"This step is being taken only after we completed a number of other cost reduction measures," said Benoit Pouliquen, President and Chief Executive Officer of Sheldahl. "An overall business slowdown requires that we take this action. We will continue to manage the business to ensure its long-term success."

Sheldahl said it will lay-off 27 full-time employees and 15 temporary workers in its Endicott, New York operation. Total current employment in Endicott is 163.

Sheldahl's International Flex Technologies division manufactures fine-line, flexible circuits for use in the computer, data communications and medical markets industries.

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 in Northfield; Longmont, Colorado; Endicott, New York; Toronto, Ontario, Canada; and Chihuahua, Chih., Mexico. 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.

Matt West
Coltrin & Associates
630-430-6051
matt_west@coltrin.com

or