Advanced Photonix, Inc. Wins Terahertz Contract to Develop F-35 QC System

Defense News ~ ANN ARBOR, Mich., Jan. 7 /PRNewswire-FirstCall/ -- Advanced Photonix, Inc.(R) (NYSE Amex: API) announced today that its subsidiary, Picometrix, LLC has entered into a Phase II SBIR contract from the Air Force to develop a prototype terahertz quality control system. The system will be based on the patented fiber-coupled T-Ray 4000(R) instrument, and utilized to ensure the proper fit of the coated exterior surfaces of the Lockheed Martin F-35 Lightning II fighter jet, which has been developed under the U.S. Department of Defense's Joint Strike Fighter (JSF) Program. This contract is a continuance of the successful Phase I SBIR feasibility work completed in 2009. The 24 month Phase II contract is valued at $3 million, with an option for an additional $1.5 million, exercisable at the Air Force's discretion. If successful, the Phase II dedicated T-Ray 4000(R) prototype system would lead to deployment of multiple production systems in Phase III.
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 planning to buy more than 3,000 F-35 aircraft from 2013 through 2035 at a total cost of approximately $200 billion. Lockheed Martin is the prime contractor and is responsible for the final assembly of the F-35, uniquely characterized by a combination of advanced stealth with supersonic speed and high agility, sensor fusion, network-enabled capabilities and advanced sustainment. The F-35 has three variants that are derived from a common design, bringing economies of commonality and scale. The focus of the JSF program is affordability -- reducing the development cost, production cost, and cost of ownership of the JSF family of aircraft. The T-Ray 4000(R) nondestructive testing system deployed in Phase III would significantly improve manufacturing efficiency and reduce costs on the expensive process of installing the coated doors and panels on the F-35, in line with the affordability focus of the JSF Program.
The handheld scanner developed under this Phase II SBIR will be a plug-in accessory to the system, making it an option for the company's T-Ray 4000(R) instrument. The scanner could facilitate additional applications which would open new markets. This technology could be utilized for any aircraft, not just the F-35, and could be adapted for other applications including: measurement of coating thickness, subsurface inspection, surface topography measurements, measurement of coating tapers, and coating cure states. A handheld scanner could also be applicable for homeland security applications such as airport personnel scanning for explosives and suicide bombers.
"The application of our T-Ray 4000(R) product platform to help solve the difficult manufacturing challenge posed by the next generation military aircraft is a potentially significant opportunity to deploy multiple systems for the manufacturing and maintenance of the F-35 throughout its life. We believe this is just the first of many manufacturing quality control and process control opportunities for our T-Ray(R) product line in a variety of markets," commented Richard (Rick) Kurtz, CEO of API.
About Advanced Photonix, Inc.
Advanced Photonix, Inc. (R) (NYSE Amex: API) is a leading supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets. With our patented technology and state-of-the-art manufacturing we offer industry leading performance, exceptional quality, and high value added products to our OEM customer base. For more information visit us on the web at 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; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; 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. API-G

Contact:
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5647
Cameron Donahue, Hayden IR (651) 653-1854; cameron@haydenir.com