Management PresentationSeptember 2011

FORWARD LOOKING STATEMENTSFORWARD LOOKING STATEMENTS• This presentation about API Technologies Corp. (the “Company”) includes forward‐looking 

statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects or future results of the business, operations or financial position of API made in this presentation are forward‐looking. We use words such as believe, expect, anticipate, intends, estimate, forecast, project, should and similar expressions to identify forward‐looking statements. Forward‐looking statements are based on management’s current expectations of our near‐term results, based on current information available pertaining to us and are inherently uncertain. We wish to caution investors that any forward looking statements made by or on our behalf are subjectwish to caution investors that any forward‐looking statements made by or on our behalf are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other risk factors include, but are not limited to: the affect of the unfavorable global, national and local economic conditions on our customers and our businesses, the affect of the current economic crisis on our ability to effect our business plans and strategies, the changing political conditions in the United States and other countries, governmentalstrategies, the changing political conditions in the United States and other countries, governmental laws and regulations, anticipated government  budget changes, international trading and export restrictions, customer product acceptance, and access to capital markets, and foreign currency risks. These risks and uncertainties, as well as other risks and uncertainties could cause our actual results to differ significantly from management’s expectations.  New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward‐looking statements. We assume no obligation to update or revise any forward‐looking statements made herein or any other forward‐looking statements we make, whether as a result of new information, future events, or otherwise. 

2

API TECHNOLOGIES – COMPANY HIGHLIGHTSAPI TECHNOLOGIES  COMPANY HIGHLIGHTS

• Leading provider of electronic systems, subsystems, RF, and security products and services for defense, aerospace and commercial applicationsproducts and services for defense, aerospace and commercial applications

• Wide range of RF, components, and subsystems solutions

• Enhanced engineering, and electronics design and manufacturing capabilities

• Cyber security and information assurance products

• High degree of technical proficiency which allows for early engagement and design wins, which ties API to its customersg ,

• >95% re‐compete win rate; 50% win rate on new contract bids

• Decades‐long relationships with key defense contractors, including: Boeing, General Dynamics Lockheed Martin Northrop Grumman and RaytheonGeneral Dynamics, Lockheed Martin, Northrop Grumman and Raytheon

• Electronic solutions provider on virtually all major defense programs 

3

KEY FACTSKEY FACTS

• Company:  API Technologies Corp.

E h /Ti k NASDAQ ATNY• Exchange/Ticker: NASDAQ:  ATNY

• Share Price (9/9/11): $4.88

• 52‐Week High / Low: $8 25 / $3 32• 52‐Week High / Low: $8.25 / $3.32

• Shares O/S Basic/Diluted: 54.6 million / 58.0 million

• Insider Ownership: 40%p

• Market Cap: $275 million

• Enterprise Value: $425 million

• Revenue (1): $353 million

• EBITDA (1): $52 million

4

(1): LTM period ending May 31, 2011. Includes API Technologies, SenDEC & Spectrum Control; and net $13.0 million implemented and being realized cost reductions

CORPORATE HISTORYCORPORATE HISTORY• Over 40 years of operating history

• Organic growth supplemented with bolt‐on acquisitions

F d i d t t t d i th d f l t i l• Focused on growing product content and moving up the defense electronics supply chain to generate higher margins

SenDEC Spectrum2011

1972

1981 2002 2003 2004 2006 2007 2009 2010

Formation Filtran TM Systems Keytronics CryptekIslip Transformer

Kuchera

SenDEC(January)

NHI

Spectrum(June)

Formation

2011

1998 1999 2004 2007 2009 20102005 2008200620021968 20111998

Potter Production .

