Compositech Ltd. Reports First Quarter Results; Sales Effort and Technical Support Expanded.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 14, 1999--

Compositech Ltd. (NASDAQ: CTEK), which manufactures patented high tech laminates for the printed circuit board industry, today announced results for the first quarter ended March 31, 1999.

Total revenues for the first quarter were $108,570 compared with $99,317 in the same 1998 period. Net loss for the three months was $1,638,022 on 14,627,528 shares outstanding compared with $1,497,988 on 9,176,650 shares outstanding for the same period in 1998. For the 1999 quarter, after giving effect to an accrued preferred stock dividend of $11,851 (a non-cash item), basic and diluted loss per share attributable to common stockholders was 11 cents. For the 1998 quarter, basic and diluted loss per share was 16 cents. Revenues for the 1999 quarter included licensing income of $12,590 relating to the company's joint venture in Taiwan, compared with $12,916 for the same prior year period.

The increased loss was attributed primarily to an increase in manufacturing expenses related to process enhancements and improvements to process reliability, the addition of manufacturing management and an increase in selling, general and administrative (SG&A) expenses reflecting the hiring of a new chief executive officer and a technical sales director.

Christopher F. Johnson, president and CEO of Compositech, stated, "First quarter sales were below our expectations, due primarily to a delay in the completion of a long-term supply agreement. The delay was caused by issues unrelated to the availability or quality of our CL200+ product.

"Teradyne Connection Systems and Tyco Printed Circuit Group, two leading circuit board fabricators, were the company's two largest customers in the first quarter. We are working diligently with OEMs in conjunction with fabricators to gain qualification and approval for CL200+.

"These efforts have resulted in the recent approval by Sun Microsystems of CL200+ and we expect to secure similar OEM approvals in the near future. However, new copper-clad laminates, even ones with exceptional performance characteristics such as CL200+, are not adopted for volume use without extensive testing by printed circuit board fabricators and their customers. We are encouraged by the fact that we have over 60 customers in various stages of development.

"New multilayer printed circuit and backplane designs have more exacting dimensional criteria, driven by the requirement to increase electronic performance. These designs can be engineered and manufactured more effectively and economically by taking advantage of the dimensional stability and surface smoothness of CL200+. We see a strong trend toward more complex printed circuit designs and believe it will dramatically increase the need for our CL200+ filament wound copper-clad laminates.

"To strengthen our technical sales support, we hired Tom Stern as our Western regional sales manager. We also appointed two well-established technical sales organizations, Hamlet & Smith in the Midwest and Photo Chemical Systems on the East Coast, to our network, now giving us comprehensive coverage of the North American market. Together, they add 18 experienced sales and technical service personnel to our customer support program," Johnson concluded.

Compositech Ltd. develops, produces and markets innovative and superior copper-clad and fiberglass epoxy laminates used to manufacture printed circuit boards which are essential components of personal computers, workstations, data communications, Internet servers and telecommunications equipment.

The statements made in this press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the Company's SEC reports and filings, including, but not limited to, its report on Form 10-QSB for the quarter ended March 31, 1999 and its report on Form 10-KSB for the year ended December 31, 1998, may affect the results achieved by the Company.

COMPOSITECH LTD.
Financial Highlights (Unaudited)

                                       For the Three Months Ended
                                         3/31/99         3/31/98

Revenues                                $108,570         $99,317

Net (loss)                           ($1,638,022)    ($1,497,988)

Net (loss) per share
  basic and diluted                        ($.11)          ($.16)

Shares used in computing
  Net loss per share                  14,627,528       9,176,650