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Superconductive Components, Inc. Reports First Quarter Results

CONTACT:
Robert Lentz
(614) 876-2000

COLUMBUS, Ohio -- May 20, 2004 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, today announced results for the three months ended March 31, 2004. The loss applicable to common shares was $292,090, or $0.16 per diluted share, for the first quarter 2004 versus a net loss applicable to common shares of $103,983, or $0.06 per diluted share, for the same period last year.

Dan Rooney, Chairman, President and Chief Executive Officer, stated, "While we are disappointed with our financial results, there have been several achievements in 2004 that are expected to benefit our future performance. These include completion of the move to a new facility, receipt of funds for the Third Frontier Action Fund program, and additional equity capital."

Mr. Rooney added, "We have intensified our marketing activities in response to the decline in product sales. Thus far, bookings have begun to improve and we are adding new customers for shipments later this year. The lithium thin film battery market continues to take shape and we anticipate sales will accelerate as the year progresses."

Total revenue declined 22.5% to $509,777 for the quarter ended March 31, 2004 from $657,879 for the same period last year. The reduction in first quarter 2004 revenues was attributable to lower product shipments due to continued weakness in the Company's markets and relocation of the Company's facilities. Contract revenues increased to $44,921 for the first quarter from $33,333 for the same period last year due to a Phase II Small Business Innovation Research grant.

Gross margin declined to $54,150 for the first quarter 2004 versus $149,218 for the first quarter 2003 due to lower sales and product mix.

General and administrative expenses rose to $261,256 for the first quarter 2004 from $179,070 the prior year. The increase was attributable to $70,390 of one-time costs related to the move to the Company's new facility and higher rent expense, which was $16,247 above the prior year.

Sales and promotional expenses rose to $65,237 for the three months ended March 31, 2004 from $48,256 last year. The Company hired a Director of Sales and Marketing on January 1, 2004 to expand its marketing efforts and increase visibility among current and prospective customers. Additional manufacturers' representatives are expected to be added this year to further expand the Company's marketing activities. The increase in first quarter 2004 sales and promotional expenses was partially offset by lower commission costs and trade show expenses compared to last year.

Private Equity Placement

The Company is raising additional equity capital through a private placement. As of May 13, 2004, the Company had received $671,000 from several investors for the purchase of 279,583 shares of common stock at $2.40 per share and warrants to purchase approximately 56,000 shares of common stock at $2.88 per share. The Company anticipates additional funding to be completed during the second quarter 2004. As a result of the private placement, $729,770 of notes payable and accrued interest were converted into common equity at $2.40 per share during the second quarter 2004.

Third Frontier Action Fund

The Company received $512,848 from the Ohio Department of Development in March 2004 pursuant to the Third Frontier Action Fund award. These funds are being used specifically for the purchase of equipment to commercialize the Company's Lithium Thin Film Battery products. All of this equipment is expected to be installed and operating later this year.

About Superconductive Components, Inc.

Superconductive Components, Inc. operates through SCI Engineered Materials and manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, batteries, wireless and fiber optics 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.

Safe Harbor

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 addition of new customers, the shaping of the lithium thin film battery market, and the acceleration of sales (paragraph 2), bookings have begun to improve and the Company is adding new customers for shipments later this year, and the lithium thin film battery market continues to take shape and sales are anticipated to accelerate as the year progresses (paragraph 3), the addition of manufacturers' representatives to expand the Company's marketing activities (paragraph 7), anticipated additional funding of the Company (paragraph 8), installment and operation of equipment purchased pursuant to the Third Frontier Action Fund (paragraph 9). 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, 2003. 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.

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