Partnership Will Break Barriers in Cost and Performance Via Combined Technologies in Thin, Reinforced Laminate Manufacturing and Processing

PHOENIX, May 21, 2001. Sheldahl, Inc. (Nasdaq: SHEL), a world leader in high-density circuitry for electronics use, and GIL Technologies, Inc., a world leader in cost-effective, high performance printed circuit substrates, today announced a joint development effort to produce high performance, thin, reinforced roll-to-roll circuitry. This project, announced at the IEEE MTT-S International Microwave Symposium 2001 in Phoenix, is expected to generate a new breed of products that will both lower costs and improve performance for RF/microwave components, high speed digital circuits, and integrated circuit (IC) packages used in a wide range of high technology industries.

The GIL/Sheldahl alliance combines GIL Technologies' manufacturing expertise in roll-to-roll, thin, reinforced circuit products with Sheldahl's circuit fabrication technologies. Together, the two companies will be able to produce high-speed digital and RF/microwave circuits in thicknesses ranging from 2 to 9 mils. Such circuits are enabling components in next generation computers, Internet infrastructures, high-speed telecommunication products and optoelectronics.

"There is a clear trend toward smaller, lighter, and higher performance in virtually every circuitry application today,'' said Greg Closser, Vice President of Flex Interconnect for Sheldahl. "High manufacturing cost and limited capacity have, in the past, been barriers for solutions that can accommodate higher processing speeds of 10 gigabits per second or more. With this alliance, Sheldahl and GIL Technologies can provide lower-cost products to satisfy these demanding processing requirements.''

"GIL and Sheldahl, through this partnership, will be first to produce high performance reinforced laminates and circuitry using roll-to-roll methods,'' said Gerald Griffith, President and Chief Operating Officer of GIL Technologies parent company Alpha Corporation of Tennessee. "Additionally, our novel low-pressure continuous lamination facility has substantial available capacity to produce these advanced materials. Designers in dozens of OEM categories will now have broad new options in circuit solutions. We look forward to working with the OEMs in order to evaluate and develop advanced solutions using GIL/Sheldahl technology.''

Full Range of Products

By combining their expertise, GIL and Sheldahl will offer a full range of roll-to-roll products suitable for OEMs and board manufacturers, including high speed digital and chip packaging substrates. A number of prototype solutions are already in various stages of beta development with global OEMs, several of whom are new to both Sheldahl and GIL.

In order to increase sourcing options that will benefit OEMs, the two companies will also offer process licensing agreements. For samples, more information regarding products or licensing opportunities, visit Sheldahl at IMS 2001, Booth #3332, or GIL Technologies at Booth #2505. Parties may also contact GIL Technologies Customer Service at 800/537-1306, or Greg Closser, Sheldahl Vice President, Flexible Interconnect, at 507/663-8000 or email to: cheetah@sheldahl.com .

About Sheldahl, Inc.

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 http://www.sheldahl.com .

About GIL Technologies

GIL Technologies is a world leader in cost-effective substrate solutions for printed circuit board designers, fabricators and assemblers. GIL Technologies offers families of high frequency copper clad laminates engineered for specific dielectric and application needs. Proprietary material and manufacturing technologies result in low-cost substrates that meet exacting performance specifications.

GIL Technologies is a business unit of The Alpha Corporation of Tennessee, a global enterprise guided by entrepreneurial principles. GIL products are made using ISO-9002 certified quality management procedures, and sales are handled by dozens of representatives around the world. For samples and more information, phone (800) 537-1306 or (901) 853-5070, or e-mail gilam@gilam.com .

SOURCE: Sheldahl, Inc.