Advanced Photonix, Inc. Reports First Quarter FY 2003 Results.

Business Editors

CAMARILLO, Calif.--(BUSINESS WIRE)--Aug. 6, 2002

Advanced Photonix, Inc.(R) (AMEX: API), today reported its first quarter FY 2003 results.

Revenues for the three months ended June 30, 2002, were $1.548 million, or 15% lower than the $1.831 million reported in the prior year. The Company reported a net loss of ($23,000) or ($.00) per share for the first quarter compared with net income of $355,000 or $.03 per share for the same period in the previous year.

The Company indicated that the decrease in quarterly revenues reflects lower sales volume in the medical equipment and medical imaging markets, but noted that revenues in these markets can vary significantly between quarters, depending on customer delivery schedules. The Company expects that for the full fiscal year, it will continue to experience steadily increasing sales to the medical markets and that the full year over year comparison will reveal continued growth in these segments. Sales to the medical markets represented 10% of total net sales for the quarter, as compared to 21% for the first quarter of last year. In addition, sales to the military and aerospace markets remained stable for the quarter, representing 34% of total revenues, as compared to 31% for the same period of the prior year.

As the Company must maintain certain fixed overhead costs relating to production operations, gross margin as a percentage of net sales decreased 9 percentage points to 41% during the first quarter of FY 2003 as compared to the same quarter of the prior year, due to the absorption of these expenses against decreased revenues. The Company indicated that it expects margins to improve as revenues increase. The Company also indicated that current quarter results have been impacted by lower interest income, as rates have continued to decline over the past year. Interest income of $28,000 was reported for the quarter, as compared to $89,000 for the first quarter of last year.

In commenting on the results, Brock Koren, President and Chief Executive Officer of Advanced Photonix, Inc., stated, "Revenues and operating profit did not meet our expectations in the first quarter for a number of reasons; the most significant being current economic conditions. However, my primary message to investors and employees continues to be a positive one. Although visibility remains limited for the remainder of the fiscal year due to general trends in spending, our current outlook for the next quarter and beyond is optimistic. Sales to the medical market sectors are expected to increase throughout the rest of the fiscal year, and we anticipate continued growth in our military and industrial markets. Our backlog remains significant and will provide a solid revenue foundation for the future."

Advanced Photonix, Inc.(R) 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.

                        Advanced Photonix, Inc.
                         Financial Highlights

(000 except per share data)                       Three Months Ended
                                                 June 30,     June 24,
                                                  2002         2001

NET SALES                                       $ 1,548      $ 1,831
GROSS PROFIT MARGIN ON NET SALES                  $ 632        $ 913
Percent to Net Product Shipments                     41%          50%
NET INCOME (LOSS)                                 ($ 23)       $ 355
BASIC AND DILUTED EARNINGS PER SHARE              ($.00)       $ .03
WEIGHTED AVG. NUMBER OF SHARES OUTSTANDING   12,247,000   12,239,000