Luna's High Growth and Better Margins Highlight Q2

Luna Technologies International, Inc. (OTC BB: LTII) announces results for the second quarter ended June 30, 2005, highlighting continued strong Sales growth, and improvement in Gross Margins. The full financial statements for the second Quarter can be found at www.sec.gov.

Sales for the second quarter increased by approximately $64,000 (All amounts in US dollars), or 63%, over the previous year. For the three months ended June 30, 2005, the Company reported sales of approximately $164,000 as compared to approximately $100,000 for the three months ended June 30, 2004.

Gross Margin grew 26% due to increased productivity and cost savings from the new in-house printing facility. Gross Margin for the first quarter increased by approximately $13,000, or 26% over the previous year. For the three months ended June 30, 2005, the Company reported gross margin of approximately $65,000 as compared to approximately $52,000 for the three months ended June 30, 2004.

The Net Loss for the second quarter increased by approximately $49,000, or 52% over the previous year due to the Company's continued investment in management, staff, and overhead to facilitate growth and ongoing product development. For the three months ended June 30, 2005, the Company's net loss increased to approximately $143,000 as compared to a net loss of approximately $93,000 for the three months ended June 30, 2004.

Luna CEO Kimberly Landry commented, "The second quarter was highlighted by Luna's attendance at the 'Buildings New York' trade show, the definitive building industry event in New York City. Luna was the only company from the photoluminescent industry selected to present at the prestigious show and our presentation, entitled 'Seeing in the dark: Building Egress in Emergency Situations,' was very well received. We are extremely excited about the implementation of New York City Department of Buildings Local Law 26 in July of 2005. This law requires the installation of photoluminescent emergency signage and wayfinding systems in all office buildings over 75 feet height, and over 2,000 buildings fit that description. The emergence of this very large mandated market promises to further accelerate the demand for Luna's advanced products."

About Luna Technologies

Luna Technologies is a leading developer and manufacturer of modern high-performance photoluminescent products. It is credited with the first commercially available Strontium Aluminate-based products, the first photoluminescent Exit Sign to pass Underwriters Laboratories' tough 75 ft. visibility/legibility standard, as well as the first photoluminescent Exit Sign to be approved by the Energy Star program. From buildings of all types, to airplanes, trains, passenger ships and even spacecraft, photoluminescent products are enhancing progressive life-safety systems. Luna Technologies is leading this initiative, from advising building code and standards organizations to assisting companies to integrate photoluminescent systems into their life-safety programs.

Cautionary Note Regarding Forward-Looking Statements and Risks

Some of the statements in this press release are forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include statements that describe Luna Technologies' future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in building codes, the timing and availability of financing, governmental and other approvals and other risk factors listed from time-to-time in Luna Technologies' Form 10-K and its other reports filed with the Securities and Exchange Commission. Luna Technologies disclaims any responsibility to update forward-looking statements made herein.

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