"It is especially difficult to take this action after a workforce reduction earlier this year. A recent weakening of business conditions in the automotive sector requires that we take this step," said Benoit Pouliquen, President and Chief Executive Officer of Sheldahl. "We will continue to manage the business to ensure its long-term success."

The company said it would reduce its Northfield workforce by approximately 30 employees. Total current employment in Northfield is 427.

Sheldahl's Materials and Flex Interconnect division manufactures roll-to-roll flexible circuits and specialty materials for sale to the automotive, communications and other 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.

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

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