ANN ARBOR, Mich., Jan. 13 /PRNewswire-FirstCall/ -- Advanced Photonix Inc.'s (NYSE Amex: API) wholly owned subsidiary, Picometrix LLC, has entered into a "Fourth Addendum & Extension Agreement" for its lease of the Ann Arbor, MI facility. The 50,000 sq. ft. facility houses the Company's research, development and manufacturing for its terahertz and high-speed optical receiver product platforms, API's corporate headquarters, and the semiconductor microfabrication facility for all three of Advanced Photonix's product platforms. The state-of-the-art facility was completed in 2001 and was designed to meet the unique requirements of the Company's ultrafast optoelectronic product platforms; including InP and GaAs material growth, semiconductor microfabrication, and precision hybrid assembly and high-speed test. In addition, the facility includes an industry leading HSOR laboratory and three secure user laboratories for collaborative terahertz application development.
In 2001, the Company entered into a 10-year lease with two 5-year options to renew at a lease rate tied to the CPI, with a minimum increase for each 5-year option. The original lease included the first right of refusal to purchase the facility and was scheduled to expire in May 31, 2011. The Company amended the lease terms and extended the lease to May 31, 2021. The new lease represents a 19% reduction in lease payments over the new lease term, or approximately $1.6 million in savings. The Company retained the right of first refusal to purchase the property during the new lease term. In addition, the Company negotiated an option to purchase the facility on May 31, 2016 for no less than $7.1 million.
"This represents a significant cost savings for the Company in these challenging economic times, preserves our substantial investments in this unique facility, and ensures our ability to make future investments to support our long-term growth objectives without the expense and disruption of relocating to another facility," said Rob Risser, Advanced Photonix's Chief Financial Officer. "We expect the savings to begin to be reflected in our results in the first quarter of 2010."
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
Richard Kurtz, Advanced Photonix, Inc. (734) 864-5600
Cameron Donahue, Hayden IR (651) 653-1854; email@example.com
SOURCE Advanced Photonix, Inc.