Advanced Photonix, Inc. Announces Acquisition of Silicon Sensors.

Business Editors

CAMARILLO, Calif.--(BUSINESS WIRE)--Aug. 22, 2002

Advanced Photonix, Inc.(R) (AMEX:API) announced today that it has acquired the assets of Silicon Sensors LLC for a cash purchase price of $1.7 million.

Silicon Sensors LLC based in Dodgeville, Wisconsin, is a privately owned developer and manufacturer of optoelectronic semiconductor based components, hybrid assemblies and other proprietary solid-state light and radiation detection devices. For over 35 years it has been providing high quality custom photodiodes and optoelectronic assemblies for applications around the world. Silicon Sensors had revenue of $4.3 million and pre tax earnings of $241,000 in its most recently completed fiscal year which ended September 30, 2001. For the 10 Months Ended July 2002 revenues were $2.5 million and the company incurred an operating loss of $417,000 (including a one-time charge of $114,000 relating to an abandoned acquisition).

Brock Koren, Advanced Photonix's President and Chief Executive Officer, stated, "The acquisition of Silicon Sensors will substantially enhance API's manufacturing capacity and capabilities, broaden our customer base and add depth to our senior management team. Silicon Sensors' customer base is very complementary to API, expanding our sales in the Commercial/Industrial and Communication markets. While its recent results have been disappointing, they reflect the economic downturn in our industry and the economy at large, and we believe that combining their business with ours will enable us to achieve economies of scale and other efficiencies that will lead to a return to profitability."

Richard Kurtz, Chairman of API commented, "This acquisition meets all of the elements of our strategic plan for growth in revenues through internal development and external acquisition. The synergies of these two fine companies should allow us to provide earnings enhancements through gains in productivity as well."

Paul Ludwig, the President of Silicon Sensors, has been appointed Chief Operating Officer of the combined entities, and in such capacity will have the primary responsibility for all manufacturing operations and engineering. Mr. Ludwig has been President and co-owner of Silicon Sensors for the past 5 years. Prior to that he spent 11 years with Honeywell in Sales, Marketing, Business Development and Management capacities.

Advanced Photonix, Inc.(R) (ASE: API) is a leading supplier of innovative, silicon-based electro-optical products and design solutions to a global OEM customer base. Products include the patented Large Area Avalanche Photodiode (LAAPD) and FILTRODE(R) detectors, as well as PIN photodiodes. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.

The information contained herein includes forward looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products, limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company and a decline in the general demand for optoelectronic products.