Laser Energetics

January 4, 2009

To All the Friends and Shareholders of Laser Energetics:

Happy New Years!

I strongly believe LEI is going to have its best year in its history. We continue to struggle financially but financing looks to be on the horizon soon. As discussed in previous Founders messages, Laser Energetics, Inc. continues to be in pursuit of the financing required to help this great company reach its full potential. I’m continuing to work on nine different sources of capital with both corporate entities and high net worth individuals that can fund LEI with $20,000,000 or more which we are seeking to raise.

Mr. Beryl Wolk continues to assure me his money will be invested into LEI as soon as he receives his funding (expected in January 2009). As much as I know he’ll make the investment upon his receiving his funds, I cannot rely on the timing of the funds being received by him, although he states he will “absolutely” receive his funds soon. In the mean time, there are other sources that are close to coming in, while we wait upon Mr. Wolks money to arrive. I believe we’ll be in good shape by the end of January - mid February 2009.

While we work on our capitalization, we are making great progress in other areas of our company. We have recently set up our company’s accounting to reflect nine profit centers. The company has nine distinct yet interconnected areas to derive business and profits. They are as follows:

Profit Centers of Laser Energetics:

Lasers & Accessories (Lasers and accessories to the lasers)
Laser Systems (Lasers with part handling equipment)
Laser Applications & Proc. Development (Lab work performed on laser processes for outside customers)
Laser Research & Development & Intellectual Property Licensing (Contract R&D for companies or the government along with license of select patents for select applications)
Dazer Lasers (Non – Lethal laser weapon under development for military, homeland security, law enforcement, etc. markets)
Laser Produced Products (products we develop which lasers are used to make a portion of the product)
Consumer Products (Products made from our technology – ie our lasers or our TRT technology)
TRT Technology (optical films for displays, signage)
Hygenilase (Dental Joint Venture)

Status of Projects:

Remote Sensing Alexandrite Laser - We are continuing to discuss the next phase of working with the Army on our Remote Sensing Alexandrite Laser technology. We are currently working on our prototype while we work to move to the next phase of the development of a commercial product.
TRT Technology - Laser Energetics completed its very complex mold to make our new TRT optical film for PDA’s and Mobile phones, for starters. The mold employs over 1000 parts and the final assembly was completed on December 23, 2008. We made our first sample with the help of our senior level consultant – Dr. Charles Rohn, who is regarded as one of the worlds best plastics scientists. Dr. Rohn and I worked together in the early to mid 1980’s. We are very good friends and he has created the first samples on December 24th, 2008. We expect to have samples out to different potential clients by the end of this month. First results look very good.
HygeniLase - Laser Energetics is preparing a prototype laser for HygeniLase which will exhibit the specification which we’ll be using in the manufactured laser for the application of teeth cleaning. We expect to have the prototype completed before the end of February 2009.
Dazer Laser® - Laser Energetics is focused on Micro Chip laser technology and applying it to a host of laser products including Non-Lethal lasers that temporarily impair the vision of and enemy combatant, and disorient them for several minutes. These non lethal laser weapons are called Dazer Lasers®. There will be multiple models of this technology for a myriad of Dazer Laser applications. We will be finished with our first fully engineered product by the end of January with first units available by the end of the first quarter 2009. There will be several press releases coming shortly on this technology and our business model for this product.

Expansion of Laser Energetics Facility – LEI has completed the build out of an expansion of its facility. We are adding 3750ft2 of contiguous space for assembly of Lasers, Dazer Lasers as well as Lab area for TRT Technology.

The Laser Energetics world class team is working hard to achieve World Class success! Winners never Quit, and Quitters never Win! That is why the future is ours!

All the Best!
Sincerely,

Robert D. Battis
Founder, President & CEO
Laser Energetics, Inc.