Press Release

 

Contact: Adrienne Binenstock
Park Electrochemical Corp.
(516) 354-4100

PARK ELECTROCHEMICAL CORP. ANNOUNCES REDEMPTION OF ITS 5-1/2% CONVERTIBLE SUBORDINATED NOTES

LAKE SUCCESS, New York, February 15, 2001…Park Electrochemical Corp. (NYSE-PKE) announced today that on March 2, 2001 it will redeem all of its outstanding 5-1/2% Convertible Subordinated Notes due March 1, 2006.

The principal amount of Notes outstanding is approximately $98.2 million. The redemption price will be $1,000.00, plus accrued interest of $0.15 through the redemption date, for each $1,000 principal amount Note. Since the redemption date will occur after the next interest payment date for the Notes on March 1, 2001 and after the record date for such interest payment date on February 15, 2001, holders of record of the Notes on February 15, 2001 will be entitled to receive the interest payable on March 1, 2001. Following the redemption, no further scheduled interest payments will be made on the Notes.

A $1,000 principal amount Note is immediately convertible into approximately 35.56 shares of Park Electrochemical Corp. Common Stock at a conversion price of $28.125 per share. No fractional shares of Common Stock will be issued upon conversion of the Notes, and cash will be paid in lieu thereof. The closing price on February 14, 2001 of Park Electrochemical Corp. Common Stock on the New York Stock Exchange was $35.53 per share. Based on the current market price, the market value of the Common Stock (and cash for any fractional share) into which the Notes are convertible is greater than the redemption price of the Notes. So long as the market price of the Common Stock remains above $28.13 per share, holders of the Notes who elect to convert will receive, upon conversion, Common Stock (and cash for any fractional share) having a current market value greater than the amount of cash receivable upon redemption of the Notes. No adjustment is to be made on conversion for interest accrued on a Note or for dividends on shares of Common Stock issued on conversion. Instead, as provided in the Indenture for the Notes, on conversion of a Note, accrued and unpaid interest on the principal amount of the Note shall be deemed to be paid through receipt of such number of shares of Common Stock issued upon such conversion as shall have a current market value equal to the amount of such accrued and unpaid interest. For this purpose, the current market value of a share of Common Stock shall be its closing price on the first New York Stock Exchange trading day immediately preceding the date on which the conversion of the Note shall be deemed to have been effected. The right to convert Notes into Common Stock will terminate at 5:00 p.m., New York City time, on March 1, 2001.

As provided in the Notes, any Note or portion thereof surrendered for conversion between the close of business on February 15, 2001 through the close of business on February 28, 2001 (the last trading day preceding the March 1, 2001 interest payment date) must be accompanied by payment of an amount equal to the interest otherwise payable on March 1, 2001 on the principal amount being converted.

To surrender Notes for redemption or conversion, holders must deliver Notes and all other required documents to The Chase Manhattan Bank at the address indicated below and must comply with the procedures set forth in the Notes and the related Indenture:

Park also confirmed that it believes its diluted earnings per share for its fourth quarter ending February 25, 2001 will exceed the consensus estimate of securities analysts of $.64.

Certain portions of this press release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park’s competitive position, the status of Park’s relationship with its customers, economic conditions in international markets, the cost and availability of utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended February 27, 2000.

Park Electrochemical Corp. is a leading global designer and producer of electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park specializes in advanced materials for high layer count circuit boards and high speed digital broadband telecommunications, internet and networking applications. Park’s electronic materials business operates through fully integrated business units in Asia, Europe and North America. The Company’s major manufacturing facilities are located in Singapore, England, France, Germany, New York, Arizona and California. Park’s electronic materials business operates under the “Nelco” name.

Additional corporate information is available on the World Wide Web at http://www.parkelectro.com.

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Park Electrochemical Corporation48 So. Service Road, Suite 300MelvilleNY11747

(631) 465-3600Fax: 465-3100

Copyright 2001 (c) All Rights Reserved. Park Electrochemical Corp.