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API Technologies Closes Sale of Assets from Discontinued Nanotechnology Subsidiary

API Technologies Corp. , a prime contractor in highly engineered solutions, systems, secure communications and electronic components to the global defense and aerospace industries, announced today that it has closed the sale of the assets from its previously announced discontinued nanotechnology subsidiary for gross proceeds of approximately $2.3 million.

The Company announced on February 22, 2010 that it was closing its nanotechnology research and development subsidiary in order to focus on its expanding defense business and improve its overall financial performance. Through the closing of this transaction, the Company not only received the cash proceeds but also eliminated the liabilities related to a shut down process, which were expected to be approximately $1.6 million.

About API Technologies Corp.

The Company is a prime contractor in highly engineered solutions, systems, secure communications and electronic components to the global defense and aerospace industry. API Technologies' customers include the governments of the U.S., Canada, the United Kingdom, NATO and the European Union, as well as many of the leading Fortune 500 companies. The Company is engaged in providing innovative design, engineering and manufacturing solutions to its customers. API Technologies trades on the OTC Bulletin Board under the symbol ATNY.

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