Advanced Optics Electronics Inc. Readies 'COLOR-CHECK' for Production; Biomoda Set to Have In-House State-of-the-Art Research Lab.

Business Editors

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Oct. 3, 2003

COLOR-CHECK, the innovative and cost-effective color speech processor being readied for production by Advanced Optics Electronics Inc. ("ADOT") (OTC BB:ADOT), will undergo final testing now that the prototype assembly is nearing completion. Production schedules will coincide with the letting of contracts to subcontractors for supplies and to participate in a scaled-up assembly. A 60-day time frame is in place. Potential large-volume buyers are seeking commitments for production.

The company has filled the position of internal controller as part of its planned staff expansion previously disclosed. A search is underway for an MBA candidate to serve as in-house financial analyst.

Biomoda Inc. (of which ADOT now directly and indirectly owns and controls 30%) is continuing to satisfy NASD pre-sale processing requirements. Subject to staff comments, it is reasonably expected that this process will be completed very soon. The NASD processing in the pre-sale stage is experienced by all registrants subsequent to SEC approval.

Construction of a state-of-the-art laboratory has been initiated by Biomoda Inc. Cell culture development and analysis will be conducted as well as in depth study and analyses of sputum samples. Flow cytometry will also be accommodated as an in-house function rather than the need and delays involved in outsourcing.

Advanced Optics Electronics Inc. is a technology company based in Albuquerque, N.M. The company maintains an R&D facility and manufacturing plant, and is engaged in building large-scale flat panel displays utilizing its patented and patent pending technology.

In addition to the core business of ADOT, the company has made a strategic technology-oriented investment in Biomoda Inc. Biomoda Inc. is a company that holds patents and patents pending domestically and internationally for the early detection of lung cancer. ADOT currently holds directly and indirectly 30% of Biomoda Inc.

This news release contains forward-looking statements that involve a high degree of risk and uncertainty. Such statements include, but are not limited to, statements containing the words "believes," "anticipates," "expects," "estimates," and words of similar import. The company's actual results could differ materially from any forward-looking statements, which reflect management's opinions only as of the date of this report, as a result of risks and uncertainties that exist in our operation, development efforts and business environment. The company undertakes no obligation to revise or publicly release the results of any revisions to these forward-looking statements. You should carefully review the risk factors in other documents that the company files from time to time with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q.