Emerging Flex Circuitry Technologies Offer Ultra-Thin Profile, Low
Weight, Reliability Needed for Next-Generation Automotive Electronics

NORTHFIELD, MN (March 5, 2000) — Sheldahl, Inc. (Nasdaq: SHEL, a world leader in high-density substrates for electronics use, today unveiled a wide range of innovative flex circuitry technologies at the Society of Automotive Engineers (SAE) 2001 World Congress. These technologies are designed to solve some of the automotive industry's most critical telematics design issues, including increasing safety and communication abilities. Using Sheldahl's solutions, engineers can now bring Bluetooth systems, satellite radios, GPS receivers, radio frequency identification (RFID) devices, and other advanced digital products to market more reliably, and at a smaller size, weight, and cost, than ever before.

Telematics, the broad term for a number of next-generation, in-vehicle services and communication technologies, is one of the auto industry's hottest segments. Gartner Group research estimates that telematics will grow from a $2 billion business in 2000 to approximately $20 billion by 2005. This growth is fueled by the public's desire for more advanced automotive electronics that provide increased safety, better communications and on-board entertainment systems, and enhanced driver and passenger convenience. Factors driving automakers' interest in telematics include the desire for lucrative new revenue streams and the sales excitement generated by these emerging technologies.

Sheldahl's new telematics solutions also provide increased reliability, higher density electrical function, and increased production efficiencies. The company's flexible circuitry solutions eliminate wire-to-wire and contact interfaces that are often at fault for electrical failures. Other benefits include known conductor positions, with the flex circuit providing the correct position every time and with better thermal management, and the ability to place circuit boards directly on flex material.

"The demand for telematics is creating a number of new design challenges for engineers," said John Gardner, Director of Sales at Sheldahl Inc. "High performance, small size and weight, and low cost are all paramount issues in telematics. We believe we have developed flex circuitry solutions that can significantly address all these areas, giving designers practical alternatives for their most difficult requirements."

Among the technologies and products being demonstrated at SAE 2001 World Congress are:

• Antennas—Sheldahl ComClad^™ and NovaCladÒ laminates are appropriate for many transmit-receive telematic products such as RFIDs, satellite radios, satellite navigation systems, GPS, cellular OnStar-type communications systems and more. ComClad, in particular, provides high frequency (1Ghz and above) and low-cost reception, while other polyester solutions offer optically clear windshield antennas for on-board TVs and entertainment centers.

• High Performance Electrical Connection—Using Sheldahl flexible interconnects, engineers can deliver predictable, low-EMI (electromagnetic interference) electrical performance in thicknesses as low as 0.40mm. Space savings of up to 75 percent over round wire equivalents can make Bluetooth devices, audio/video systems, heads-up displays, and in-vehicle computing and navigation systems possible. What's more, flex has a greater surface area-to-volume ratio than round wire, making it more efficient in channeling heat away from sensitive areas.
• Flat Panel Displays—Sheldahl AccentiaÔ ITO transparent optical coatings line is an advanced, optically clear polymer film coated with Indium Tin Oxide that allows touchscreen displays with features as small as 25 microns wide. Accentia ITO offers durable, lightweight plastic touchscreen solutions for a wide variety of instrument panel or backseat displays and control interfaces.

"Our flex circuitry products are able to reduce weight, provide ultra-thin transmit/receive and electrical function, and decrease the size and cost of many of the Automotive industries most innovative and aggressive electronics concepts," said Gardner. "Sheldahl's Automotive Design Center, located in Detroit, as well as its R&D laboratories in Minnesota, are ready to work with OEMs and second-tier manufacturers to solve any telematics design requirement."

Other technologies on display at Sheldahl's exhibit in Booth #3451 are SMT LED lighting displays, electrical control units (ECUs) and sensors, and instrumentation cluster connection products. For more information about Sheldahl and its full line of flexible circuit and material technologies, visit www.sheldahl.com.

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; Detroit, Michigan; South Dakota; Toronto, Ontario, Canada; and Chihuahua, Chihuahua, Mexico. Its sales offices are located in Hong Kong, China; Singapore; U.K.; France, and Germany. Sheldahl's common stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market under the symbol: SHEL. For more information contact Sheldahl at 507/663-8000 or visit www.sheldahl.com.

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NovaClad is a registered trademark, and Accentia and ComClad are trademarks, of Sheldahl, Inc. All other trademarks are the property of their respective owners.