Court hearing to allow Luna Innovations to emerge from bankruptcy set for January 12

Dec 19 2009

Luna Innovations Incorporated (NASDAQ: LUNA) announced today that a bankruptcy court hearing has been set for January 12, 2010, to decide whether to confirm Luna’s Plan of Reorganization and allow Luna to emerge from bankruptcy. If the court confirms Luna’s Plan, Luna could emerge from bankruptcy as early as January 12 or 13. Under the Plan, Luna proposes to pay 100% of its due and payable valid claims, and Luna stockholders will retain their shares of Luna’s Common Stock. As previously announced, the Plan also includes the settlement of Luna’s dispute with Hansen Medical, Inc., which is subject to various conditions.

The bankruptcy court decided to combine the hearing on approval of Luna’s Disclosure Statement with the hearing on confirmation of the Plan, for the purpose of accelerating Luna’s reorganization process. Further information on the court process can be found at http://chapter11.epiqsystems.com/ under Luna Innovations.

As previously announced, in September 2009, a NASDAQ Listing Qualifications Panel (the “Panel”) granted Luna’s request for continued listing on The NASDAQ Stock Market subject to the requirement that Luna demonstrate compliance with all applicable requirements for initial listing on The NASDAQ Capital Market by December 31, 2009, among other requirements. Luna has requested that the Panel grant it a further extension through January 13, 2010, so as to afford Luna the opportunity to emerge from bankruptcy and demonstrate compliance with all applicable listing requirements. There can be no assurances, however, that the Panel will grant Luna’s request for additional time to emerge from bankruptcy or that Luna will timely achieve compliance with the applicable listing requirements for The NASDAQ Capital Market.