Advanced Photonix Inc. Reports Fifth Consecutive Profitable Quarter.

CAMARILLO, Calif.--(BUSINESS WIRE)--Oct. 26, 1998--Advanced Photonix Inc. (ASE:API), the leading developer and manufacturer of large area avalanche photodiodes (LAAPD), Monday reported its fifth consecutive profitable quarter.

Revenues for the second quarter ended Sept. 27, 1998, were $2.0 million, an increase of 31% over $1.5 million reported in the second quarter last year. Net income rose to $135,000 or $.01 per share, compared with net income of $10,000 or $.00 per share in last year's second quarter. Revenues for the six months ended September 27, 1998, were $4.0 million compared with $3.0 million in the prior year -- an increase of 31%. Net income for the six months was $.02 per share compared with ($.02) per share for the same period of the previous year.

In announcing the results, Harry Melkonian, president and chief executive officer of Advanced Photonix, said, "We are gratified to report our fifth consecutive profitable quarter. While our core products continue to represent the majority of our current revenues, YTD revenues from our emerging LAAPD products rose to $153,000 from revenues of $21,000 reported in last year's six-month period. In addition, our gross profit margins remain strong with 41% margin on Q2 product shipments."

Melkonian went on to say, "In conjunction with our LAAPD product launch, we are building inventory of various LAAPD configurations to support our recently implemented `Technology Evaluation Program' as well as for existing and anticipated orders. We see growing customer interest in the LAAPD product line, which we anticipate will lead to increasing LAAPD revenues in the future."

The company indicated that in conjunction with its new LAAPD marketing campaign, which targets market segments currently utilizing Photomultiplier Tubes (PMTs), customer inquiries have risen as more PMT users evaluate the advantages of a solid state replacement to the old vacuum tube technology. With many performance advantages inherent in the LAAPD product, the company has already achieved early success in applications such as wide-field retinal visualization, high end industrial graphic printing, telecine and ice detection.

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 is a high technology company which designs and manufactures silicon photodetectors, optoelectronic hybrid assemblies and proprietary solid state large area avalanche photodiodes. -0-

                        Advanced Photonix Inc.
                         Financial Highlights

                          Three Months Ended     Six Months Ended
                         Sept. 27,   Sept. 28,  Sept. 27,  Sept. 28,
                            1998       1997       1998       1997
(000s except share data)

REVENUES                   $1,961     $1,502     $3,919     $2,985
GROSS PROFIT MARGIN ON NET
  PRODUCT SHIPMENTS        $  801     $  525     $1,504     $  959
 Percent to Net Product
  Shipments                   41%        38%        38%        35%
NET PROFIT (LOSS)          $  135     $   10     $  257     $ (193)
BASIC NET INCOME (LOSS)
 PER SHARE/a               $ 0.01     $ 0.00     $ 0.02     $(0.02)
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING 10,914,000 10,861,000 10,914,000 10,858,000

NOTE/a: The impact of dilutive shares is immaterial.