Company Selected to Develop Proprietary Nanofabrication Process for Highly Sophisticated Wafer Manufactured Sensors

API Nanotronics Corp. (OTCBB: APIA) ("API" or the "Company"), a leading supplier of electronic systems and sub-systems, components, nano-optics and nanotechnology products to the aerospace, defense and communications sectors today announced an $800,000 order for its NanoOpto division. This order represents the largest order to date for NanoOpto, validating its business strategy in the nano space.

The contract is to develop the fabrication process for an enhanced sensor based on a proprietary strategy. The development phase will be completed in under 12 months, at which point the improved sensors will be ready for large-scale production. Following the sensor's development, API will continue to generate revenues from large-scale wafer-level product runs.

This large contract from a leading MEMS company showcases API's industry leading nanofabrication capabilities. Advanced sensors are used in a variety of industries including defense, medical, consumer electronics and automotive. API's leading nanofabrication platform offers technology companies the ability to create devices that work on both microstructures and nanostructures and to develop nanoscale precision for microscale features.

Stephen B. Pudles, Chief Executive Officer of API Nanotronics Corp., said, "This is an exciting time for our company. We are growing both organically and through acquisitions, and this order is evidence of the strength of our internal research and product development capabilities. We look forward to continuing to grow our NanoOpto division as we expand its product base and customer reach."

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