/C O R R E C T I O N -- Rubicon Technology, Inc./

In the news release, Rubicon Technology, Inc (Nasdaq: RBCN) Reports Fourth
Quarter and Full Year 2007 Results and the Opening of Its New Manufacturing
Facility, issued earlier today by Rubicon Technology, Inc. over PR Newswire,
in the table "Condensed Statements of Cash Flows," the line item "Proceeds
from sale of preferred stock" should read "5,553" in the 2006 column rather
than in the 2007 column as incorrectly transmitted by PR Newswire.
Complete, corrected release follows:
Rubicon Technology, Inc Reports Fourth Quarter and Full Year 2007 Results and
the Opening of Its New Manufacturing Facility

Results Driven by Strong Year-over-Year Revenue Growth of 64 Percent

New Manufacturing Facility Provides Infrastructure for Significant Expansion
FRANKLIN PARK, Ill., Feb. 13 /PRNewswire-FirstCall/ -- Rubicon Technology
(Nasdaq: RBCN), a leading provider of sapphire substrates and products to the
LED, RFIC, Semiconductor, and Optical industries, today reported strong
financial results for its fourth quarter and full year ended December 31,
2007.
Full Year and Fourth Quarter 2007 Financial Highlights (GAAP basis unless
otherwise indicated):
-- Revenue for the full year was $34.1 million, a 64 percent increase
over 2006
-- Operating income in the full year 2007 was $4.3 million compared to
an operating loss of $4.1 million in 2006
-- Revenue for the fourth quarter was $9.5 million, a 58 percent
increase over the fourth quarter of 2006
-- Fourth quarter gross margin was 39 percent as compared to 18 percent
in the fourth quarter of 2006
-- Fourth quarter diluted EPS was $(1.82) on a GAAP basis and $0.10 on
a non-GAAP basis

