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SHELDAHL ANNOUNCES EXPANSION

 NORTHFIELD, Minn., Feb. 10 /PRNewswire/ -- Sheldahl, Inc. (NASDAQ: SHEL) today announced a more than $40 million manufacturing expansion to take place over the next four years.
 Approximately half of the investment will be used to enlarge the company's advanced manufacturing facility for its core technology in Northfield. The balance will be used to build a manufacturing facility for proprietary new products in an as-yet-undetermined U.S. location, close to key customers.
 In addition, Sheldahl plans to establish a circuit assembly site in Mexico to meet the needs of its global customers.
 James E. Donaghy, president and chief executive officer, said the company expects to create an additional 30 high-skill jobs in Northfield during the next 18 months. Those jobs will be in addition to the 55 high-skill jobs created there in the past year.
 Sheldahl's establishment of a circuit assembly site in Mexico will allow the company to stay competitive in serving major customers that manufacture there, Donaghy explained.
 "Our ability to invest and grow at home is directly dependent on our ability to meet our customer demand for finished assembled circuits and to remain competitive on a global basis," he added.
 Bev Brumbaugh, Sheldahl's vice president of Human Resources and Corporate Excellence, said that about 104 assembly jobs in Northfield will be eliminated during the same period. He expects the reductions will occur through normal attrition. Those people currently performing assembly work will have opportunities to qualify for the new, higher-paying jobs and receive training, Brumbaugh added.
 Last month Sheldahl announced a private placement of one million shares to help finance its advanced manufacturing expansion and to meet customer demand for new proprietary products. The company expects its new products to account for 20 percent of its sales in the fourth quarter of this year and 9 percent of its overall sales in fiscal 1993, up from zero in 1992.
 Funds for the expansion will come from operations and additional debt financing, as well as from the placement of the company's stock, Donaghy said. The $40 million investment will be in addition to Sheldahl's $10 million investment over the past two years to upgrade its interconnect capabilities in Northfield.
 Sheldahl'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 United States and in Great Britain.
 -0- 2/10/93
 /CONTACT: Bev Brumbaugh or John McManus, both of Sheldahl, 507-663-8000; or Elin Schomaker of The Sage Group, 612-872-8418, for Sheldahl/
 (SHEL)


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

KH -- MN009 -- 5251 02/10/93 14:49 EST
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Date:Feb 10, 1993
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