1999

AMP Signal Conditioning Products

2004

Salisbury Engineering(February)

REMEC Components

2007

EMFSystems

2009

MicroNetworks

2010

DRS Signal SolutionsProduct Line(June)

Sage Laboratories(June)

2005

JDK Controls(October)

Amplifonix(February)

SatConElectronics

20082006

AdvancedThermalProducts

2002

FSYMicrowave

Formation

1968 2011

5

Components(October)

(June)

Summit Instruments(October)

A STRATEGICALLY FOCUSED MARKET LEADERA STRATEGICALLY FOCUSED MARKET LEADER• Merging with Spectrum Control transforms API Technologies from an 

S d i d li

Commercial / Consumer 3%Aerospace 4%

9%

EMS dominated supplier to a proprietary and differentiated product and solutions focused company

Communications

p

14%

70%

• Spectrum Control adds $2Bn RF / microwave SAM and creates a scalable defense electronics platform

DefenseMedical / Industrial

• LTM(1) Pro Forma Revenue and Adjusted EBITDA of $353MM and $52MM respectively (14 7% margin)(2)

LTM(1) End Market Mix$52MM, respectively (14.7% margin)( )

• Total Employees:  2,215 • Mexico & China headcount: 583

6

(1) LTM period ending May 31, 2011(2) Including net $13.0MM implemented and being realized cost reductions

ATTRACTIVE PRODUCT PORTFOLIOATTRACTIVE PRODUCT PORTFOLIO

6%

Secure Systems & Information Assurance

Electronics ManufacturingServices

• Mergers broaden product offering and provides access to new growth platforms and programs

26%20%Systems &

SubsystemsSolutions

Services― Deepens value proposition and 

increases customer mind share with top tier defense companies

48%

RF Solutions

• Provides for the realization of significant cost savings and cross‐selling opportunities

LTM(1) Product Mix• Improves stability and operating margins

7

(1) LTM period ending May 31, 2011

EXPERIENCED MANAGEMENT TEAMEXPERIENCED MANAGEMENT TEAM

BRIAN KAHN, Chairman & CEOM i M b d F d f Vi t C it l M t

id &

Managing Member and Founder of Vintage Capital ManagementInvested in and served on Executive Boards of several public and private defense  companies, including White Electronics, Veritek, OnCore Manufacturing and Integral Systems (NAS:ISYS)

BEL LAZAR, President & COOOver 25 years of experience in the defense, semiconductor and technology sectorsMost recently served as the Senior Vice President of Operations at Microsemi CorporationPreviously spent over 22 years at International Rectifier in expanding leadership and general 

l l i i Vi P id f h C ’ A & D fmanagement roles, culminating as Vice President of the Company’s Aerospace & Defense business unit Has completed over 25 consolidations within the Aerospace & Defense electronics sector

JACK FREEMAN, CFOAppointed to the position of CFO of Spectrum Control in 1990Previously was a Principal with the Certified Public Accounting firm of Root, Spitznas & Smiley, Inc. 

8

DIVERSE PRODUCT OFFERINGSecure Systems &

Information AssuranceSolutions (SSIA)

Systems & Subsystems Solutions (S3)

RF Solutions(RFS)

Electronics Manufacturing Services

(EMS) Solutions

DIVERSE PRODUCT OFFERING

Engineered systems for cyber

LTM(1) Revenue by Division: $20mm (6%)

Highly engineered discrete

LTM(1) Revenue by Division: $69mm (20%)

Custom & off-the-shelf RF,

LTM(1) Revenue by Division: $171mm (48%)

Electronics design,

LTM(1) Revenue by Division: $93mm (26%)

g y ysecurity used by global governments, defense agencies & enterprise.

products & subsystems solutions for defense & commercial customers.

microwave & millimeter wave solutions for high-performance applications.

gengineering & manufacturing services for defense & commercial customers.

