8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


                         Date of Report: March 17, 2003



                                APA OPTICS, INC.
             (Exact name of registrant as specified in its charter)



         MINNESOTA                      0-16106                 41-1347235
(State of other jurisdiction     (Commission File No.)        (IRS Employer
      of incorporation)                                   Identification Number)


                  2950 NE 84TH LANE, BLAINE, MN             55449
             (Address of principal executive offices)    (Zip Code)


       Registrant's telephone number, including area code:  (763) 784-4995

    (Former name, former address and former fiscal year, if changed since last
                                  report):  N/A



ITEM 2.   ACQUISITION OR DISPOSITION OF ASSETS

     On March 14, 2003, we completed the acquisition of certain assets of
Computer System Products, Inc. (CSP) as more fully described in the attached
press release referenced in Item 7.


ITEM 7.   EXHIBITS

Exhibit No.      Description
- -----------      -----------

99.1             Press Release dated March 17, 2003



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                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


Dated:  March 17, 2003          APA OPTICS, INC.



                                    By  /s/ David R. Peters
                                        --------------------
                                        David R. Peters, Chief Financial
                                        Officer (Principal accounting and
                                        Financial officer) and Authorized
                                        Signatory


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EX-99.1

EXHIBIT 99.1


NEWS RELEASE


                          APA Completes CSP Acquisition


     MINNEAPOLIS  (March  17, 2003) - APA Optics (Nasdaq/NM.APAT) Blaine, MN has
completed  an  acquisition  of  assets  from  Computer  System  Products,  Inc.
(Plymouth, MN) for cash and assumption of certain liabilities.  In addition, the
principal  shareholders  of CSP received 5-year warrants for purchase of 350,000
shares  of  APA common stock, exercisable at $3.00 per share. The assets will be
deployed  by  APA's  new  subsidiary,  APA  Cables  and  Networks,  Inc., in the
manufacture of standard and custom copper and fiber cable assemblies for service
providers  and  original  equipment  manufacturers.

     APA  Optics,  Inc.  designs,  develops,  manufactures  and markets advanced
products  for  fiber  optic  communications, including dense wavelength division
multiplexing  (DWDM) components and Gallium Nitride compound semiconductor-based
ultraviolet detectors, instruments and consumer products. Additional information
about  APA  is  available  at  www.apaoptics.com.
                               -----------------

     Forward-looking  statements  contained herein are made pursuant to the safe
harbor provisions of the Private Litigation Reform Act of 1995. These statements
are  based  upon  the  Company's current expectations and judgments about future
developments  in  the Company's business. Certain important factors could have a
material  impact  on  the  Company's performance, including, without limitation,
delays  in or increased costs of production, delays in or lower than anticipated
sales of the Company's new products, the Company's ability to sell such products
at  a  profitable  price,  the  Company's  ability to fund operations, and other
factors discussed from time to time in the Company's filings with the Securities
and  Exchange  Commission.  Readers are cautioned not to place undue reliance on
forward-looking  statements. The Company undertakes no obligation to update such
statements to reflect actual events.



APA Optics, Inc. Contact Information:
- -------------------------------------

Dave Peters
Chief Financial Officer
dpeters@apaoptics.com
- ---------------------
763-784-4995

Anil Jain
Chief Executive Officer
infor@apaoptics.com
- -------------------
763-784-4995


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