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Strong Fourth Quarter Lifts IKONICS

Strong Fourth Quarter Lifts IKONICS

DULUTH, Minn., Feb. 19, 2013 (GLOBE NEWSWIRE) -- IKONICS Corporation
(Nasdaq:IKNX), a Duluth-based imaging technology company, reported a strong
2012 fourth quarter. Sales were up 8% and earnings, at $0.14 per share, were
109% higher than the fourth quarter of 2011 The Company ended 2012 with record
sales of $17,312,000 – a 3% increase over 2011. Earnings for the year ended up
at $0.35 per share – essentially the same as 2011.

Bill Ulland, IKONICS CEO said: "Our patient investment in DTX and
Micro-Machining technologies continues to depress earnings, but I believe we
now are beginning to see the payoff, particularly with our Micro-Machining
customers in the aerospace industry.

"In addition to ongoing business related to the Boeing 747-8, we have received
a blanket order associated with the Airbus A350, which we expect to grow as
the A350 is placed into production. We also have orders beginning early in
2013 for acoustic liners from a major jet engine manufacturer; I anticipate
that this product line will grow during the year," he said. "Consequently, we
are expanding our manufacturing capability, adding both equipment and people.
I believe that these exciting developments not only portend a profitable
business for Ikonics but also are a validation of our unique technology by a
very sophisticated industry."

"During the year we also invested significantly in strengthening our patent
position for both Micro-Machining and DTX," he continued. "Our domestic screen
print market was a star performer in 2012, with sales up 7% over last year
while competing in a difficult market."

Ulland noted: "During the fourth quarter of 2012 we paid a $1.00 per share,
one-time special cash dividend, amounting to approximately $2,000,000. We
currently have cash and short-term investment of $2.4 million versus $3.9
million at the end of the third quarter of 2012, and we continue to generate a
strong cash flow. I believe our current cash and its projected growth is more
than sufficient to meet our growth plans. We have no long-term debt."

The IKONICS Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5654

This press release contains forward-looking statements regarding sales, gross
profits, net earnings, balance sheet position, new products and new business
initiatives that involve risks and uncertainties. The Company's actual results
could differ materially as a result of domestic and global economic
conditions, downturns in the aerospace industry, unexpected production delays
by customers using the Company's products, competitive market conditions,
changes in consumer preferences, inability to commercialize technologies the
Company is developing on the anticipated timeline or at all, acceptance of new
products the Company offers, introduction of new products or technologies by
competitors, unexpected capital expenditure requirements, the ability to
control operating costs without impacting growth as well as the factors
described in the Company's Form s 10-K, and 10-Q, and other reports on file
with the SEC.

IKONICS Corporation
CONDENSED STATEMENTS OF INCOME
For the Three Months and Twelve Months Ended December 31, 2012 and 2011
                                                               
                                Three Months Ended   Twelve Months Ended
                                12/31/2012 12/31/11  12/31/12   12/31/11
Net sales                        $4,524,468 $4,178,419 $17,312,407 $16,780,262
                                                               
Cost of goods sold               2,641,347  2,469,645  10,367,563  10,070,852
                                                               
Gross profit                     1,883,121  1,708,774  6,944,844   6,709,410
                                                               
Operating expenses               1,456,944  1,451,114  5,911,963   5,683,406
                                                               
Income from operations           426,177    257,660    1,032,881   1,026,004
                                                               
Interest income                  2,673      3,882      12,050      17,253
                                                               
Income before income taxes       428,850    261,542    1,044,931   1,043,257
                                                               
Income tax expense               143,708    124,850    351,000     345,000
                                                               
Net income                       $285,142   $136,692   $693,931    $698,257
                                                               
Earnings per common              $0.14      $0.07      $0.35       $0.35
share-diluted
                                                               
Average shares                   1,994,802  1,989,106  1,990,847   1,986,041
outstanding-diluted


CONDENSED BALANCE SHEETS
As of December 31, 2012 and 2011
                                               
                                    12/31/2012  12/31/2011
Assets                                          
Current assets                       $7,417,041  $8,404,194
Property, plant and equipment, net   5,461,878   5,436,902
Intangible assets                    305,357     326,362
                                    $13,184,276 $14,167,458
Liabilities and Stockholders' Equity            
Current liabilities                 $1,023,531  $838,915
Deferred income taxes                366,000     338,000
Long term debt                                  --
Stockholders' equity                 11,794,745  12,990,543
                                    $13,184,276 $14,167,458


CONDENSED STATEMENTS OF CASH FLOWS
For the Twelve Months Ended December 31, 2012 and 2011
                                                               
                                                    12/31/2012  12/31/2011
Net cash provided by operating activities            $1,181,950  $793,532
                                                               
Net cash used in investing activities                (171,725)   (288,881)
                                                               
Net cash provided by (used in) financing activities  (1,909,447) 71,131
Net increase (decrease) in cash and cash equivalents (899,222   575,782
                                                               
Cash and cash equivalents at beginning of period     1,867,165   1,291,383
                                                               
Cash and cash equivalents at end of period           $967,943    $1,867,165

CONTACT: News:
         Bill Ulland
         Chairman, President & CEO
         (218) 628-2217

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