Fourth quarter revenue was $9.5 million which represents a 58 percent
increase over the fourth quarter of 2006. Net income on a non-GAAP basis for
the quarter was $1.8 million, or 19 percent of revenue. This compares to a
net loss in the fourth quarter of 2006 of $200,000 on a non-GAAP basis.
The Company also announced the opening of its new manufacturing facility
in Bensenville, Illinois. With the infrastructure in place, the Company has
begun installing crystal growth equipment. This facility will allow the
Company to more than double its existing crystal growth capacity once it is
completely built out.
Raja Parvez, CEO of Rubicon Technology, said, "I am very pleased with our
performance in the fourth quarter. We delivered strong financial results and
successfully completed our initial public offering. In addition, we completed
the infrastructure for our new manufacturing facility which will provide
significant incremental production capacity and enable future revenue growth.
Rubicon is ideally positioned in 2008 to meet customer demand in the dynamic
and high growth LED, semiconductor and optical markets we serve."
Bill Weissman, Rubicon's Chief Financial Officer, added, "We had another
strong quarter with our eighth consecutive quarter of gross margin increases.
Gross margin reached 39 percent in the fourth quarter as we continued to see a
shift in revenue to larger diameter products. Fifty-five percent of our
substrate revenue in the fourth quarter came from 3" or greater diameter
products."
First Quarter & Full Year 2008 Outlook
Mr. Weissman continued, "Demand remains strong in both the LED and
silicon-on-sapphire (SoS) markets and, based on our expected capacity
expansion, we anticipate revenue in the first quarter of 2008 of $10 million
and diluted GAAP EPS of $0.09, based on a projected share count of
22.3 million shares. For the full year 2008, we anticipate revenue of between
$46 and $49 million, with diluted GAAP EPS between $0.44 and $0.47 per share,
based on a projected average share count of 22.7 million shares. Regarding
our tax position, we had approximately $35 million left in net operating loss
(NOL) carryforward at December 31, 2007. Our analysis of the NOL is complete;
as a result, we believe we are not restricted in our ability to utilize the
NOL carryforward. Consequently, we anticipate an effective tax rate of zero
to 2 percent in 2008."
Conference Call Details
Rubicon will host a conference call at 8:30 a.m. Eastern time on February
14, 2008 to review the highlights of the fourth quarter and full year 2007
results and the first quarter and full year 2008 outlook. The conference call
will be available to the public through a live audio web broadcast via the
Internet. Log on to Rubicon's website at
www.rubicon-es2.com/index.html. An audio replay of the call will be
available approximately two hours after the conclusion of the call. The audio
replay will remain available until 11:59 p.m.February 28, 2008 and can be
accessed by dialing (888)-286-8010 or (617) 801-6888 (international). Callers
should reference conference ID 38847428. The webcast will be archived on the
Company's website.
About Rubicon
Rubicon Technology, Inc. is an advanced electronic materials provider that
is engaged in developing, manufacturing and selling monocrystalline sapphire
and other crystalline products for light-emitting diodes (LEDs), radio
frequency integrated circuits (RFICs), blue laser diodes, optoelectronics and
other optical applications. The Company applies its proprietary crystal growth
technology to produce very high-quality sapphire in a form that allows for
volume production of various sizes and orientations of substrates and windows.
Rubicon is a vertically-integrated manufacturer with capabilities in crystal
growth, high precision core drilling, wafer slicing, surface lapping,
large-diameter polishing and wafer cleaning processes, which the Company
employs to convert the bulk crystal into products with the quality and
precision specified by its customers. The Company is actively developing
larger diameter products to support next-generation LED, RFIC and optical
window applications.
Further information is available at www.rubicon-es2.com.
Forward-Looking Statements
Certain of the statements in this release, particularly those preceded by,
followed by or including the words "believes," "expects," "anticipates,"
"intends," "should," "estimates," or similar expressions, or those relating to
or anticipating financial results for periods beyond the end of the fourth
quarter of 2007, constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended. For those statements,
the company claims the protection of the safe harbor for forward looking
statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on our current expectations,
estimates and projections about our industry, management's beliefs and certain
assumptions made by us. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed in, or implied by, the statements. These risks and uncertainties
include managing the expansion of our manufacturing capacity, market
acceptance of LED lighting, our ability to adapt to future changes in the LED
industry, our successful development and market acceptance of RFIC and other
new products, changes in the average selling prices of sapphire products,
dependence on key customers, potential disruptions in our supply of
electricity, changes in our product mix, our ability to protect our
intellectual property rights, the competitive environment, the availability
and cost of raw materials, the cost of compliance with environmental
standards, the ability to make effective acquisitions and successfully
integrate newly acquired businesses into existing operations and other risks
and uncertainties described in the company's prospectus dated November 15,
2007 included in its registration statement filed with the Securities and
Exchange Commission. For these reasons, readers are cautioned not to place
undue reliance on the company's forward-looking statements. Any
forward-looking statement that the company makes speaks only as of the date of
such statement, and the company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise. Comparisons of results for current and any prior periods
are not intended to express any future trends or indications of future
performance, unless expressed as such, and should only be viewed as historical
data.
Basis for Financial Presentation:
This press release highlights the company's financial results both in
accordance with GAAP and on a non-GAAP basis. Our results of operations below
the gross profit level were impacted significantly in 2007 by costs or charges
that are non-recurring in nature, most of which relate to our recent initial
public offering and subsequent repayment of debt. In addition, prior to our
IPO in November of 2007, we had redeemable preferred stock as well as
convertible preferred stock warrants outstanding which resulted in significant
charges in our 2006 and 2007 results of operations. The GAAP results include
certain costs, charges, and losses associated with these and other
non-recurring transactions which are excluded from non-GAAP results. By
publishing the non-GAAP measures, management intends to provide investors with
additional information to further analyze the company's performance, core
results and underlying trends. Non-GAAP information should be considered a
supplement to, and not a substitute for, financial statements prepared in
accordance with GAAP. Investors and potential investors are encouraged to
review the reconciliation of non-GAAP financial measures to their most
directly comparable GAAP measures included in this press release.
Tables Follow

Rubicon Technology, Inc.
Condensed Statements of Operations (Unaudited)
(in thousands except share and per share amounts)

Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006

Revenue $9,545 $6,054 $34,110 $20,752
Cost of goods sold 5,809 4,974 22,045 18,885
Gross profit 3,736 1,080 12,065 1,867

General and
administrative expenses 2,579 679 6,157 3,298
Sales and marketing
expenses 183 173 675 1,062
Research and development
expenses 216 160 769 679
Asset impairment - 933 - 933
Loss on disposal of
assets - 7 139 42
Total operating expenses 2,978 1,952 7,740 6,014
Income (loss) from
operations 758 (872) 4,325 (4,147)
Other income (expense)
Interest income (expense)
and other, net (265) (294) (1,085) (1,310)
Change in carrying
value of convertible
preferred stock
warrants (2,459) (1,080) (6,019) (1,962)
Total other income
(expense) (2,724) (1,374) (7,104) (3,272)
Loss before cumulative
effect of change in
accounting principle (1,966) (2,246) (2,779) (7,419)
Cumulative effect of
change in accounting
principle - - - (221)
Net loss (1,966) (2,246) (2,779) (7,640)
Dividends on preferred
stock (913) (1,430) (5,625) (5,563)
Accretion of redeemable
preferred stock (13,712) (17,289) (59,934) (23,416)
Net loss attributable
to common
stockholders $(16,591) $(20,965) $ (68,338) $(36,619)

