Zoltek Companies, Inc. reported results for the 2005 fiscal year, ended September 30. Zoltek's net sales increased from $39.8 million in fiscal 2004 to $60.2 million in fiscal 2005, an increase of 51%. Despite sharply increased sales and booming demand for Zoltek's low-cost, high-performance carbon fibers, the operating loss from continuing operations widened from $5.7 million in fiscal 2004 to $8.1 million in fiscal 2005. Increased revenues from resumption of production at Zoltek's Abilene, Texas facility were more than offset by considerable costs incurred for restarting a facility that had been idle for several years.

ADVERTISEMENT "The carbon fiber-led revolution in building materials that we predicted over a dozen years ago is now well and truly underway," said Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. "Zoltek is no longer alone in championing this revolution. We have been joined by a powerful group of companies: our best customers. As a result, we expect to ship increasing volumes of Zoltek-made carbon fibers in fiscal 2006, 2007 and 2008. Our customers have agreed to price increases as well, which will enhance our margins as well as our revenues in the year ahead."

Rumy said that difficulties in restarting operations in Abilene were primarily "people-related, not technical." "We've had a hard time finding and training qualified workers and managers at a site that had been dormant for four years," Rumy said. "Without them, we could not duplicate the success of our production lines in Hungary, even though the process technology is identical." Rumy noted that Zoltek recently had moved some of its most experienced managers from Hungary to Abilene, and now has three of the five lines installed in Abilene running at their targeted production rates. The other two lines are operational, and their production levels will increase as additional workers are recruited and trained. The full effect of improved Abilene production and the new lines is expected to show significant operating improvements during the second quarter of fiscal 2006 and continue throughout the balance of the year.

He said that Zoltek was on schedule in carrying out the second stage of a major expansion plan centered at its facility in Hungary -- at which two new carbon fiber lines became operational in late 2005. Over the course of 2006, Zoltek expects to raise its total rated capacity from 9 million pounds to 19 million pounds per year. After that doubling, Zoltek expects to almost double capacity again in 2007.

Additional information with respect to Zoltek's results of operations and financial condition for the fiscal year ended September 30, 2005 is contained in its annual report on Form 10-K which has been filed with the Securities and Exchange Commission.