Advanced Photonix Inc. Reports Third Quarter FY 2001 Results.

Business Editors & High-Tech Writers

CAMARILLO, Calif.--(BUSINESS WIRE)--Feb. 2, 2001

Advanced Photonix Inc.(R)(ASE:API) today reported its third quarter FY 2001 results.

Net sales for the third quarter ended Dec. 24, 2000, were $1.8 million, an increase of 33% from $1.3 million reported in the third quarter of the previous year. The company reported net income of $125,000 or $.01 per share, compared with a net loss of $96,000 or ($.01) per share in last year's third quarter. Net sales for the nine months ended Dec. 24, 2000, increased 17% to $5.2 million, as compared with $4.5 million in the same period of the prior year. Year-to-date net income for the nine month period was $344,000 or $.03 per share, compared with a net loss of $694,000 or ($.06) for the same nine month period in the last fiscal year (FY 2000).

The company indicated that current quarter results reflect higher sales volume primarily in the military aerospace market, which increased by 119% over the same quarter last year. In addition, the company was able to recognize planned reductions in overall operating expenses, which decreased 3%, as compared with the third quarter of FY 2000.

Year to date, the company has maintained profitability by improving gross margin and decreasing operating expenses. For the nine months ended Dec. 24, 2000, gross margin as a percentage of sales increased 5 percentage points to 38%, as compared with 33% in the same period of the prior year. The company attributes improved gross margins to greater efficiencies associated with higher volume, as well as increased design revenues, which typically have lower costs. In addition, the company reported that its cost-cutting efforts have resulted in a 16% reduction of operating expenses year to date, as compared with last year.

In announcing the results, Brock Koren, president and chief executive officer of Advanced Photonix, said, "I am pleased with the current period results and happy to report that we have sustained operating profitability through the current fiscal year and for four consecutive quarters. Our primary goals have been, and will continue to be, focused on increasing revenues and improving shareholder value. To that end, we will continue our efforts to further increase profits and explore other opportunities, which will aid us in achieving that goal."

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 share data)        Three Months         Nine Months
                                  Ended                Ended
                            Dec. 24,   Dec. 26,   Dec. 24,   Dec. 26,
                               2000       1999       2000       1999

Net Sales                     $1,788     $1,346     $5,219     $4,474
Gross Profit Margin On Net
  Product Shipments             $642       $518     $1,973     $1,464
 Percent to Net Product
  Shipments                       36%        38%        38%        33%
Net Profit (Loss)               $125       ($96)      $344      ($694)
Basic Net Income (Loss)
 Per Share (a)                 $0.01     ($0.01)     $0.03     ($0.06)
Weighted Avg. Number of Shares
 Outstanding              12,231,000 10,917,000 12,180,000 10,917,000

(a) The impact of dilutive shares is immaterial.