Mar 28, 2003 Park Electrochemical Corp.
(516) 354-4100
PARK ELECTROCHEMICAL ANNOUNCES THE CLOSURE OF DIELEKTRA�S MASS LAMINATION OPERATION
LAKE SUCCESS, New York, March 27, 2003�Park Electrochemical Corp. (NYSE-PKE) announced that Dielektra GmbH is closing its mass lamination operation. Dielektra GmbH is Park�s advanced electronic materials business located in Cologne, Germany. Dielektra�s mass lamination operation supplied higher-end mass lamination products to European circuit board manufacturers. The market for these higher-end mass lamination products in Europe has eroded to the point where the company no longer believes it is possible to operate a viable mass lamination business in Europe. In addition, the company does not believe that, at any time in the foreseeable future, the higher-end European mass lamination market will recover to the extent necessary to justify the company�s conducting a mass lamination operation in Europe. After the closure of Dielektra�s mass lamination operation, Dielektra�s manufacturing operations will consist exclusively of high technology treating and Dielektra�s proprietary Datlam� automated continuous laminate manufacturing. The company is in the process of developing new and more advanced products to be manufactured by Dielektra on its Datlam� automated continuous manufacturing lines. The company believes that the products produced on Dielektra�s Datlam� manufacturing lines have certain unique technological capabilities which are useful to high-technology circuit board customers which produce complex high-density circuit boards.
Park Electrochemical expects to record a one-time charge of approximately U.S. $8 million in its 2004 first quarter ended June 1, 2003 in connection with the closure of Dielektra�s mass lamination operation and the related workforce reductions at Dielektra.
Brian Shore, Park�s President and CEO, said, �While we are unhappy about the workforce reductions at Dielektra, the realities of the higher-end European mass lamination market have left us with no option or choice. The harsh market reality is that there is no way Dielektra can viably operate a mass lamination business now or at any time in the foreseeable future. The closure of the Dielektra mass lamination operation is in response to this reality. Although this is painful and difficult, the very positive by-product of this action is that the Dielektra business is now exclusively focused on its unique high technology manufacturing processes and product line. We believe that this special focus is the best strategy for success for Dielektra in the European market place. We intend to continue to enhance and develop Dielektra�s unique Datlam� manufacturing technology and product line in the future. It is now up to our highly skilled Dielektra employees to ensure and secure Dielektra�s future success and Dielektra�s special place in the European electronics market place.�
Certain portions of this press release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park�s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park�s competitive position, the status of Park�s relationships with its customers, economic conditions in international markets, the cost and availability of utilities, and the various other factors set forth under the caption �Factors That May Affect Future Results� after Item 7 of Park�s Annual Report on Form 10-K for the fiscal year ended March 3, 2002.
Park Electrochemical Corp. is a leading global designer and producer of electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park specializes in advanced materials for high layer count circuit boards and high speed digital broadband telecommunications, internet and networking applications. Park�s electronic materials business operates through fully integrated business units in Asia, Europe and North America. The Company�s manufacturing facilities are located in Singapore, China, Germany, France, Connecticut, New York, Arizona and California. Park�s electronic materials business operates under the �Nelco� name.
Additional corporate information is available on the World Wide Web at http://www.parknelco.com.
