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Sheldahl, Inc. Refinances Longmont Facility

17 November 1999

Sheldahl, Inc. Refinances Longmont Facility

    NORTHFIELD, Minn., Nov. 17 -- Sheldahl, Inc.
today said that previously announced financing related to the outstanding real
estate loan for the Longmont facility has been successfully renegotiated and
at terms favorable to the Company.
    J.P. Morgan has agreed to refinance debt associated with the Longmont,
Colorado facility, amounting to $4.3 million over ten years at an annual
interest rate of 8.625%.  This represents a 40% reduction in the interest
expense and a similar reduction in annual principal payments.  Further details
of the agreement will be disclosed in the Company's Fiscal 1999 Form 10-K that
will be filed with the Securities and Exchange Commission in the next several
weeks.
    Edward L. Lundstrom, President and Chief Executive Officer, stated,
"We are pleased to establish this financing relationship with J.P. Morgan.
Progress is clearly being made, albeit at a slower pace than we would like to
see.  We are confident that under this new financing arrangement that Longmont
stands a much improved chance of achieving profitability sooner than was
previously possible."
    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 data communications markets.  The Company, which is
headquartered in Northfield, Minnesota, has operations in Northfield;
Longmont, Colorado; Detroit, Michigan; South Dakota; Toronto, Ontario, Canada;
and Chihuahua, Chih., 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 .

    The discussion above contains forward-looking 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, including, but not limited to
the following:  the achievement of Sheldahl's projected operating results, the
ability of Sheldahl to successfully meet its credit agreement covenants, the
achievement of efficient volume production and related sales revenue results
at Longmont, and the ability of Sheldahl to identify and successfully pursue
other business opportunities.  Additional 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 August 27, 1998,
forms 10-Q for the quarters ending November 27, 1998, February 26, 1999 and
May 28, 1999, and other SEC filings.