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Ceradyne in Compliance with NASDAQ Listing Rules (10/31/06)

October 31, 2006
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Ceradyne, Inc. recently announced that it is now in compliance with the requirements for continued listing on the Nasdaq Global Select Market, as set forth in Nasdaq Marketplace Rule 4310(c)(14), as a result of filing its form 10-Q report for the quarter ended June 30, 2006, with the Securities and Exchange Commission on October 24, 2006. As previously reported, a special committee comprised of independent members of Ceradyne's board of directors was appointed to conduct a voluntary review of historical stock option grants and related accounting treatment. The committee retained the law firm of Latham & Watkins LLP as independent legal counsel and the firm of LECG as independent forensic accounting experts to assist with its review.

Details of the committee's findings are available at www.ceradyne.com.

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