Netgard™ EncryptionSuite

Lightweight ComSuite

NHi-1565Dual Transceiver

API™ Hawk i™Video Aiming Device

Integrated MicrowaveAssembly (IMA)

SAW Module New Product Introductions (NPI) Biometric Security

Device

ION™ SA5600 Secure Appliance

TEMPEST VoIPPhone

Laser Night VisionTest Set

Raytheon CircuitCard Re-Design

Power Systems Management

Precision Sensors Counter IEDTechnology

Flexible SMTManufacturing

9

(1) LTM period ending May 31, 2011

FEATURED SUBSYSTEMS: MILITARYMILITARY

Falcon Radio• UHF satellite radios used by troops around the world

API Technologies makes  

y p• API makes 14 different required components

CREW Program• Counter IED technology by Syracuse Research

specialized subsystems

that enable defense 

by Syracuse Research• API makes circuit cards, assemblies, filters, IMAs, specialty connectors & power modules

Joint Strike Fighter (JSF)

customers to achieve mission 

demands

Joint Strike Fighter (JSF)• Lockheed Martin aircraft replacement program• API makes MIL-STD-1553 data bus, position sensors, transducers, filters, hybrids,

f &demands

Patriot Missile• Primary Surface-to-Air Missile (SAM) used by U.S.

d Alli d f

passives, film capacitors & power modules

10

and Allied forces• API makes precision position sensors, transducers, hybrids, IMAs & SAW filters

FEATURED SUBSYSTEMS: COMMERCIAL & INDUSTRIALCOMMERCIAL & INDUSTRIAL

Surgical Equipment

API Technologies makes  Commercial Aircraft

• da Vinci™ robotic surgery system by Intuitive Surgical®• API makes high-reliability positioning sensors

critical subsystemsthat enable major manufacturers to 

• Boeing® (777 & 787), Airbus®, and others• API makes custom hybrids and filter technology

HVAC Systems

meet application requirements

HVAC Systems• Carrier® industrial-grade HVAC units and boilers• API makes the company’s critical temperature sensing components

Data Centers• Ciena® network devices• API makes power management and cycling technology for a variety of the company’s products

11

the company s products

FEATURED SYSTEMSFEATURED SYSTEMS

Unmanned Aerial Vehicle• Designed with Army

API Technologies makes  OSSCAR RORO

• Roll-on, Roll-off system for

• Designed with Army• Lightweight, collapsible, man-launchable UAV

innovative systemsthat offer 

competitive 

Roll on, Roll off system for military aircraft• Within 20 minutes turn any C-130 into a high-tech surveillance aircraft

ODIS™/M2P2padvantage and 

superior reliability

ODIS /M2P2• Robotic, under vehicle inspection system • Used in Iraq, Afghanistan and at the Superbowl

Hawki™• Leading video aiming system used for explosive device detection and disposal

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NICHE, MARKET LEADING POSITIONSNICHE, MARKET LEADING POSITIONS

• One of the largest selections of high reliability RF / microwave systems and l ff ld d h f l l fsolutions offerings worldwide, with 7 filter platforms

• ~90% of EMS(1) business is “Copy Exact,” resulting in high customer switching costs

• Differentiated products with a large percentage of sole source positions

RF Solutions (RFS)

p g p g p

Electronics ManufacturingServices (EMS)

Other

Systems & Subsystems Solutions (S3)

Other

Secure Systems &Information Assurance (SSIA)

Other

30%

13%

57%

Sole

Other

60%

5%

35%PrimarySource

24%

5%

71%

PrimarySource

45%

5%

50%

PrimaryS

SoleSource

SoleSourcePrimary

Source SoleSource

SoleSource

Source

13

(1) Electronics Manufacturing Services(2) LTM period ending May 31, 2011

DIVERSE, BLUE‐CHIP CUSTOMER BASEDIVERSE, BLUE CHIP CUSTOMER BASE

• Long‐standing, deep relationships built Top 10 Customers

# of Programson customer collaboration

• Over 1,500 customers 

Tenure # of Programs / Projects

> 20 6

> 20 6

• Serve all the key defense contractors and a range of leading commercial companies 

>20 29

Leading Financial Institution 2 1

> 20 22

• Direct supplier to the U.S., U.K and Canadian governments, with several cleared facilities

