June 3, 2002

News Release: API ELECTRONICS COMPLETES ACQUISITION OF FILTRAN GROUP

NEW YORK, June 3, 2002 -- API Electronics Group Inc. (OTCBB: APIEF) today announced it has completed its acquisition of the privately-held Filtran Group. The acquisition, which immediately increases API's revenues by over 100%, closed on the final day of the company's fiscal year-end, May 31, 2002. The transaction, associated increase in assets and increase in shareholder equity will be reflected in API's FY02 reporting period. In the US $3-million all cash deal, API purchased all of the issued and outstanding shares of the Filtran Group, thereby acquiring its contracts, workforce, real estate and facilities as outlined in the terms of the agreement. Filtran has projected revenues in excess of US $4-million for its fiscal year, to have ended August 31, 2002.

Comprised of Filtran Inc. of Ogdensburg, New York; Filtran Ltd. of Nepean, Ontario, Canada; and Canadian Dataplex Ltd., also of Nepean, Filtran Group is a leading global supplier of superior quality electronic components to major producers of communications equipment, military hardware, computer peripherals, process control equipment and instrumentation. The company also has manufacturing capabilities in China and a distribution center in Britain. In business since 1969, Filtran offers off-the-shelf and custom designed products and regularly ships components to clients in more than 34 countries.

"The Filtran Group has an impressive global list of customers - including General Dynamics, Mitel, British Telecom and Siemens - as well as decades of unparalleled engineering experience and expertise," said Tom Mills, President and COO of API Electronics. "Now that Filtran has joined the API family, we have the opportunity to further expand our product offerings for current and potential customers. Our enhanced product line includes transformers, inductors, filters, power supplies and power conversion equipment, including DC-to-DC converters, DC-to-AC inverters, Off-Line Switch Mode power supplies and Linear power supplies. As well, the acquisition enables us to broaden each company's customer base by cross selling into existing accounts. In addition, our wholly owned manufacturing space has increased to 48,500 square feet."

The Filtran Group, which will continue to operate under existing company names, is now a wholly owned subsidiary of API Electronics Group Inc. The founder and former President of Filtran, Philip White, will continue to play an important role in Filtran's future.

"Filtran's employees will be an excellent resource as API moves forward with its aggressive growth strategy," said White. "The acquisition adds additional engineering strength to the already substantial technical abilities of the API Electronics team and increases API's total employee population to approximately 195. The synergies between our employee groups are extremely important for internal growth and the company and its customers will recognize significant benefits from these synergies."

Filtran is an ISO 9001 Registered Company and is committed to the highest standards of quality management and quality control. Always striving for improved production standards, Filtran is aiming for a product target of plus or minus six sigma. Currently, the company has achieved plus or minus four sigma, meaning that Filtran parts have a process quality rating of more than 99.99 percent.

"The Filtran acquisition further validates API's aggressive growth strategy and shows how API continues to deliver significant results for its clients and its shareholders," said Mills.

API is continuing to investigate additional acquisition targets and is actively involved in exploratory discussions with several companies.


ABOUT API ELECTRONICS:

API Electronics Group Inc. is a leading designer and manufacturer of superior quality electronic components and microelectronic circuits with precisely defined functional capabilities. The company boasts a growing list of blue chip customers, including Honeywell/Allied Signal, Lockheed Martin, Litton Systems and numerous other top technology-based firms around the world. API has been providing top of the line components for military, aerospace, medical and commercial markets for more than 20 years.

The Filtran Group, a wholly owned subsidiary of API Electronics Group Inc., provides parts for numerous global producers of communications equipment, military hardware, computer peripherals, process control equipment and instrumentation. In business since 1969, Filtran offers off-the-shelf and custom designed products and regularly ships components to clients in more than 34 countries. Filtran Group is comprised of Filtran Inc. of Ogdensburg, New York; Filtran Ltd. of Nepean, Ontario, Canada; and Canadian Dataplex Ltd., also of Nepean. The company also has manufacturing capabilities in China and a distribution center in Britain. Filtran is an ISO 9001 Registered Company.

API owns state-of-the-art manufacturing and technology centers in Hauppauge, New York and Nepean, Ontario, Canada, totaling 48,500 square feet. 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.

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