Exhibit 99
[ZOLTEK logo]
FOR IMMEDIATE RELEASE NASDAQ NMS SYMBOL: "ZOLT"
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ZOLTEK REPORTS LARGEST EVER
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COMMERCIAL CARBON FIBER SUPPLY AGREEMENT
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ST. LOUIS, MISSOURI -- DECEMBER 16, 2004 -- Zoltek Companies Inc.
today announced that it has concluded a long-term strategic supply agreement
with Vestas Wind Systems AS, of Denmark, the world's largest producer of
wind turbine generators. Under the agreement, Zoltek expects to provide
Vestas with $80-to-$100 million worth of carbon fiber and carbon fiber
materials over the first three years, for the manufacture of rotor blades
for wind turbine generators.
"We are thrilled to be aligned with Vestas, the world leader in the
manufacture of wind turbines and the rotor blades that power them," said
Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. "The generation
of electricity through wind energy is a growth business - especially in
Europe - and carbon fiber is now recognized as the only material that will
do the job in supporting the development of bigger and more powerful
generators."
The agreement follows extensive testing and qualification work in
Europe. Vestas has notified Zoltek that its Panex 35 carbon fiber has been
fully approved and certified for use in all internal processes for producing
rotor blades.
Rumy added that Zoltek is now shipping significant quantities of
carbon fiber for the wind energy industry and the Company expects that sales
volume for wind energy applications will accelerate in the coming six months
and thereafter due to rapid growth in demand. Worldwide, generation of
electricity through wind energy is increasing nearly 20% per year, and it is
increasing at an even faster rate in some regions of the world.
"This agreement represents the culmination of three years of
extensive work in supporting the testing and qualification of our material
with European customers and partners," noted Tim McCarthy, Vice President
Sales and Marketing. "European companies are in the forefront of the design,
building and deployment of the most powerful and efficient wind turbines. So
this is where the action is and this is where we want to be as the lead
supplier of the critical enabling material for all future growth."
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[ZOLTEK logo]
Zoltek Reports Largest Ever Commercial Carbon Fiber Supply Agreement
Page 2
December 16, 2004
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In order to meet demand for carbon fibers for wind energy and other
commercial carbon fiber applications, Zoltek has undertaken a three-phase
capacity expansion program. First, Zoltek has initiated the start-up of the
five installed lines at its Abilene, Texas facility and activated sufficient
precursor capacity to support all of the Company's carbon fiber capacity,
which are scheduled to be fully operational in the first quarter of calendar
2005. Second, Zoltek plans to add two new carbon fiber lines and add
sufficient precursor capacity at the Company's Hungarian facility by
mid-2005. The third phase of the expansion program calls for a doubling of
the carbon fiber and precursor capacity levels after the second phase, to be
operational in 2006.
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: re-activate its formerly idle manufacturing facilities on a timely and
cost-effective basis, to meet current order levels for carbon fibers;
successfully add new capacity for the production of carbon fiber and
precursor raw material; execute plans to exit its specialty products
business and reduce costs; achieve profitable operations; raise new capital
and increase its borrowing at acceptable costs; manage changes in customers'
forecasted requirements for the Company's products; continue investing in
application and market development; manufacture low-cost carbon fibers and
profitably market them; and penetrate existing, identified and emerging
markets. 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.
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, which the Company is
pursuing plans to exit, markets acrylic fibers, nylon products and
industrial materials.
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