EXHIBIT 99.1


[GRAPHIC OMITTED]


     APA OPTICS ANNOUNCES NON-BINDING TERM SHEET TO PURCHASE COMPUTER SYSTEMS
                                  PRODUCTS, INC

     MINNEAPOLIS (January 6, 2003) - APA Optics (Nasdaq/NM.APAT) today announced
     that it has signed an exclusive non-binding term sheet with Computer System
     Products, Inc.(CSP), a privately held company, for purchase of all of the
     stock of CSP from the holders thereof for cash, APA common stock and common
     stock warrants, and assumption of certain specific liabilities. The closing
     of the purchase is dependent upon signing of a detailed purchase agreement
     and satisfactory completion of due-diligence, to be completed within 60
     days from signing of the term sheet.

     CSP, Inc. designs, manufactures and markets standard and custom, fiber
     optic assemblies, copper cable assemblies, value-added fiber optic frames,
     panels and modules for the data communication and telecommunication
     industries. CSP's products enable its customers to send voice, video and
     data signals efficiently across all types of networks while maintaining the
     highest level of signal integrity. Anil Jain, PhD, APA's founder,
     president, and chief executive officer, stated that, "We are very pleased
     with the opportunity of acquiring CSP, Inc. due to our common interests in
     the fiber optic communications industry. The purchase will result in
     expanded product portfolio and customer base for our business activities."

     APA  Optics,  Inc.  designs, manufactures and markets advanced products for
the  fiber optic communications, optoelectronics and laser industries, including
Dense  Wavelength  Division  Multiplexer  (DWDM),  ultraviolet  (UV)  detectors,
Nitride  epitaxial  layers  and  custom  optics.  APA's  Internet  address  is
http://www.apaoptics.com.
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APA Optics, Inc. Contact Information:
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Anil K. Jain
Chief Executive Officer and Chief Financial Officer
anil@apaoptics.com
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763-784-4995


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