LSI Industries Inc. Amends Compensation Plan, Provides First Quarter Guidance, and Reaffirms Favorable Outlook for Fiscal 2006

19 October 2005

LSI Industries Inc.
(Nasdaq: LYTS) today announced that it will take a non-cash net of tax charge
of $348,000 ($0.02 per share) during the first quarter of fiscal 2006 ended
September 30, 2005 related to the variable accounting treatment of its
deferred compensation plan. Pursuant to its earlier indication, the Company
has adopted changes to its deferred compensation plan, effective September 9,
2005, thereby eliminating variable accounting treatment so as to avoid similar
charges in the future. For the first quarter of fiscal 2006, the Company now
expects to report diluted per share earnings in the range of $0.17 to $0.18,
after giving effect to the aforementioned charge, on net sales of
approximately $71 million. Management reaffirmed its optimism for the
business and continues to expect to report higher sales and earnings for
fiscal 2006.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:
This document contains certain forward-looking statements that are subject
to numerous assumptions, risks or uncertainties. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. Forward-looking statements may be identified by words such as
"estimates," "anticipates," "projects," "plans," "expects," "intends,"
"believes," "seeks," "may," "will," "should" or the negative versions of those
words and similar expressions, and by the context in which they are used.
Such statements are based upon current expectations of the Company and speak
only as of the date made. Actual results could differ materially from those
contained in or implied by such forward-looking statements as a result of a
variety of risks and uncertainties. These risks and uncertainties include,
but are not limited to, the impact of competitive products and services,
product demand and market acceptance risks, reliance on key customers,
financial difficulties experienced by customers, the adequacy of reserves and
allowances for doubtful accounts, fluctuations in operating results or costs,
unexpected difficulties in integrating acquired businesses, and the ability to
retain key employees of acquired businesses. The Company has no obligation to
update any forward-looking statements to reflect subsequent events or
circumstances.

About the Company
LSI Industries is an Image Solutions company, combining integrated design,
manufacturing, and technology to supply its own high quality lighting fixtures
and graphics elements for applications in the retail, specialty niche, and
commercial markets. The Company's Lighting Segment produces high performance
products dedicated to the outdoor, architectural outdoor, indoor,
architectural indoor and accent/downlight markets. The Graphics Segment
provides a vast array of products and services including signage, menu board
systems, active digital signage, decorative fixturing, design support,
engineering and project management for custom programs for today's retail
environment. LSI's major markets are the petroleum / convenience store,
multi-site retail (including automobile dealerships, restaurants and national
retail accounts) and the commercial / industrial lighting markets. LSI employs
approximately 1,600 people in fifteen facilities located in Ohio, California,
New York, North Carolina, Kansas, Kentucky, Oregon, Rhode Island, Tennessee,
Texas and Washington. The Company's common shares are traded on the Nasdaq
National Market under the symbol LYTS.

For further information, contact either Bob Ready, Chief Executive Officer
and President, or Ron Stowell, Vice President, Chief Financial Officer, and
Treasurer at (513) 793-3200.

Additional note: Today's news release, along with past releases from LSI
Industries, is available on the Company's internet site at
http://www.lsi-industries.com or by email or fax, by calling the Investor Relations
Department at (513) 793-3200.