Zoltek Reports Second Quarter Results

ST. LOUIS, May 11, 2009 (GLOBE NEWSWIRE) -- Zoltek Companies, Inc. (Nasdaq:ZOLT)
today reported results for the second quarter and first half of its 2009 fiscal
year.

Zoltek's net sales for the second quarter of fiscal 2009, ended March 31,
totaled $36.0 million, compared to $49.6 million in the second quarter of fiscal
2008, a decrease of 27%. Operating income in fiscal 2009's second quarter was
$2.1 million, compared to $8.3 million in the second quarter of fiscal 2008, a
decrease of 75%. Zoltek's net income for the latest quarter was $0.5 million,
compared to $4.3 million in the second quarter of fiscal 2008.

For the first half of fiscal 2009, Zoltek's net sales were $74.6 million,
compared to $89.7 million in the first half of fiscal 2008, a decrease of 17%.
Operating income was $5.5 million for the first half of fiscal 2009, compared to
$13.1 million in the first half of fiscal 2008, a decrease of 58%. Zoltek
reported net income of $1.0 million for the first half of fiscal 2009, compared
to net income of $6.9 million in the first half of fiscal 2008.

"After four years of strong consistent growth in revenues and profitability, we
are disappointed with Zoltek's performance through the first six months of
2009," said Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. "It is
unfortunate that the global economic downturn has affected our industry and
interrupted the momentum of our revenue growth just when we took a quantum leap
in increasing our ability to serve the needs of the current and potential new
users of commercial carbon fibers with the addition of our Mexican facility for
precursor and carbon fiber production. However, we firmly believe this situation
is no more than temporary - and by no means represents a permanent change in our
business prospect or our outlook."

Based on Zoltek's marketing activities, including recent participation in two
global conferences - on wind energy and advanced composites - Rumy added, "As
bad as this year has been so far, there is a strong consensus within the
industry that the fundamentals for resumption of historical growth trends as
soon as next year are as strong as ever - given carbon fiber's position as the
key enabling material in reaching new levels of performance in wind energy,
automobiles, deep-sea drilling and other application areas. In the case of wind
power, which we believe offers the most imminent potential for additional
growth, the uncertainty of the financial support by the U.S. government has
negatively affected the industry. New wind farm activity has slowed as
developers, wind turbine equipment manufacturers and their financing sources are
waiting to see what government benefits can be expected. Although project
cancellations are very uncommon, a number of them are on hold until the economic
uncertainties are cleared up."

Rumy noted that as a part of the global economic situation Zoltek's revenues in
the first half of the year were adversely affected by the Euro's decline against
the dollar and by falling energy and raw material costs that were passed along
to customers as price reductions. The costs associated with the start-up of
Zoltek's recently acquired Mexican facility were also a factor in causing the
company's gross profit to decline to $9.1 million in the second quarter of
fiscal 2009 from $14.0 million in the second quarter of fiscal 2008.

"Even in this unexpected global downturn that we are experiencing today, Zoltek
continues to be profitable, reduce our long-term debt and produce positive cash
flow from operations," Rumy said. "We have the ability to ride out the current
storm as we continue to actively pursue new orders and prepare for the strong
growth that we believe is sure to follow.

"We have the confidence of knowing that governments and public utilities around
the world are united in wanting to make wind energy a much bigger part of the
overall energy mix. Wind energy is the only renewable energy, particularly the
large turbines which are using carbon fiber-reinforced blades, that economically
competes with fossil fuels in generating electricity. We also have every
confidence that growth in existing markets and developments in automotive field
and deep sea drilling will generate huge new demands for our carbon fibers. The
revolution in building materials based on carbon fibers is real and it will
continue not just for years, but for decades."

Zoltek will host a conference call to review second quarter results and answer
questions on Tuesday, May 12, 2009, at 10:00 am CT. The conference dial-in
number is (888) 215-6825. The confirmation code is 4805527. Individuals who wish
to participate should dial in 5 to 10 minutes prior to the scheduled start time.
This conference call will also be webcast on Zoltek's website - under "Investor
Relations - Events & Presentations." The webcast replay will be available on the
website several hours after the call.

