TRANS-LUX REPORTS THIRD QUARTER 2011 RESULTS

TRANS-LUX REPORTS THIRD QUARTER 2011 RESULTS

NORWALK, CT, November 18, 2011 – Trans-Lux Corporation (OTC: TNLX), a leading supplier of programmable electronic information displays and next generation LED lighting, today reported financial results for the third quarter ended September 30, 2011.  Trans-Lux President and Chief Executive Officer J.M. Allain made the announcement.

Third Quarter 2011

Revenues for the third quarter 2011 remained level with the third quarter 2010 at $7.1 million.  Trans-Lux recorded a loss from continuing operations for the third quarter of $1.9 million (-$0.79 per share), compared with a loss from continuing operations of $1.2 million (-$0.50 per share) in the third quarter of 2010.  The 2011 third quarter loss includes an $0.8 million charge to the reserve for obsolete inventory, while last year’s third quarter loss included a $1.0 million restructuring charge and a $0.5 million charge to write-off engineering software.  The Company incurred negative EBITDA from continuing operations of $0.3 million, compared with positive EBITDA from continuing operations of $0.5 million in 2010.  Without the charge to the reserve for obsolete inventory in 2011 and the restructuring charge and write-off in 2010, EBITDA from continuing operations would have been a positive $493,000 for the three months ended September 30, 2011, compared to a positive $540,000 for the three months ended September 30, 2010.  The Company continues to reduce operating costs and in the third quarter of 2011 outsourced the human resources department and benefits.  The 2010 restructuring costs consist of employee severance pay, facility closing costs representing primarily lease termination and asset write-off costs, and other fees directly related to the restructuring plan.

“The third quarter results reflect level revenues, but a continued improvement in our gross margins,” said Mr. Allain.  “In the fourth quarter, we began to deliver our new LED lighting products and successfully completed our financial restructuring, which gives us the ability to further our investment in the next generation of LED signage and lighting solutions and position us for long-term growth.”

Nine Months Ended September 30, 2011

Trans-Lux reported revenues for the nine-month period ended September 30, 2011 of $17.1 million, down from $18.7 million for the nine-month period ended September 30, 2010.  Trans-Lux incurred a loss from continuing operations of $5.2 million (-$2.14 per share) during the first nine months of 2011, versus the $5.3 million loss from continuing operations (-$2.16 per share) reported for the same nine-month period in 2010.  This year’s loss includes an $0.8 million charge to the reserve for obsolete inventory and last year’s loss included the $1.0 million restructuring charge and the $0.5 million charge to write-off engineering software.  The Company incurred negative EBITDA from continuing operations of $574,000, compared with negative EBITDA from continuing operations of $41,000 during the same nine-month period in 2010.  Without the charge for obsolete inventory in 2011 and the restructuring charge and write-offs in 2010, EBITDA from continuing operations would have been a positive $226,000 for the nine months ended September 30, 2011 compared with a positive $1.5 million for the nine months ended September 30, 2010.

(Table of Operations below)

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The Company may, from time to time, provide estimates as to future performances.  These forward-looking statements will be estimates and may or may not be realized by the Company.  The Company undertakes no duty to update such forward-looking statements.  Many factors could cause actual results to differ from these forward-looking statements, including loss of market share through competition, introduction of competing products by others, pressure on prices from competition or purchasers of the Company’s products, interest rate and foreign exchange fluctuations, terrorist acts and war.