Advanced Photonix, Inc. Announces Terahertz Development Contracts with Department of Defense.

ANN ARBOR, Mich. -- Advanced Photonix, Inc.(R) (AMEX: API) announced today that it has received two Department of Defense Small Business Innovation Research (SBIR) contracts totaling $200,000 to determine the feasibility of utilizing terahertz (THz) technology for defense applications. One contract is with the Office of Naval Research (ONR) and the other with the United States Air Force (USAF). Each contract is a Phase I feasibility project in the maximum amount of $100,000, with an expected duration of 12 months from the start of the project. If either project is deemed successful, the Company can elect to apply for Phase II awards to further develop the technology. If awarded, the contracted amounts could range up to a maximum of $750,000 per project, with a maximum funding duration of two years. The Company will own the rights to any developed technology and is free to commercialize it in both private and/or military markets.

The USAF contract is for non-destructive testing (NDT) application development and proposes to demonstrate the feasibility of using the company's current THz products to test advanced composite materials that protect radar systems by identifying defects such as delaminations and water intrusion. . Additional application development feasibility work will be conducted to detect other defects, such as metal intrusions, resin poor or rich areas and fluid contaminations (e.g., oil, fuel) in other materials such as aircraft composites.

The ONR contract is exploratory research to determine the feasibility of developing field-portable, passive, continuous wave THz imaging product for anti-terrorism/force protection by detecting concealed terrorists' threats from a distance. Passive THz is a method of detecting THz radiated by the body and requires extremely sensitive detection techniques due to the body's weak THz emission. Beyond the Navy, this THz imaging technology could have applications in defense and homeland security markets.

Richard (Rick) Kurtz, Chairman and CEO of API, stated, "These SBIR contracts help us build on the success that we have started with NASA and the TSA in developing our standard THz systems for a variety of applications. Our success in moving THz out of the laboratory and into the field and factory floor is dependent upon our application development."

About Advanced Photonix, Inc.

Advanced Photonix, Inc.(R) (AMEX: API) is a leading supplier of opto-electronic solutions and Terahertz instrumentation to a global OEM customer base. Products include the patented High speed optical receivers in APD and PIN configurations and silicon Large Area Avalanche Photodiode (LAAPD), PIN photodiode and FILTRODE(R) detectors. 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; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; 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.