LightPath Technologies Offers Update on New Infrared Product Line: Sees Launch of Technologies Allowing Co. to Participate in ~$3.5B Global Market

LightPath Technologies, Inc.

("LightPath," the "Company" or "we"), a leading vertically integrated global manufacturer, distributor and integrator of proprietary optical and infrared components and high-level optical sub-systems, today provided an update on its new infrared ("IR") product line. Commenting on the update, Jim Gaynor, President and Chief Executive Officer of LightPath, said, "We are extremely excited by the growth in market opportunities for our infrared product line. The launch of our proprietary infrared product technologies positions us to participate in an estimated $3.5 billion global market, according to market research expert Techno Systems Research Co., Ltd. LightPath's infrared molded optics technology brings to market a lower-cost high-value product that promotes the commercial development of infrared imaging technology, much the same way that our aspheric molded lenses have increasingly become the visible molded optical lens of choice with annual production volume increasing over five times in seven years. As reported last month with our fiscal 2015 third quarter results, IR shipment volumes have tripled, albeit from a small initial base, with revenues increasing by more than 193% in the quarter as compared to the prior year period. We believe we have moved into a long-term expansion cycle for IR products that will contribute to revenue growth for LightPath." Initial IR applications being targeted by LightPath Technologies include mobile smart phones, small hand-held cameras for thermography, maintenance and security applications such as individual cameras for firefighters and police use, building and vehicle occupancy sensors, electronic enclosure monitoring, in-process quality assurance monitoring, medical sensing devices, automotive driver's vision, UAVs (drones), gun sights, night vision goggles and 360 degree situational awareness camera systems, to name a few. Infrared products have been developed in cooperation with customers and original equipment manufacturers, which has led to recurring production levels exceeding $1.5 million per year, or more than 10% of the Company's consolidated annualized revenues. Several top level commercial and military defense infrared camera providers are sourcing optical elements and lens assemblies from LightPath on a recurring basis. An example of LightPath's emergence in the field of IR is its work with a European division of a major producer of thermal imaging cameras. In this case, LightPath is primarily benefiting from its unique lens capabilities, including design, high quality and competitive cost management. The Company received initial orders for 16,000 molded infrared aspheric lenses for delivery over 9 months for hand-held thermography cameras, which demonstrated its ability to provide a low-cost platform for volume manufacturing levels of high precision IR glass molded aspheres. LightPath has since been awarded a single source position at a rate of 2,000 lenses per month. In another area of focus for its IR product line, LightPath is targeting commercial applications in the thermal imaging market. According to a May 2015 report from industry analyst MarketsandMarkets, thermal imaging is a technique to capture IR energy emitted as heat by objects and create an electronic image based on the information about the temperature differences. The firm's research noted that the "global Thermal Imaging Market has witnessed a significant demand owing to the increasing adoption of related devices across a diverse range of applications. The growth of this market is propelled by the increase in the penetration of devices across the commercial and military sectors. The continual decrease in prices of thermal cameras is expected to remain the key driver behind the increase in the adoption of thermal imaging technology in the coming years. The price of thermal cameras has been decreasing by 12%-15% per annum for the last 5 years and the trend is expected to continue in the near future, eventually resulting in an increased commercial adoption." LightPath is a leader in delivering low-cost high quality products that enable trends in both end-market growth and new applications.