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A special committee of independent directors was formed to conduct an internal investigation of Ceradyne's historical stock option grants and related accounting treatment. The special committee's investigation is ongoing and, accordingly, Ceradyne was unable to file its Form 10-Q for the quarter ended June 30, 2006, by the required filing deadline. The company is focused on resolving these issues as quickly as possible and plans to file its Form 10-Q following completion of the independent investigation by the special committee.
Additional information is available at www.ceradyne.com.