> 20 22

12 21

> 20 12

cleared facilities

• Exposed to multiple end markets

> 20 38

7 7

6 3

14

6 3

SIGNIFICANT COST REDUCTIONS & SYNERGIES IMPLEMENTED & BEING REALIZED

Public Company Costs• Audit fees

SYNERGIES IMPLEMENTED & BEING REALIZED

$MM

$1.4$1.9

$10.8

($1.1)$51.9

60

70• Director fees• Financial public relations• D&O insurance

Corporate Head Office Costs• HQ operating expenses

$38.9

30

40

50• HQ operating expenses• President & CEO• CFO

Cost Reduction & Consolidation Activities• Segment consolidations Net Cost Reductions & Synergies Implemented = $13.0MM

10

20

30• Facility consolidations• Transfer of commercial product 

platforms to China / Mexico• Centralization of sales, marketing, 

planning and purchasing 

0LTM

Adj. EBITDAPublic

Company CostsCorporate Head

Office CostsCost

Reductions & Consolidation

NewCorporate

Staff

LTMAdj. EBITDA +

Synergies

• Elimination of external machining

New Corporate Staff• New President & COO• New CFO

(1)(1)

Activities

15LTM period ending May 31, 2011

HIGHLY FLEXIBLE, LOW COST PRODUCTION BASEPRODUCTION BASE

Production Base Differentiators Description

Vertical Integration• Self‐sufficient and autonomous supply chain at Spectrum Control

• Extremely quick new design turnarounds

• Short product lead‐times ‐ less than 4 weeks 

High Flexibility• Non‐unionized work force with at will contracts

• Majority of facilities operate single shifts 

Low Cost• Facilities in Mississippi, Mexico, and China

• Mexico facility has certifications to produce cost‐sensitive ITAR controlled 

products 

Low Capital Requirements • CapEx / Sales of ~1.5%

16

DIVERSE AND ATTRACTIVE PROGRAM/PRODUCT EXPOSUREPROGRAM/PRODUCT EXPOSURE

• Over 350 programs / projects

• Top 15 programs / projects represent less than 50% of sales

55.3%

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2011 MILESTONES2011 MILESTONES

• Acquired and integrated SenDEC

• Substantially completed consolidating API Defense• Substantially completed consolidating API Defense

• Secured $170mm debt and $134mm in two private equity placements for the financing of Spectrum Control acquisition

• Obtained S&P rating of B+ and Moody’s ratings of B2

• Acquired Spectrum Control

• Annualized net cost reductions of over $13mm at Spectrum Control which have been• Annualized net cost reductions of over $13mm at Spectrum Control, which have been implemented and are being realized

• Realigned and structured API Technologies organization into 4 divisions                              (S3 RFS SSIA EMS) to better align offerings and serve customers(S3, RFS, SSIA, EMS) to better align offerings and serve customers

• Received AS9100 Rev C certification for Windber and Alum Bank sites

• Listed on NASDAQ

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RECENT WINS

Systems & Subsystems S l ti (S3)

RF Solutions(RFS)

Secure Systems & Information Assurance

Electronics Manufacturing Services

RECENT WINS

Solutions (S3)(RFS) Information AssuranceSolutions (SSIA)

.

Manufacturing Services (EMS) Solutions

. . .$2.6M win for assemblies for Explosive Ordnance Disposal

$2.5M win for circuit boards for surveillance and intelligence-

Critical tuners & for intelligence-gathering systems Revenue est $2 7M

$2.5M award with UK government for secure communicationsOrdnance Disposal

products

Assemblies for electronic warfare technologies ($3.6M)

intelligencegathering products

3-year LTA (up to $3.2M/year) for circuit cards in long-range

Revenue est. $2.7M

Signal filtering, processing and power distribution systems for wireless and optical platforms

communications equipment for mobile and static environments

Secure remote device management ($ )

Disposable electronic devices, which measure blast trauma

g gsurveillance systems

$9M, multi-year agreement for engineering and

p p

$1.9M win for microelectronic components for military aircraft display

gplatform to be used defense-related VoIP network upgrade

Ongoing pilot/testing g genhanced EMS for classified programs

p y g g p gprograms for encryption product at military locations

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HISTORICAL FINANCIALSHISTORICAL FINANCIALS$MM Not Pro Forma (1)

