Ceradyne Awarded Energy Department SBIR Contract to Develop Microwave Absorbing Ceramic Material for Cryogenic Environments -- Patent Pending.

COSTA MESA, Calif.--(BUSINESS WIRE)--Oct. 18, 1999--

Ceradyne Inc. (Nasdaq:CRDN) announced that it has been awarded a Phase I Small Business Innovation Research (SBIR) contract by the Department of Energy to develop "Microwave Absorbing Materials for Accelerators in Cryogenic Environments."

This is a six-month contract with a value of $100,000 and the third SBIR government contract awarded to Ceradyne within the last year.

The objective of this program is to develop a ceramic material that possesses specific electrical properties in the cryogenic temperature range (2-50 degrees Kelvin).

The ceramic microwave absorbing material developed in this program will allow components to be produced that will enhance the operation of microwave devices designed to operate at extremely low temperatures. These devices are used in high energy particle accelerators.

Commented John Mangels, Ceradyne's director of sales and marketing: "When this program is completed, government labs will be able to build improved accelerators to measure fundamental properties of matter.

"These new materials will allow devices to operate more efficiently at higher power outputs and will also have application in the broader microwave tube industry due to their unique temperature- independent properties. Ceradyne's new microwave absorbing material will allow scientists to experiment in areas that were formerly off limits to them."

Ceradyne has been producing microwave absorbing ceramic materials since the mid-1970s. This program will broaden Ceradyne's product line and expand its customer base.

Ceradyne anticipates that it will apply for a follow-on Phase II SBIR to further develop and optimize the new microwave absorbing material for specific applications. The Phase II SBIR awards are typically in the range of $700,000 over a two-year period.

Increasingly, the company is being recognized as an innovator in the field of high-tech ceramics, producing applications as wide ranging as its barely visible "Clarity" orthodontic brackets, impenetrable ceramic armor vests for the military, and diesel engine components that allow manufacturers to double warranty lengths.

Currently, Ceradyne supplies other components for microwave applications used in microwave tubes for radar and satellite communications, and is also a manufacturer of advanced technical ceramics for armor, automotive, industrial, consumer, electronic, medical and semiconductor processing equipment applications. Additional information about the company can be found at www.ceradyne.com.

This news release contains forward-looking statements regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in the company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1998, as filed with the Securities and Exchange Commission.