Lumera Joins the New Russell Microcap Index

BOTHELL, Wash.--(BUSINESS WIRE)--July 6, 2005--Lumera Corporation (NASDAQ:LMRA), an emerging leader in the field of nanotechnology, announced today that it has been added to the new Russell Microcap(TM) Index. This new index offers managers and other investors a comprehensive, unbiased barometer to compare their performance against the genuine microcap marketplace of stocks. Investment managers who oversee these funds purchase shares of member stocks according to that company's weighting in the particular index.

In a press release dated May 26, 2005, Steve Swartley, senior manager research analyst at Russell said, "Microcaps have outperformed small caps in three of the past four years, and the cumulative four-year gap is impressive." The Russell Microcap's available performance history reflects an annualized return of 9.03%, from June 30, 2000 through the end of the first quarter of 2005, versus 5.08% for the Russell 2000. Swartley noted that the median microcap manager that Russell follows has outperformed the Russell 2000 in nine of the last 10 years. Furthermore, the median microcap manager has outperformed the median manager in the small-cap universe in eight of the past 10 years, and by more than 1,000 basis points in two of the past four years.

“Microcaps have outperformed small caps in three of the past four years, and the cumulative four-year gap is impressive.”

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. More than $2.5 trillion in assets currently are benchmarked to them. The Russell Microcap Index is comprised of the smallest 1,000 securities in the small-cap Russell 2000(R) Index plus the next 1,000 companies based on a ranking of all U.S. equities by market capitalization.

Companies included in the Russell Microcap were ranked as of May 31 by total market capitalization and weighted based on free-float adjustment, an integral aspect of Russell index methodology. Free-float adjustment means stocks are weighted by their available market capitalization which is calculated by multiplying the primary closing price by the available shares.

About Lumera

Lumera is an emerging leader in the field of nanotechnology. The company designs proprietary molecular structures and polymer compounds for a broad range of electro-optic, bioscience, RF and specialty nanotechnology applications. The company also has developed proprietary processes for fabricating such devices. For more information, please visit www.lumera.com

Certain statements contained in this release are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the company's forward-looking statements include the following: market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain additional contract awards and to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including its Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q.

Contacts

The Summit Group Communications for Lumera
Todd Wolfenbarger, 801-595-1155
cell: 801-244-9600

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