Lee was the first act to leave after Dermot O'Leary revealed that the aspiring rockstar had received the least public votes in a bottom three that also included Belle Amie and Diva Fever.
After the result, Lee commented: "You know, I just want everyone out there who's ever believed in something to never, ever give up because you haven't seen the best of me yet, let me tell you."
Simon Cowell's groups then took part in a final sing-off, which saw Diva Fever cover Gloria Gaynor's 'I Will Survive' and Belle Amie perform a tearful rendition of Fergie's 'Big Girls Don't Cry'.
After the showdown, Louis Walsh cast the first vote to send Diva Fever home, arguing that Belle Amie "can grow and get better throughout the show".
Dannii Minogue and Cheryl Cole also cast their votes for Diva Fever, giving them the three votes needed to send them home.
"We have had the time of our lives," Diva Fever member Craig Saggers stated after the vote. "This is just mad being on the X Factor. [We] just want to say thank you to Simon for putting us back on the live show, we still feel we can really sing."
His bandmate Josef Al-Smadi added: "We were serious about [the show] and we really wanted to win it, but wanted to smile and have fun and I think we did that."
After half-jokingly blaming their elimination on Cowell's choice of song in yesterday's show, their mentor came on stage and announced: "I accept full responsibility. I let you down and I am sorry."
Cowell now has just two acts remaining in the competition, while Cheryl Cole has become the only mentor to still have all of their acts.