Ceradyne, COSTA MESA

Nature of Business: Manufactures and markets technical ceramics

Total employees: 250

In Orange County: 140

Stock listing in The Times: On NASDAQ as “Cerdyn”

Ticker Symbol: “CRDN”

Friday’s Close: $4.13

One-week Change: Down 50c

Analyst Review: “Four years ago, Ceradyne’s business was 100% defense; today it is less than 50%. Since the defense industry slow-down, Ceradyne shifted its focus to commercial endeavors. As a result, it is coming out of its earnings slump. Ceradyne is well positioned in the next area of ceramics with two key products. One is a silicon nitride, which is currently in the testing stages for valves, tool inserts and engine parts for Ford Motor Corp.-- Ford owns about 20% of the company. The other is a ceramic cathode that will be used in projection, large screen and high-definition TVs, and in enhanced resolution computer graphics. Zenith has already using the product, and now it is being tested by all of the top television and terminal manufacturers. People are just going to go bananas over this product.”

--Joaquin Horton, analyst, Van Kasper & Co., San Francisco

SALES VS. PROFITS

Dollar amounts in millions:

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 1st Qtr. 1st Qtr. 1989 1990 1991 1991 1992 Net Sales $23.1 $23.1 $21.9 $6.3 $4.8 Net Profit (Loss) ($2.6) $.371 ($1.1) $.064 ($.387)

Corporate Outlook: “Ceradyne is a leading state-of-the-art advanced technical ceramic corporation. The decline in its defense business over the past few years has masked to some degree its progress in non-defense markets. In order to resume its growth, Ceradyne is focusing on new products such as the structural ceramic silicon nitride, asthetically pleasing orthodontic ceramic brackets, and a ceramic cathode for next-generation television picture tubes.”

--Joel P. Moskowitz, CEO/chairman

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 1st Qtr. 1989 1990 1991 1991 52-Week High $4.75 $4.88 $5.63 $5.50 52-Week Low $2.88 $2.50 $3.63 $3.75 Book Value Per Share $2.97 $2.91 $2.85 $2.85 Price Per Share $3.63 $4.38 $4.00 $4.25 Net Earnings (Loss) Per Share ($0.44) $0.06 ($0.18) $0.01 Price-to-Earnings Ratio N/A 73:1 N/A 106:1 Average Return on Investor Equity N/A 2% N/A 1%

Fiscal year ending 1st Qtr. 1992 52-Week High $4.38 52-Week Low $3.63 Book Value Per Share $2.84 Price Per Share $4.00 Net Earnings (Loss) Per Share ($0.06) Price-to-Earnings Ratio N/A Average Return on Investor Equity N/A

Source: Ceradyne Inc.

For more information call or write, Ceradyne Inc.: 3169 Redhill Ave., Costa Mesa, Calif. 92626. (714) 549-0421