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FOR FISCAL 1993 SHELDAHL REPORTS $1.2 MILLION RISE IN NET; INCREASED NEW PRODUCT SALES

 NORTHFIELD, Minn., Oct. 18 /PRNewswire/ -- Sheldahl, Inc., (NASDAQ: SHEL) today announced a significant rise in its fiscal 1993 net income. For the 1993 year, the company reported net income of $1.4 million, or $.29 per share, as compared to $174,000 or $.04 per share, one year ago. Revenues for fiscal 1993 were $82.1 million, as compared to $84.0 million in 1992.
 The company continued to strengthen its position in the automotive market with revenues up 27 percent over fiscal 1992. For the last five years, sales growth in this market has averaged nearly 30 percent annually. The company said it expects this strong growth to continue in 1994 and beyond. Sheldahl's major new products, including Novaclad(R)- based materials and Z-Link(R), comprised seven percent or $5.8 million of 1993 sales revenue. The growing acceptance of these new proprietary products has significantly enhanced Sheldahl's position in the datacommunications market. The company also said that sales of its thermal-control material product line increased 20 percent over fiscal 1992 levels. The revenue shortfall for fiscal 1993 was due to a slower- than-expected turnaround in the datacommunications market.
 For its fiscal 1993 fourth quarter, Sheldahl said that revenues at $20.7 million, were up slightly from the previous quarter. Fiscal 1992 fourth quarter revenues totaled $21.1 million. Earnings for the most recent quarter, at $527,000 or $.11 per share, were up significantly from the loss of $266,000, or $.05 per share, reported a year ago.
 Commenting on the year, James E. Donaghy, Sheldahl's president and chief executive officer said, "We're pleased that our plan to refocus our resources on developing proprietary products for the automotive and datacommunications markets is paying off, and that our new products are generating increasing acceptance by the market leaders in target industry segments. In June, we announced a $34 million multi-year contract with one of the nation's leading automotive component manufacturers to provide electronic shields for engine control modules. Production will begin in late fiscal 1994. Last week we announced that an industry consortium, led by Sheldahl and consisting of Delco Electronics, Silicon Graphics, Wireless Access, Hughes Missile Systems and others, has committed $62 million to the development of Multichip modules (MCMs) utilizing Sheldahl's new Novaclad(R)/Nova Link(R) laminate technology. The Advanced Research Projects Agency (ARPA) of the U.S. government has agreed to coninvest in the project."
 "Looking ahead," Donaghy concluded, "we expect to be back on a positive revenue track with solid growth in fiscal 1994. Automotive sales are maintaining strong upward momentum; and datacommunications sales are being energized by the introduction of new, compact and highly functional products by computer and telecommunications manufacturers. We are also securing a significant amount of business for fiscal 1995 and beyond within the U.S. and Europe. We have great confidence in our plan for building the company and providing long-term value to our shareholders."
 Sheldahl is the leading producer of flexible interconnects in the U.S. The company's core technology involves the conversion of basic materials into technical laminates that are sold as foils and tapes. The company also uses these laminates as the base for such products as antennas, electronic shielding, insulation, flexible interconnects, and specialized fabrications. Sheldahl has strategically located design and technical centers in the Western, Midwestern and Eastern regions of the U.S., and in Great Britain, as well as an administrative/sales office in France.
 SHELDAHL, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands except per share data)
 (Unaudited)
 Years Ended
 8/27/93 8/28/92
 Net sales $82,102 $83,977
 Cost of sales 66,360 68,476
 Gross profit 15,742 15,501
 Expenses:
 Sales and marketing 7,274 7,648
 General and administrative 4,029 4,090
 Research and development 1,929 2,171
 Interest 1,023 1,366
 Total expenses 14,255 15,275
 Income before provision for
 income taxes 1,487 226
 Provision for income taxes 50 52
 Net income $1,437 $174
 Net income per share $.29 $.04
 Dividends declared and paid
 per share -- --
 Quarters Ended
 8/27/93 8/28/92
 Net sales $20,728 $21,138
 Cost of sales 16,389 17,264
 Gross profit 4,339 3,874
 Expenses:
 Sales and marketing 1,905 2,105
 General and administrative 1,178 1,109
 Research and development 448 588
 Interest 231 286
 Total expenses 3,762 4,088
 Income before provision for
 income taxes 577 (214)
 Provision for income taxes 50 52
 Net income $527 $(266)
 Net income per share $.11 $(.05)
 Dividends declared and paid
 per share -- --
 SHELDAHL, INC. AND SUBSIDIARY
 CONSOLIDATED BALANCE SHEETS
 (in thousands except per share amounts)
 (Unaudited)
 8/27/93 8/28/92
 Current assets:
 Cash $442 $498
 Accounts receivable, net 13,434 11,006
 Inventories 9,322 10,038
 Prepaid expenses and other
 current assets 302 239
 Net assets of discontinued
 operations 450 753
 Total current assets 23,950 22,534
 Plant and equipment, at cost 54,706 49,920
 Accumulated depreciation 34,264 30,543
 Net plant and equipment 20,442 19,377
 Other assets 391 514
 -- $44,783 $42,425
 LIABILITIES AND SHAREHOLDERS' INVESTMENT
 Current liabilities:
 Current maturities of long-
 term debt $1,230 $1,225
 Accounts payable 6,494 5,359
 Accrued salaries 1,295 1,524
 Other accrued liabilities 2,335 2,723
 Current liabilities of
 discontinued operations 1,283 995
 Total current liabilities 12,637 11,826
 Long-term debt 11,433 9,960
 Other non-current liabilities 1,265 2,702
 Shareholders' investment:
 Common Stock 1,203 1,193
 Additional paid-in capital 7,262 7,198
 Retained earnings 10,982 9,546
 Total shareholders'
 investment 19,448 17,937
 -- $44,783 $42,425
 -0- 10/18/93
 /CONTACT: John McManus, V.P., finance of Sheldahl, 507-663-8000; or Elin Schomaker of The Sage Group, 612-872-8418, for Sheldahl/
 (SHEL)


CO: Sheldahl, Inc. ST: Minnesota IN: SU: ERN

DB-CP -- MN012 -- 3413 10/18/93 12:59 EDT
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Date:Oct 18, 1993
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