NORTHFIELD, MN—(June 4, 2001)—Sheldahl, Inc. (Nasdaq: SHEL), a world leader in vacuum deposition of thin film coatings on polymer substrates, today announced the creation of a new business unit focused on the burgeoning display products industry. The new Display Products business unit will combine the company’s strategic expertise in thin film deposition and patterning with its high-volume, roll-to-roll manufacturing techniques to provide a new breed of lower cost, technically-advanced products for use in Organic Light Emitting Diode (OLED) displays and other plastic Flat Panel Displays (FPDs).

Plastic displays have emerged as a major enabling component for the next generation of cell phones, Personal Digital Assistants (PDAs), smart cards, e-books, and other handheld devices. Sheldahl’s unique combination of manufacturing process technologies give it a significant advantage in producing high volume, cost-efficient metalized films used in such products. Among the many alternatives available from Sheldahl’s new Display Products unit are ITO (Indium Tin Oxide), silver, chrome, copper, and aluminum films; polymer substrates in a wide variety of thicknesses and laminations; antiglare and clear hard coatings; and patterning in ranges from 60 to 350 ohms per square.

"Flat Panel Displays are estimated to become a $40 billion industry worldwide within the next five years," said William Offenberg, president of Sheldahl, Inc. "Our company saw the need to focus its resources on this emerging, high potential marketplace. By creating a Display Products business unit, Sheldahl will be well positioned as a leader in providing a unique suite of components and materials for display manufacturers and OEMs who are seeking new solutions to their most critical design and material challenges."

Display Products will be headed up by Clifford Morris, a 15-year Sheldahl veteran who most recently served as the company’s Director of Marketing. "Display manufacturers both large and small are looking to plastic FPDs as a better alternative for all kinds of hand-held display applications," said Morris. "Plastic materials are not only unbreakable, but they also are lighter and thinner than traditional glass substrates. What’s more, they can be wrapped or formed into shapes that enable fantastic new design possibilities. Our roll-to-roll capabilities, combined with our vacuum film deposition processes, can make this new class of FPD possible today."

Display Products Unit to Debut at SID 2001

Sheldahl’s new Display Products unit, which begins operations immediately, will present its lineup of technologies at the Society for Information Display 2001 Convention (SID 2001), June 5-7 in San Jose, CA. On display at the show will be a 200-foot roll of patterned AccentiaÔ ITO Transparent Optical Coating for use in FPDs and touch panels.

For more information about Sheldahl’s display product offerings, interested parties should visit the company’s SID 2001 display in Booth 535, or contact Clifford Morris at (507) 663-8723. A full description of Sheldahl’s products and materials expertise can be found at 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, telecom and data communications markets. The company, which is headquartered in Northfield, Minnesota, has operations in Northfield; Longmont, Colorado; Endicott, New York; Britton, South Dakota; Toronto, Ontario, Canada; and Chihuahua, Chihuahua, Mexico. Its sales offices are located in Hong Kong, China; Singapore; 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.

SOURCE: Sheldahl, Inc.