Net loss per common
share attributable to
common stockholders:
Basic $(1.82) $(83.15) $(27.19) $(146.57)
Diluted $(1.82) $(83.15) $(27.19) $(146.57)

Weighted average
common shares
outstanding used in
computing net loss per
share attributable to
common stockholders,
basic and diluted 9,118,522 252,124 2,513,487 249,843

Rubicon Technology, Inc.
Condensed Balance Sheet (Unaudited)
(in thousands)
December 31, December 31,
2007 2006
Assets
Cash and cash equivalents $4,380 $3,638
Restricted cash 10 19
Short term investments 70,965 -
Accounts receivable, net 4,673 2,925
Inventories, net 2,522 1,631
Other current assets 2,558 1,487
Total current assets 85,108 9,700
Property and equipment - net 26,303 19,263
Other assets - 57
Total assets $111,411 $29,020

Liabilities, redeemable equity and
stockholders' equity (deficit)
Accounts payable $2,572 $1,481
Current maturities of long-term debt and
capital lease obligations 43 2,223
Lines of credit, net of unamortized discount - 973
Accrued and other current liabilities 3,039 1,638
Convertible preferred stock warrant liability - 3,773
Total current liabilities 5,654 10,088
Long-term debt and capital lease obligations,
less current maturities - 2,628
Total liabilities 5,654 12,716
Redeemable equity - 93,897
Stockholders' equity (deficit) 105,757 (77,593)
Total liabilities, redeemable equity and
stockholders' equity (deficit) $111,411 $29,020

Rubicon Technology, Inc.
Condensed Statements of Cash Flows
(Unaudited)
(In thousands)

Years ended December 31,
2007 2006
Operating activities
Net loss $(2,779) $(7,640)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Change in carrying value of convertible
stock warrants 6.019 2,183
Depreciation 3,355 3,091
Other 1,672 1,438
Changes in operating assets and liabilities:
Trade accounts receivable, net (1,748) (829)
Inventory, net (891) 1,402
Other assets (1,014) (137)
Accounts payable 1,092 661
Other liabilities 1,400 490
Net cash provided by operating activities 7,106 659
Investing activities
Purchases of property and equipment (10,564) (2,373)
Purchase of investments (70,941) -
Proceeds from disposal of assets 30 45
Net cash used in investing activities (81,475) (2,328)

Financing activities
Proceeds from IPO, net of costs 81,045 -
Proceeds from sale of preferred stock 5,553
Loan proceeds (payments), net (4,992) (1,546)
Line of credit draws (payments), net (973) (166)
Other financing activities 31 -
Net cash provided by financing activities 75,111 3,841
Increase in cash and cash equivalents 742 2,172
Cash and cash equivalents at beginning of year 3,638 1,466
Cash and cash equivalents at end of year $4,380 $3,638

Rubicon Technology, Inc.
Q4 Reconciling Items to Financial Statements - GAAP to Non-GAAP
(Unaudited)
(dollars in thousands except per share amounts)

Three months ended Three months ended
December 31, 2007 December 31, 2006
Adjust- Non- Adjust- Non-
GAAP ments GAAP GAAP ments GAAP

Revenue $9,545 $- $9,545 $6,054 $- $6,054
Cost of goods
sold 5,809 - 5,809 4,974 - 4,974
Gross profit 3,736 - 3,736 1,080 - 1,080

General and
administrative
expenses 2,579 (808)(a) 1,771 679 - 679
Sales and marketing
expenses 183 - 183 173 - 173
Research and
development
expenses 216 - 216 160 - 160
Asset impairment - - - 933 (933) -
Loss on disposal
of assets - - - 7 - 7
Total operating
expenses 2,978 (808) 2,170 1,952 (933) 1,019
Income (loss) from
operations 758 808 1,566 (872) 933 61
Other income
(expense)
Interest income
(expense) and
other, net (265) 503(b) 238 (294) - (294)
Change in
carrying value
of convertible
preferred
stock warrants (2,459) 2,459(c) - (1,080) 1,080(c) -
Total other income
(expense) (2,724) 2,962 238 (1,374) 1,080 (294)

