Ceradyne, Inc. Announces Offering of 1,800,000 Shares of Common Stock

    COSTA MESA, Calif.--July 1, 2003--Ceradyne, Inc. (Company) announced that it commenced today the public offering of 1,800,000 shares of its common stock, with 1,500,000 newly issued shares offered by the Company and 300,000 shares offered by the selling stockholder. The offering price is $17.50 per share.
    Net proceeds to the Company from the sale will be approximately $24.1 million. The Company intends to use the net proceeds to repay outstanding debt, to expand production capacity and to purchase machinery and equipment, with the balance used for working capital and other general corporate purposes.
    The managing underwriters of the offering are Needham & Company, Inc. and A.G. Edwards & Sons, Inc. The underwriters have a 30-day period in which to exercise an option to purchase up to 270,000 additional shares of common stock to cover over-allotments, if any, of which 225,000 shares may be issued by the company and 45,000 shares may be sold by the selling stockholder.
    Ceradyne, Inc. develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications.
    Copies of the prospectus relating to the offering may be obtained from Needham & Company, Inc., 445 Park Avenue, New York City, New York 10022, and A.G. Edwards & Sons, Inc., One North Jefferson, St. Louis, Missouri 63103.

    This communication shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.