CRDN Ceradyne, Inc. (MM)

Ceradyne, Inc. (Company) (Nasdaq: CRDN)--While at the JMP Securities Research Conference, Chief Executive Officer Joel Moskowitz commented that Ceradyne's armor business was strong and is expected to remain at the levels projected in the recent February 28, 2006 teleconference. Replays of this teleconference are available at www.ceradyne.com. Moskowitz stated that a securities analyst recently had incorrectly stated that Ceradyne's shipments of E-SAPI are currently 25,000 sets per month. The analyst compared the 25,000 set number to the announced Army monthly procurement rate of 20,000 sets and erroneously concluded that Ceradyne's business rate would decline. Moskowitz said that the Company was shipping E-SAPI body armor to the Army currently at a rate of 16,000 sets per month and projected this would continue for at least the balance of 2006. Thus, there would be no decline in its armor related guidance, which does not include any of the recent government solicitation for a maximum of 891,000 sets of Enhanced Side Ballistic Inserts (ESBI). Moskowitz further commented that at an Army Industry Day on March 7, 2006, the Army projected, subject to congressional approval, future additional E-SAPI orders of in excess of 500,000 sets, which would replace all previously fielded early SAPI (not E-SAPI) shipments, thus providing the U.S. Army a "Pure Fleet" of E-SAPI. Moskowitz also restated the 2006 guidance of February 28, 2006, projecting 2006 sales of $535 million to $565 million with diluted earnings per share of $3.00 to $3.20. Moskowitz's comments were delivered at the Fifth Annual JMP Securities Research Conference in San Francisco, California. Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications. Additional information about the Company can be found at www.ceradyne.com. Except for the historical information contained herein, this news release contains forward-looking statements regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially from those projected. Words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions are intended to identify forward-looking statements. These risks and uncertainties are described in the Company's supplemental prospectuses, dated December 13, 2005, as filed with the Securities and Exchange Commission.