Ceramic Industry

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

October 31, 2006
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.