Sheldahl Opens Pilot Thin Film Patterning Lab

  One-of-a-Kind Facility Will Combine Company's Transparent Optical Coating
   Expertise; With Roll-To-Roll Processing Techniques; First Products to Be
                            Showcased at SID 2001

    SAN JOSE, Calif., June 5 SAN JOSE McENERY CONVENTION
CENTER, BOOTH 535 -- Sheldahl, Inc. , a world leader in vacuum
deposition of thin film coatings on polymer substrates, today announced the
opening of a new Thin Film Patterning Laboratory at the company's Northfield,
Minn. headquarters, designed to develop roll-to-roll patterning processes that
benefit OEMs in the plastic Flat Panel Display (FPD) market.  The first
patterned Indium Tin Oxide (ITO) products manufactured in the company's new
lab will be showcased at Sheldahl's booth at the Society for Information
Display 2001 Convention (SID 2001), June 5-7, 2001 in San Jose, Calif.

    Sheldahl's new lab was established to create advanced patterning processes
for FPD applications, based on the company's existing commercial thin film
business.  The facility, a major strategic component of Sheldahl's recently
announced Display Products business unit, focuses on Sheldahl's exclusive
Accentia(TM) ITO Transparent Optical Coatings and leverages the manufacturer's
extensive roll-to-roll patterning technologies to provide highly
cost-effective OEM solutions.

    "Sheldahl's vision is to offer rolls of patterned ITO or other thin film
substrates to the FPD market," said Clifford Morris, general manager of
Sheldahl's Display Products unit.  "We believe that emerging display
technologies, whether OLED based or plastic LCD, will require this type of
integration.  Our objective is to be first to market with a roll-to-roll
patterned ITO substrate."

    Strategic Technology for Plastic FPDs
    Plastic displays have emerged as a major enabling component for the next
generation of cell phones, Personal Digital Assistants (PDAs), smart cards,
e-books, and other handheld devices.  Sheldahl's strategic technology and
manufacturing advantages in these kinds of displays come from leveraging the
thin film capabilities of its vacuum deposition group and the roll-to-roll
patterning technologies of its flex circuit division.

    Sheldahl's new pilot lab is designed to develop ITO product prototypes on
a variety of polymer film substrates.  The facility uses short-run sheet
processing techniques to build solutions that are ready for high-volume,
roll-to-roll manufacturing.  Standard base films are available in 5 and 7 mil
(125 and 175 micron), with custom thicknesses also available.  A wide range of
alternative films and hard coatings can also be specified, including antiglare
and clear hard coatings.

    Accentia ITO, the only product of its kind in the industry, is available
as stand alone roll goods or in sheet form, allowing display companies to
design products employing either kind of custom patterned substrate.  The
product is available in both standard (60, 100, 250 and 350 ohms per square)
and custom resistant ranges.

    Other Substrate, Metalized Film Choices Available
    Other substrate and deposition capabilities are offered by the company as
well, including polymer thick film, a wide range of wet coatings and
laminations, plus metalized films such as copper, gold, aluminum, SiOx,
chrome, and silver.

    A number of major display manufacturers are already in various stages of
prototype testing with Sheldahl.  To further develop its value to the FPD
marketplace, Sheldahl has become a member of both the Society for Information
Display (SID) and USDC (United States Display Consortium).

    Sheldahl will be showcasing its new roll-to-roll patterned products for
FPD use throughout the SID 2001 Show at the company display, located in Booth
535.  For more information about Sheldahl's Display Product offerings,
including Accentia ITO, visit the booth or the company Web site at
http://www.sheldahl.com