LMIC Announces Steps toward Improving Capital Structure.

BELTSVILLE, Md. -- LMIC, Inc. (OTCBB: LMII):

--Enters Private Placement Agreement for up to $900,000

--Enters Standby Equity Distribution Agreement for up to $12 Million

--Enters Procurement Service Agreement With Wholly Owned Subsidiary of ITOCHU Corporation

LMIC, Inc. (OTCBB: LMII) today announced several initiatives toward improving its capital structure and funding its growth strategy. The company has entered into agreements with two private equity groups to raise up to $900,000 through a private placement of the company's common stock and warrants. In addition, the company also entered into an equity commitment facility for up to $12 million, and a material procurement service agreement for up to $2 million.

The company entered into separate agreements with Allegiant Capital Group, LLC, and vFinance Investments, Inc. to sell up to an aggregate of 600,000 shares of the company's $0.001 par value common stock at $1.50 per share for a total of up to $900,000. In connection with the purchase and sale of the 600,000 shares, for no additional consideration, Allegiant Capital and vFinance will receive five-year warrants to purchase up to an aggregate of 630,000 shares of Common Stock (based on 1.05 share for each of the 600,000 shares purchased by Allegiant Capital and vFinance), subject to adjustment as set forth in the warrants. In a related transaction, Linsang Partners, LLC, affiliated to Mr. Kwok Li, the chairman and CEO of the company, agreed to sell two shares of company common stock to Allegiant Capital Group and vFinance Investments, at a price of $0.01 per share, for every one share sold by the company to Allegiant Capital Group and vFinance Investments, Inc. In consideration of the financial accommodations, the company agreed to issue to Linsang Partners, five year warrants, exercisable at $2.50 per share, to purchase two shares of company common stock for every one share of common stock sold by Linsang Partners to Allegiant Capital Group and the vFinance investors. As of the date of this release, the company has received $500,000 from Allegiant Capital Group and $75,000 from vFinance under this agreement.

Additionally, the company has received an equity commitment from Cornell Capital Partners for up to $12 million under a standby equity distribution agreement. Under the terms of the $12 million standby equity distribution agreement with Cornell Capital Partners, there are no minimum draw downs required in the agreement and the facility may be used in whole or in part, entirely at LMIC's discretion over the next two years and subject to an effective registration.

The company also announced that it has entered into a material procurement services agreement for up to $2 million with one of its distributors, TEXMAC, Inc., a wholly-owned subsidiary of Itochu Corporation. Under this agreement, TEXMAC will extend to LMIC a credit line of up to $2 million for electronic parts and components procured by TEXMAC on behalf of the company. TEXMAC has provided payment terms to LMIC of up to 60 days upon complete delivery of the parts against LMIC's purchase orders.

"With this private placement, our new equity commitment facility, and our material procurement service agreement with TEXMAC, we have improved our capital structure and now have greater flexibility to meet the growing needs of customers," stated Kwok Li, chairman and chief executive officer of LMIC. "Importantly, we only plan to draw upon our equity commitment facility on an 'as-needed' basis--to support initiatives that will accelerate our business plan. Additionally, our new agreement with TEXMAC will enable us to more easily procure parts and manufacture products for our customers without restricting our cash flow. Lastly we are pursuing asset based financing to further strengthen our capital structure."

"With the TEXMAC relationship in place, combined with our days sales outstanding (DSO) of approximately 35 days, we expect, over a period of time, an improved ability for an uninterrupted source of material supply at competitive pricing, which will enables us to better focus on our core competencies and establish the beginning of just-in-time manufacturing," stated Luis Negrete , chief operating officer of LMIC.

About LMIC

LMIC provides integrated design, manufacturing and post-production services to small- and mid-sized electronic original equipment manufacturers (OEMs). The company operates an 85,000 square foot, state-of-the-art manufacturing facility in Beltsville, Md. The company's customers include networking, telecommunications, defense electronics, industrial controls, and medical technology organizations, both private and public.

The company also offers a unique and integrated information management system, which enables advanced product tracking and quality control to LMIC's customers. LMIC is certified as a Minority Business Entity by the Maryland/DC Minority Supplier Development Council, which facilitates government contracting and subcontracting activities.

Forward-Looking Statements:

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding LMIC, Inc. and its subsidiaries' and affiliates' (collectively, the "Company) expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the Company's expectations. The Company does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include the Company's ability to fund its operations, the Company's ability to obtain waivers of existing defaults under its debt documents, actions of the Company's competitors, and changes in general economic conditions. Many of these factors are outside of the Company's control.