Super Vision Announces 2005 1st Quarter Results

Super Vision International, Inc. (Nasdaq:SUPVA)(Class A
Common), a world leader in the design and manufacture of LED lighting
systems and fiber optic lighting products for applications in the
commercial, architectural, signage, swimming pool and retail lighting
markets, today announced financial results for the first quarter ended
March 31, 2005.
   Total revenue for the quarter was approximately $2.9 million down
from approximately $3.1 million in the first quarter of 2004. Revenues
were in line with internal forecasts and were slightly lower than last
year mainly due to the timing of requested OEM shipments and lower
revenue from the Commercial division resulting from the shipment of a
large one-time project in 2004. International sales were up
approximately 18% and overall orders received by the Company during
the first quarter of 2005 increased 23% or $599,000 compared to the
first quarter of 2004.
   Gross margin in the first quarter decreased to 40% from 41%
compared to the same quarter of 2004. Consecutively, gross margin
increased by 9 full points in the first quarter of 2005 from 31% in
the fourth quarter of 2004. Dan Regalado, the Company's Chief
Financial and Operating Officer, stated, "We are encouraged to see
quarter to quarter improvement in gross margin as our sales mix
continues to shift to a higher percentage of LED systems. We
anticipate that this positive trend in gross margin will continue as a
result of the Company's efforts to sell our new line of architectural
LED lighting products, called SaVi(TM), which carries higher gross
margins consistent with our commercial fiber optic products. We remain
focused on cost reduction and operational efficiencies."
   Mike Bauer, Vice President of Sales and Marketing, stated, "Orders
were up 23% in the 1st Quarter of 2005 from same quarter a year ago
and we worked through our sales timing issue in April, so year to date
sales are now ahead of 2004 through April 30th. We launched our new
architectural product line, SaVi(TM), in March and we rolled out our
new catalog and sales materials as well, so overall we feel very good
about the direction we are heading. We are focused on executing our
strategic plan and have several sizable projects that we expect to be
released and shipped in the 2nd Quarter. In addition, the initial
response to our new SaVi(TM) line of products has been very positive
and has positioned us for solid performance through the balance of the
year."
   Operating expenses in the first quarter of 2005 were approximately
$1.3 million compared to $1.1 million in the same quarter of 2004. The
increase in operating expenses was primarily due to increased legal
fees associated with efforts to settle a lawsuit filed by the company
against a former vendor and an increase in bad debt reserve partly
offset by a decrease in R&D expenses in the quarter. However, we
expect to see increased R&D expenses through the balance of the year
as we continue to expand our LED product development activities aimed
at positioning Super Vision International at the forefront of the
industry in high wattage applications.
   As a result of the increased operating expenses and slightly lower
revenue, Super Vision reported a net loss of $182,154 or $.07 per
share for the first quarter of 2005 compared to net income of $45,577
or $.02 per share in the same quarter last year. EBITDA, which is
Earnings Before Interest, Taxes, Depreciation and Amortization, is a
non-GAAP measure which management uses as part of its performance
appraisal in reviewing the Company's ongoing operational business
trends related to its financial condition and results of operations.
For the quarter ended March 31, 2005, EBITDA was approximately $49,000
compared to $305,000 in the first quarter of 2004.
   The Company had cash and marketable securities of approximately
$1.7 million at March 31, 2005 with a current ratio of 3 to 1.
   Super Vision's LED and fiber optic lighting systems are used in
architectural, lighting, landscape, sign and swimming pool industries
around the world. Super Vision's SideGlow(R) cable is manufactured as
a replacement for neon and Super Vision's EndGlow(R) cable is
manufactured for conventional down-lighting and underwater/hazardous
area lighting. Super Vision is owned in part by Cooper Industries
(NYSE:CBE) and Hayward Industries, major manufacturers of lighting
and pool products respectively. For more information, please visit the
Super Vision web site at http://www.svision.com.

   This press release contains forward-looking statements that
involve a number of risks and uncertainties. Such forward-looking
statements are within the meaning of that term in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Reference is made to Super Vision's filings under the
Securities Exchange Act of 1934 for factors that could cause actual
results to differ materially. Super Vision undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise. Readers are
cautioned that any such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties, and that
actual results may differ materially from those indicated in the
forward-looking statements as a result of various factors. Readers are
cautioned not to place undue reliance on these forward-looking
statements.
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Super Vision International, Inc.
Condensed Statements of Operations - Unaudited

                                                    Three Months
                                                   Ended March 31,
                                                   2005       2004
                                                ---------- ----------

Revenues                                       $2,883,756  $3,108,159
Cost of sales                                   1,728,370   1,846,913
                                                ----------  ----------
    Gross margin                                1,155,386   1,261,246

Operating expenses:
    Selling, general and administrative         1,165,165   1,012,103
    Research and development                      107,602     122,508
                                                ----------  ----------
              Total operating expenses          1,272,767   1,134,611
                                                ----------  ----------

Operating income (loss)                          (117,381)    126,635

Non-Operating Income (Expense):
    Interest income                                 9,892       6,133
    Interest expense                              (94,386)    (99,856)
    Loss on disposal of fixed assets                   --     (21,451)
   Other income                                    19,721      34,116
                                                ----------  ----------
             Total non-operating expense          (64,773)    (81,058)
                                                ----------  ----------

Net income (loss)                              $ (182,154) $   45,577
                                                ==========  ==========

Net Income (Loss) Per Common Share:

    Basic and diluted                          $    (0.07) $     0.02
                                                ========== ==========

Weighted average shares outstanding:
    Basic                                       2,542,078   2,540,578
                                                ==========  ==========

    Diluted                                     2,542,078   2,588,207
                                                ==========  ==========
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Selected Consolidated Balance Sheet Data

                                               Unaudited     Audited
                                                        As of
                                               ----------------------
                                               March 31,  December 31,
                                                 2005         2004

Cash and Investments                           $1,726,364  $1,926,042

Current Assets                                 $6,398,361  $6,313,826

Total Assets                                   $9,478,228  $9,463,793

Current Liabilities                            $2,040,598  $1,794,366

Total Liabilities                              $4,505,705  $4,313,064

Total Shareholders Equity                      $4,972,523  $5,150,759

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Reconciliation of Non-GAAP Financial Measure

The following table reconciles GAAP to non-GAAP financial measure:

Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)


                                  (Unaudited) Quarter Ended March 31,
                                 -------------------------------------
                                    2005      2004     Change     %
                                 ---------- -------- ---------- ------

Net Income (Loss)                $(182,154) $45,577  $(227,731) (500%)
Plus:
   Interest                         94,386   99,856     (5,470)   (5%)
   Depreciation                    126,650  142,014    (15,364)  (11%)
   Amortization                     10,611   17,456     (6,845)  (39%)
                                 ---------- -------- ---------- ------
EBITDA                             $49,493  304,903   (255,410)  (84%)
                                 ========== ======== ========== ======
% of Revenues                            2%      10%
                                 ========== ========

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