Dionics, Inc. Survives, Contacts Shareholders Again

WESTBURY, NY a semiconductor/micro-electronics manufacturer, has addressed the attached memo to the company's shareholders. Dionics, Inc. is best known for its proprietary line pf high-reliability micro-photovoltaic MOSFET-Drivers, which feed into a potential MOSFET market that is estimated at one-billion units annually. "The company's plans for growth into that market were dealt a severe blow in the aftermath of 9/11. In fact," Kravitz admits, "we were lucky just to survive. Our recent recovery, however, now prompts us to once again contact our shareholders to let them know the good news: we are still alive and are poised to once again attack that substantial MOSFET-based growth opportunity," he concluded.

Memo from Bernard L. Kravitz, President. 7-16-08

To: Shareholders of Dionics, Inc.

We remember, all too well, the terrorism event of 9/11, and for more than the obvious reasons. Prior to that time, Dionics' product-mix was showing more than 50% of sales going to aircraft manufacturers, but in September of 2001 this all came to a sudden stop. Neither customers nor suppliers knew where the economy was heading, and the resulting business downturn caused Dionics' sales volume to drop by an astounding 75% over the next two years. This, of course, resulted in severe losses for the company, and we soon found all our financial resources being consumed in the effort just to survive. Conditions were so poor, we were even forced to suspend our SEC reporting due to lack of funds with which to pay our auditors.

We economized in every way we could, raised every dollar we could, then further tightened our belts and fought desperately to weather the storm. We came ever so close to not surviving during those years, but with the dedicated help of our loyal employees, we did survive. Our shrinking sales volume finally stabilized, and then slowly began to rise again. At the present time, having completed the first half of 2008, and in considerably healthier financial condition, one of our highest priorities is to become "current" again under our SEC reporting obligations. We have just taken the first significant step toward that goal by filing our quarterly and year-end reports for the year 2005. Although these efforts will require the expenditure of significant fees for professional services, similar SEC reports for 2006 are in-process and will be filed shortly, to be followed in due course by those for 2007 and 2008. We will try to become "current" again before the end of this year.

This is also a good moment to advise you that, on the business front, in spite of our being very much a multi-product company, each one having its own particular challenges and potential rewards, we will initially be focusing our maximum attention on the outstanding growth opportunities offered by our MOSFET-Driver product-line. MOSFETs are used in an ever-expanding number of switching and motor-control applications and, if our optically-isolated MOSFET-Drivers can capture only 1.0 percent of that market, it would result in sales volume of $25-30 million annually. This is the target we have chosen.

And finally, we wish to express sincere thanks to our long-term shareholders, as well as to our employees, for the patience and loyalty they have shown during a most-difficult few years. We conclude with the hope to soon be reporting significantly better news to all our shareholders, both earlier-vintage and newer ones. Indeed, borrowing from Mark Twain, "Rumors of our death seem, at least for now, to have been greatly exaggerated."

Forward-Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words "anticipate", "believe", "estimate", "plan", "intend" and "expect" and similar expressions, as they relate to Dionics, Inc., or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Certain of those factors are discussed in the Company's filings with the Securities and Exchange Commission. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or for any other reason.

For more detailed information, please contact: Bernard L. Kravitz President (516) 997-7474

Dionics (CE) (USOTC:DION)
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