Orion Energy Systems Inc.: Announces fiscal 2010 second quarter results

CONTACT: Linda Diedrich

Orion Energy Systems

(920) 482-1988

Scott Jensen

Chief Financial Officer

Orion Energy Systems

(920) 892-5454

MANITOWOC, WI, October 27, 2009 – Orion Energy Systems, Inc. (NASDAQ: OESX), a power technology enterprise that designs, manufactures and deploys energy management solutions for the commercial and industrial sectors, today announced financial results for its fiscal 2010 second quarter ended September 30, 2009.

Since December 2001, the Company’s integrated systems have benefited its customers and the environment by reducing:

* customer energy demand by 477,133 kilowatts, or 9.2 billion kilowatt hours;

* customer energy costs by more than $711 million; and

* indirect carbon dioxide emissions of more than 6 million tons.

“We are pleased with the progress achieved in the fiscal second quarter of 2010 as we exceeded our quarterly revenue guidance with revenue of $14.6 million and exceeded our quarterly earnings per share guidance with a loss of $0.06 per share, as well as generated positive operating cash flow. The value proposition of our integrated systems, strong customer relationships and industry expertise continue to resonate with commercial and industrial businesses despite the ongoing macro-economic uncertainty,” commented Neal Verfuerth, CEO of Orion Energy Systems. “Further, our innovative technologies and expertise has positioned Orion as a leader in the energy management space, which should allow us to deliver sustained long-term growth. While we realize that the current environment remains challenging, our healthy balance sheet, strong liquidity position and focus on maximizing the deployment of capital will position Orion well to benefit as market conditions improve.”

Key Business Highlights

* Total bookings for the quarter were $20.3 million, including $2.4 million of Orion Virtual Power PlantÔ (“OVPP”) supply agreements. Orion defines bookings as customer purchase orders received during the quarter, including both purchase orders payable in cash and for OVPP supply deliveries over the life of the OVPP contracts.

* Increased facilities retrofitted with the Compact Modular™ HIF technology to 5,082, representing 807 million square feet as of the end of the second quarter of fiscal 2010.

* Total deployments of the InteLite® wireless controls increased to 119 customer locations, 11,716 transceivers and 192 control panels, representing 5.3 million square feet as of the end of the second quarter of fiscal 2010.

* Nearly doubled the number of installed Apollo® solar light pipes to 3,591 total installed units, representing 1.6 million square feet as of the end of the second quarter of fiscal 2010.

Fiscal 2010 Third Quarter Outlook

Third quarter fiscal 2010 revenues are anticipated to be between $16.5 million and $18.0 million. Earnings per share for the third quarter of fiscal 2010 are estimated to be between a loss of $(0.03) and earnings of $0.01 per diluted share.

About Orion Energy Systems

Orion Energy Systems, Inc. (Nasdaq: OESX) is a leading power technology enterprise that designs, manufactures and deploys energy management systems, consisting primarily of high-performance, energy efficient lighting systems and controls and related services, for commercial and industrial customers without compromising their quantity or quality of light.