Marks Second Consecutive Year EnFocus™ Has Received this Prestigious Award

Energy Focus, Inc. (NASDAQ:EFOI), a leader in sustainable and human-centric lighting (“HCL”) technologies and developer of advanced UV-C disinfection products, has been named a 2021 Environment + Energy Leader award winner, receiving a “Top Product of the Year” Award for the upcoming Suncycle^TM, autonomous HCL system controlled by the EnFocus™ platform. The win is a validation of innovation and potential impact of Suncycle™ from the program’s expert judges that consider the EnFocus™ HCL platform a top example of breakthrough work in energy and environmental management. This is the second consecutive year that Energy Focus has received this elite award for its EnFocus™ lighting control platform.

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Environment + Energy Leader "Top Product 2021" Award for EnFocus™ and Suncycle™ LED lighting solutions (Graphic: Business Wire).

The Environment + Energy Leader Awards is a program recognizing excellence in products and services that provide companies with energy and environmental benefits, and in projects implemented by companies that have improved environmental or energy management and increased the bottom line.

The new, second-generation EnFocus™ Human-Centric Lighting system, with EnFocus™-compatible switches and LED lamps to be marketed under the EnFocus™ and Suncycle™ brands, enables both commercial facilities and residential consumers to implement flicker-free, dimmable, color-tunable and autonomous circadian LED lighting. This system, with patented and patent-pending technologies, drives superior light quality and capabilities at a fraction of the cost of alternative wireline or wireless controls by leveraging existing AC wiring for digital communications between EnFocus™ switches and lamps. EnFocus™ Gen 2 only requires replacing existing wall switches and common types of lamps such as fluorescent or LED tubes (with other lamps, such as A19, BR32 and recessed downlights expected soon) without replacing fixtures and wall wiring, or deploying potentially security vulnerable wireless communication protocols such as WiFi, Bluetooth, or ZigBee.

New features from the second-generation EnFocus™ platform design that helped earn this award include an intuitive LCD screen on the switch with pre-programmed 10-stage changes in light brightness (up to 2250 lumens per lamp) and color temperature (2700K-6500K) following natural daylight cycles to align with the human circadian rhythm, the 24-hour biological clock that regulates human sleep-wake cycles. This LED lighting control system also features an optional occupancy sensing capability, significantly and autonomously reducing energy consumption. They can also dim to 10% power, achieving additional energy savings and carbon footprint reductions. EnFocus™ lighting control systems can provide 60-90% energy savings over fluorescent or incandescent lighting systems.

“With a very experienced and critical judging panel and a strict set of judging criteria, entrants faced an extremely high bar to qualify for an award in 2021,” said Sarah Roberts, Environment + Energy Leader publisher.

Citing reasons for awarding the EnFocus™ Gen 2 Human-Centric Lighting Platform a Top Product of the Year award, one judge noted, “This product provides great stand-alone lighting controls where the dimming can provide greatly improved energy savings while the ability to change the color can take lighting to the next generation of improving the indoor living environment.”

Another judge said, “….it offers the possibility to improve our productivity throughout the day and since many people have been working from home or spending most of the time indoors, this product could be a good option as an intelligent lighting system.”

“The EnFocus™ Gen 2 lighting control system was invented and designed to bring the highest levels of lighting quality, ease of implementation and cost effectiveness to indoor environments of all kinds across the world, and we are honored and humbled to receive this prestigious award from Environment + Energy Leader for the second year in a row,” said James Tu, Chairman and Chief Executive Officer of Energy Focus. “While this whole past year has brought a lot of challenges to the world and to the lighting industry, we continued our mission to improve indoor environments through our human-centric lighting innovations that include both Gen 2 EnFocus™ as well as UV-C technologies that bring not only greater energy efficiency and sustainability but also health benefits. We believe Suncycle™ is poised to take the lighting performance for both buildings and homes to a whole new, human-centric level. Our teams are working diligently, and we expect to make Suncycle™ products available in the U.S. in the fourth quarter of 2021.”

About Energy Focus, Inc.

Energy Focus is an industry-leading innovator of sustainable and human-centric lighting and lighting control technologies and solutions, as well as UV-C Disinfection technologies and solutions. As the creator of the first flicker-free LED lamps, Energy Focus develops high quality LED lighting products and controls that provide extensive energy and maintenance savings, as well as aesthetics, safety, health and sustainability benefits over conventional lighting. Our EnFocus™ lighting control platform enables existing and new buildings to provide quality, convenient and affordable, dimmable and color-tunable, circadian and human-centric lighting capabilities. In addition, our patent-pending UV-C Disinfection technologies and products (UV™ by Energy Focus), announced in late 2020, aim to provide effective, reliable and affordable UVCD solutions for buildings, facilities and homes.

