Exhibit 99.2
SHELDAHL ANNOUNCES
EXTENSION OF EXCLUSIVE NEGOTIATIONS WITH
INTERNATIONAL FLEX TECHNOLOGIES INC. AND COMMENTS ON
FOURTH QUARTER AND FULL YEAR EARNINGS OUTLOOK
Northfield, MN, August 7, 2000 - Sheldahl, Inc. (NasdaqNM: SHEL) announced
today that the Company and International Flex Technologies Inc. (IFT), a
privately-held company headquartered in Endicott, New York, and its majority
owner, Morganthaler Partners, have agreed to extend to August 21, 2000, an
exclusivity agreement which was originally scheduled to terminate August 7,
2000. The parties are continuing discussions and expect to complete their
respective due diligence over the next two weeks.
On June 26, 2000, the Company announced the signing of an exclusivity
agreement whereby Sheldahl would acquire IFT in exchange for shares of
Sheldahl's common stock. In addition, Morganthaler Partners and other
potential investors proposed to infuse approximately $40 million in new
capital into Sheldahl in exchange for shares of a new series of Sheldahl's
convertible preferred stock.
No assurances are given as to whether an agreement will be signed or a
transaction consummated. The proposal is subject to customary conditions
including, among other things, negotiation of definitive agreements,
completion of satisfactory due diligence, absence of material adverse change,
and regulatory and other approvals, including approval by Sheldahl's
shareholders.
Sheldahl also announced today that it expects earnings for its fiscal 2000
fourth quarter to be below analysts' expectations but slightly improved over
last quarter and fourth quarter last year. Softer than expected sales in
Sheldahl's Core Business is driving reduced expectations. Fourth quarter and
full year results are expected to be released at the end of September 2000.
International Flex Technologies Inc. is a privately held company based in
Endicott, New York. IFT acquired IBM Corporation's? fine-line flexible
circuit business in February, 1999.
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. As of January 31, 2000, Sheldahl
employed approximately 820 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.
