API Acquires PDI

CAMARILLO, Calif., Dec. 22 -- Advanced Photonix, Inc. (API) announced today it has acquired the outstanding capital stock of Photonic Detectors Inc. (PDI) for $1,075,000 cash and 113,572 shares of stock. The amount of cash to be delivered is subject to adjustment to reflect PDI's balance sheet as of the closing date.

PDI, based in Simi Valley, Calif., is a private developer and manufacturer of optoelectronic components and assemblies, specializing in high-performance silicon photodiodes for the industrial control, commercial, military, medical systems and security markets.

Paul Ludwig, API's president, said, "We are pleased to welcome PDI and its employees to the API family. This acquisition furthers our strategy to broaden API's customer base in our target markets and provides us the opportunity to increase our operating margins by leveraging our existing overhead with increased manufacturing volume. We will accomplish this through consolidation of the PDI product assembly into our existing assembly and wafer fabrication facilities. We are also pleased to welcome the owners of PDI, Robert Kinard and Dennis Mattock, to the API team, who bring with them more than a combined 50 years of optoelectronic design, fabrication and sales experience."

PDI recorded net revenues of $2.06 million and a net operating loss of $75,000 for the fiscal year ending March 31, 2004. In the current fiscal year, PDI has recorded net revenue of $1.2 million and a net operating loss of $101,000 for the seven months ending Oct. 31. Despite the recent operating losses, API said it is optimistic about the prospects for future growth through cost leveraging and increased market share.

For more information, visit: www.advancedphotonix.com