Advanced Photonix, Inc. Awarded $600,000 Contract for U.S. Navy's Arc Fault System Contact: Advanced Photonix, Inc.

CAMARILLO, Calif.--(BUSINESS WIRE)--October 25, 2000

Advanced Photonix, Inc. (AMEX:API) today announced that it has received a $600,000 contract from the U.S. Naval Surface Warfare Center, Carderock Division, for the wide band photosensor used on the Navy's Arc Fault Detector (AFD) system.

The AFD system was developed to detect electrical fires on Naval vessels caused by switching faults. The wide band photosensor utilized in the system contains a hermetically sealed, specially designed UV detector. Included in this hermetic package are light emitting diodes (LEDs) that are used to perform real-time self-testing. The sensor is routinely tested by bouncing the light from the LEDs from the back of the hermetic package's special window onto the photodiode surface. This self-testing achieves an end-to-end test.

The photosensors are located within the electrical switching cabinets. When a valid electrical arc is recognized, the photosensor detects the large UV signature and signals the system. The system trips the appropriate remote breakers, which cut off the flow of current to the AFD-protected switchboards. The early detection of an electrical arc followed by a subsequent power shut down can dramatically limit the potential damage to a protected ship. Often, such damages are limited to smoke damage which does not result in major repairs or compromise the safety of the ship and crew or adversely affect the ship's mission.

In commenting on the order, Brock Koren, API's President and Chief Executive Officer, said "The Arc Fault award, in conjunction with the Rolling Airframe Missile (RAM) contract received earlier this year and other military bookings, sets API's military aerospace revenues back on track for the current fiscal year. Although we are still focused on increasing revenues with our patented large area avalanche photodiodes and FILTRODE(R) technology within new market segments, our military business helps us maintain a leadership position in photonic detection technology."

Advanced Photonix, Inc. is a high technology company which designs and manufactures silicon photodiodes, FILTRODE(R) detectors, optoelectronic hybrid assemblies and proprietary solid state large area avalanche photodiodes. Information on Advanced Photonix is available on the World Wide Web 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.