Advanced Photonix, Inc. Reports Second Quarter Fiscal 2008 Results.

Revenue Growth 11%, Achieves Positive EBITDA 

ANN ARBOR, Mich. -- First graph, third sentence of release should read: The Company reported a GAAP net loss of $1.9 million, or ($.09) per share fully diluted for the quarter, as compared with a GAAP net loss of $1.1 million, or ($0.06) per share fully diluted, for the second quarter of fiscal 2007 (sted: The Company reported a GAAP net loss of $1.9 million, or ($.00) per share fully diluted for the quarter, as compared with a GAAP net loss of $1.1 million, or ($0.06) per share fully diluted, for the second quarter of fiscal 2007).

The corrected release reads:

ADVANCED PHOTONIX, INC. REPORTS SECOND QUARTER FISCAL 2008 RESULTS

Revenue Growth 11%, Achieves Positive EBITDA

Advanced Photonix, Inc.[R] (AMEX:API) (the "Company") today reported its second quarter fiscal 2008 results ending September 28, 2007. Net sales for the quarter were $6.5 million, an increase of $651,000, or 11%, compared to revenues of $5.9 million for the quarter ended September 29, 2006. The Company reported a GAAP net loss of $1.9 million, or ($.09) per share fully diluted for the quarter, as compared with a GAAP net loss of $1.1 million, or ($0.06) per share fully diluted, for the second quarter of fiscal 2007.

The Non-GAAP net loss for the second quarter of fiscal 2008 was $(86,000), or $(0.00) per share fully diluted, compared to a Non-GAAP net loss of $(81,000) or $(0.00) per share fully diluted, for the comparable period a year ago.

On an EBITDA basis (which is defined as GAAP earnings before interest, taxes, depreciation, and amortization), the Company reported net income of $15,000 for the second quarter of fiscal 2008. This compares to a net loss of $(5,000) for the second quarter of fiscal 2007.

A reconciliation of the Non-GAAP and EBITDA financial measures reported herein to the Company's income as measured by generally accepted accounting principles is presented below.

The Company's revenues for the second quarter 2008 were $6.5 million, an increase of $651,000, or 11%, over the second quarter of 2007 and a 6% increase over the first quarter. Revenues for the six months were $12.7 million, an increase of $1.1 million, or 10%, over the first six months of the prior year. For the six months the Industrial Sensing/NDT market represented 47% of revenue, Telecommunications 21%, Medical 18% and Military/Aerospace 14%. To date there have been no Homeland Security market revenues.

Telecommunications revenues for the first six months of 2008 were $2.8 million, an increase of 14% over the prior year. Telecommunication revenues were $1.6 million for the second quarter, an increase of 26% compared to the first quarter, but a decrease of 10% from the second quarter of 2007.

Medical revenues for the second quarter were $1.4 million, an increase of 183% over 2007 revenues of $481,000. This growth is a result of accelerated end of life purchases by a customer and is expected to be completed by the end of fiscal 2008. Medical revenues for the six months were $2.5 million, an increase of 121% compared to the second quarter of 2007.

Industrial Sensing/NDT revenues increased 9% to $2.6 million in the second quarter, and increased 15% to $5.5 million for the six months compared to the same periods of the prior year. The increases are primarily due to increased Terahertz product platform sales to the NDT portion of the market.

Military/aerospace revenues were $950,000 for the quarter, an increase of 9% from the first quarter, but a decrease of 17% from the second quarter 2007. Revenues for the first six months were $1.8 million, a decrease of 39% from the prior year revenues of $3.0 million.

Richard Kurtz, Chairman and Chief Executive Officer, commented, "We are pleased with our year over year growth for the quarter. The private placement totaling over $4.4 million that we completed during the second quarter improved our balance sheet and will provide additional funds to help us grow future revenues and earnings. We are particularly excited by the application development activities that occurred with our Terahertz Product platform during the second quarter, We continue to experience high level design activity in our HSOR product platform, particularly in the more rapidly developing 40G deployment in the telecom industry, and we remain very bullish about the growth prospects of our HSOR products Finally, we are successfully dealing with the challenges of the wafer fabrication and assembly consolidation which should be resolved by the year end, which will result in significant cost savings and position us solidly for the future."

The Company will hold a conference call to discuss the results for the second quarter ended September 28, 2007 on Monday, November 12, 2007, at 5:00 PM EST. Participants can dial into the conference call at 866-383-8009 (617-597-5342 for international) using the pass code 67944056. The call will be webcast live by CCBN and can be accessed at Advanced Photonix's web site at http://investor.advancedphotonix.com/ or at www.earnings.com. An audio replay of the call will be available shortly thereafter the same day and will remain on-line for two weeks. The replay number is 888-286-8010 (617-801-6888 for international) using pass code 15800768. The Company submitted its 10-Q for the second quarter ended September 28, 2007 for filing with the Securities and Exchange Commission (the "SEC") on November 12, 2007. Since the SEC is closed for Veterans Day, the Company anticipates that the 10-Q will be posted on EDGAR on November 13, 2007. The 10-Q will also be available on November 12, 2007 at the Company's website (www.advancedphotonix.com under the "Investors" link).

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, risks associated with the move of our wafer fabrication facilities, technological obsolescence of existing product lines and 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.

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Non-GAAP Financial Measures

The Company provides Non-GAAP Net Income(Loss) and EBITDA as supplemental financial information regarding the Company's operational performance. These Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP Net Income(Loss) and EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similar measures used by other companies. Reconciliation of Non-GAAP Net Income(Loss) and EBITDA to GAAP net income and loss are set forth in the financial schedule section below.

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Advanced Photonix, Inc.([R]) (AMEX - API) is a leading vertically integrated optoelectronic semiconductor manufacturer of optoelectronic solutions, high-speed optical receivers and terahertz instrumentation to a global OEM customer base. Products include patented silicon (Si), indium phosphide (InP) and gallium arsinide (GaAs) based APD, PIN, and FILTRODE([R]) photodetectors; high-speed optical receivers; and the T-Ray[TM] 2000 and QA1000 THz product platforms. More information on Advanced Photonix can be found at http://www.advancedphotonix.com.