Sheldahl Receives Letter of Intent From Investor Group To Purchase Company Assets

    NORTHFIELD, Minn.--May 14, 2002--

Offer From Ampersand Ventures, Molex Inc. and Morgenthaler Partners
    Follows Chapter 11 Filing

    Sheldahl, Inc. today announced it has received a letter of intent from Ampersand Ventures, Molex Inc. and Morgenthaler Partners, Sheldahl's three largest shareholders, for the purchase of a substantial portion of its assets under Section 363 sale procedures pursuant to the U.S. Bankruptcy Code. Sheldahl announced earlier this month it had filed a voluntary petition for Chapter 11 reorganization with the U.S. Bankruptcy Court for the District of Minnesota.
    "This offer would provide Sheldahl the ability to emerge from this process with a strong balance sheet and the financial resources to remain a leader in the interconnect and materials business," said Benoit Pouliquen, President and Chief Executive Officer. "In the coming weeks, we will solicit additional offers from other potential buyers."
    Sheldahl said the letter of intent is non-binding. The offer includes a majority of the Company's operating assets, contracts and certain obligations necessary to maintaining its operations. Sheldahl said it would retain an investment banking firm to solicit additional offers from other interested parties. The Company said it is expected to complete the bidding process in the next 2 months under guidelines set forth by the bankruptcy court.
    "During this period of transition, we have continued to meet all customer requirements. We have appreciated the support of our customers and vendors since the filing," said Mr. Pouliquen.

    About Sheldahl

    Sheldahl, Inc. is a leading producer of high-density substrates, high-quality flexible printed circuitry, and flexible laminates primarily for sale to the automotive, electronics and data communications markets. The Company, which is headquartered in Northfield Minnesota, has operations and contract assembly operation in Northfield; Longmont, Colorado; Endicott, NY; Toronto, Ontario, Canada; Chihuahua, Chih., Mexico; and Manilla, Phillipines. Sheldahl's Common Stock trades on the NASDAQ National Market tier of the NASDAQ Stock Market under the Symbol: SHELQ. Sheldahl news and information can be found on the World Wide Web at http://www.sheldahl.com.

    The discussion above contains statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties as described by Sheldahl's periodic filings. Actual results may differ materially depending on a variety of factors. Information with respect to the risks and uncertainties faced by Sheldahl may be found in, and the prior discussion is qualified in its entirety by, the Risk Factors contained in the Company's filings with the Securities and Exchange Commission including Sheldahl's Annual Report, Form 10-K for the fiscal year ended December 29, 2000, and other SEC filings. Sheldahl does not undertake any obligation to update any such factors or to publicly announce developments or events relating to the matters described herein.