Between LEDCorp, the EverLED, Versalux PR-2 LED Bulb, MagmaLED, and some others, Mag must be having a hard time getting a patent (for exclusive rights and gonzo returns from litigation). The other thing may be that their sales are dropping, and have been. In my local Walmart, Mag's display are takes up less than 5 percent of allocated flashlight space. Brinkmann takes up more space than Mag.
Of course they may have enough individual customers wanting an LED product from them, that they decided it was worth getting into. Especially after the 8/14 blackout and hurricane Isabel.
I'm trying hard to be neutral here.