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Superconductive Components, Inc. Reports Second Quarter Results

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

COLUMBUS, Ohio -- August 16, 2002 -- Superconductive Components, Inc. (OTCBB: SCCI), a manufacturer of advanced ceramics, optical materials, and high temperature superconductive and non-superconductive products, today reported a $38,305 loss applicable to common shares for the three months ended June 30, 2002 compared with a loss of $5,720 for the same period last year. The net loss per diluted share was $0.02 for second quarter 2002 versus $0.00 in 2001. Results for second quarter 2002 benefited from receipt of a $39,083 insurance claim.

Dan Rooney, President and Chief Executive Officer, commented "While we are disappointed with the results for second quarter 2002, changes have been implemented that are expected to benefit future performance. In conjunction with ongoing cost containment measures, we established SCI Engineered Materials on July 1, 2002 as the sole operating unit of the Company. This enhances utilization of our internal manufacturing and research capabilities and also strengthens the Company's position with customers in our chosen markets."

Total revenues declined 20.8% to $716,747 for second quarter 2002 from $905,071 a year ago. Sales revenues were $642,445 for second quarter 2002 versus $801,366 the prior year. The 19.8% decline compared to second quarter 2001 is attributable to continued weakness in the national economy and lower tantalum sales versus a year ago. Contract research revenues were $74,302 for second quarter 2002 or 28.4% below the prior year due to a reduction in funded research programs during second quarter 2002 compared with the same period last year. The Company was awarded a $100,000 Phase I SBIR grant from the U.S. Department of Energy during the second quarter that commences third quarter 2002.

Gross margin was $223,292 or 31.2% of total revenues for second quarter 2002 versus $333,168 or 36.8% of revenues for second quarter 2001. General and administrative expenses declined 12.2% to $230,475 for second quarter 2002 from $262,360 last year, primarily due to overhead reductions. Sales and promotional expenses were $52,975 for second quarter 2002 or 11.9% below the prior year due to staff reductions combined with lower commission expense.

Superconductive Components, Inc. operates through SCI Engineered Materials and manufactures advanced ceramics such as superconductors, ferroelectric and optical materials for use in wire, cable, sensors, batteries, wireless and fiber optics systems. The Company also provides materials for thin film applications used in 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 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 may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the company and its management, and include statements in this press release regarding implementation of changes expected to benefit future performance, enhanced utilization of internal manufacturing and research capabilities, and the strengthened position with customers in the Company's chosen markets (paragraph 2), and a grant that commences third quarter 2002 (paragraph three). These forward looking statements involve numerous risks and uncertainties, including all of the other risks and uncertainties inherent in the Company's business as detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2001. One or more of these factors have affected, and could in the future affect the Company's businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation, 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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