Net income
(loss) (1,966) 3,770 1,804 (2,246) 2,013 (233)
Dividends on
preferred stock (913) 913(d) - (1,430) 1,430(d) -
Accretion of
redeemable
preferred
stock (13,712) 13,712(d) - (17,289) 17,289(d) -
Net income
(loss)
attributable
to common
stockholders $(16,591) $18,395 $1,804 $(20,965) $20,732 $(233)

Net income (loss)
per common
share
attributable
to common
stockholders:
Basic $(1.82) $2.02 $0.20 $(83.15) $82.23 $(0.92)
Diluted $(1.82) $1.92 $0.10 $(83.15) $82.23 $(0.92)
Weighted average
number of common
shares
outstanding 9,118,522 - 9,118,522 252,124 - 252,124
Weighted average
number of common
and dilutive
shares
outstanding 9,118,522 8,869,837 17,988,359 252,124 - 252,124

(a) Stock based compensation expense of $383,000 associated with the
accelerated vesting of stock options triggered by the completion of
an initial public offering, a write off of $230,000 of unamortized
loan fees associated with the repayment of debt and $195,000
settlement of a complaint filed by Saint-Gobain Ceramics & Plastics,
Inc.
(b) Write off of unamortized interest associated with the repayment of
debt.
(c) Change in carrying value of redeemable convertible preferred stock
warrants. All such warrants were converted to non-redeemable common
stock warrants or net exercised at the initial public offering.
(d) Accrued dividends and accretion of redemption value of redeemable
preferred stock. All preferred stock and dividends were converted
into common stock at the initial public offering.

Rubicon Technology, Inc.
Full Year Reconciling Items to Financial Statements - GAAP to Non-GAAP
(Unaudited)
(dollars in thousands except per share amounts)

Twelve months ended Twelve months ended
December 31, 2007 December 31, 2006
Adjust- Non- Adjust- Non-
GAAP ments GAAP GAAP ments GAAP

Revenue $34,110 $- $34,110 $20,752 $- $20,752
Cost of goods
sold 22,045 - 22,045 18,885 - 18,885
Gross profit 12,065 - 12,065 1,867 - 1,867

General and
administrative
expenses 6,157 (1,116)(a)(b) 5,041 3,298 (54)(a) 3,244
Sales and
marketing
expenses 675 - 675 1,062 - 1,062
Research and
development
expenses 769 - 769 679 - 679
Asset
impairment - - - 933 (933) -
Loss on
disposal of
assets 139 - 139 42 - 42
Total operating
expenses 7,740 (1,116) 6,624 6,014 (987) 5,027
Income (loss)
from
operations 4,325 1,116 5,441 (4,147) 987 (3,160)
Other income
(expense)
Interest
income
(expense)
and other,
net (1,085) 611(c) (474) (1,310) (1,310)
Change in
carrying value
of convertible
preferred
stock
warrants (6,019) 6,019(d) - (1,962) 1,962(d) -

Total other
income
(expense) (7,104) 6,630 (474) (3,272) 1,962 (1,310)

Loss before
cumulative
effect of
change in
accounting
principle (2,779) 7,746 4,967 (7,419) 2,949 (4,470)

Cumulative
effect of
change in
accounting
principle - - - (221) 221 -

Net income
(loss) (2,779) 7,746 4,967 (7,640) 3,170 (4,470)
Dividends on
preferred
stock (5,625) 5,625(e) - (5,563) 5,563(e) -
Accretion of
redeemable
preferred
stock (59,934) 59,934(e) - (23,416) 23,416(e) -
Net income
(loss)
attributable
to common
stock-
holders $(68,338) $73,305 $4,967 $(36,619) $32,149 $(4,470)

Net income
(loss) per
common share
attributable
to common
stockholders:
Basic $(27.19) $29.17 $1.98 $(146.57) $128.68 $(17.89)
Diluted $(27.19) $27.49 $0.30 $(146.57) $128.68 $(17.89)

Weighted
average
number of
common shares
outstanding 2,513,487 - 2,513,487 249,843 - 249,843
Weighted
average
number of
common and
dilutive
shares
outstanding 2,513,487 13,896,467 16,409,954 249,843 - 249,843

(a) Stock based compensation expense of $580,000 in 2007 and $54,000 in
2006 associated with the accelerated vesting of stock options
triggered by the completion of an initial public offering or
issuance of fully vested stock options.
(b) Write off of $341,000 of fees associated with the restructuring and
subsequent repayment of debt and $195,000 settlement of a complaint
filed by Saint-Gobain Ceramics & Plastics, Inc.
(c) Write off of unamortized interest associated with the repayment of
debt.
(d) Change in carrying value of redeemable convertible preferred stock
warrants. All such warrants were converted to non-redeemable common
stock warrants or net exercised at the initial public offering.
(e) Accrued dividends and accretion of redemption value of redeemable
preferred stock. All preferred stock and dividends were converted
into common stock at the initial public offering.

