Exhibit 99.2



October 8, 2002

PERSONAL AND CONFIDENTIAL

Board of Directors
Conductus, Inc.
969 West Maude Avenue
Sunnyvale, CA 94085

Members of the Board:

You have requested our opinion as to the fairness, from a financial point of
view, to the holders of common stock of Conductus, Inc. (the "Company") of the
Exchange Ratio (as defined below) set forth in the Agreement and Plan of Merger
(the "Agreement") to be entered into among the Company, Superconductor
Technologies, Inc. ("Acquiror") and STI Acquisition, Inc. ("Merger Sub"), a
newly formed wholly-owned subsidiary of Acquiror. The Agreement provides for the
merger ("the Merger") of Merger Sub with and into the Company pursuant to which,
among other things, (i) each share of common stock of the Company will be
converted into the right to receive 0.6 (the "Exchange Ratio") shares of common
stock of Acquiror and (ii) each outstanding option or warrant to purchase shares
of common stock of the Company will be converted, after giving effect to the
Exchange Ratio, into an option or warrant, as applicable, to purchase shares of
common stock of the Acquiror on the terms set forth in the Agreement. In
addition, it is a condition to the obligations of the Acquiror under the Merger
Agreement that the Acquiror shall have completed a private placement of equity
securities of gross proceeds of not less than $15.0 million (the "Financing")
pursuant to a Securities Purchase Agreement (the "Securities Purchase
Agreement") among the Acquiror and certain purchasers set forth on the signature
pages thereto. The terms and conditions of the Merger are more fully set forth
in the Agreement.

U.S. Bancorp Piper Jaffray Inc. ("U.S. Bancorp Piper Jaffray"), as a customary
part of our investment banking business, is engaged in the valuation of
businesses and their securities in connection with mergers and acquisitions,
underwriting and secondary distributions of securities, private placements and
valuations for estate, corporate and other purposes. We have acted as financial
advisor to the Company in connection with the Merger and will receive a fee from
the Company which is contingent upon the consummation of the Merger. We will
also receive a fee from the Company for providing this opinion, which will be
credited against the fee for financial advisory services. This opinion fee is
not contingent upon the consummation of the Merger. The Company has also agreed
to indemnify us against certain liabilities in






connection with our services. In the ordinary course of our business, we and our
affiliates may actively trade securities of the Company and Acquiror for our own
account or the account of our customers and, accordingly, we may at any time
hold a long or short position in such securities.

In arriving at our opinion, we have undertaken such review, analyses and
inquiries as we deemed necessary and appropriate under the circumstances. We
have reviewed a draft dated October 4, 2002 of the Agreement. We also have
reviewed financial and other information that was publicly available or
furnished to us by the Company and Acquiror, including information provided
during discussions with the management of each company. In addition, we have
compared certain financial data of the Company and Acquiror with various other
companies whose securities are traded in public markets and, to the extent
publicly available, reviewed prices paid in certain other selected business
combinations deemed comparable to the Merger.

We have relied upon and assumed the accuracy and completeness of the financial
statements and other information provided by the Company and Acquiror or
otherwise made available to us and have not assumed responsibility independently
to verify such information. We have further relied upon the assurances of the
Company's and Acquiror's respective management that the information provided has
been prepared on a reasonable basis in accordance with industry practice, and,
with respect to financial planning data, reflects the best currently available
estimates and judgment of the Company's and Acquiror's respective management and
that they are not aware of any information or facts that would make the
information provided to us incomplete or misleading. We have assumed that that
the Merger will qualify as a reorganization under the United States Internal
Revenue Code. Without limiting the generality of the foregoing, for the purpose
of this opinion, we have assumed that neither the Company nor Acquiror is party
to any material pending transaction, including any external financing,
recapitalization, acquisition or merger, other than the Merger and Financing
(which we have assumed will occur on the terms set forth in the draft dated
October 7, 2002, of the Securities Purchase Agreement) or in the ordinary course
of business. In arriving at our opinion, we have assumed that all the necessary
regulatory approvals and consents required for the Merger will be obtained in a
manner that will not adversely affect the Company or Acquiror or alter the terms
of the Merger.

We have assumed that the executed Agreement will be in all material respects
identical to the last draft reviewed by us. We have also assumed the Merger will
be consummated pursuant to the terms of the Agreement without amendments thereto
and without waiver by any party of any conditions or obligations thereunder.

In arriving at our opinion, we have not performed any appraisals or valuations
of any specific assets or liabilities of the Company or Acquiror, and have not
been furnished with any such appraisals or valuations. We express no opinion
regarding the liquidation value of the Company, Acquiror or any other entity.
Notwithstanding any going concern qualification contained in the Company's
Report of Independent Accountants dated February 15, 2002 of
PricewaterhouseCoopers LLP, the analyses performed by U.S. Bancorp Piper Jaffray
in connection with this opinion were going concern analyses. We were not
requested to opine, and





no opinion is hereby rendered, as to whether any analysis of an entity, other
than as a going concern, is appropriate in the circumstance and, accordingly, we
have performed no such analyses. Without limiting the generality of the
foregoing, we have undertaken no independent analysis of any pending or
threatened litigation, including, without limitation, the litigation involving
ISCO International, Inc., possible unasserted claims or other contingent
liabilities, to which the Company, Acquiror or any of their respective
affiliates is a party or may be subject and, at the Company's direction and with
its consent, our opinion makes no assumption concerning, and therefore does not
consider, the possible assertions of claims, outcomes or damages arising out of
any such matters.

This opinion is necessarily based upon the information available to us and facts
and circumstances as they exist and are subject to evaluation on the date
hereof; events occurring after the date hereof could materially affect the
assumptions used in preparing this opinion. We are not expressing any opinion
herein as to the price at which shares of common stock of the Company or
Acquiror have traded or such stock may trade at any future time. We have not
undertaken to reaffirm or revise this opinion or otherwise comment upon any
events occurring after the date hereof and do not have any obligation to update,
revise or reaffirm this opinion.

This opinion is directed to the Board of Directors of the Company in connection
with its consideration of the Merger and is not intended to be and does not
constitute a recommendation to any stockholder of the Company as to how such
stockholder should vote with respect to the Merger. Except with respect to the
use of this opinion in connection with the prospectus/proxy statement relating
to the Merger, this opinion shall not be published or otherwise used, nor shall
any public references to us be made, without our prior written approval.

This opinion addresses solely the fairness, from a financial point of view, to
holders of common stock of the Company of the proposed Exchange Ratio set forth
in the Agreement and does not address any other terms or agreement relating to
the Merger, including, without limitation, the Financing. We were not requested
to opine as to, and this opinion does not address, the basic business decision
to proceed with or effect the Merger. We express no opinion as to whether any
alternative transaction might produce consideration for the Company's
stockholders in excess of the amount contemplated in the Merger. We were not
requested to solicit, and we did not solicit, any expressions of interest from
any other parties with respect to any business combination with the Company or
any other alternative transaction.

Based upon and subject to the foregoing and based upon such other factors as we
consider relevant, it is our opinion that the Exchange Ratio is fair, from a
financial point of view, to the holders of common stock of the Company as of the
date hereof.

Sincerely,



U.S. BANCORP PIPER JAFFRAY INC.