Ceradyne, Inc. Receives $5.3 Million Order for Ceramic Armor Inserts; Ceradyne Ceramic Armor to Protect U.S. Army Forces

    COSTA MESA, Calif.--Dec. 21, 2001--Ceradyne, Inc. (Company) today announced it has received a $5.3 million order for lightweight ceramic inserts for use in armor to protect U.S. Army forces. The order was issued by the United States Defense Logistics Agency (Agency).
    The Agency awarded the $5.3 million initial release under an indefinite quantity, firm fixed price contract after approving the Company's First Article, which was shipped in November. Production and shipments against this initial release will occur over the next four months, with the next release expected in early 2002.
    Joel Moskowitz, Ceradyne chief executive officer, commented: "We are pleased to see this new business developing as anticipated, especially since it is one of the largest single armor plate orders ever awarded to the Company. With production of ceramic diesel engine components and ceramic orthodontic brackets moving out of Costa Mesa to our new Irvine, California, site, we will have sufficient capacity in Costa Mesa to meet the production schedule for this order and for subsequent releases from the Agency.
    "Considering the importance of protecting our armed forces, we intend to continue meeting delivery requirements for these small arms protective inserts (SAPI) to assure that the military's short term and long-term needs are fully satisfied," Moskowitz added. "We are looking forward to receiving follow-on orders in 2002."
    Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information about the Company can be found at www.ceradyne.com.

    This press release contains forward-looking statements regarding future events and the future performance of Ceradyne 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 December 31, 2000, as filed with the Securities and Exchange Commission.