Zoltek Reports Record Sales and Earnings On a Preliminary Basis

ST. LOUIS, May 12, 2008 (PRIME NEWSWIRE) -- Zoltek Companies, Inc. (Nasdaq:ZOLT)
today reported record sales and earnings on a preliminary basis for the second
quarter and first half of its 2008 fiscal year.

For the quarter ended March 31, 2008, Zoltek's net sales totaled $49.6 million,
up 34.9% from $36.7 million in the second quarter of fiscal 2007, and up 23.7%
from $40.1 million in the first quarter of fiscal 2008.

Operating income from continuing operations was $8.3 million, up 41.8% from $5.9
million in the second quarter of fiscal 2007, and up 73% from $4.8 million in
the first quarter of fiscal 2008. Zoltek's net income for the latest quarter was
$4.3 million, compared to a break-even position in the second quarter of fiscal
2007 and net income of $2.6 million in the first quarter of fiscal 2008.

For the first half of fiscal 2008, Zoltek's net sales increased 33.8% to $89.7
million from $67.0 million in the first six months of fiscal 2007. Operating
income from continuing operations increased 47.6% to $13.1 million from $8.9
million in the first six months of fiscal 2007. Zoltek had a net profit of $6.9
million for the first half of fiscal 2008, compared to a net loss of $5.7
million in the first half of fiscal 2007.

"The fundamentals of our business have not changed, as reflected in both our
sales and earnings. We expect the growing demand for our low-cost,
high-performance carbon fibers to continue in the long-term," said Zsolt Rumy,
Zoltek's Chairman and Chief Executive Officer.

All financial data presented herein is preliminary and subject to change until
Zoltek finalizes its consolidated financial statements for the its second
quarter and six-month period ended March 31, 2008. As previously reported in a
Current Report on Form 8-K filed May 5, 2008, Zoltek has determined that its
previously issued financial statements for the fiscal year ended September 30,
2007 and the fiscal quarter ended December 31, 2007 should no longer be relied
upon because of errors in those financial statements resulting from two fund
transfers from a Zoltek subsidiary aggregating $250,000 that were not properly
authorized or recorded in the company's financial records. The Audit Committee
of Zoltek's Board of Directors has commenced an investigation of the
circumstances of the transactions and to determine if there were additional fund
transfers that were not properly authorized or recorded in the company's
financial records.

The Audit Committee has not yet reached any final conclusions in connection with
the investigation. A final determination of the magnitude or materiality of the
collective errors and related adjustments will not be finalized until the
investigation is completed. Accordingly, the financial data included in this
release, including net income and earnings per share amounts, are preliminary
and subject to possible adjustment based upon the outcome of the investigation
and completion of the interim consolidated financial statements. While the Audit
Committee is working to complete their investigation in a timely manner, the
timing of the investigation will delay the filing of the Company's Form 10-Q for
the quarter ended March 31, 2008.

Zoltek will host a conference call to review second quarter results and answer
questions on Tuesday, May 13, 2008, at 10:00 am CT. The conference dial-in
number is (800) 768-6569. The confirmation code is 1214980. Individuals who wish
to participate should dial in 5 to 10 minutes prior to the scheduled start time.
This conference call and an accompanying slide presentation by Zsolt Rumy will
also be webcast on Zoltek's website -- www.zoltek.com -- under "Investor
Relations - Events & Presentations."

This press release 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) successfully resolve pending litigation; (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) achieve profitable
operations; (5) raise new capital and 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; (9) penetrate existing, identified and emerging markets; (10)
successfully retrofit our recently acquired Mexican facility to manufacture
acrylic fiber precursor and add carbon fiber production lines; (11) resolve on a
timely basis the pending investigation by our Audit Committee of two
transactions that were not properly authorized or recorded as described in our
Current Report on Form 8-K filed May 5, 2008; and (12) manage the risks
identified under "Risk Factors" in our filings with the SEC.

ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts In Thousands Except Per Share Data)
(Unaudited)

Three Months Ended
------------------
March 31 March 31 December 31
2008 2007 2007
---------------------------------------------

Net sales $ 49,581 $ 36,742 $ 40,072
Cost of sales 35,556 26,154 29,313
Gross profit 14,025 10,588 10,759
Application and
development costs 2,062 1,820 1,896
Selling, general and
administrative expenses 3,653 2,910 4,072
Operating income from
continuing operations 8,310 5,858 4,791
Interest income 847 268 1,192
Interest expense related
to non-convertible debt* (201) (84) (101)
Other, net (225) (467) (142)
Income tax expense (2,404) (292) (1,005)
Income from continuing
operations before
convertible debt expense* 6,327 5,283 4,735
----------- ----------- -----------
Expense related to
convertible debt
issuances* (2,016) (5,340) (2,131)
Income (loss) from
continuing operations 4,311 (57) 2,604
Loss from discontinued
operations, net of taxes -- 51 --
Net income (loss) 4,311 (6) 2,604
Net income (loss) per share:
Basic and diluted income
(loss) per share:
Continuing operations
before convertible
debt* $ 0.19 $ 0.19 $ 0.14
Convertible debt
charge* (0.06) (0.19) (0.06)
----------- ----------- -----------
Continuing operations 0.13 (0.00) 0.08
Discontinued
operations -- -- 0.00
----------- ----------- -----------
Total $ 0.13 $ (0.00) $ 0.08
=========== =========== ===========
Weighted average
common shares
outstanding - basic 33,943 27,296 33,756
Weighted average common
shares outstanding
- diluted 34,042 27,296 33,956
* To provide transparency about measures of the Company's financial performance
which management considers relevant, we supplement the reporting of Zoltek's
consolidated financial information under GAAP with "interest expense related to
non-convertible debt," "income from continuing operations before convertible
debt expense," and "expense related to convertible debt issuances" which are a
non-GAAP financial measures. Operating income (loss) in accordance with GAAP was
$8,310, $5,858 and $4,791 for the second quarter of fiscal 2008, second quarter
of fiscal 2007 and first quarter of fiscal 2008, respectively. These non-GAAP
financial measures should be considered in addition to, and not as a substitute
or superior to, the other measures of financial performance prepared in
accordance with GAAP. Using only the non-GAAP financial measures to analyze our
performance would have material limitations because their calculation is based
on the subjective determination of management regarding the nature and
classification of events and circumstances that investors may find significant.
Management compensates for these limitations by presenting both the GAAP and
non-GAAP measures of its results. Zoltek believes the presentation of these
measures is useful to investors because they are indicative of the company's
underlying business performance.

ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts In Thousands Except Per Share Data)
(Unaudited)

Six Months Ended
----------------
March 31 March 31
2008 2007
----------------------------

Net sales $ 89,653 $ 67,027
Cost of sales 64,869 48,588
Gross profit 24,784 18,439
Application and development costs 3,958 3,412
Selling, general and administrative
expenses 7,725 6,152
Operating income from continuing
operations* 13,101 8,875
Interest income 2,039 654
Interest expense related to
non-convertible debt* (302) (155)
Other, net (367) (741)
Income tax expense (3,409) (495)
Income from continuing operations before
convertible debt expense* 11,062 8,138
------------ ------------
Expense related to convertible debt
issuances* (4,147) (13,790)
Income (loss) from continuing operations 6,915 (5,652)
Loss from discontinued operations, net of
taxes -- (17)
Net income (loss) 6,915 (5,669)
Net income (loss) per share:
Basic and diluted income (loss) per
share:
Continuing operations before
convertible debt* $ 0.32 $ 0.31
Convertible debt charge* (0.12) (0.52)
------------ ------------
Continuing operations 0.20 (0.21)
Discontinued operations -- --
------------ ------------
Total $ 0.20 $ (0.21)
============ ============
Weighted average common shares
outstanding - basic 33,849 26,613
Weighted average common shares
outstanding - diluted 34,007 26,613
* To provide transparency about measures of the Company's financial performance
which management considers relevant, we supplement the reporting of Zoltek's
consolidated financial information under GAAP with "interest expense related to
non-convertible debt," "income from continuing operations before convertible
debt expense," and "expense related to convertible debt issuances" which are a
non-GAAP financial measures. Operating income (loss) in accordance with GAAP was
$13,101 and $8,875 for the six months ended March 31 2008 and 2007,
respectively. These non-GAAP financial measures should be considered in addition
to, and not as a substitute or superior to, the other measures of financial
performance prepared in accordance with GAAP. Using only the non-GAAP financial
measures to analyze our performance would have material limitations because
their calculation is based on the subjective determination of management
regarding the nature and classification of events and circumstances that
investors may find significant. Management compensates for these limitations by
presenting both the GAAP and non-GAAP measures of its results. Zoltek believes
the presentation of these measures is useful to investors because they are
indicative of the company's underlying business performance.

