Cyalume Technologies Holdings, Inc. announced that it was re-awarded the direct contract with the U.S. Military to supply chemiluminescent light products. The contract, last awarded to the Company in 2004, is an indefinite quantity fixed price contract that covers numerous products, each of which is classified by a National Stock Number (NSN). A key feature of these products is that they are now all phthalate free and covered by Cyalume's intellectual property. The products under this contract have represented between $2.2 and $3.2 million in sales annually for the past three years.

Cyalume Technologies, Inc. and TD Bank, N.A. have entered into a second amendment to credit agreement and limited waiver. The second loan amendment became effective December 17, 2009 when CTHI and the Borrower satisfied all conditions precedent to the second loan amendment becoming effective. The second loan amendment amends the revolving credit and term loan agreement dated as of December 19, 2008 and all previous amendments to the original credit agreement among the borrower, CTHI and TD Bank, N.A.

Cyalume Technologies Holdings, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported adjusted net income, which is net income and amortization, of $1.3 million on revenues of $9.9 million, compared to adjusted net income of $1.4 million on revenues of $10.8 million for the third quarter of 2008. Adjusted EBITDA, which is earnings before interest, taxes, depreciation, amortization, foreign currency gains and losses, and certain one-time gains or expenses, was $2.0 million compared to $3.4 million in for the third quarter of 2008. Adjusted net income and adjusted EBITDA are important measures because they present a view of its performance on an ongoing basis without regard to capital structures, capital investments cycles and corresponding ages of related assets among comparable companies. Income before income taxes was $174,000 compared to $1,229,000 for the same period last year. Net income was $325,000 or $0.02 per basic and diluted share compared to net income of $712,000 for the same period last year. Adjusted net income was $1,286,000, EBITDA was $1,900,000 and adjusted EBITDA was $1,999,000 compared to adjusted net income of $1,371,000, EBITDA of $3,332,000 and Adjusted EBITDA of $3,391,000 for the same period last year. For the nine months, net cash provided by operating activities was $2,828,000 compared to $1,367,000 for the same period last year. Purchases of long-lived assets were $449,000 compared to $1,212,000 for the same period last year.