CRS Electronics

CRS Electronics

August 23, 2011 16:48 ET

CRS Electronics Announces Supply Agreement With Major Retailer

Retail Production and Commercial Sales Update Provided

WELLAND, ONTARIO--(Marketwire - Aug. 23, 2011) - CRS Electronics Inc. ("CRS" or the "Company"), (TSX VENTURE:LED)(OTCQX:LEDCF), a developer and manufacturer of LED lighting, today announced a supply agreement has been reached with a national leading North American Retailer ("Retailer") to launch the Energizer® LED program. The Agreement is subject to the Retailer's confidentiality policy which will allow CRS to name the retailer when the rollout begins.

Under the terms of the Agreement, CRS will supply a range of branded LED lighting products. The retailer has committed to showcasing the Energizer® lights as one of their main LED lighting products and will display the merchandise throughout all of its retail locations. The initial start up shipment scheduled for the fourth quarter 2011 will exceed 25,000 LED bulbs and will appear on shelves in early 2012. Expectations are that this inventory will turn three or four times in 2012. Negotiations are also underway with other major retailers.

The Energizer® LED program will be supported by a National North American TV campaign being launched January 2012.

"We are pleased to have secured our first major retailer to support the launch of our new Energizer® LED Program", said Scott Riesebosch, President of CRS Electronics. "This is another highly regarded, quality partner for CRS. This agreement is a real testament to the quality of our lighting products. With our new and highly experienced Sales and Marketing Team, we look forward to a successful rollout as we execute our retail sales and marketing strategy".

Since announcing the licensing agreement in February to provide LED lamps to the retail sector under the Energizer name, CRS has been focused on bringing the product line to market. Proceeds from the previously announced $5.1 million financing in April are being used to prepare for increased sales volumes. Expenditures to date were used to hire a Production Supervisor, Quality Control Director, Finance Manager, Merchandising staff, sales and marketing activities, as well as to complete tooling and begin the product certification process. Significant investments were made in new patent pending technology in LED optics. Continued patent applications have been submitted and installation of a new Enterprise Resource Planning (ERP) system is in progress to manage logistics and growth as volumes increase.

CRS is also pleased to announce new commercial MR16 installation contracts with Fred Segal stores in Hollywood and Santa Barbara, CA, Pelican Hill®, a AAA Five-Diamond resort on the coast of Newport Beach, CA and the Hilton Waterfront Beach Resort in Huntington Beach, CA. More than 5,000 50 watt halogen MR16s will be replaced with CRS 8 watt LEDs by these customers.

About CRS

CRS Electronics Inc., a Lighting Facts partner, is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor lighting such as LED replacement lamps, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. CRS recently signed a license agreement with Eveready Battery Company Inc., a subsidiary of Energizer Holdings Inc., for CRS to manufacture a range of LED lighting products under the brand name Energizer.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws which can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other CRS filings, and include availability of sufficient working capital for development and operations, availability of a qualified work force, availability of manufacturing equipment and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other CRS filings at and other unforeseen events or circumstances. Other than as required by law, CRS does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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