Advanced Photonix Awarded $1.4 Million Contract for Handheld Terahertz Scanner

ANN ARBOR, MI -- Advanced Photonix, Inc. announces that its wholly owned subsidiary Picometrix, LLC has received a follow-on government development contract from the USAF valued at approximately $1.4M for completion of a handheld terahertz (THz) measurement system to assist in the assembly and maintenance of the F-35 Lightning II Joint Strike Fighter (JSF). The JSF program is the Department of Defense's focal point for defining affordable next generation strike aircraft weapon systems for the Navy, Air Force, Marines, and U.S. allies. The United States and eight JSF international partners are projecting to buy more than 3,000 F-35 aircraft through 2035. Lockheed Martin is the prime contractor and is responsible for the final assembly of the F-35.

An earlier Phase II contract was awarded for this application in 2010 under which a prototype scanner was developed and demonstrated. This contract is to further develop the product for potential use by the government. The Company anticipates recognizing revenue over the next five quarters from this contract beginning this quarter. Upon this contract completion, the company anticipates sales of the T-Ray® 5000 handheld scanner system developed under this contract to be used to improve manufacturing efficiency and reduce the cost of maintenance.

Richard Kurtz, President and CEO of Advanced Photonix, Inc., stated, "The continued support for development of API T-Ray® instruments by the Department of Defense is a testament to the high quality and value of our products. This handheld scanner will join our growing family of nondestructive testing solutions and is in keeping with the DoD tradition of accelerating the adoption of advanced technologies."

The API terahertz handheld scanner builds on a strong and successful heritage of products built on over 15 years of technology advancement in the terahertz field. This technology advancement includes the world's first commercial terahertz systems in 2000, the first compact turn-key systems in 2006, the first industrial on-line deployments in 2011, and the first UL, CE and special hazardous location certified terahertz systems in 2014.

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