Ceradyne Inc. Shares Acquired by Needham & Company Funds; Shares Formerly Held by Ford Motor Company

    COSTA MESA, Calif.--Jan. 16, 2003--Ceradyne, Inc. today announced that approximately 927,000 shares of Ceradyne common stock have been acquired by mutual funds and private investment funds associated with Needham & Company, Inc. The shares were formerly held by the Ford Motor Company.
    Joel Moskowitz, Ceradyne Chief Executive Officer, commented, "We are very pleased with the acquisition of Ceradyne shares by mutual funds and private investment funds associated with Needham & Company, Inc., since it reflects their confidence in Ceradyne's growth potential."
    Moskowitz added: "Since 1986, Ford and Ceradyne have had a technical, development and business relationship that Ceradyne anticipates will continue. From an immediate perspective, this transaction, involving more than ten percent of Ceradyne's outstanding shares, removes an overhang of a large block of shares."
    George A. Needham, Chairman of the Board of Directors and Chief Executive Officer of Needham & Company, Inc., stated: "The mutual funds and private investment funds which purchased the Ceradyne shares are very pleased to be significant long-term shareholders in Ceradyne. We are pleased this opportunity arose and have great belief in the future of Ceradyne and its management team."
    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.

    Except for historical information contained herein, certain matters discussed in this news release constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. The Company may use words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions to identify forward-looking statements. Further risks and uncertainties are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2001, and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, as filed with the Securities and Exchange Commission.