A plurality of light emitting diodes (LEDs) disposed in a customized housing produce bright colored light simulating the appearance of a neon sign. The housing includes an opaque portion that reflects light from the LEDs and a translucent portion shaped in the form of an image or lettering that diffuses light from the LEDs. The inside surface of the opaque portion has a polished reflective surface while the outside surface has a dull textured surface. Light emanating from the LEDs propagates through the translucent portion of the housing appearing to a viewer as a bright uniform and colorful light similar in appearance to the light emitted from a neon sign.