Advanced Photonix ® (NYSE Amex: API), the leading supplier of terahertz systems to industry, announces today that it has received $760,000 in orders for multiple T-Gauge ® systems. These systems will be delivered to API’s Japanese distributor, Spectra Design Ltd., in API’s third quarter and will be deployed on a manufacturing line providing 100% inspection of a packaged product for quality control. This is the first industrial deployment of terahertz (THz) in Japan. In addition to the deployed systems, Spectra Design has purchased a system to utilize in their lab for further sales support and application development. The T-Gauge ® systems will inspect individual packages for contaminates or anomalies in a powder. This high-speed application was jointly developed by API and our distributor. The system will scan each individual package in five seconds using both imaging and waveform analysis to determine product quality. The ability of THz energy to penetrate non-conducting materials allows inspection of packages containing solid and liquid products. The wide frequency content and high precision of the T-Gauge ® system provides sensitivity to both physical and chemical changes in the product. Measurement of thickness, density, and certain material properties can be used to monitor the quality of manufactured products. Spectra Design says, “We would like to express our deep appreciation for API's support in developing this groundbreaking terahertz application. Without the technically superior T-Gauge ® system, this solution would not have been possible. The emerging market for THz industrial nondestructive testing applications has just begun in Japan and API’s T-Gauge ® system is the first reliable THz system capable of meeting the demands for this market. We look forward to developing the on-line, real-time industrial market in Japan through our cooperative relationship with API.” “This represents the first industrial quality control deployment of our terahertz systems in a foreign market,” said API CEO Richard Kurtz. “We are pleased to be working with Spectra Design, an established and respected member of the THz community. In addition to being our first industrial deployment in Japan, it is also the first industrial imaging application for on-line quality control using THz and expands the number of future industrial applications for our T-Gauge ® systems.” About Spectra Design Ltd. Spectra Design Ltd. Is located in Tochigi, Japan and has provided nondestructive/noncontact inspection solutions to the Japanese market since 2004. The company specializes in utilizing leading-edge optical measurement technologies to develop solutions for difficult industrial testing applications to fulfill our customer’s requirements.