Energy Focus’ customers include U.S. and foreign navies, U.S. federal, state and local governments, healthcare and educational institutions, as well as Fortune 500 and middle market companies. Since 2007, Energy Focus has installed approximately 900,000 LED lighting products across the U.S. Navy fleet, saving more than five million gallons of fuel and 300,000 man-hours in lighting maintenance annually.

Energy Focus is headquartered in Solon, Ohio. For more information, visit energyfocus.com.

About the Environment + Energy Leader Awards

For nearly a decade, the Environment + Energy Leader Awards have celebrated excellence in the world of environmental, sustainability and energy management. Award winners are truly buzz-worthy, and companies that sport a Top Project or Top Product of the Year Award badge are known to be the best of the best. When other companies are seeking a sustainability or energy management solution, they know that E+E Product of the Year Award winners offer a significant group of products, vetted by experts, to peruse for help in making their decisions. Project of the Year Award winners are known to illustrate how sustainability and energy management projects can successfully help other companies improve the bottom line.

Forward-Looking Statements:

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “feels,” “seeks,” “forecasts,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could” or “would” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies, capital expenditures, and the industry in which we operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when made in light of the information currently available to us, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by the forward-looking statements contained in this release. We believe that important factors that could cause our actual results to differ materially from forward-looking statements include, but are not limited to: (i) disruptions and a slowing in the U.S. and global economy and business interruptions experienced by us, our customers and our suppliers as a result of the COVID-19 pandemic and related impacts on travel, trade and business operations; (ii) our ability to realize the expected novelty, disinfection effectiveness, affordability and estimated delivery timing of our UVCD products and their performance and cost compared to other products; (iii) our ability to extend our product portfolio into commercial services and consumer products; (iv) market acceptance of our LED lighting, control and UVCD technologies and products; (v) our need for additional financing in the near term to continue our operations; (vi) our ability to refinance or extend maturing debt on acceptable terms or at all; (vii) our ability to continue as a going concern for a reasonable period of time; (viii) our ability to implement plans to increase sales and control expenses; (ix) our reliance on a limited number of customers for a significant portion of our revenue, and our ability to maintain or grow such sales levels; (x) our ability to add new customers to reduce customer concentration; (xi) our reliance on a limited number of third-party suppliers and research and development partners, our ability to manage third-party product development and obtain critical components and finished products from such suppliers on acceptable terms and of acceptable quality, and the impact of our fluctuating demand on the stability of such suppliers; (xii) our ability to timely and efficiently transport products from our third-party suppliers to our facility by ocean marine channels; (xiii) our ability to increase demand in our targeted markets and to manage sales cycles that are difficult to predict and may span several quarters; (xiv) the timing of large customer orders, significant expenses and fluctuations between demand and capacity as we invest in growth opportunities; (xv) our ability to compete effectively against companies with lower cost structures or greater resources, or more rapid development efforts, and new competitors in our target markets; (xvi) our ability to successfully scale our network of sales representatives, agents, and distributors to match the sales reach of larger, established competitors; (xvii) our ability to attract, develop and retain qualified personnel, and to do so in a timely manner; (xviii) the impact of any type of legal inquiry, claim or dispute; (xix) general economic conditions in the United States and in other markets in which we operate or secure products; (xx) our dependence on military maritime customers and on the levels and timing of government funding available to such customers, as well as the funding resources of our other customers in the public sector and commercial markets; (xxi) business interruptions resulting from geopolitical actions, including war and terrorism, natural disasters, including earthquakes, typhoons, floods and fires, or from health epidemics or pandemics or other contagious outbreaks; (xxii) our ability to respond to new lighting technologies and market trends, and fulfill our warranty obligations with safe and reliable products; (xxiii) any delays we may encounter in making new products available or fulfilling customer specifications; (xxiv) any flaws or defects in our products or in the manner in which they are used or installed; (xxv) our ability to protect our intellectual property rights and other confidential information, and manage infringement claims by others; (xxvi) our compliance with government contracting laws and regulations, through both direct and indirect sale channels, as well as other laws, such as those relating to the environment and health and safety; (xxvii) risks inherent in international markets, such as economic and political uncertainty, changing regulatory and tax requirements and currency fluctuations, including tariffs and other potential barriers to international trade; (xxviii) our ability to maintain effective internal controls and otherwise comply with our obligations as a public company; and (xxix) our ability to maintain compliance with the continued listing standards of The Nasdaq Stock Market. For additional factors that could cause our actual results to differ materially from the forward-looking statements, please refer to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

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Energy Focus Wins “Top Product of the Year” Award for EnFocus™ Suncycle™ Human-Centric Lighting Platform from Environment + Energy Leader - Marks Second Consecutive Year EnFocus™ Has Received this Prestigious Award