Ceradyne, Inc. Signs Agreement with Alcan Inc. to Provide Nuclear Waste Containment Systems

COSTA MESA, Calif. & SAGUENAY, Quebec--(BUSINESS WIRE)--June 8, 2006--Ceradyne, Inc. (Company) (Nasdaq:CRDN) and Alcan Inc. (NYSE:AL) (TSX:AL) announced today that they have signed a multi-year agreement to fabricate and distribute a nuclear shielding boron carbide/aluminum Metal Matrix Composite (MMC). Alcan's Dubuc Works and Ceradyne's recently formed subsidiary, Ceradyne Canada, will cooperate to produce state-of-the-art nuclear shielding structures, which will be formed into nuclear waste containment vessels. The incorporation of Alcan's aluminum metal with Ceradyne's boron carbide (B4C) powder results in a structural element (MMC) that can be formed into a system that effectively absorbs radioactive neutrons. Ceradyne will be responsible for the ultimate fabrication and distribution of these nuclear waste components.

Ceradyne plans on establishing an 80,000 square-foot manufacturing facility in Saguenay, Quebec, Canada, in order to process and extrude aluminum/boron carbide components using a state-of-the-art 2,750-ton short stroke press.

This technology initially will be focused on the market for spent nuclear fuel rods generated by nuclear power plants. However, Ceradyne and Alcan also intend to develop other aluminum/ceramic Metal Matrix Composites for a wide range of new applications, including the Company's military vehicle armor program.

Joel Moskowitz, Ceradyne chief executive officer, commented: "We are extremely excited about this Ceradyne/Alcan agreement. With Alcan's encouragement and cooperation, we intend to be a positive force in the Saguenay-Lac-Saint-Jean region. We expect to invest significant resources in plant and equipment. Our intention is to begin hiring people shortly and continue increasing our local staff over the next nine months. Our ultimate goal is a stable but growing workforce combined with the economic advantages of Quebec."

Source : Ceradyne

---

Recent News from Ceradyne

• Ceradyne Receives $122.2M Ceramic Body Orders for U.S. Army [ Mon 6 Nov 2006 ]
• Ceradyne Inc. to Develop Prototype Lightweight Ceramic Armored Truck Cab [ Wed 9 Aug 2006 ]
• Ceradyne Receives 5-Year $611.7M ID/IQ Contract [ Tue 4 Jul 2006 ]
• Ceradyne, Inc. Signs Agreement with Alcan Inc. to Provide Nuclear Waste Containment Systems [ Fri 9 Jun 2006 ]
• Ceradyne Inc. to Develop Prototype Lightweight Ceramic-Armored Crew Compartment for the Flyer(R) ITV [ Thu 25 May 2006 ]
• Ceradyne, Inc. receives $4.2 Million ceramic body armor order [ Tue 9 Nov 2004 ]
• Ceradyne, Inc. Receives $75.7 Million Ceramic Body Armor Contract; Deliveries Scheduled for Q2-Q3 20... [ Tue 2 Nov 2004 ]