Lightscape is headquartered in Hong Kong, and the Company hasoffices in Singapore, China and Macau. Lightscape is building a digitalout-of-home media network in greater China and Singapore focused on LEDbillboards and LCD screens in prime locations. The Company also designs,markets, sells and installs large-scale LED video screens and LEDsystems. (OTCBB: LTSC) is a leading digital media andLED solutions company in Asia.

TheCompany's Annual Report can also be accessed through the Company's websiteat Shareholders may receive a hard copy of theCompany's Annual Report free of charge upon request.About Lightscape TechnologiesLightscape Technologies Inc. Cash attributable to discontinued operations totaled$8,555 and $1,935 for the years ended March 31, 2009 and 2008,respectively.Additional information regarding Lightscape Technologies' financialperformance as of and for the fiscal year ended March 31, 2009 and acomparison to the fiscal year ended March 31, 2008 can be found in thefinancial tables below and in the Company's Annual Report on Form 10-Kwhich has been filed with the Securities and Exchange Commission. The cash andcash equivalents of the Company attributable to continuing operationsdecreased to $381,643 as at March 31, 2009 as compared to $3,976,565 asof March 31, 2008. The allowance for doubtful accounts isthe Company's best estimate of the amount of probable credit losses in itsexisting accounts receivable.As of March 31, 2009, the Company had a net working capital surplus of$6,287,977 compared to a surplus of $11,490,237 as of March 31, 2008,representing a decrease in working capital of $5,202,260. The increase in baddebts was due primarily to the increase in allowance for doubtful accountsof subsidiary Beijing Illumination. The Company anticipates that general andadministrative costs will continue to increase in the foreseeable futureas the Company's operations continue to expand, however, such increasesare expected to be limited as a result of a company-wide cost-cuttinginitiative implemented in January 2009.Bad debt expenses increased to $1,019,285 during the year ended March 31,2009 from $414,897 for the year ended March 31, 2008. The increase was mainly due to increased staff, accounting, investorrelations, public relations and business development costs for the yearended March 31, 2009 to provide the foundation to support anticipatedoverall business growth, particularly the LED out-of-home advertising andLED solutions businesses.

TheCompany anticipates that selling and marketing expenses will remainsteady or increase in the future to support the Company's furtherexpansion in its core LED out-of-home advertising and LED solutionsbusinesses, however, such increases are expected to be limited as aresult of a company-wide cost-cutting initiative implemented in January2009.General and administrative expenses increased by 15% during the year endedMarch 31, 2009 to $4,070,944 from $3,526,970 for the year ended March 31,2008. The increase was mainly due to higher marketing expenses associatedwith the Company's attendance and booths at the Hong Kong InternationalLighting Fair 2008 held in October 2008 as compared to attendance inOctober 2007, increased staff costs incurred in order to build up theproject pipeline of LED solutions contracts, and to establish the salesnetwork for the Company's LED out-of-home advertising business. Selling and marketing expenses, general andadministrative expenses, amortization of intangible assets and bad debtsconstitute the main components of operating expenses.Selling and marketing expenses for the year ended March 31, 2009 increasedapproximately 5% to $698,116 from $662,628 for the year ended March 31,2008. As aresult, gross profit margin improved to 34% for the year ended March 31,2009 as compared to 21% for the year ended March 31, 2008.Operating expenses for the year ended March 31, 2009 were $7,203,033,which represents a 5% increase in operating expenses over $6,834,588 forthe year ended March 31, 2008. The lower costs of supplies are aresult of general technological improvements and economies of scale in themanufacture of LED hardware by the Company's OEM suppliers, and theCompany's ability to secure supply contracts on more favorable terms. The decrease in the totalcost of revenues during the year ended March 31, 2009 was due in part tothe 6% decrease in sales revenues, but also decreased due to improved costcontrol related to the LED solutions business, namely supplies of LEDmodules and video screens, and a higher portion of LED consultancy incomewhich is of a higher profit margin.

The Company iscurrently reviewing its plans and strategic options related to its HIDlighting products business.Total cost of revenues for the year ended March 31, 2009 was $3,702,332,which represents a decrease of 21% as compared to total cost of revenuesof $4,694,766 for the year ended March 31, 2008. Sales and revenue were also lower due to transportrestrictions in Beijing for approximately one month surrounding theBeijing Olympics, which reduced flows of raw materials transported to andfinished goods shipped from the Company's Beijing factory. The decrease in sales by Beijing Illumination wasdue primarily to the scaling back of overall operations, includingreducing production lines, production shifts and personnel, in order tofocus on the Company's core LED out-of-home advertising and LED solutionsbusinesses. The decrease in revenues from other businesses was due primarily to adecrease in revenue from sales of HID lighting products by subsidiaryBeijing Illumination. The LED solutionsbusiness is expected to contribute increased revenues in the foreseeablefuture as several key projects are expected to be initiated in the nearfuture.Sales from other business, which includes the HID lighting productsbusiness, were $1,573,870 for the year ended March 31, 2009 compared to$2,397,874 for the year ended March 31, 2008, representing a decrease of34%. The increase in revenues was dueprimarily to the completion of more LED solutions contracts during theyear ended March 31, 2009 as compared to a smaller number of contractscompleted during the year ended March 31, 2008. The LED out-of-home advertisingbusiness is expected to contribute increased revenues in the foreseeablefuture as the Company ramps up several key LED billboard installationswhich were completed during the year ended March 31, 2009 and are expectedto begin generating advertising revenue in the near future.

The Companyhas formed strategic partnerships with Ogilvy & Mather Group, a majoradvertising agency in Hong Kong, and LIME, a diversified mediaconglomerate, to sell advertising space on the LED billboards. The Companyis also in the process of negotiating strategic partnership agreements andcontracts with other advertising agencies and advertisers for the sales ofadvertising space on the LED billboard network.Revenue related to the LED solutions business increased to $4,046,490 forthe year ended March 31, 2009 from $3,564,537 during the year ended March31, 2008, or an increase of 14%. Tan, "Of additional importance, Lightscape was able to focusits exclusive OOH relationship with New World Group to sign a MOU with NewWorld Department Stores China. The decrease in net revenues is primarilyattributable to the decrease in revenue from non-core businesses,primarily the Company's HID lighting products business segment.Specifically, revenue related to the LED out-of-home advertising businessremained at $nil for the year ended March 31, 2009 as compared to from$nil during the year ended March 31, 2008. Additionally, revenue from our LEDSolutions business supported the operations of the Company while the OOHnetwork is built out."Continued Mr. Fortunately, Lightscape's ability to secure top-quality locationsfor our LED OOH billboards, and our relationships with leading advertisingagencies, has allowed us to sign top-tier international and MainlandChinese clients and content providers. Gross profit margin improved to 34% for the twelve monthsended March 31, 2009 as compared to 21% for the twelve months ended March31, 2008.Net loss for the twelve months ended March 31, 2009 narrowed to $4.58million, or $0.08 per fully diluted share, compared to a net loss of $9.42million, or $0.22 per fully diluted share, for the twelve months endedMarch 31, 2008.Bondy Tan, President and CEO of Lightscape, said, "Our business wasseverely impacted by the downturn in advertising spending that began lastyear.