Frost & Sullivan Forecasts a Quick Recovery for the European Energy Efficient Lighting Market in 2011

LONDON, January 25 - Greater emphasis on energy savings in the lighting sector and new
legislation on phasing out inefficient lighting will help the European energy
efficient lighting (EEL) market bounce back from negative growth by 2010. As
all of Europe switches over to more energy-efficient lighting technology, the
mainstream compact fluorescent lamps (CFLs), halogen lamps and high growth,
light emitting diodes (LED) lamps sectors will see steady growth rates in the
years ahead.

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New analysis from Frost & Sullivan
(www.buildingtechnologies.frost.com), European Energy Efficient
Lighting Markets, finds that the markets earned revenues of US$1.25 billion
in 2009 and estimates this to reach US$1.89 billion by 2016.

If you are interested in more information on this study, please send an
e-mail to Chiara Carella, Corporate Communications at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"The European EEL market has been boosted by new legislation mandating a
shift towards energy efficient lamps as older, more inefficient lighting gets
phased out by 2016," says Frost & Sullivan Industry Analyst Reka Szanto.
"Other supportive legislation and significant technological advances will
bolster the market despite the downward pressure exerted by macro-economic
factors."

The EU implemented a phase out of inefficient lighting in September 2009,
starting with incandescent lamps. This has created considerable opportunity
for the use of energy efficient lamps in the residential and, to an extent,
the commercial sector. There are also many other EU-wide and national
legislations aimed at increasing the share of energy efficient technologies.

Over the last decade, the Energy Performance of Buildings Directive has
had a significant pan-European impact. It has resulted in national
legislation in France and Germany that support the use of more energy
efficient lighting through subsidies and other incentives.

However, the current economic climate means that construction has slowed
down across the EU, affecting new lighting sales. Nevertheless, current
legislative efforts will ensure that consumers will have little choice but to
gradually favour more energy efficient options for lighting.

"The construction slump which began in the EU in 2007 had brought down
the lighting market in most regions at the time, and the recession has only
exacerbated the situation," states Reka Szanto. "In the short-term, the
market will be more dependant on renovation, as new construction activity
grinds to a halt."

Economic recovery is expected post 2010, along with an increase in
construction efforts. A high level of government support will ensure that the
European EEL market is insulated from the worst of the economic recession,
with projected high demand in 2010 underpinning a quick recovery in 2011.

"Manufacturers will have to brace themselves for the tough year ahead,
and try not to increase costs to the end consumer," advises Frost & Sullivan
Analyst Szanto. "This is a crucial time as the technology begins to enter the
mainstream, and consumer perception will decide how well the market can
sustain itself without legislative support - this will be crucial to promote
long term growth."

European Energy Efficient Lighting Markets is part of the Building
Management Technologies Growth Partnership Service programme, which also
includes research in the following markets: European Luminaires Market,
European Solar Thermal Heating Systems Market and, Strategic Assessment of
Growth Opportunities in the European Green Buildings Markets. All research
services included in subscriptions provide detailed market opportunities and
industry trends that have been evaluated following extensive interviews with
market participants.

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    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44(0)20-7343-8314
    M: +44(0)753-3017689
    E: chiara.carella@frost.com

www.frost.com

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, +44(0)20-7343-8314, Mobile, +44(0)753-3017689, chiara.carella at frost.com