------
Rubicon Technology, Inc Reports Fourth Quarter and Full Year 2007 Results and
the Opening of Its New Manufacturing Facility
Results Driven by Strong Year-over-Year Revenue Growth of 64 Percent

New Manufacturing Facility Provides Infrastructure for Significant Expansion
FRANKLIN PARK, Ill., Feb. 13 /PRNewswire-FirstCall/ -- Rubicon Technology
(Nasdaq: RBCN), a leading provider of sapphire substrates and products to the
LED, RFIC, Semiconductor, and Optical industries, today reported strong
financial results for its fourth quarter and full year ended December 31,
2007.
Full Year and Fourth Quarter 2007 Financial Highlights (GAAP basis unless
otherwise indicated):
-- Revenue for the full year was $34.1 million, a 64 percent increase
over 2006
-- Operating income in the full year 2007 was $4.3 million compared to
an operating loss of $4.1 million in 2006
-- Revenue for the fourth quarter was $9.5 million, a 58 percent
increase over the fourth quarter of 2006
-- Fourth quarter gross margin was 39 percent as compared to 18 percent
in the fourth quarter of 2006
-- Fourth quarter diluted EPS was $(1.82) on a GAAP basis and $0.10 on
a non-GAAP basis

Fourth quarter revenue was $9.5 million which represents a 58 percent
increase over the fourth quarter of 2006. Net income on a non-GAAP basis for
the quarter was $1.8 million, or 19 percent of revenue. This compares to a
net loss in the fourth quarter of 2006 of $200,000 on a non-GAAP basis.
The Company also announced the opening of its new manufacturing facility
in Bensenville, Illinois. With the infrastructure in place, the Company has
begun installing crystal growth equipment. This facility will allow the
Company to more than double its existing crystal growth capacity once it is
completely built out.
Raja Parvez, CEO of Rubicon Technology, said, "I am very pleased with our
performance in the fourth quarter. We delivered strong financial results and
successfully completed our initial public offering. In addition, we completed
the infrastructure for our new manufacturing facility which will provide
significant incremental production capacity and enable future revenue growth.
Rubicon is ideally positioned in 2008 to meet customer demand in the dynamic
and high growth LED, semiconductor and optical markets we serve."
Bill Weissman, Rubicon's Chief Financial Officer, added, "We had another
strong quarter with our eighth consecutive quarter of gross margin increases.
Gross margin reached 39 percent in the fourth quarter as we continued to see a
shift in revenue to larger diameter products. Fifty-five percent of our
substrate revenue in the fourth quarter came from 3" or greater diameter
products."
First Quarter & Full Year 2008 Outlook
Mr. Weissman continued, "Demand remains strong in both the LED and
silicon-on-sapphire (SoS) markets and, based on our expected capacity
expansion, we anticipate revenue in the first quarter of 2008 of $10 million
and diluted GAAP EPS of $0.09, based on a projected share count of
22.3 million shares. For the full year 2008, we anticipate revenue of between
$46 and $49 million, with diluted GAAP EPS between $0.44 and $0.47 per share,
based on a projected average share count of 22.7 million shares. Regarding
our tax position, we had approximately $35 million left in net operating loss
(NOL) carryforward at December 31, 2007. Our analysis of the NOL is complete;
as a result, we believe we are not restricted in our ability to utilize the
NOL carryforward. Consequently, we anticipate an effective tax rate of zero
to 2 percent in 2008."
Conference Call Details
Rubicon will host a conference call at 8:30 a.m. Eastern time on February
14, 2008 to review the highlights of the fourth quarter and full year 2007
results and the first quarter and full year 2008 outlook. The conference call
will be available to the public through a live audio web broadcast via the
Internet. Log on to Rubicon's website at
www.rubicon-es2.com/index.html. An audio replay of the call will be
available approximately two hours after the conclusion of the call. The audio
replay will remain available until 11:59 p.m.February 28, 2008 and can be
accessed by dialing (888)-286-8010 or (617) 801-6888 (international). Callers
should reference conference ID 38847428. The webcast will be archived on the
Company's website.
About Rubicon
Rubicon Technology, Inc. is an advanced electronic materials provider that
is engaged in developing, manufacturing and selling monocrystalline sapphire
and other crystalline products for light-emitting diodes (LEDs), radio
frequency integrated circuits (RFICs), blue laser diodes, optoelectronics and
other optical applications. The Company applies its proprietary crystal growth
technology to produce very high-quality sapphire in a form that allows for
volume production of various sizes and orientations of substrates and windows.
Rubicon is a vertically-integrated manufacturer with capabilities in crystal
growth, high precision core drilling, wafer slicing, surface lapping,
large-diameter polishing and wafer cleaning processes, which the Company
employs to convert the bulk crystal into products with the quality and
precision specified by its customers. The Company is actively developing
larger diameter products to support next-generation LED, RFIC and optical
window applications.
Further information is available at www.rubicon-es2.com.
Forward-Looking Statements
Certain of the statements in this release, particularly those preceded by,
followed by or including the words "believes," "expects," "anticipates,"
"intends," "should," "estimates," or similar expressions, or those relating to
or anticipating financial results for periods beyond the end of the fourth
quarter of 2007, constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended. For those statements,
the company claims the protection of the safe harbor for forward looking
statements contained in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on our current expectations,
estimates and projections about our industry, management's beliefs and certain
assumptions made by us. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed in, or implied by, the statements. These risks and uncertainties
include managing the expansion of our manufacturing capacity, market
acceptance of LED lighting, our ability to adapt to future changes in the LED
industry, our successful development and market acceptance of RFIC and other
new products, changes in the average selling prices of sapphire products,
dependence on key customers, potential disruptions in our supply of
electricity, changes in our product mix, our ability to protect our
intellectual property rights, the competitive environment, the availability
and cost of raw materials, the cost of compliance with environmental
standards, the ability to make effective acquisitions and successfully
integrate newly acquired businesses into existing operations and other risks
and uncertainties described in the company's prospectus dated November 15,
2007 included in its registration statement filed with the Securities and
Exchange Commission. For these reasons, readers are cautioned not to place
undue reliance on the company's forward-looking statements. Any
forward-looking statement that the company makes speaks only as of the date of
such statement, and the company undertakes no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise. Comparisons of results for current and any prior periods
are not intended to express any future trends or indications of future
performance, unless expressed as such, and should only be viewed as historical
data.
Basis for Financial Presentation:
This press release highlights the company's financial results both in
accordance with GAAP and on a non-GAAP basis. Our results of operations below
the gross profit level were impacted significantly in 2007 by costs or charges
that are non-recurring in nature, most of which relate to our recent initial
public offering and subsequent repayment of debt. In addition, prior to our
IPO in November of 2007, we had redeemable preferred stock as well as
convertible preferred stock warrants outstanding which resulted in significant
charges in our 2006 and 2007 results of operations. The GAAP results include
certain costs, charges, and losses associated with these and other
non-recurring transactions which are excluded from non-GAAP results. By
publishing the non-GAAP measures, management intends to provide investors with
additional information to further analyze the company's performance, core
results and underlying trends. Non-GAAP information should be considered a
supplement to, and not a substitute for, financial statements prepared in
accordance with GAAP. Investors and potential investors are encouraged to
review the reconciliation of non-GAAP financial measures to their most
directly comparable GAAP measures included in this press release.
Tables Follow

