Advanced Photonix, Inc. Announces Terahertz Phase II Contract Award.

ANN ARBOR, Mich. -- Advanced Photonix, Inc.(R) (AMEX: API) announced today that its subsidiary, Picometrix, has received a follow-on $750,000 Phase II SBIR contract from the Air Force for further non-destructive testing (NDT) application development involving the testing of radomes for defects such as delaminations and water intrusion utilizing the T-Ray 4000 terahertz system platform. Radomes are the geometric structures used to protect radar systems from the elements.

Radomes are made of advanced composite materials and are exposed to a variety of conditions that can cause damage, which can lead to structural delamination and water intrusion. Damage to the radome can ultimately result in the radar system becoming impaired and/or inoperable If a defect is accurately located, a variety of repairs are possible. The current defect identification and location method now in use by the Air Force is simple, but is subjective, inaccurate and tedious. As a result, the Air Force is interested in utilizing a new, objective and accurate method for preventive maintenance to help ensure that its radar systems are functioning properly.

In the Phase I feasibility study the Company demonstrated that terahertz NDT measurements were well suited for accurately locating and characterizing the defects in radome material. The Phase II work will concentrate on the design, development, and testing of a hand-held terahertz radome imager. This new method of testing will not only address maintenance needs, but will also enable a constant understanding of the overall structure's degradation rate and allow a more accurate forecast of its remaining operational lifetime.

In addition to field inspection, the T-Ray 4000(TM) is ideally suited for quality control applications for the manufacture of radome panels, including monitoring resin application and curing. The modular T-Ray 4000(TM) system platform could also be used to perform NDT on a variety of other composite structures and other applications in homeland security and industrial markets.

"This radome imaging application is just another example of the extensive

list of NDT markets for our terahertz technology. Our T-Ray 4000(TM) system platform is ideally suited for on-line, real time applications that address difficult and high value-added NDT challenges," commented Richard (Rick) Kurtz, CEO of API.

About Advanced Photonix, Inc.

Advanced Photonix, Inc.(R) (AMEX: API) is a leading supplier of optoelectronic semiconductor components and subsystems and terahertz instrumentation to a global OEM customer base. Products include the patented InGaAs high-speed optical receivers in APD and PIN configurations and silicon PIN, large area APD and FILTRODE(R) detector configurations. 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.