Related Party Transactions and Outside Related Director Information


9/29/2005 Proxy Information

J. Scott Sferra, age 41, is Vice President Manufacturing of the Cincinnati Operations of LSI Industries and is the son of James P. Sferra, Director, Secretary and Executive Vice President Manufacturing of LSI Industries. In fiscal year 2005, J. Scott Sferra’s total compensation was $120,586. J. Scott Sferra received a stock option grant in fiscal 2005 to purchase 10,000 Common Shares of the Company at the market price at time of grant.

During fiscal 2005, the Company paid $519,307 to American Engineering and Metal Working, a company owned and operated by Kurt McCauley, David McCauley’s son, for fabricated metal products. The Company believes that the rates charged by American Engineering for these products are comparable to those that the Company would have paid if it had purchased such products from other suppliers in transactions negotiated at arms length.

Gary P. Kreider has been a Director since April 2002. For over five years Mr. Kreider has been a senior partner in the Cincinnati law firm of Keating Muething Klekamp PLL, the Company’s outside counsel.