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Sheldahl Receives $1.4 Million in Additional Funding

9 March 1999

Sheldahl Receives $1.4 Million in Additional Funding; Series E Convertible Preferred Stock Offering Completed

    NORTHFIELD, Minn., March 8 -- Sheldahl, Inc. ,
today announced an additional $1.4 million of funds received from the private
placement of the Company's Series E Preferred completing this transaction.
The Company's lenders have agreed that the receipt and verification of the net
proceeds from this private placement, which exceed $8.0 million, satisfy the
requirement under the Company's Credit and Security Agreement with its
lenders. The agreement had required the Company to raise additional equity
capital of $5.0 million by February 26, 1999, and another $5.0 million of
equity capital by August 30, 1999.
    Sheldahl is a leading producer of high-density substrates, high-quality
flexible printed circuitry, and flexible laminates primarily for sale to the
automotive electronics and datacommunications markets.  The Company, which is
headquartered in Northfield, Minn., has operations in Northfield; Longmont,
Colo.; Detroit, Mich.; Britton, S.D.; Toronto, Ontario, Canada; and Chihuahua,
Chi., Mexico.  Its sales offices are located in Hong Kong, China; Singapore;
and Mainz, Germany.  Sheldahl's common stock trades on the Nasdaq National
Market tier of the Nasdaq Stock Market under the symbol SHEL.  Sheldahl news
and information can be found on the World Wide Web at http://www.sheldahl.com
    Statements contained here, other than historical data, may be
forward-looking and subject to risks and uncertainties including, but not
limited to, those set forth in the Company's annual report, 10K, 10Q, and
other SEC filings.