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

March 31 September 30
2008 2007
----------------------------

Assets
---------------------------------------------------------------------
Current assets:
Cash and cash equivalents $ 55,856 $ 121,761
Restricted cash 23,500 13,815
Accounts receivable, less allowance for
doubtful accounts of $542 and $729,
respectively 42,304 37,495
Inventories 39,767 27,941
Other current assets 11,893 10,858
------------ ------------
Total current assets 173,320 211,870
Property and equipment, net 260,514 188,801
Other assets 1,744 2,928
------------ ------------
Total assets $ 435,578 $ 403,599
============ ============

Liabilities and shareholders' equity
---------------------------------------------------------------------
Current liabilities:
Current maturities of long-term debt $ 7,518 $ 13,813
Trade accounts payable 21,922 17,253
Legal liabilities 23,990 24,543
Accrued expenses and other liabilities 10,597 8,305
------------ ------------
Total current liabilities 64,027 63,914
Hungarian grant, long-term 11,719 7,969
Other long-term liabilities 4,653 4,098
Long-term debt, less current maturities 5,234 6,851
------------ ------------
Total liabilities 85,633 82,832
------------ ------------
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,
34,055,762 and 33,653,735 shares issued
and outstanding at March 31, 2008 and
September 30, 2007, respectively 346 337
Additional paid-in capital 485,184 476,205
Accumulated other comprehensive income 21,524 8,249
Accumulated deficit (157,109) (164,024)
------------ ------------
Total shareholders' equity 349,945 320,767
------------ ------------
Total liabilities and shareholders'
equity $ 435,578 $ 403,599
============ ============

OPERATING SEGMENTS SUMMARY
(Amounts in thousands, except share and per share data)
(Unaudited)

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 and
amortization expense 2,935 467 400 3,802
Capital expenditures 9,577 307 2,341 12,225

Three Months Ended March 31, 2007
---------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
---------- ---------- ---------- -----------
Net sales $ 29,074 $ 7,058 $ 610 $ 36,742
Cost of sales 20,582 5,245 327 26,154
Gross profit 8,492 1,813 283 10,588
Operating income
(loss) 5,967 1,473 (1,582) 5,858
Depreciation and
amortization expense 1,656 259 545 2,460
Capital expenditures 16,406 991 535 17,932

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 and
amortization expense 5,528 1,009 625 7,162
Capital expenditures 21,639 623 2,443 24,705

Six Months Ended March 31, 2007
---------------------------------
Carbon Technical Corporate/
Fibers Fibers Other Total
---------- ---------- ---------- -----------
Net sales $ 50,195 $ 15,577 $ 1,255 $ 67,027
Cost of sales 37,058 10,916 614 48,588
Gross profit 13,137 4,661 641 18,439
Operating income
(loss) 8,622 3,983 (3,730) 8,875
Depreciation and
amortization expense 3,003 809 658 4,470
Capital expenditures 25,666 2,752 1,852 30,270
Purchase of Mexico
facility 35,000 -- -- 35,000
-0-
CONTACT: Zoltek Companies, Inc.
Zsolt Rumy, CEO
(314) 291-5110
3101 McKelvey Road
St. Louis, MO 63044