Nov. 6, 2014: IKONICS REPORTS RECORD SALES AND A 20% THIRD QUARTER EARNINGS INCREASE

DULUTH, MN – IKONICS Corporation (NASDAQ:IKNX), a Duluth-based technology company, announced today third quarter net earnings of $139,000, or $0.07 per diluted share, a 20% increase compared to the third quarter of 2013, and record third quarter sales of $4,478,000, a 6% increase over the comparable quarter of 2013 due to stronger sales from the domestic screen printing and IKONICS Imaging businesses. This was the fourth consecutive quarter of record sales on a quarter-to-quarter comparison basis. Year-to-date earnings are up 69% and sales are up 8% over last year. The company has $4,000,000 in cash and short-term investments with no longterm debt.

On October 17, 2014, the company was notified by the Minnesota Department of Employment and Economic Development that it qualifies for up to $508,000 in incentives over a seven-year period for an expansion of its Advanced Materials Solutions business unit (previously branded as Micro-Machining). The proposed expansion would enhance machining capacity for composites used in the aerospace industry.

Bill Ulland, IKONICS CEO, commented, “IKONICS appreciates the confidence the State of Minnesota has shown in our aerospace business and also the timeliness of the support as our capabilities are being audited by existing and potential customers for assurance that we have the manufacturing capacity to meet their needs.”

Explaining further, Ulland said, “Although we have unique capabilities, we are relatively new to the aerospace industry and potential customers need assurance that we can perform. I believe with our existing capacity and the expansion we are considering, we can satisfy these demanding customers. This is a critical time for us and the commercial aviation business as several new aircraft which use, or could use, our technology will be going into production in 2015. We are beginning to see the ramp-up of some of these programs.”

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