PRESS RELEASE 01-15-07

NRF endorsement supports the versatile uses of LED technology in retail environments

NEW YORK, Jan. 15 /PRNewswire-FirstCall/ -- National Retail Federation Convention & Expo -- Color Kinetics Incorporated (NASDAQ:CLRK) , a leading innovator of LED lighting systems and technologies, announced today the exclusive selection of its LED systems to bring dynamic, customizable effects to the X07 Store of the Future -- an 11,000 square foot exhibit at the 96th annual National Retail Federation (NRF) Convention & Expo.

X07 is intended to showcase the look of future retail spaces while promoting "green" design practices, such as the use of energy-efficient lighting. According to the U.S. Department of Energy, lighting accounts for 59% of total electricity use in retail and service buildings.* X07's creator and architect Richard R. Russo, President and CEO of Hybridia Design chose a combination of Color Kinetics' white and RGB lighting systems to demonstrate how LED technology can meet the decorative and functional lighting needs of retailers who seek innovative ways to distinguish their spaces while mitigating energy costs.

"We knew from the start that LEDs should be a prominent part of the X07 exhibit, and Color Kinetics was a natural choice to bring our design concept to life," said Russo. "Our demonstration this year reflects 'green' technologies, and Color Kinetics' LED-based fixtures perfectly support that objective while also giving us tremendous flexibility for visual effects."

"We are thrilled with the striking effects that the LED-illuminated exhibit has created. We believe our attendees will use the exhibit to view the multitude of looks that LED-based lighting can create, but also to learn more about the impact that it can have within their own stores," said Susan Newman, Vice President of Conferences, NRF. "In addition to its many existing retail installations, Color Kinetics should find growing opportunities for its technology within the retail segment. We hope that the adoption of LED lighting will continue to grow as more and more retailers are educated on its benefits."

NRF represents an industry with more than 1.6 million U.S. retail establishments and 2005 sales of $4.4 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. As such, its choice of LED technology to illuminate the X07 Store of the Future signals an accelerating awareness of the technology's advantages among retailers.

According to a Color Kinetics study, retail lighting has an influence on buying behavior and satisfaction ratings of shoppers. Over 400 shoppers were surveyed, and the results showed that color lighting applications can effectively increase foot traffic and stopping power of the storefront area. In addition, surveyed shoppers cited an increase in mood and quality of time spent in the store when color lighting was applied. Color Kinetics' flagship Chromacore(R) technology makes it possible to generate millions of colors and color-changing effects without the use of gels or filters as required with conventional light sources. Beyond the use of color, this same technology allows certain Color Kinetics fixtures to produce variable shades of white light to properly accentuate merchandise and displays without the need to re- lamp.

In addition to their aesthetic versatility, Color Kinetics' systems provide a host of practical benefits for retail environments. Compared to their incandescent or halogen counterparts, they boast energy efficiency, long source life, durability, and lack of radiated heat and UV emission. They are therefore well suited for areas where conventional light sources are impractical, such as tight or heat-sensitive spaces, and where frequent maintenance or lamp replacement are undesirable. Unlike compact fluorescent sources, certain LED-based fixtures can produce millions of colors and others produce variable shades of white light. LED light sources contain no mercury and can offer a higher quality of light output, as measured by the industry's color rendering index. Furthermore, the directional nature of LED sources increases the efficiency of the system itself by minimizing light losses within the fixture.

About Color Kinetics

Color Kinetics Incorporated (NASDAQ:CLRK) transforms environments through new, dynamic uses of light. Its award-winning lighting systems and technologies apply the benefits of LEDs as a highly efficient, long lasting, environmentally friendly, and inherently digital source of illumination -- reinventing light itself as a highly controllable medium. Color Kinetics also enables widespread adoption of LED lighting through OEM and licensing partnerships in diverse markets. The company is headquartered in Boston, MA with offices in the UK, China, and Japan. More information is available at www.colorkinetics.com.

*U.S. Department of Energy, Energy Information Administration, 1995 Commercial Buildings Energy Consumption Survey

Chromacore, Color Kinetics and the Color Kinetics logo are registered trademarks of Color Kinetics Incorporated. All other trademarks mentioned are the property of their respective owners.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Color Kinetics Incorporated's business that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements involve risks and uncertainties, are only predictions and may differ materially from actual future events and results. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report on Form 10-K for the Twelve Months Ended December 31, 2005, File Number 000-50798, and most recent 10-Q, each as filed with the Securities and Exchange Commission.

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Web site: http://www.colorkinetics.com/
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