Rubicon Technology, Inc.
Condensed Statements of Operations (Unaudited)
(in thousands except share and per share amounts)

Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006

Revenue $9,545 $6,054 $34,110 $20,752
Cost of goods sold 5,809 4,974 22,045 18,885
Gross profit 3,736 1,080 12,065 1,867

General and
administrative expenses 2,579 679 6,157 3,298
Sales and marketing
expenses 183 173 675 1,062
Research and development
expenses 216 160 769 679
Asset impairment - 933 - 933
Loss on disposal of
assets - 7 139 42
Total operating expenses 2,978 1,952 7,740 6,014
Income (loss) from
operations 758 (872) 4,325 (4,147)
Other income (expense)
Interest income (expense)
and other, net (265) (294) (1,085) (1,310)
Change in carrying
value of convertible
preferred stock
warrants (2,459) (1,080) (6,019) (1,962)
Total other income
(expense) (2,724) (1,374) (7,104) (3,272)
Loss before cumulative
effect of change in
accounting principle (1,966) (2,246) (2,779) (7,419)
Cumulative effect of
change in accounting
principle - - - (221)
Net loss (1,966) (2,246) (2,779) (7,640)
Dividends on preferred
stock (913) (1,430) (5,625) (5,563)
Accretion of redeemable
preferred stock (13,712) (17,289) (59,934) (23,416)
Net loss attributable
to common
stockholders $(16,591) $(20,965) $ (68,338) $(36,619)

