landlord at 4 times square to buy lumacom sign

Landlord at 4 Times Square to buy Lumacom sign
09:20, Friday, 24 March 2006

Sydney - Friday - March 24: (RWE Aust Business News) - Lumacom
Ltd (ASX:LUM) has come to an agreement with 4 Times Square Associates,
the owner of 4 Times Square, for the purchase of the company's New York
sign and surrender of the licence on the location.

The entire transaction surrounding the sale of the sign involves
the payment of cash of $489,505, cancellation of rental/licence debt of
$210,194 which is due and cancellation of the licence and commitments for
the balance of the term of the licence worth $3.05m.

In addition Lumacom will immediately have its security deposit of
$218,925 returned to it.

The New York sign has proven the operational robustness of the
technology and has been the subject of research and development within
the organisation over the last three years.

The new board found it unacceptable that the sign had been unable
to attract an advertiser since its completion in April 2005 whilst
continuing to incur significant holding costs.

Having reviewed the position, it believed the most likely group
to attract an advertiser would be a New York based organisation.

It concluded that the landlord was the best to effectively
commercialise the asset.

Lumacom will continue to work closely with the new owner and will
make available parts, stock and expertise over the next four years to
ensure the optimal operation of the sign.

In addition, the agreement also provides the landlord with an
option to purchase up to three further signs, to be installed on the
other three sides of the building rooftop, on commercially agreed terms.

The deal with the new owner also allows the company to continue
to have rooftop viewings to prospective purchasers of the company's signs
and the sign will continue to be shown as Lumacom technology.

Lumacom still intends to promote its LumaPanel technology on the
back of this sale in New York, working with various outdoor groups in the
USA.

Its shares last traded at 3.7c.

ENDS