temporary layoffs follow the company's announcement to reduce the size of its Endicott, New York operation. "An overall business slowdown has resulted in delays in expected orders of new products, which requires that we take this difficult step. We have made this decision only after we have completed a number of other cost reduction measures," said Benoit Pouliquen, President and Chief Executive Officer of Sheldahl. "We will continue to manage the business to ensure its long-term success."

Sheldahl has initiated temporary layoffs for approximately 60 employees in its Longmont manufacturing operation. Sheldahl said it plans to recall affected employees as a number of customers complete the formal qualification cycle for several new products and production volumes increase. Employees affected by the layoffs will receive paid COBRA insurance benefits during the layoff period. The company currently employs approximately 90 in its Longmont facility.

About Sheldahl

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:

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Matt West
Coltrin & Associates
630-852-6468
630-430-6051 (cell)
matt_west@coltrin.com

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