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Superconductive Components, Inc. Announces Record First Quarter Results

CONTACT:
Robert A. Lentz
(614) 876-2000

COLUMBUS, Ohio -- May 8, 2001 -- Superconductive Components, Inc. (National Quotation Bureau: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non- superconductive products, today announced record net income of $118,650 for first quarter 2001 versus a net loss of $49,233 for the same period last year. Net income per diluted share applicable to common stock was $0.06 versus a net loss of $0.06 in first quarter 2000. Weighted average shares outstanding were 41.5% higher than a year ago as a result of a private sale of common equity and conversion of debt to equity during the second half of 2000.

First Quarter 2001 Results

Revenues improved 33.1% to $1,060,180 for first quarter 2001 versus $796,346 the prior year. The increase in revenues resulted from improved product sales, $172,000 of tantalum sales, and $48,000 of scrap sales. In addition, the Company was awarded a Phase I SBIR grant from the National Science Foundation in January 2001 and $50,000 of the grant is included in first quarter 2001 revenues.

Gross margin rose to $335,988 or 31.7% of revenues for first quarter 2001 from $145,820 or 18.3% a year ago. The increase is attributable to higher sales, improved utilization of production capacity, and lower sub-contractor costs.

General and administrative expenses increased 32.2% to $145,252 for first quarter 2001 due to a number of one-time costs associated with additional regulatory filings and higher payroll costs. Sales and promotional expenses declined $11.3% to $65,968 for first quarter 2001 primarily as a result of lower commissions.

Edward R. Funk, Sc.D., Chairman and CEO, commented. "We are very pleased with the record results for first quarter 2001, particularly given the substantial increase in common shares outstanding during the past year. The results were slightly ahead of our plan for the quarter. Initiatives are being pursued to increase marketing efforts and also leverage our intellectual property and production capabilities. Additionally, we are increasing staff and acquiring additional production equipment to position the Company for continued growth."

Capital Expenditures

First quarter 2001 capital expenditures totaled $74,000 versus $16,000 for the same period last year. Additional manufacturing machinery and equipment was acquired during the first three months of this year to accommodate increased production needs.

Research Grants

The National Science Foundation Phase I SBIR strontium ruthenate grant continues through June 30, 2001. This project is intended to lead to successful development of a new method for making ultra-fine particles of phase pure (nanocrystalline) strontium ruthenate (SrRuO3) utilizing new coordination compounds. These compounds will be an integral step toward commercial production of high-density sputtering targets of SrRuO3. The targets are expected to be used for thin-film electrodes in the next generation of high capacity stack storage capacitors.

During first quarter 2001 the Company submitted several applications for grants to continue research involving lithium ion batteries, various forms of exhaust emissions, superconductor wire, and others. Notification concerning funding decisions regarding these projects is anticipated beginning second quarter 2001.

Form 10-SB Registration Statement

The Company resolved all outstanding issues concerning its Form 10-SB Registration Statement identified by the Securities and Exchange Commission through an amendment to the Form 10-SB filed on April 2, 2001, and has initiated efforts to re-list its common shares on the NASDAQ Over The Counter Bulletin Board (OTC BB). There is no assurance, however, that the Company's common shares will be accepted for re-listing on the OTC BB. The Company became a reporting company for purposes of the Securities Exchange Act of 1934, as amended, by operation of law sixty days after the Form 10-SB was initially filed on September 28, 2000, and as such is required to file regular quarterly and annual reports with the SEC. The Company filed its first Form 10-KSB with the SEC on April 2, 2001.

About Superconductive Components, Inc.

Superconductive Components, Inc. manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, sensors, batteries, wireless and fiber optics systems. The Target Materials, Inc. Division of the Company manufactures thin film materials for photovoltaics, flat panel displays, 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 www.superconductivecomp.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: the Company's marketing efforts and the Company's ability to leverage its intellectual property and production capabilities (paragraph five); and overall growth of the Company, including increased staff and equipment (paragraph five), and second quarter 2001 revenues. These forward-looking statements involve numerous risks and uncertainties, including, without limitation: the Company's ability to generate sales orders during fiscal 2001, the acceptance of the Company's present products and services and its ability to develop new products and services as planned and on budget, 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, 2000. One or more of these factors have affected, and could in the future affect, the Company's business and financial results in future periods and could cause actual results to differ materially from plans and 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. 

SUPERCONDUCTIVE COMPONENTS, INC. 
Condensed Consolidated Statements of Operations 
                                                      Three Months Ended
                                                           March 31,
                                                      2001           2000
                                                                  (Restated)

    Revenues                                      $1,060,180       $796,346
    Gross margin                                     335,988        145,820
    General and administrative expenses              145,252        109,895
    Sales and promotional expenses                    65,968         74,380
    Income (loss) from operations                    124,768        (38,455)
    Income(loss) before income tax                   118,650        (49,233)
    Net income (loss)                                118,650        (49,233)
    Dividends on preferred stock                      (9,360)       (20,924)
    Income (loss) applicable to common shares       $106,362       $(73,085)
    Net income (loss) per share-basic and diluted      $0.06         $(0.06)

    Weighted average shares outstanding
      Basic                                        1,818,069      1,290,483
      Diluted                                      1,826,140      1,290,483

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