SAN JOSE McENERY CONVENTION CENTER, BOOTH 535—June 5—Sheldahl, Inc. (Nasdaq: SHEL), a world leader in vacuum deposition of thin film coatings on polymer substrates, today announced the opening of a new Thin Film Patterning Laboratory at the company’s Northfield, MN headquarters, designed to develop roll-to-roll patterning processes that benefit OEMs in the plastic Flat Panel Display (FPD) market. The first patterned Indium Tin Oxide (ITO) products manufactured in the company's new lab will be showcased at Sheldahl’s booth at the Society for Information Display 2001 Convention (SID 2001), June 5-7, 2001 in San Jose, CA.

Sheldahl’s new lab was established to create advanced patterning processes for FPD applications, based on the company’s existing commercial thin film business. The facility, a major strategic component of Sheldahl’s recently announced Display Products business unit, focuses on Sheldahl’s exclusive AccentiaÔ ITO Transparent Optical Coatings and leverages the manufacturer’s extensive roll-to-roll patterning technologies to provide highly cost-effective OEM solutions.

"Sheldahl's vision is to offer rolls of patterned ITO or other thin film substrates to the FPD market," said Clifford Morris, general manager of Sheldahl's Display Products unit. "We believe that emerging display technologies, whether OLED based or plastic LCD, will require this type of integration. Our objective is to be first to market with a roll-to-roll patterned ITO substrate."

Strategic Technology for Plastic 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 strategic technology and manufacturing advantages in these kinds of displays come from leveraging the thin film capabilities of its vacuum deposition group and the roll-to-roll patterning technologies of its flex circuit division.

Sheldahl’s new pilot lab is designed to develop ITO product prototypes on a variety of polymer film substrates. The facility uses short-run sheet processing techniques to build solutions that are ready for high-volume, roll-to-roll manufacturing. Standard base films are available in 5 and 7 mil (125 and

175 micron), with custom thicknesses also available. A wide range of alternative films and hard coatings can also be specified, including antiglare and clear hard coatings.

Accentia ITO, the only product of its kind in the industry, is available as stand alone roll goods or in sheet form, allowing display companies to design products employing either kind of custom patterned substrate. The product is available in both standard (60, 100, 250 and 350 ohms per square) and custom resistant ranges.

Other Substrate, Metalized Film Choices Available

Other substrate and deposition capabilities are offered by the company as well, including polymer thick film, a wide range of wet coatings and laminations, plus metalized films such as copper, gold, aluminum, SiOx, chrome, and silver.

A number of major display manufacturers are already in various stages of prototype testing with Sheldahl. To further develop its value to the FPD marketplace, Sheldahl has become a member of both the Society for Information Display (SID) and USDC (United States Display Consortium).

Sheldahl will be showcasing its new roll-to-roll patterned products for FPD use throughout the SID 2001 Show at the company display, located in Booth 535. For more information about Sheldahl’s Display Product offerings, including Accentia ITO, visit the booth or the company Web site 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.

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SOURCE: Sheldahl, Inc.