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Superconductor Technologies Inc. Completes Acceptance of Reactive Coevaporation Cyclic Deposition and Reaction (RCE-CDR) Equipment for Its Conductus(R) 2G HTS Wire Production

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AUSTIN, Texas, Oct. 11, 2012 (GLOBE NEWSWIRE) -- Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a world leader in the development and production of high temperature superconducting (HTS) materials and associated technologies, completed the acceptance process for its next generation Reactive Coevaporation Cyclic Deposition and Reaction (RCE-CDR) system. STI's engineers completed testing at the supplier's location and the equipment has been received at the company's Advanced Manufacturing Center of Excellence in Austin for installation.

"This pilot production RCE-CDR system, capable of producing 100 meter lengths of HTS wire, will demonstrate to our customers the high yield, uniformity and repeatability of our proprietary process," said Adam Shelton, STI's VP of Marketing and Product Line Management. "At the same, we will also validate several critical machine design parameters that we plan to integrate into the kilometer length manufacturing system scheduled for 2013."

"This equipment delivery represents the second of the three system installations scheduled for 2012. Our Ion Beam Assisted Deposition (IBAD) machine was installed in April. Now operational, it provides wire template that will be used in the RCE-CDR machine. Our third piece of equipment, the Solution Deposition Planarization (SDP) machine, is currently completing system integration testing with delivery scheduled in the next several weeks. STI expects to have a complete 2G HTS production suite installed and operational in our new Austin facility by 2012 year end," Shelton added.

About RCE-CDR

Conductus® unique RCE-CDR HTS deposition offers a key advantage to successfully commercialize HTS wire for large, emerging markets. Importantly, HTS deposition using RCE-CDR requires fewer manufacturing steps than alternate deposition methods like MOD, MOCVD and PLD. Fewer steps reduce total processing time and increase the likelihood of higher yield. Conductus highly controlled RCE-CDR deposition process grows crystalline structures from very low cost raw materials in their bulk, solid state. Other YBCO growth approaches are not as controlled and usually require the use of costly chemical mixtures to deposit HTS materials. The competing processes require more buffer layers for proper crystal growth which increases complexity and runtimes and reduces yield. The Conductus growth process is simple, repeatable and commercially proven. In addition to the lower direct cost of raw materials and the use of inexpensive substrate material, Conductus manufacturing process is designed for high throughput and a large HTS growth area. Fewer process steps allows for less production equipment per km of wire, which in turn translates into lower capital expenditures, less electricity use and a smaller production footprint.

About Superconductor Technologies Inc.(STI)

Superconductor Technologies Inc., headquartered in Austin, TX, has been a world leader in HTS materials since 1987, developing more than 100 patents as well as proprietary trade secrets and manufacturing expertise. For more than a decade, STI has been providing innovative interference elimination and network enhancement solutions to the commercial wireless industry. The company is currently leveraging its key enabling technologies, including RF filtering, HTS materials and cryogenics to develop energy efficient, cost-effective and high performance second generation (2G) HTS wire for existing and emerging power applications, to develop applications for advanced RF wireless solutions and innovative adaptive filtering, and for government R&D. Superconductor Technologies Inc.'s common stock is listed on the NASDAQ Capital Market under the ticker symbol "SCON." For more information about STI, please visit http://www.suptech.com.

The Superconductor Technologies Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3963

Safe Harbor Statement

Statements in this press release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors, which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include, but are not limited to: our limited cash and a history of losses; the limited number of potential customers; the limited number of suppliers for some of our components; there being no significant backlog from quarter to quarter; our market being characterized by rapidly advancing technology; overcoming technical challenges in attaining milestones to develop and manufacture commercial lengths of our HTS wire; customer acceptance of our HTS wire; fluctuations in product demand from quarter to quarter; the impact of competitive filter products, technologies and pricing; manufacturing capacity constraints and difficulties; and local, regional, and national and international economic conditions and events and the impact they may have on us and our customers, such as the current worldwide recession.

Forward-looking statements can be affected by many other factors, including, those described in the "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of STI's Annual Report on Form 10-K for the year ended December 31, 2011 and in STI's other public filings. These documents are available online at STI's website, www.suptech.com, or through the SEC's website, www.sec.gov. Forward-looking statements are based on information presently available to senior management, and STI has not assumed any duty to update any forward-looking statements.

Contacts

Investor Relations, invest@suptech.com, Cathy Mattison or Becky Herrick of LHA, +1-415-433-3777, for Superconductor Technologies Inc.

Source:Superconductor Technologies Inc.