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APIEF (OTCBB) API Electronics Group, Inc. signs Letter of Intent to acquire TM Systems, Inc.

TUESDAY , DECEMBER 17, 2002 08:01 AM

NEW YORK, Dec 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- API Electronics Group, Inc. (OTCBB: APIEF), a manufacturer of electronic components vital to the reliable performance of high-value military assets, today announced the signing of a Letter of Intent to acquire TM Systems, Inc. With manufacturing operations in Bridgeport, Connecticut and a head office in Albertson, New York, TM Systems is on track to deliver revenues in excess of USD $3-million for the year ending December 31, 2003.

TM Systems is a privately owned corporation that primarily produces equipment and systems for the U.S. government, specifically naval aircraft landing and launching equipment, flight control and signalling systems, radar systems alteration, data communication and test equipment as well as aircraft ground support equipment.

"This is a major step for API Electronics because it allows us to further increase our in-demand product offerings for both current and potential clients," said Tom Mills, President and COO of API Electronics. "TM Systems has built an excellent reputation and strong customer relationships over 30 successful years in business. The company's customer base consists of various U.S. government departments, including the United States Navy, as well as numerous domestic and foreign commercial corporations."

Firmly based in the defense sector, TM Systems supplies critical systems to the U.S. Navy. They include the Stabilized Glide Slope Indicator, which helicopter pilots use to ensure a safe landing, and the Deck Status Light System, which provides helicopter pilots and flight deck crew with information about the status of the landing area.

"This deal signifies the expansion of our core business in military and defense-related electronic components and systems and offers great potential for revenue growth on a long-term basis," added Mills. "It is very much in line with our aggressive growth strategy and allows us to maximize value for the company and its shareholders."

The acquisition is pending the completion of due diligence by API Electronics and the signing of a definitive purchase agreement. It will be an all cash transaction and the closing is expected to take place in early 2003.



ABOUT API ELECTRONICS:


API Electronics Group Inc. and its wholly owned subsidiaries are leading designers and manufacturers of superior quality electronic components and microcircuits with precisely defined functional capabilities. API and its subsidiaries have been providing top of the line parts to numerous global producers of military hardware, telecommunications equipment, computer peripherals, process control equipment and instrumentation for a combined total of over 50 years. With a growing list of blue chip customers, including Honeywell/Allied Signal, General Dynamics, Lockheed Martin, Litton Systems, Harris Corporation and numerous other top technology-based firms around the world, API regularly ships off-the-shelf and custom designed products to clients in more than 34 countries. API owns state-of-the-art manufacturing and technology centers in New York state and Ontario, Canada totaling 48,500 square feet. The company also has manufacturing capabilities in China and a distribution center in Britain. API subsidiary, Filtran, is an ISO 9001 Registered Company. API Electronics trades on the OTC Bulletin Board under the symbol APIEF. For further information about Filtran Group and API Electronics, please visit the company websites at www.filtran.com and www.apielectronics.com.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward- looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in API's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include changes in market conditions in the industries in which the Company operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.

SOURCE API Electronics Group Inc.


CONTACT: Primoris Group, Tel: [phone], [e-mail]
(APIEF)

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