Ceramics Process Systems Announces Second Quarter 1999 Results.

CHARTLEY, Mass.--(BUSINESS WIRE)--Aug. 16, 1999--

Ceramics Process Systems Corporation (CPS) (OTC Bulletin Board:CPSX) today announced net income of $150 thousand, or $0.01 per basic share and $0.01 per diluted share, on revenue of $1.4 million for the fiscal quarter ended July 3, 1999. These results compare with net income of $784 thousand, or $0.08 per basic share and $0.07 per diluted share, on revenue of $1.8 million for the fiscal quarter ended June 27, 1998.

Grant Bennett, President said: "We are very pleased that product revenues increased 31% in the second quarter of 1999 compared to the same period a year ago. Product revenues were $1.4 million in the second quarter of 1999 compared to $1.1 million in the second quarter of 1998. No licensing revenue was received in the second quarter of 1999, compared to licensing revenue of $741 thousand received in the second quarter of 1998."

"The reduction in net income in the second quarter of 1999 compared to the second quarter of 1998 is the result of no licensing revenues being received in the second quarter of 1999, and higher expenses in both sales and marketing, and cost of sales. We are taking steps to increase our sales coverage, and to strengthen manufacturing capability. Although there will continue to be quarter-to-quarter fluctuations in product revenues related to timing of specific product programs, we are pleased that the market demand for thermal management materials is growing and that CPS Al-SiC is being considered by a larger number of potential customers," said Bennett.

CPS develops, manufactures and markets advanced metal-matrix composites for housing and providing thermal management of high-density electronics. The Company's products are primarily used in equipment for wireless communications, satellite communications and motor controllers.

This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in such statements. These factors include, but are not limited to, a general economic or business downturn in 1999, or a downturn in the electronics industry.

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CERAMICS PROCESS SYSTEMS CORPORATION
(CPS) (OTC Bulletin Board: CPSX)

                                        For the Fiscal Quarters Ended
                                              July 3,        June 27,
                                               1999            1998


Revenue                                     $ 1,421,136    $ 1,826,686

Net Income                                  $   149,881    $   784,363

Basic earnings per basic share              $      0.01    $      0.08

Weighted average basic shares                12,308,852      9,496,117

Diluted earnings per diluted shares         $      0.01    $      0.07

Weighted average diluted shares              12,515,749     12,310,768



                                       For the Six-Month Periods Ended
                                             July 3,         June 27,
                                              1999             1998


Revenue                                     $ 2,666,550    $ 3,159,899

Net Income                                  $   302,215    $ 1,169,323

Basic earnings per basic share              $      0.03    $      0.13

Weighted average basic shares                12,308,852      8,721,231

Diluted earnings per diluted shares         $      0.02    $      0.10

Weighted average diluted shares              12,503,941     12,503,427