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Advanced Photonix, Inc. Announces Sale of Two Development Systems and Strategic Relationship with Appleton Papers

Advanced Photonix, Inc.® (NYSE Amex: API), the leading supplier of terahertz systems to industry, announces today that it has sold two systems under a development agreement with Appleton Papers Inc. Appleton Papers is a specialty coating developer and manufacturer of thermal, carbonless, security and specialty papers. The two systems will be initially deployed on a pilot manufacturing line to provide inspection and quality control of current and newly developed coated products. The goal is to transfer these units to full-scale production equipment once the quality objectives have been demonstrated. The ability of terahertz energy to perform various critical measurements, replacing nuclear gauges, for the paper industry was verified by the U.S. Environmental Protection Agency and production testing was performed at Appleton Papers' plant in Appleton, Wisconsin. The wide frequency content and high precision of the Advanced Photonix terahertz industrial system allows measurement of caliper thickness, density, basis weight and coat weight, and can be used to monitor the quality of the product being produced.

"This opens the paper coating market and is a further step in the deployment of our T-Gauge® system into the industrial market", said API CEO Richard Kurtz. "We are pleased to be working with Appleton, an established and respected member of the paper industry. This is the first deployment, in the world, of a terahertz system in the paper industry for on-line quality control. With this sale we continue to expand the number of future industrial applications, customers and worldwide markets for our T-Gauge® systems."

"We are excited to deploy T-Gauge® measurement systems on our pilot coating line to further develop and use the measurement technology in coating applications. We plan to utilize the technology to give us new insights into coating design, application method, and product quality," said Jason Morgan, research services manager for Appleton Papers.

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