Ceramics Process Systems Announces Third Quarter Results.

CHARTLEY, Mass.--(BUSINESS WIRE)--Nov. 11, 1998--Ceramics Process Systems Corporation (CPS) (OTC Bulletin Board:CPSX) today announced net income of $366 thousand, or $0.03 per basic share and $0.03 per diluted share, on revenue of $1.3 million for the fiscal quarter ended September 26, 1998. These results compare with net income of $435 thousand, or $0.05 per basic share and $0.04 per diluted share, on revenue of $1.2 million for the fiscal quarter ended September 27, 1997.

Grant Bennett, President said: "We are pleased with the third quarter results, particularly in light of worldwide uncertainty in many electronics markets. Comparing the third quarter of 1998 with the third quarter of 1997, total revenue increased 4%, but product revenue increased 16% and unit shipments increased 26%. Total revenue and net income were affected by the fact that in the third quarter of 1998 no license revenue was earned, whereas license revenue of $130 thousand was earned in the third quarter of 1997.

"We are pleased that an increasing number of electronic designers are evaluating the use of metal-matrix composites, and Al-SiC in particular, for high density applications because of its improved thermal properties and lighter weight compared to traditional housings and substrates," Bennett said.

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 1998, or a downturn in the electronics industry. -0-

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


                                      For the Fiscal Quarters Ended
                                       Sept. 26,         Sept. 27,
                                         1998               1997
Revenue
  Product sales                        $1,260,767        $1,084,960
  License revenue                              $0          $130,333
    Total revenue                      $1,260,767        $1,215,293

Operating income                         $299,303          $486,869

Net income                               $366,007          $434,541

Net income per basic share                  $0.03             $0.05

Weighted average basic shares          12,307,186         8,079,585

Net income per diluted share                $0.03             $0.04

Weighted average diluted shares        12,506,198        12,938,206


                                     For the Nine-Month Periods Ended
                                        Sept. 26,        Sept. 27,
                                          1998              1997
Revenue
  Product sales                        $3,679,916        $2,852,046
  License revenue                        $740,750          $285,667
    Total revenue                      $4,420,666        $3,137,713

Operating income                       $1,674,932        $1,042,009

Net income                             $1,535,330          $865,884

Net income per basic share                  $0.15             $0.11

Weighted average basic shares           9,916,550         8,084,907

Net income per diluted share                $0.13             $0.08

Weighted average diluted shares        12,729,075        12,820,926