(CORRECTED COPY)                                                  EXHIBIT 99.1
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[ZOLTEK logo]

FOR IMMEDIATE RELEASE                               NASDAQ NMS SYMBOL:  "ZOLT"
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              ZOLTEK ANNOUNCES GRANT FROM HUNGARIAN GOVERNMENT

         BUDAPEST, HUNGARY -- MARCH 31, 2006 -- Zoltek Companies, Inc. and
the Hungarian Government today announced their joint commitment to a major
expansion plan to turn Zoltek's facility 30 miles west of Budapest into the
world's largest carbon fiber production facility. Through the expansion,
Zoltek is committed to adding 600 new employees in Hungary over the next few
years.

         As part of the agreement, the Hungarian Government has pledged a
grant of 2.9 billion HUF (approximately $14.5 million) to Zoltek's Hungarian
subsidiary for use in modernizing its facility, establishing a research and
development center there, and supporting a rapid buildup of manufacturing
capacity for both acrylic fiber precursor raw material and carbon fiber. By
the end of 2009, Zoltek expects rated annual carbon fiber production in
Hungary to reach at least 8,000 tons (18 million pounds), compared to 800
tons (2 million pounds) at the beginning of 2005.

         "We are extremely grateful to the Hungarian Government for their
generous and steadfast support," said Zsolt Rumy, Zoltek's Chairman,
President and Chief Executive Officer. "This grant is a critical element
supporting modernization and expansion of the facility. We believe that our
Hungarian plant, in turn, will play a leading role in the production of
carbon fibers used in commercial and industrial applications in European and
world markets. Zoltek's strategic goal is to position the facility to stand
at the epicenter of the next great revolution in building materials in every
important sense - from technological as well as marketing and manufacturing
perspectives."

         Since becoming a public company in 1992, Zoltek has focused on a
mission of "commercializing" carbon fibers - by reducing the cost and price
of this high-performance, space-age material and producing it in the
quantities needed to encourage widespread adoption in emerging applications.
Zoltek believes that it has been a catalyst in turning carbon fiber into the
key enabling material for achieving breakthrough levels of performance in a
variety of recently developed applications, including wind energy, ultra
deepwater drilling, the creation of super- strong but super-lightweight
concrete structures, and a new generation of extraordinarily fuel efficient
cars.







[ZOLTEK logo]
Zoltek Announces Grant From Hungarian Government
Page 2
March 31, 2006

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         In 1995, Zoltek acquired Magyar Viscosa Rt., whose principal
business was producing acrylic fiber for textile markets, in a privatization
transaction with the Hungarian Government. Since the acquisition, Zoltek has
made substantial investments to convert the operation into production of
acrylic fiber used as the precursor in Zoltek's low-cost method of
manufacturing carbon fibers. As a result, Zoltek capitalized on the
opportunity to secure an abundant future supply of low-cost raw material and
a wealth of highly skilled workers and engineering talent. Zoltek also has
installed and is operating four carbon fiber production lines in Hungary.

         In 2004, Zoltek identified wind energy as the first clear
"breakthrough" non-aerospace application for carbon fibers. Zoltek has
entered into long-term strategic supply relationships with both Vestas Wind
Systems AS, of Denmark, the world's largest producer of wind turbine
generators, and Gamesa Eolica, of Pamplona, Spain, the world's second
largest producer. Zoltek is supplying both of those customers with carbon
fibers produced in Hungary. In 2005 and early 2006, key technical employees
transferred from Hungary to Zoltek's Abilene, Texas facility played a key
role in re-establishing carbon fiber production at that plant.

                      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.