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Advanced Photonix, Inc. Announces Closure of Dodgeville Facility

Business Wire, Sept 27, 2007

ANN ARBOR, Mich. -- Advanced Photonix, Inc. (R) (AMEX: API) today announced that a decision has been made to close the Dodgeville, WI assembly facility and transfer all of the operations to the Company's Camarillo, CA facility. The targeted date for the closure is on or before December 31, 2007. API acquired the Dodgeville operation as part of the acquisition of Silicon Sensors, LLC in August, 2002.

In making this decision, the Company assessed capacity requirements considering the growth within the Optosolutions Product Platform; the recent upgrading and current ongoing consolidation of existing wafer fabrication production to Ann Arbor, Michigan; and the general operating requirements at each of the Company's three manufacturing facilities. The Company concluded that it was necessary to adjust production capacity to more appropriately match product demand and customer requirements, while improving the efficiency of the Company's overall manufacturing operations in the Optosolutions Product Platform.

The Company will take a one time charge of approximately $520,000 in the second quarter for the closure, and will be terminating the 31 Dodgeville employees by the end of the calendar year. Based on anticipated product demand, the Company will most likely require a modest increase in the direct labor force at Camarillo over time, but no additional staffing decisions have been as of this date.

Richard (Rick) Kurtz, Chairman and CEO of API, stated, "We would like to thank our Dodgeville employees for their dedication and service over the past 6 years. They have made many contributions in helping us build API to where it is today. The consolidation, while not pleasant, is in the best interest of our shareholders. We will work with our Dodgeville employees to insure a smooth transition."

About Advanced Photonix, Inc.

Advanced Photonix, Inc.(R) (AMEX: API) is a leading supplier of optoelectronic semiconductor components and subsystems and terahertz instrumentation to a global OEM customer base. Products include the patented InGaAs high-speed optical receivers in APD and PIN configurations and silicon PIN, large area APD and FILTRODE(R) detector configurations. 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; 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.

COPYRIGHT 2007 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
 

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