Financial Highlights for the Three Months Ended February 29, 2008

--  Revenue for the third quarter of fiscal 2008 was $7.4 million, a 60%    increase over the $4.6 million reached in the same quarter of fiscal 2007.    Revenue in 2008 included a full quarter contribution from the National    Hybrid Group, acquired by API on January 24, 2007;--  Gross profit increased to $1.9 million in the third quarter of fiscal    2008, a 72% increase over fiscal 2007 third quarter gross profit of $1.1    million;--  Gross margins improved to 26% in the third quarter of 2008, compared    to 24% in the same quarter of the previous year;--  Net loss for the quarter was $1.1 million or $0.00 per share, compared    to a loss of $0.2 million or $0.00 in third quarter of 2007 (excluding    expenses related to nanotechnology R&D, net loss for third quarter of 2008    would have been $25,000(1));--  Balance sheet with over $2.0 million in cash and marketable    securities; and--  A strong order flow contributed to a record backlog of over $17.5    million.    

Financial Highlights for the Nine Months Ended February 29, 2008

--  Revenue increased 75% from $12.7 million for the first nine months of    fiscal 2007 to $22.1 million for the first nine months of fiscal 2008;--  Gross profit increased to $5.9 million in the first nine months of    fiscal 2008, an increase of over 96% from the $3.0 million gross profit in    the same period of fiscal 2007;--  Gross margins improved 3% to 27% in the first nine months of fiscal    2008 from the previous year's 24%; and--  Net loss of $3.0 million or $0.01 per share for the first nine months    of fiscal 2008, compared to net loss of $0.8 million or $0.00 per share for    the same period of fiscal 2007 (excluding expenses related to    nanotechnology R&D, net loss for the first nine months of 2008 would have    been $0.6 million(1)).    

Operating Highlights

During third quarter of fiscal 2008, API experienced strong demand for itsproducts and made several strategic advancements that position the Companyfor further growth in future periods.

--  In the third quarter the Company received a record level of orders    totaling over $9.0 million, including a record monthly total of $3.9    million in February;--  In February, API's National Hybrid division introduced its new line of    Aries 1553 communication devices in partnership with Israeli company Sital    Technologies.  The product, a direct replacement for a competitor's    product, represents a significant market opportunity and received a strong    initial reception;--  In February 2008, the Company's TM Systems received a follow-on order    for its specialized landing navigation systems from a longtime customer and    leading defense contractor worth more than $1.4 million; and--  The Company's NanoOpto division has responded to requests from leading    technology companies for proprietary nano-optic solutions in the areas of    next generation storage, communications, display and alternative energy.    The Company has delivered no less than 12 samples with potential to yield    significant orders and leadership in new markets.    

Phillip DeZwirek, Chairman and Chief Executive Officer of API NanotronicsCorp., said, "API is delivering growth through both acquisition and productinnovation and development. The initial response to the introduction ofAries has been impressive and we are structuring sales efforts tocapitalize on this opportunity. We are also extremely encouraged by thelevel of interest in API's nanotechnology capabilities. We expect ourefforts to develop proprietary nanotechnology derived solutions for animpressive roster of global technology leaders to yield significant ordersahead of many of our nanotechnology peers."

About API Nanotronics Corp.

API Nanotronics Corp., through its wholly owned subsidiaries APIElectronics Inc., National Hybrid Inc., Filtran Group, TM Systems II, Inc.Keytronics Inc. and API Nanofabrication and Research Corporation, isengaged in the manufacture of electronic components and systems for thedefense and communications industries. API is also developing a leadershipposition in the R&D and manufacture of nanotechnology and MEMS products.With a growing list of blue chip customers, including Honeywell/AlliedSignal, General Dynamics, Lockheed Martin, and numerous other toptechnology-based firms around the world, API regularly ships products toclients in more than 34 countries. API owns state-of-the-art manufacturingand technology centers in New York, New Jersey, Florida and Ontario, Canadaand has manufacturing capabilities in China and a distribution center inBritain. API Nanotronics trades on the OTC Bulletin Board under the symbolAPIO. For further information, please visit the Company's website atwww.apinanotronics.com

(1): API presents this non-GAAP information as a supplemental figurebecause management believes it provides useful information regardingoperating performance without the impact of its research and developmentefforts related to nanotechnology. This is not a recognized measure underUS GAAP, does not have a standardized meaning, and is unlikely to becomparable to similar measures used by other companies. Accordingly,investors are cautioned that this non-GAAP measure should not be construedas an alternative to net earnings or loss determined in accordance withGAAP as an indicator of the financial performance of the Company or as ameasure of the Company's liquidity and cash flows.

Safe Harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented hereinconstitutes forward-looking statements. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other factors, which maycause the actual results, performance or achievements of the Company to bematerially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factorsinclude general economic and business conditions, the ability to acquireand develop specific projects, the ability to fund operations and changesin consumer and business consumption habits and other factors over whichAPI Nanotronics Corp. and its subsidiaries and affiliates have little or nocontrol.

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