2007 2008 2009 2010 2011API Technologies 27.2 29.9 32.8 110.0 89.0 SenDEC 47.5 32.6 47.4 107.5 93.0 Spectrum Control 136.5 130.7 132.3 163.9 171.2 Revenue $211.2 $193.2 $212.4 $381.4 $353.2

Combined Gross Profit 53.8 41.7 50.3 88.5 82.1(3)

Synergies / – – 7 0(4)Cost Reductions(2) – – – – 7.0(4)

Gross Profit $53.8 $41.7 $50.3 $88.5 $89.1 % Margin 25.5% 21.6% 23.7% 23.2% 25.2%

Combined EBITDA 29.4 19.0 24.7 28.3 38.9Synergies / C t R d ti – – – – 13.0(4)Cost Reductions 13.0

Pro Forma Adjusted EBITDA $29.4 $19.0 $24.7 $47.6 $51.9% Margin 13.9% 9.8% 11.6% 12.5% 14.7%

CAPEX $7.1 $5.9 $4.7 $10.9 $9.7 % Revenues 3.4% 3.0% 2.2% 2.9% 2.7%

(1) 2007 – 2009 are not pro forma for API Technologies acquisitions of Cryptek & Kuchera(2) Impact of the net $13 million cost reductions on gross profit(3) Excludes restructuring costs(4) Implemented and being realized cost reductionsNote: Information for SenDEC reflects only that portion of SenDEC’s business acquired by API Technologies

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BALANCE SHEET(a)BALANCE SHEET

Assets (in $ millions) Liabilities & Shareholders’ Equity (in $ millions)

$Cash & equivalents $20.7

Accounts receivable $40.2

Inventory $67.4

Accounts payable & accrued expenses $30.4

Current debt $0.2

O h $0 8Other $7.9

Total Current $136.2

Other $0.8

Total Current $31.4

Fixed assets $49.8

Long-term debt $172.2

Deferred taxes $34.1

Total Liabilities $237.7

Goodwill & intangibles $324.5

TOTAL $510.5

Total Shareholders’ Equity $272.8

TOTAL $510.5

(a) Pro forma as of May 31, 2011

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(a) Pro forma as of May 31, 2011to include acquisition of Spectrum Control

KEY STRATEGIC HIGHLIGHTSKEY STRATEGIC HIGHLIGHTSNiche, Market Leading Positions

• Sole / long‐term design‐in or primary source positions (89% of LTM(1) sales)• Largest selection of RF/microwave filters for high reliability applications • High degree of technical proficiency and well proven design systems

Diverse, Blue-Chip Customer Base

• Long‐standing, deep relationships with a broad group of leading defense and commercial companies • Collaborate with customers early in product design cycles• Over 1,500 customers and 350+ programs / projects, with exposure to multiple end markets

• Digitization of the battlefield drives favorable long‐term outlook for defense electronics manufacturers

Attractive End Markets

Significant Cost Reductions /

Digitization of the battlefield drives favorable long term outlook for defense electronics manufacturers

• Attractive positions on growth defense platforms – e.g., C4ISR, Electronic Warfare, IPMEIR, Missile Defense, RADAR & UAVs

• Niche, high margin opportunities in the medical, industrial, commercial and consumer industries

• ~$13MM of implemented and being realized cost reductions, through public company and corporate cost takeouts and low risk consolidationsSignificant Cost Reductions /

Synergies

Compelling Financial Profile

cost takeouts and low risk consolidations

• Substantial cross‐selling opportunities with increased customer mind share

• Vertical integration provides capability to function as self‐sufficient supply chain

• Highly flexible, low cost production base 

Experienced Management Team

Profile• Strong cash flow profile driven by capex requirements of approximately NTU of sales

• Average industry experience / tenure of 25 years• Extensive experience in the successful integration of businesses worldwide• Vintage Capital Management is an operations focused owner with a history of success integrating and                    

streamlining assets

22(1) LTM period ending May 31, 2011