COLUMBUS, Ohio, May 8 /PRNewswire-FirstCall/ -- Superconductive Components, Inc. (OTC:SCCI) (BULLETIN BOARD: SCCI) , which manufactures ceramics and metals for advanced applications including optical systems, thin film batteries, and superconductors, today announced results for the three months ended March 31, 2006. First quarter 2006 highlights included: - Total revenue increased 109% to $1,200,623 from $575,059 for the first quarter 2005. - Gross profit rose to $272,973 from $156,854 for the same period last year. - Loss applicable to common shares was $53,273 versus a loss of $145,213 for the first quarter 2005. Dan Rooney, Chairman, President and Chief Executive Officer, commented, "We are pleased to have achieved record revenue for the first quarter 2006, which also marked the third consecutive quarter of $1 million or more of sales revenue. The sales improvement coupled with higher gross profit contributed to positive cash flow from operations for the first quarter 2006, our first in two years. We ended the first quarter 2006 with solid backlog and positive signs attributable to improving conditions in our markets and specifically from our customers." First Quarter 2006 Results Product revenues increased 138% to a record $1,158,531 for the first quarter 2006 from $486,626 the prior year. Most of the year-over-year increase was due to higher sales to the Company's expanding customer base. Contract research revenue was $42,092 for the first quarter 2006 versus $88,433 for the same period last year. The Company's gross profit was $272,973, or 22.7% of total revenue, for the first quarter 2006 versus $156,854, or 27.3% of total revenue, for the same period last year. Gross profit for the first quarter 2006 increased 74% versus the prior year. Positive contributions from higher production levels and improved operating efficiencies during the first quarter 2006 were offset by a change in product mix versus the first quarter 2005. General and administrative expense increased to $212,730 for the first quarter 2006 from $186,019 a year ago, primarily due to implementation of an incentive compensation program. Research and development expenses were $47,176 for the first quarter 2006 versus $42,068 for the same period in 2005, principally due to higher wages. A Phase I Small Business Innovation Research ("SBIR") grant to determine the feasibility of cost effective, long length BSCCO 2212 round wires for very high field magnets was completed during the first quarter 2006. The Company has applied for a Phase II SBIR for this project based on the Phase I findings. Selling expense rose to $68,103 for the first quarter 2006 from $52,522 for the same period last year, primarily due to incentive compensation. Interest expense declined to $2,024 for the first quarter 2006 from $15,522 for the same period last year due to a $1.4 million private equity financing and a $0.6 million conversion of liabilities to common equity during the second half of 2005. The loss applicable to common shares was $53,273, or $0.02 per share, compared to $145,213, or $0.06 per share, for the same period last year. There were 3,425,915 weighted average shares outstanding for the first quarter 2006 compared to 2,439,360 on that same period last year. About Superconductive Components, Inc. SCI Engineered Materials, an operating unit of Superconductive Components, Inc., manufactures ceramics and metals for advanced applications such as thin film batteries, superconductors, and advanced optical systems. The Company also provides materials for thin film applications used in photovoltaics, electronic switches, hardness and decorative coatings. The Company is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com/. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements regarding solid backlog and positive signs attributable to improving conditions in the Company's markets and specifically from its customers. These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the development of the thin film battery market, the impact of competitive products and services, the ability to adapt to technological changes, the availability of capital, and other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-KSB for the year ended December 31, 2005. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements. DATASOURCE: Superconductive Components, Inc. CONTACT: Robert Lentz, +1-614-876-2000, for Superconductive Components, Inc.

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