Net loss per common
share attributable to
common stockholders:
Basic $(1.82) $(83.15) $(27.19) $(146.57)
Diluted $(1.82) $(83.15) $(27.19) $(146.57)

Weighted average
common shares
outstanding used in
computing net loss per
share attributable to
common stockholders,
basic and diluted 9,118,522 252,124 2,513,487 249,843

Rubicon Technology, Inc.
Condensed Balance Sheet (Unaudited)
(in thousands)
December 31, December 31,
2007 2006
Assets
Cash and cash equivalents $4,380 $3,638
Restricted cash 10 19
Short term investments 70,965 -
Accounts receivable, net 4,673 2,925
Inventories, net 2,522 1,631
Other current assets 2,558 1,487
Total current assets 85,108 9,700
Property and equipment - net 26,303 19,263
Other assets - 57
Total assets $111,411 $29,020

Liabilities, redeemable equity and
stockholders' equity (deficit)
Accounts payable $2,572 $1,481
Current maturities of long-term debt and
capital lease obligations 43 2,223
Lines of credit, net of unamortized discount - 973
Accrued and other current liabilities 3,039 1,638
Convertible preferred stock warrant liability - 3,773
Total current liabilities 5,654 10,088
Long-term debt and capital lease obligations,
less current maturities - 2,628
Total liabilities 5,654 12,716
Redeemable equity - 93,897
Stockholders' equity (deficit) 105,757 (77,593)
Total liabilities, redeemable equity and
stockholders' equity (deficit) $111,411 $29,020

Rubicon Technology, Inc.
Condensed Statements of Cash Flows
(Unaudited)
(In thousands)

Years ended December 31,
2007 2006
Operating activities
Net loss $(2,779) $(7,640)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Change in carrying value of convertible
stock warrants 6.019 2,183
Depreciation 3,355 3,091
Other 1,672 1,438
Changes in operating assets and liabilities:
Trade accounts receivable, net (1,748) (829)
Inventory, net (891) 1,402
Other assets (1,014) (137)
Accounts payable 1,092 661
Other liabilities 1,400 490
Net cash provided by operating activities 7,106 659
Investing activities
Purchases of property and equipment (10,564) (2,373)
Purchase of investments (70,941) -
Proceeds from disposal of assets 30 45
Net cash used in investing activities (81,475) (2,328)

Financing activities
Proceeds from IPO, net of costs 81,045 -
Proceeds from sale of preferred stock 5,553
Loan proceeds (payments), net (4,992) (1,546)
Line of credit draws (payments), net (973) (166)
Other financing activities 31 -
Net cash provided by financing activities 75,111 3,841
Increase in cash and cash equivalents 742 2,172
Cash and cash equivalents at beginning of year 3,638 1,466
Cash and cash equivalents at end of year $4,380 $3,638

Rubicon Technology, Inc.
Q4 Reconciling Items to Financial Statements - GAAP to Non-GAAP
(Unaudited)
(dollars in thousands except per share amounts)

Three months ended Three months ended
December 31, 2007 December 31, 2006
Adjust- Non- Adjust- Non-
GAAP ments GAAP GAAP ments GAAP

Revenue $9,545 $- $9,545 $6,054 $- $6,054
Cost of goods
sold 5,809 - 5,809 4,974 - 4,974
Gross profit 3,736 - 3,736 1,080 - 1,080

General and
administrative
expenses 2,579 (808)(a) 1,771 679 - 679
Sales and marketing
expenses 183 - 183 173 - 173
Research and
development
expenses 216 - 216 160 - 160
Asset impairment - - - 933 (933) -
Loss on disposal
of assets - - - 7 - 7
Total operating
expenses 2,978 (808) 2,170 1,952 (933) 1,019
Income (loss) from
operations 758 808 1,566 (872) 933 61
Other income
(expense)
Interest income
(expense) and
other, net (265) 503(b) 238 (294) - (294)
Change in
carrying value
of convertible
preferred
stock warrants (2,459) 2,459(c) - (1,080) 1,080(c) -
Total other income
(expense) (2,724) 2,962 238 (1,374) 1,080 (294)

Net income
(loss) (1,966) 3,770 1,804 (2,246) 2,013 (233)
Dividends on
preferred stock (913) 913(d) - (1,430) 1,430(d) -
Accretion of
redeemable
preferred
stock (13,712) 13,712(d) - (17,289) 17,289(d) -
Net income
(loss)
attributable
to common
stockholders $(16,591) $18,395 $1,804 $(20,965) $20,732 $(233)

