Exhibit 99
[ZOLTEK logo]
FOR IMMEDIATE RELEASE
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ZOLTEK RESPONDS TO MISSTATEMENTS
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IN RECENT SECURITIES ANALYST'S REPORT
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ST. LOUIS, MISSOURI -- APRIL 2, 2009 -- Zoltek Companies, Inc.
(Nasdaq: ZOLT) today responded to material inaccuracies in a research report
published March 27, 2009, by Stuart Bush of RBC Capital Markets, entitled
"Pricing and Order Pipeline Deteriorates Further; Reiterate Sell." Shortly
after releasing the report, Mr. Bush transmitted it to Zsolt Rumy, Zoltek's
Chairman and CEO, with a note that read, "Zsolt: If you won't talk with me or
allow me on the conference calls, I have to develop my assessment elsewhere:
see my latest report below. The investors in the company seem to trust my
assessment more than yours."
Mr. Rumy commented, "Although we typically would not dignify such a
report passed off as independent 'research' with any response, this piece was
so malicious and contained so much misinformation that we believe the
interests of our customers and shareholders demand that we set the record
straight. We think this is another example of Bush's lack of understanding of
our business and, as noted above, less than professional motives. We are at a
loss to understand Bush's statement that the 'outlier strength' in our stock
price was attributable to my overly optimistic outlook presented at the JEC
industry trade show at which we met with customers and potential customers but
did not speak publicly."
Zoltek cited the following inaccuracies in Bush's report:
o Bush states that wind turbine manufacturers and blade suppliers are
"the key existing and potential customers for Zoltek." While wind
energy was the first breakthrough application that validated our
low-cost commercialization strategy and will continue to play a
substantial role in our business for the foreseeable future, we
have regularly advised shareholders that carbon fiber is an
enabling material for many applications we are actively pursuing
which have the potential to substantially exceed our wind energy
volumes. These applications include automotive, deep-sea oil field,
non-airframe aerospace and electricity transmission, among others.
o Contrary to Bush's report, Zoltek never provided specific guidance
for fiscal 2009 revenues, although we have shared management's
views as to the potential for the business if the Company is
successful in translating identified growth opportunities into new
long-term contracts. Rather, in recent announcements Zoltek has
reiterated that it cannot predict the timing of new contracts and
that sales for fiscal 2009 may lag historical growth rates. Zoltek
also has advised shareholders that it is not immune from
recessionary conditions in the global economy,
[ZOLTEK logo]
Zoltek Responds To Misstatements In Recent Securities Analyst's Report
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April 2, 2009
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volatility in raw material and energy costs or fluctuations in
foreign currency values. In addition, the Company also noted that
downstream carbon fiber adoption and, as a result customer
willingness to commit to new long-term supply arrangements, was
constrained during the period of industry supply shortages and
steep price increases that lasted into fiscal 2007.
o Although Zoltek regards selling prices for customers under
long-term supply agreements to be proprietary confidential
information, it should be noted that Bush's statements regarding
Zoltek's current selling prices are incorrect by a substantial
amount. Zoltek is unable to assess the reliability of the other
anecdotal selling price information cited by Bush, however, Zoltek
does not believe that it is representative of pricing for
significant quantities committed to long-term customers who require
certainty of supply and sustainable costs.
o As a matter of policy, Zoltek does not comment on individual
personnel matters. However, after an intensive review, Zoltek
recently re-engineered its sales function. The changes have
expanded its geographic reach, improved coordination with
manufacturing and research and development functions, and made
available technical support during and after the sales cycle. Early
results are that these changes are being well-received in the
market place.
o Similarly, Zoltek does not comment on discussions with individual
customers. Nonetheless, we believe that Bush's reporting regarding
Zoltek's existing and potential new customers is inaccurate and
misleading in many respects and appears to have been obtained from
sources who have questionable motives. Zoltek continues to have the
largest capacity and lowest production costs of any carbon fiber
manufacturer. Consequently, the Company expects to expand its
business with existing customers and win long-term supply
relationships with new customers who require an adequate supply of
low-cost carbon fiber at sustainable prices.
In sum, Mr. Rumy added, "It is unfortunate that this individual who
apparently has an axe to grind chose us as his target. We continue to
appreciate the support from our many loyal customers and shareholders, as
well as professional securities analysts. We recognize that we will be
judged by our long-term results and we are quite optimistic about our
future."
FOR FURTHER INFORMATION CONTACT:
ZSOLT RUMY, CEO
3101 MCKELVEY ROAD
ST. LOUIS, MO 63044
(314) 291-5110
[ZOLTEK logo]
Zoltek Responds To Misstatements In Recent Securities Analyst's Report
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April 2, 2009
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This press release contains certain statements that constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. The words "expect," "believe," "goal," "plan,"
"intend," "estimate," and similar expressions and variations thereof are
intended to specifically identify forward-looking statements. Those statements
include statements regarding the intent, belief or current expectations of us,
our directors and officers with respect to, among other things: (1) our
financial prospects; (2) our growth strategy and operating strategy, including
our focus on facilitating acceleration of the introduction and development of
mass market applications for carbon fibers; (3) our current and expected
future revenue; and (4) our ability to complete financing arrangements that
are adequate to fund current operations and our long-term strategy.
This press release also contains statements that are based on the current
expectations of our company. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors.
The factors that might cause such differences include, among others, our
ability to: (1) penetrate existing, identified and emerging markets, including
entering into new supply agreements with large volume customers for wind
energy and other high volume commercial applications; (2) continue to improve
efficiency at our manufacturing facilities on a timely and cost-effective
basis to meet current order levels of carbon fibers; (3) successfully add new
planned capacity for the production of carbon fiber and precursor raw
materials and meet our obligations under long-term supply agreements; (4)
maintain profitable operations; (5) increase our borrowing at acceptable
costs; (6) manage changes in customers' forecasted requirements for our
products; (7) continue investing in application and market development in a
range of industries; (8) manufacture low-cost carbon fibers and profitably
market them despite increases in raw material and energy costs; (9)
successfully operate our Mexican facility to produce acrylic fiber precursor
and add carbon fiber production lines; (10) resolve the pending non-public,
fact-finding investigation being conducted by the Securities and Exchange
Commission; (11) successfully continue operations at our Hungarian facility if
natural gas supply disruptions recur; (12) successfully prosecute patent
litigation; and (13) manage the risks identified under "Risk Factors" in our
filings with the SEC. Because forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be predicted or
quantified, you should not rely upon forward-looking statements as predictions
of future events. The events and circumstances reflected in the
forward-looking statements may not be achieved or occur and actual results
could differ materially from those projected in the forward-looking
statements.