FOR IMMEDIATE RELEASE Contacts: Jill Burchill
Chief Financial Officer
August 15, 2000 507/663-8294
Sheldahl, Inc
[email protected]
1150 Sheldahl Road
Northfield, MN 55057 Jennifer Weichert
Weichert Financial
Relations, Inc.
651/686-9751
[email protected]
SHELDAHL ANNOUNCES
TWO MILLION DOLLAR INVESTMENT BY
MORGENTHALER VENTURE PARTNERS
Northfield, MN, August 15, 2000 - Sheldahl, Inc. (NasdaqNM: SHEL) announced
today that Morgenthaler Venture Partners ("Morgenthaler") has invested $2
million in the Company through a debt instrument that is convertible under
certain circumstances into common stock or, in the event Morgenthaler and the
Company consummate the equity transaction currently being negotiated and
previously announced, then the debt will be convertible into shares of the
new series of Sheldahl's convertible preferred stock to be issued in that
transaction.
Morgenthaler is a private equity investment firm with offices in Cleveland,
Ohio and Menlo Park, California, with approximately $1 billion under
management.
Sheldahl 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; South Dakota; Toronto, Ontario, Canada; and Chihuahua,
Chih., Mexico. Its sales offices are located in Detroit, Michigan; Hong Kong,
China; Singapore; and Mainz, Germany. Currently, Sheldahl employs
approximately 800 people. Sheldahl's common stock trades on the Nasdaq
National Market tier of the Nasdaq Stock Market under the symbol: SHEL. In
its fiscal year ended August 27, 1999, Sheldahl reported revenues of $122.1
million. Sheldahl news and information can be found on the World Wide Web
at http://www.sheldahl.com
The discussion above contains statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements by their nature
involve substantial risks and uncertainties as described by Sheldahl's
periodic filings. Actual results may differ materially depending on a
variety of factors, including but not limited to the following: the
achievement of Sheldahl's projected operating results, the ability of
Sheldahl to successfully obtain waivers from its lenders for any defaults on
its debt covenants, the achievement of efficient volume production and
related sales revenue results at Longmont, the ability of Sheldahl to
identify and successfully pursue other business opportunities, and Sheldahl
not entering into an agreement with respect to a transaction or any such
transaction not being consummated. Additional information with respect to
the risks and uncertainties faced by Sheldahl may be found in, and the prior
discussion is qualified in its entirety by, the Risk Factors contained in the
Company's filings with the Securities and Exchange Commission, including
Sheldahl's Annual Report, Form 10-K for the fiscal year ended August 27,
1999, Forms 10-Q for the quarters ended November 26, 1999; February 25, 2000,
May 26, 2000 and other SEC filings. Sheldahl does not undertake any
obligation to update any such factors or to publicly announce developments or
events relating to the matters described herein.
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