaiming and recycling all old lighting fixtures replaced by its own line of energy efficient lighting. Orion expects to be able to provide its customers with a reliable source for disposal of large industrial fixtures, while taking advantage of the current market for scrap metal and the state of environmental regulation.

Orion Energy Systems has been innovating in the energy business since 1996. The company recently won the Wisconsin Manufacturer of the Year Grand Award in the Emerging Growth category, given by the Wisconsin Manufacturers and Commerce Association, the Wisconsin Business Friend of the Environment Award and the prestigious Spirit of Ecology Award at the 32nd Annual Governor’s New Product Award Program for the energy efficient lighting system known as the Illuminator. Orion was also chosen as one of three “Success Stories” for the 2002 Governor’s Summit on Capital.

Orion is the first company to raise $1,000,000 using the special State of Wisconsin program known as an “Issuer Exemption,” which allows a Wisconsin company to raise $1 million directly from up to 100 non-accredited Wisconsin investors. Orion has completed two additional rounds of financing. Currently, Orion has over 240 shareholders most of whom reside in Wisconsin.

Orion’s innovative Illuminator, an energy efficient lighting platform for industrial applications, has been awarded a series of 10 patents from the U.S. Patent and Trademark Office. Additionally, it has applied for numerous other patents relating to metering and control technologies for lighting.

“Orion has an energy efficient product line that addresses a $100 billion market in the U.S. alone, which was previously served only by high intensity discharge (HID) lighting’” said Mr. Verfuerth. “We expect to satisfy the needs of a wide range of large, medium and small companies, both national and international, looking to control their energy costs.”

About Orion

Orion is an energy systems company, which manufactures and markets energy efficient lighting solutions for the manufacturing, distribution center, warehousing, commercial, school, and gymnasium market. Orion provides capacity displacement solutions for supply side management, transmission management, and demand side management for the electricity industry. For more information, visit the web site at www.oriones.com.