Net income (loss)
per common
share
attributable
to common
stockholders:
Basic $(1.82) $2.02 $0.20 $(83.15) $82.23 $(0.92)
Diluted $(1.82) $1.92 $0.10 $(83.15) $82.23 $(0.92)
Weighted average
number of common
shares
outstanding 9,118,522 - 9,118,522 252,124 - 252,124
Weighted average
number of common
and dilutive
shares
outstanding 9,118,522 8,869,837 17,988,359 252,124 - 252,124

(a) Stock based compensation expense of $383,000 associated with the
accelerated vesting of stock options triggered by the completion of
an initial public offering, a write off of $230,000 of unamortized
loan fees associated with the repayment of debt and $195,000
settlement of a complaint filed by Saint-Gobain Ceramics & Plastics,
Inc.
(b) Write off of unamortized interest associated with the repayment of
debt.
(c) Change in carrying value of redeemable convertible preferred stock
warrants. All such warrants were converted to non-redeemable common
stock warrants or net exercised at the initial public offering.
(d) Accrued dividends and accretion of redemption value of redeemable
preferred stock. All preferred stock and dividends were converted
into common stock at the initial public offering.

Rubicon Technology, Inc.
Full Year Reconciling Items to Financial Statements - GAAP to Non-GAAP
(Unaudited)
(dollars in thousands except per share amounts)

Twelve months ended Twelve months ended
December 31, 2007 December 31, 2006
Adjust- Non- Adjust- Non-
GAAP ments GAAP GAAP ments GAAP

Revenue $34,110 $- $34,110 $20,752 $- $20,752
Cost of goods
sold 22,045 - 22,045 18,885 - 18,885
Gross profit 12,065 - 12,065 1,867 - 1,867

General and
administrative
expenses 6,157 (1,116)(a)(b) 5,041 3,298 (54)(a) 3,244
Sales and
marketing
expenses 675 - 675 1,062 - 1,062
Research and
development
expenses 769 - 769 679 - 679
Asset
impairment - - - 933 (933) -
Loss on
disposal of
assets 139 - 139 42 - 42
Total operating
expenses 7,740 (1,116) 6,624 6,014 (987) 5,027
Income (loss)
from
operations 4,325 1,116 5,441 (4,147) 987 (3,160)
Other income
(expense)
Interest
income
(expense)
and other,
net (1,085) 611(c) (474) (1,310) (1,310)
Change in
carrying value
of convertible
preferred
stock
warrants (6,019) 6,019(d) - (1,962) 1,962(d) -

Total other
income
(expense) (7,104) 6,630 (474) (3,272) 1,962 (1,310)

Loss before
cumulative
effect of
change in
accounting
principle (2,779) 7,746 4,967 (7,419) 2,949 (4,470)

Cumulative
effect of
change in
accounting
principle - - - (221) 221 -

Net income
(loss) (2,779) 7,746 4,967 (7,640) 3,170 (4,470)
Dividends on
preferred
stock (5,625) 5,625(e) - (5,563) 5,563(e) -
Accretion of
redeemable
preferred
stock (59,934) 59,934(e) - (23,416) 23,416(e) -
Net income
(loss)
attributable
to common
stock-
holders $(68,338) $73,305 $4,967 $(36,619) $32,149 $(4,470)

Net income
(loss) per
common share
attributable
to common
stockholders:
Basic $(27.19) $29.17 $1.98 $(146.57) $128.68 $(17.89)
Diluted $(27.19) $27.49 $0.30 $(146.57) $128.68 $(17.89)

Weighted
average
number of
common shares
outstanding 2,513,487 - 2,513,487 249,843 - 249,843
Weighted
average
number of
common and
dilutive
shares
outstanding 2,513,487 13,896,467 16,409,954 249,843 - 249,843

(a) Stock based compensation expense of $580,000 in 2007 and $54,000 in
2006 associated with the accelerated vesting of stock options
triggered by the completion of an initial public offering or
issuance of fully vested stock options.
(b) Write off of $341,000 of fees associated with the restructuring and
subsequent repayment of debt and $195,000 settlement of a complaint
filed by Saint-Gobain Ceramics & Plastics, Inc.
(c) Write off of unamortized interest associated with the repayment of
debt.
(d) Change in carrying value of redeemable convertible preferred stock
warrants. All such warrants were converted to non-redeemable common
stock warrants or net exercised at the initial public offering.
(e) Accrued dividends and accretion of redemption value of redeemable
preferred stock. All preferred stock and dividends were converted
into common stock at the initial public offering.

SOURCE Rubicon Technology, Inc.

William Weissman, Chief Financial Officer of Rubicon Technology, Inc., +1-
847-457-3610