“SOLD!!!” … Bob Circosta (“The Billion Dollar Man” and CEO of Home Shopping Network) said instantly when he first saw LucidLights™ at a luncheon engagement in Los Angeles.

This is the second installment of the LucidLights™ Newsletter which you’ll receive periodically to keep all of you informed on the progress of the LucidLights™ adventure. We’ve been very busy and have a lot of exciting things for you to catch up on!

EJ attended HSN (Home Shopping Network) training in late February, where Bob Circosta and his crew expressed great interest in selling the "Trick or Treat", "Thank You!" and flashlight-mode-for-child-safety version of LucidLights™ to home audiences. This very niche market is exciting, especially when you compare our product to that of Pumpkin Masters, another Denver company started just a few years ago. They have an annual sustained revenue of about $25 million, for a simple pumpkin carving kit. The Halloween version of LucidLights™ fits all the criteria of successful products according to HSN, such as: Does it have mass appeal? Is it easily demonstrable? Is it unique? Does it appeal to women (they make the most buying decisions)? Does it solve a consumer need?

And then there's Merry Christmas. And Happy New Year. And... well, you get the idea! Even though Home Shopping Network is just one of our target markets, it is significant and exciting.

Our first product has been dubbed the Stadium Model, with intended markets to include college and professional football teams, rock concerts, and other promotions. We currently have connections to the Colorado Buffs, Nebraska Cornhuskers, and to a marketing representative to the NFL. Who do you know with similar connections?

We've now sold our first LucidLights™ products! One unit will reportedly be used as a promotional attention grabber in the Colorado Convention Center on May 3rd, 2007. The person who bought this unit will be communicating with the celebrities in attendance, and there's a very real possibility of at least two significant sales resulting from this event. We are up and running!

Much of the original circuitry has now been replaced with enhanced new circuitry, one chip and one transistor at a time, as our R&D efforts have paid off and we’ve been able to greatly improve the product. The messages are much more stable and centered in the display space, the chips are now better selected and designed for surface mount economics, and the total parts count has come down from about 160 originally to less than 40.

The first commercial grade, prototype circuit board is currently in production in China, with samples to arrive very soon. We are all set up to create prototype plastic housings based on the circuit board dimensions as soon as the samples arrive. This means we’ll soon have real production grade products suitable for getting out into the hands of our marketers for show and tell.

We’ve upgraded the LEDs in the first product in an exciting way. These new “Super Flux” LEDs, with 70 to 180 degree angle-of-view are consistently bright as the messages are flashed at rotated angles by the user. They are brilliant, and the messages are crisper, sharply focused, and easily read at distances such as clear across a stadium!

All four message orientations now display multiple sequential messages, exactly like in my original vision back in October. A memory chip with storage space for any reasonable number of messages is another recent improvement.

We have initiated a plan for countering any “knock off” products that some people have expressed concern about. In fact, we have a multi-pronged strategy, some of which includes trade secret technology that we’ll be keeping close to the vest, kind of an ace or two up the sleeve. What we can say now is that we plan to become our own knock-off, a simple encryption scheme will solve most potential problems at the technical level, and our Windows program named LucidLab™ will keep us a big step ahead of any competition that comes along. By working with an experienced U.S. company with production facilities in China we are keeping the manufacturing price down where undercutting us will be extremely difficult. I wish I could tell you about two more exciting strategies to counter expected competition, but it’s in everyone’s best interest to keep these secret until needed.

Our nationally recognized business strategist Paul Hoyt, has been guiding us in our successful business growth in positive ways too numerous to describe. If there’s one thing we’ve learned over the past few months it’s been the importance of the team concept, and LucidLights™ has a great team! We also want to thank our IP attorney Jason Webb, our manufacturing representative Bob Vernon, our personal business coach Jonathan Manske, and all our super support team members at FTGWOA. There are many others (you know who you are), and our thanks goes out to all of you.

At recent IBI meetings here in Denver, we’ve introduced several products and services to the audience using LucidLights™ as a walking billboard. Wen Boley’s StickySheets™ product is not only being advertised on Headline News, Home Shopping Network, and Publisher’s Clearing House, StickySheets™ has now also been advertised on LucidLights™, to the ooooh’s, aaaah’s, and wow!’s of many in the crowd! Everyone loved it, including Wen.

We have had two very fun and successful See Your Name In Lights parties in recent weeks, and we’ll be glad to travel to have more of this fun with your friends if this sounds interesting to you. Contact us to find out more about how this works… John@LucidLights.net or call us.

We have a lot of stories about how LucidLights™ literally stops people in their tracks, and how several people have come up to us to ask where they could get one. We are having a lot of fun! And it’s our sincerest and heart-felt wish for everyone involved with LucidLights™ to have this same fun too, whether as investor, team member, or just while cheering us on!