August 23, 2007 — API Nanotronics Corp., supplier of electronic components and nanotechnology expertise to the defense and communications sectors, has announced record annual revenues ($20,532,010 compared to $15,634,093 in 2006) and positive cash contributions from operations for the fiscal year 2007. For Q4 2007, record revenues of $7,855,476 represent an increase of 93% over Q4 2006 revenues.

“This was an extremely exciting year for API Nanotronics. Through the acquisition of National Hybrid, we doubled the revenues of the company on a pro forma basis and set the foundation for our transition from a supplier of traditional electronics to a one-stop advanced design and manufacturing partner to the defense, communications and aviation industries,” said Phillip DeZwirek, Chairman and CEO. “In addition, the hiring of Dr. Martin Moskovits as Chief Technology Officer and the recent acquisition of the assets of NanoOpto Corp. position API as a leader in the field of Nanotechnology. Looking to the year ahead, we expect these actions to begin to deliver tangible results for the company and our shareholders.”