Superconductor Technologies Inc. Announces Second Quarter 2006 Results

Santa Barbara, CA, August 10:  Superconductor Technologies Inc. (Nasdaq:SCON) ("STI"), a leading provider of high performance infrastructure products for wireless voice and data applications, today announced results for the quarter and six months ended July 1, 2006.

Total net revenues for the second quarter were $5.0 million, compared to $4.8 million in the first quarter of 2006 and $8.6 million in the year ago second quarter. Net commercial product revenues for the second quarter were $3.9 million, compared to $4.5 million in the first quarter of 2006 and $7.6 million in the second quarter of 2005. Government and other contract revenue totaled $1.1 million during the 2006 second quarter, compared to $342,000 in the first quarter of 2006 and $972,000 during the year ago period.

Net loss for the second quarter totaled $22.7 million. The net loss includes a non-cash charge of $20.1 million to write-off all the goodwill from the acquisition of Conductus in December 2002. Because its market capitalization had fallen below the book value of its assets, the company is performing an evaluation of all its assets and currently estimates that the goodwill is fully impaired under FAS No. 142. The company expects to complete its evaluation during the third quarter and may adjust its estimate. Excluding the goodwill impairment charge, net loss for the second quarter was $2.6 million. This compares to a net loss of $3.2 million for the first quarter of 2006 and a net loss of $2.0 million in the second quarter of 2005. Net loss, including the goodwill charge, was $1.82 per diluted share for the second quarter, compared to a net loss of $0.26 per diluted share in the first quarter of 2006 and a net loss of $0.19 per diluted share in the second quarter of 2005.

"As compared to the first quarter 2006, total net revenues this quarter were up slightly. However, comparisons to last year's second quarter revenue were somewhat skewed by a large order from a major wireless carrier we shipped in that quarter. This order formed the basis of our continued work with the carrier on its 3G (EV-DO) roll-out. Although commercial sales were less than anticipated this quarter, we continue to successfully execute our strategy to diversify our customer base and broaden the exposure of our solutions to new markets within our existing customer base. We continue to be excited about our future prospects," said Jeff Quiram, STI's president and chief executive officer.

For the first half of 2006, total net revenues were $9.9 million, compared to $12.9 million for the first half of 2005. Net commercial product revenues for the first half of 2006 were $8.4 million, compared to $11.3 million in the year ago period. The company recorded $1.4 million in government and other contract revenues for the first half of 2006, compared to $1.5 million for the first half 2005. The net loss for the first half of 2006, which includes the non-cash goodwill impairment charge of $20.1 million, was $25.9 million, compared to $7.6 million for the prior year's first half. Excluding the non-cash goodwill impairment charge, net loss for the first half was $5.8 million. The net loss for the first half of 2006, including the goodwill charge, was $2.07 per diluted share, compared to $0.70 per diluted share in the first half of 2005.

As of July 1, 2006, STI had $12.6 million in working capital, including $7.1 million in cash and cash equivalents.

Investor Conference Call

STI will host an investor conference call today at 1:30 p.m. Pacific Time, August 10, 2006. The call will be accessible live by dialing 800-257-7087. A replay will be available until August 14, 2006 by dialing 800-405-2236, pass code 11066469#. The call will also be simultaneously webcast and available on STI's web site at http://www.suptech.com.

About Superconductor Technologies Inc. (STI)

Superconductor Technologies Inc., headquartered in Santa Barbara, CA, is a leading provider of high performance infrastructure products for wireless voice and data applications. STI's SuperLink(R) solution increases capacity utilization, lowers dropped and blocked calls, extends coverage, and enables faster wireless data rates. Its AmpLink(TM) solution enhances the performance of wireless base stations by improving receiver sensitivity and geographic coverage.

SuperLink and AmpLink are trademarks of Superconductor Technologies Inc. in the United States and in other countries. For information about STI, please visit www.suptech.com.

Safe Harbor Statement

The press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, STI's views on future fundraising plans, profitability, revenues, market growth, capital requirements and new product introductions and any other statements identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," "goals" or similar words. 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. For example, the financial results reported in this press release are based on certain assumptions and estimates made by management and are subject to adjustment prior to the filing of the company's Quarterly Report on Form 10-Q with the SEC. In addition, our decision to fully write-off the goodwill from the Conductus acquisition is based on preliminary estimates of our net assets and is subject to adjustment after completion of our analysis. Other factors and uncertainties include: fluctuations in product demand from quarter to quarter which can be significant; STI's ability to diversify its concentrated customer base; the impact of competitive filter products technologies and pricing; unanticipated decreases in the capital spending of wireless network operators; and manufacturing capacity constraints and difficulties. Forward- looking statements can be affected by many other factors, including, those described in the Risk Factors and the MD&A sections of its 2005 Annual Report on Form 10-K and most recent Form 10-Q. 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.

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