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APA Optics, Inc. Reports New Limited Orders for Multi-Mode DWDM Product

Major Companies Continue Evaluations of Both Multi-Mode and Single-Mode Products for Integration Into the Systems They Have Under Development

Minneapolis, MN. APA Optics, Inc. (Nasdaq: APAT) reports that it has received an order for four of its new multi-mode fiber multiplexer/demultiplexer units from a U.S. systems developer and an order for one unit from a European systems developer, the latest sales in its marketing of the Company s single-mode and multi-mode dense wavelength division multiplexing (DWDM) products. All of the units have been shipped. Both buyers will now conduct extensive performance tests on the product and analyze its application to integrated products now in development. The names of the customers were not disclosed.

The first announcement of the shipment of APA s new multi-mode product occurred in January 2000, when it was reported that initial quantities of the new product were supplied to a leading optical network company. APA s first multi-mode Mux/Demux unit, built upon the Company s proprietary bulk diffraction grating technology, patent applied for, is a 16-channel 200 Gigahertz (GHz) DWDM, with the capability to add/drop from one to eight channels.

APA reported that in addition, another DWDM research units was shipped to another company ere ordered by, or shipped to, at least three different companies over the last six weeks. The multi-mode DWDMs are intended for applications that use multi-mode fiber, such as local area network (LAN), wide area (WAN) and campus networks. Multi-mode DWDM is growing in significance with the widespread implementation of high speed (multi-gigabit) private data networks. DWDM is used for both increasing the distance over which data can be transmitted on multi-mode fiber and for increasing the speed at which data can be transmitted. The life and capacity of existing installations of multi- mode fiber, often found in office buildings, can be extended many times over with DWDM. The Company said its multiplexer/demultiplexer is key to realizing these additional capabilities.

APA is now actively pursuing the commercialization of its multi-mode DWDM, in parallel with its single-mode products. The Company displayed a full range of DWDMs at the OFC 2000 show last month in Baltimore, Md. Earlier, APA Optics announced the shipment, to a major international supplier of fiber optic networking systems, of research units of its 50 GHz single-mode Mux/Demux product, which provides narrow channel spacing, allowing greater utilization of a given wavelength band. That product is currently available in 8 and 16 channels, but APA s technology lends itself to channel expansion.

"Within the Company, we have demonstrated the feasibility of increasing the channel counts for our 50, 100 and 200 GHz single-mode products to beyond the 16 channels currently offered," said Anil K. Jain, chairman and chief executive officer.

Forward-looking statements contained herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company s current expectations and judgments about future developments in the Company s performance and may be affected by several factors, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of the Company s new products, and other factors discussed from time to time in the Company s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update such statements to reflect actual events.

APA Optics, Inc. manufactures and markets advanced products for the fiber optic communications, optoelectronics and laser industries, including wavelength division multiplexed (WDM) components, ultraviolet (UV) detectors, nitride epitaxial layers and custom optics.

Source:
APA Optics, Inc.
Contact:
Anil K. Jain of APA Optics, Inc., 612-784-4995, or
Roy Wallace of The Wallace Group, 651-452-9800, for APA Optics, Inc.

Anil K. Jain of APA Optics, Inc., 612-784-4995, or
Roy Wallace of The Wallace Group, 651-452-9800, for APA Optics, Inc.
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