Ceradyne Inc. CEO Cites R&D, Product Diversification for Consistent Growth, Strong Results

    COSTA MESA, Calif.--Feb. 20, 2001--Ceradyne Inc. CEO Joel Moskowitz, in a presentation today at the 13th Annual Roth Capital Partners Growth Stock Conference, cited Ceradyne's continuing commitment to research and development and long-term product diversification for its consistent growth and strong operating and net results.
    In a presentation to institutional investors attending the conference at the Ritz-Carlton Hotel in Laguna Niguel, Calif., Moskowitz discussed the company's early history focus on defense-related applications of ceramics technology and dependence upon government contracts. He then reviewed subsequent moves to diversify into new defense applications and into new sectors, such as automotive and consumer products.
    "While defense remains an important component of total revenues, our growth has also been driven by development of ceramic applications for consumer, industrial, automotive and microwave satellite communications uses," said Moskowitz. "Basically, we feel the increasing demand for cost-effective materials and components for use in high-wear, heavy-stress environments translates into growing demand for ceramics, which are lightweight, temperature-resistant, extremely hard, erosion- and corrosion-resistant, and possess excellent electrical insulative properties.
    "For example, we see substantial growth potential for our patented Clarity(TM) translucent orthodontic brackets," continued Moskowitz. "The increasing pressure on auto and diesel engine makers to produce fuel-saving engines translates into significant potential for ceramic parts, whose use contributes directly to fuel efficiency and a cleaner environment. Our ongoing relationship with Ford Motor Co. represents an important alliance for developing future automobile applications. Currently, we manufacture valve train components for diesel engines.
    "One of Ceradyne's patented ceramic materials, Ceralloy(R) 147 SRBSN, is also used to make industrial wear components for the oil- drilling industry, cutting tools, pulp and paper machines, glass tempering furnaces, and semiconductor-manufacturing equipment," Moskowitz said further. "In addition, our ceramics are used in microwave satellite communications and aerospace applications. As the use of ceramics within these areas grows, and as our R&D efforts uncover new applications, we stand to benefit in terms of further diversification and market penetration.
    In closing, Moskowitz commented: "In January, we reported preliminary fourth-quarter results well ahead of the previous year. Also in January, we stated that we expected to report record 12-month sales in 2000 and per-share net of 61 cents, more than triple per-share earnings of 20 cents in 1999. As an indicator of potential future sales, new bookings for the quarter and for the year, ended Dec. 31, 2000, set new records and reflect growing demand for our ceramic applications. As a result, we expect continued growth in the coming year."
    Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information can be found at the company's Web site: www.ceradyne.com.

    This news release contains forward-looking statements regarding future events and the future performance of Ceradyne involving product development, market demand, and potential future results that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in the company's annual report on Form 10-K for the fiscal year ended Dec. 31, 1999, as filed with the Securities and Exchange Commission.