This press release contains certain statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The
words "expect," "believe," "goal," "plan," "intend," "estimate," and similar
expressions and variations thereof are intended to specifically identify
forward-looking statements. Those statements include statements regarding the
intent, belief or current expectations of us, our directors and officers with
respect to, among other things: (1) our financial prospects; (2) our growth
strategy and operating strategy, including our focus on facilitating
acceleration of the introduction and development of mass market applications for
carbon fibers; (3) our current and expected future revenue; and (4) our ability
to complete financing arrangements that are adequate to fund current operations
and our long-term strategy.

This press release also contains statements that are based on the current
expectations of our company. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors. The
factors that might cause such differences include, among others, our ability to:
(1) penetrate existing, identified and emerging markets, including entering into
new supply agreements with large volume customers for wind energy and other high
volume commercial applications; (2) continue to improve efficiency at our
manufacturing facilities on a timely and cost-effective basis to meet current
order levels of carbon fibers; (3) successfully add new planned capacity for the
production of carbon fiber and precursor raw materials and meet our obligations
under long-term supply agreements; (4) maintain profitable operations; (5)
increase our borrowing at acceptable costs; (6) manage changes in customers'
forecasted requirements for our products; (7) continue investing in application
and market development in a range of industries; (8) manufacture low-cost carbon
fibers and profitably market them despite changes in raw material and energy
costs; (9) successfully operate our Mexican facility to produce acrylic fiber
precursor and add carbon fiber production lines; (10) resolve the pending
non-public, fact-finding investigation being conducted by the Securities and
Exchange Commission; (11) successfully continue operations at our Hungarian
facility if natural gas supply disruptions occur; and (12) manage the risks
identified under "Risk Factors" below and in our filings with the SEC. Because
forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified, you should not rely upon
forward-looking statements as predictions of future events. The events and
circumstances reflected in the forward-looking statements may not be achieved or
occur and actual results could differ materially from those projected in the
forward-looking statements.

ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts in thousands, except per share data)
(Unaudited)

Three Months Ended
------------------
March 31, March 31,
2009 2008
---------------------
Net sales $ 36,006 $ 49,581
Cost of sales 26,888 35,556
Gross profit 9,118 14,025
Application and development costs 1,726 2,062
Selling, general and administrative expenses 5,341 3,653
Operating income 2,051 8,310
Interest income 105 847
Gain on foreign currency transactions 1,073 119
Other, net (206) (344)
Interest expense, excluding amortization of
financing fees and debt discount (377) (374)
Amortization of financing fees and debt
discount (1,593) (1,843)
--------- ---------
Income from operations before income taxes 1,053 6,715
Income tax expense 580 2,404
--------- ---------
Net income $ 473 $ 4,311
========= =========

Basic and diluted income per share $ 0.01 $ 0.13
Weighted average common shares outstanding
- basic 34,406 33,943
Weighted average common shares outstanding
- diluted 34,482 34,042

ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts in thousands, except per share data)
(Unaudited)

Six Months Ended
----------------
March 31, March 31,
2009 2008
--------------------
Net sales $ 74,635 $ 89,653
Cost of sales 55,253 64,869
Gross profit 19,382 24,784
Application and development costs 3,448 3,958
Selling, general and administrative expenses 10,408 7,725
Operating income 5,526 13,101
Interest income 324 2,039
Gain on foreign currency transactions 1,251 70
Other, net (460) (437)
Interest expense, excluding amortization of
financing fees and debt discount (945) (1,051)
Amortization of financing fees and debt
discount (3,557) (3,398)
--------- ---------
Income from operations before income taxes 2,139 10,324
Income tax expense 1,130 3,409
--------- ---------
Net income $ 1,009 $ 6,915
========= =========

Basic and diluted income per share $ 0.03 $ 0.20

Weighted average common shares outstanding -
basic 34,405 33,849
Weighted average common shares outstanding -
diluted 34,486 34,007

CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share and per share data)
(Unaudited)

March 31, Sept. 30,
2009 2008
--------------------
Assets
--------------------------------------------------------------------
Current assets:
Cash and cash equivalents $ 16,476 $ 29,224
Restricted cash -- 23,500
Accounts receivable, less allowance for
doubtful accounts of $1,299 and $1,754,
respectively 31,470 42,690
Inventories, net 50,089 45,659
Other current assets 12,808 9,432
--------- ---------
Total current assets 110,843 150,505
Property and equipment, net 236,572 288,894
Other assets 471 765
--------- ---------
Total assets $ 347,886 $ 440,164
========= =========

Liabilities and shareholders' equity
--------------------------------------------------------------------
Current liabilities:
Legal liabilities $ -- $ 29,083
Credit lines 11,464 5,174
Current maturities of long-term debt 7,224 7,427
Trade accounts payable 9,478 15,093
Accrued expenses and other liabilities 7,377 9,278
Construction payables 2,664 8,450
--------- ---------
Total current liabilities 38,207 74,505
Long-term debt, less current maturities 1,690 3,562
Hungarian grant, long-term 7,424 10,882
Deferred tax liabilities 10,847 4,521
Other long-term liabilities 17 28
--------- ---------
Total liabilities 58,185 93,498
--------- ---------
Commitments and contingencies -- --
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000
shares authorized, no shares issued and
outstanding -- --
Common stock, $.01 par value, 50,000,000 shares
authorized, 34,405,692 and 34,389,428 shares
issued and outstanding at March 31, 2009 and
September 30, 2008, respectively 344 344
Additional paid-in capital 493,025 491,175
Accumulated other comprehensive (loss) income (48,094) 11,730
Accumulated deficit (155,574) (156,583)
--------- ---------
Total shareholders' equity 289,701 346,666
--------- ---------
Total liabilities and shareholders' equity $ 347,886 $ 440,164
========= =========

OPERATING SEGMENTS SUMMARY
(Amounts in thousands)
(Unaudited)

Three Months Ended March 31, 2009
---------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
------ ------ ----- -----
Net sales $ 28,914 $ 6,490 $ 602 $ 36,006
Cost of sales 21,350 5,180 358 26,888
Gross profit 7,564 1,310 244 9,118
Operating income (loss) 4,730 603 (3,282) 2,051
Depreciation 3,293 390 270 3,953
Capital expenditures 4,538 101 81 4,720

Three Months Ended March 31, 2008
---------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
------ ------ ----- -----

Net sales $ 41,857 $ 6,564 $ 1,160 $ 49,581
Cost of sales 29,481 5,084 991 35,556
Gross profit 12,376 1,480 169 14,025
Operating income (loss) 10,335 859 (2,884) 8,310
Depreciation 2,935 467 400 3,802
Capital expenditures 9,577 307 2,341 12,225

Six Months Ended March 31, 2009
-------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
------ ------ ----- -----

Net sales $ 61,630 $ 11,755 $ 1,250 $ 74,635
Cost of sales 45,080 9,183 990 55,253
Gross profit 16,550 2,572 260 19,382
Operating income (loss) 11,236 1,134 (6,844) 5,526
Depreciation 6,664 809 553 8,026
Capital expenditures 12,363 537 154 13,054

Six Months Ended March 31, 2008
-------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
------ ------ ----- -----

Net sales $ 75,976 $ 11,597 $ 2,080 $ 89,653
Cost of sales 54,439 8,797 1,633 64,869
Gross profit 21,537 2,800 447 24,784
Operating income (loss) 18,151 942 (5,992) 13,101
Depreciation 5,528 1,009 625 7,162
Capital expenditures 21,639 623 2,443 24,705
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CONTACT: Zoltek Companies, Inc.
Zsolt Rumy, Chairman and CEO
(314) 291-5110
3101 McKelvey Road
St. Louis, MO 63044