Exhibit 99
[ZOLTEK logo]
FOR IMMEDIATE RELEASE NASDAQ NMS SYMBOL: "ZOLT"
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ZOLTEK RESTARTS LINES AT ABILENE FACILITY AND AIMS FOR FULL PRODUCTION
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ST. LOUIS, MISSOURI -- AUG. 5, 2004 -- Zoltek Companies, Inc. today
announced that it has restarted two of the five installed lines at its
Abilene, Texas facility and expects to have all five lines operating at peak
capacity within the next two months.
"We have been waiting for this moment for a long time," said Zsolt
Rumy, Zoltek's Chairman and Chief Executive Officer. "For the first time
ever, we will soon be making full use of our installed capacity in order to
supply a large and growing backlog of orders from existing customers, and
that puts us into a position to take substantial new orders. Based on
existing contracts, letters of intent and other indications, we see clear
evidence of long-term change in the marketplace for low-cost,
high-performance carbon fibers geared to commercial applications. As a
result, we are planning to make significant additions to capacity in 2005
and beyond, with the installation of new carbon fiber production lines in
Hungary or the U.S. (Abilene, Texas), and possibly both."
Rumy said Zoltek had assured its customers that it would continue
to work at maintaining prices - not raising them to take advantage of the
current tight market conditions - in the face of rapidly growing demand. "We
are sticking to our strategy of making large quantities of commercial carbon
fibers available for commercial applications at stable and affordable
prices," Rumy said. "We don't want to risk our long-term opportunities to
benefit from secular improvement in market fundamentals by raising prices in
the short term."
FOR FURTHER INFORMATION CONTACT:
ZSOLT RUMY, CEO OR KEVIN SCHOTT, CFO
3101 MCKELVEY ROAD
ST. LOUIS, MO 63044
(314) 291-5110
This press release contains forward-looking statements, which are based upon
the current expectations of the Company. Because these forward-looking
statements are inherently subject to risks and uncertainties, there are a
number of factors that could cause the Company's plans, actions and actual
results to differ materially. Among these factors are the Company's ability
to: return to operating on a profitable basis; obtain a waiver of its debt
covenants and otherwise comply with its obligations under its credit
agreements; refinance those agreements at their maturity dates; increase
production capacity to meet increased orders on a timely and profitable
basis; manage its excess carbon fiber production capacity and inventory
levels; continue investing in application and market development;
manufacture low-cost carbon fibers and profitably market them at decreasing
price points and penetrate existing, identified and emerging markets, as
well as other matters discussed herein. The timing and occurrence (or
non-occurrence) of transactions and events that determine the future effect
of these factors on the Company, as well as other factors, may be beyond the
control of the Company. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date
of this press release.
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Zoltek is an applied technology and materials company. Zoltek's Carbon Fiber
Business Unit is primarily focused on the manufacturing and application of
carbon fibers used as reinforcement material in composites, oxidized acrylic
fibers for heat/fire barrier applications and aircraft brakes, and composite
design and engineering to support the Company's materials business. Zoltek's
Hungarian-based Specialty Products Business Unit manufactures and markets
acrylic fibers, nylon products and industrial materials.
2