CVD Equipment Corporation Announces Second Quarter Results

RONKONKOMA, N.Y., (PR Newswire)—August 11, 2005—CVD Equipment Corporation (Amex: CVV – News), a global designer, manufacturer and supplier of equipment primarily used in the semiconductor, nanotechnology and printed circuit board industries, today announced its financial results for the three and six months ended June 30, 2005.

Revenue for the three and six months ending June 30, 2005 was $3,009,000 and $5,407,000 respectively compared to $1,727,000 and $3,919,000 for the three and six months ending June 30, 2004 representing an increase of 74.2% and 38% for the respective periods. This increase in revenue can be attributed to an increase in order levels the Company received since the latter part of 2004. Overall, gross profit percentage increased during the three and six months ending June 30, 2005 to 40.4% and 36.7%, from 32.2% and 29.2% respectively for the three and six months ending June 30, 2004. This increase in gross revenue and gross margin has resulted in the Company generating net income of $293,000 or $.09 per share basic and diluted for the three months and $.10 per share basic and $.09 per share diluted for the six months ended June 30, 2005 compared to a net loss of $243,000 and $.08 per share basic and diluted for the three months ended June 30, 2004 and a net loss of $335,000 or $.11 per share basic and diluted for the six months ending June 30, 2004.

At June 30, 2005 our order backlog, comprised of customer orders that are expected to ship within the next six months, increased by 5.3% to approximately $2,560,000 from $2,430,000 at December 31, 2004. Our backlog at any specific point in time is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because backlog does not provide any assurance of a profit from these orders.

Leonard Rosenbaum, President and Chief Executive Officer stated, "The Company’s performance during the second quarter is the direct result of production improvements initiated in prior years. Going forward, we have started to make some internal organizational changes that should enable us to further increase sales and production."

Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in CVD Equipment Corporation’s filings with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CVD Equipment Corporation’s website does not constitute a part of this release.

For further information Contact: Investor Relations, Phone: 631 981-7081, Fax: 631 981-7095 or email: investorrelations@cvdequipment.com