FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * SFERRA JAMES P/   2. Issuer Name and Ticker or Trading Symbol LSI INDUSTRIES INC [LYTS] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive VP - Manufacturing (Last) (First) (Middle) LSI INDUSTRIES INC., 10000 ALLIANCE ROAD 3. Date of Earliest Transaction (Month/Day/Year) 09/04/2007 (Street) CINCINNATI, OH 45242 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Shares 09/04/2007   M   9,375 A $ 8.07 343,145 D   Common Shares 09/04/2007   F   3,613 D $ 20.94 339,532 D   Common Shares               12,622 I Held by Trustee for Children Common Shares (1)               31,970 D

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Option to Buy

$ 8.07

09/04/2007

M

9,375

09/04/1999(2)

09/04/2007

Common Shares

9,375

$ 0

0

D

Option to Buy

$ 8.23

07/03/2001(3)

07/03/2010

Common Shares

28,125

28,125

D

Option to Buy

$ 11.68

11/14/2003(4)

11/14/2011

Common Shares

18,750

18,750

D

Option to Buy

$ 9.96

(5)

10/27/2014

Common Shares

30,000

30,000

D

Option to Buy

$ 17.6

(6)

08/24/2016

Common Shares

25,000

25,000

D

Option to Buy

$ 19.76

(7)

08/24/2017

Common Shares

20,000

20,000

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
SFERRA JAMES P/ LSI INDUSTRIES INC. 10000 ALLIANCE ROAD CINCINNATI, OH 45242	X		Executive VP - Manufacturing

Signatures

Ronald S. Stowell, Attorney-in-Fact for James P. Sferra		09/06/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Common shares held in the LSI Industries Inc. Non-Qualified Deferred Compensation Plan.
(2)	Options are exercisable at a rate of 40% on 2nd grant date anniversary and 30% on 3rd and 4th grant date annversaries, cumulative to the extent not exercised in a prior year.
(3)	Options are exercisable at a rate of 43% on 1st grant date anniversary, 43% on 2nd anniversary and 14% on third anniversary, cumulative to the extent not exercised in a prior year.
(4)	Options are exercisable at a rate of 30% on the 2nd grant date anniversary, 45% on 3rd anniversary and 25% on 4th anniversary, cumulative to the extent not exercised in a prior year.
(5)	Options vest on the anniversary of the grant date, 15% in 2005, 33-1/3% in 2006, 33-1/3% in 2007 and 18-1/3% in 2008.
(6)	The options vest in equal annual amounts of 25% per year beginning on August 24, 2007.
(7)	The options vest in equal annual amounts of 25% per year beginning on August 24, 2008.

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