Exhibit 99.1

Jerrold J. Pellizzon	Phil Bourdillon/Gene Heller
Chief Financial Officer	Silverman Heller Associates
(714) 549-0421	(310) 208-2550

CERADYNE, INC. REPORTS SECOND QUARTER, SIX-MONTH

2012 FINANCIAL RESULTS

Costa Mesa, Calif.–July 24, 2012–Ceradyne, Inc. (NASDAQ: CRDN) reported financial results for the second quarter and six months ended June 30, 2012.

Sales for the second quarter 2012 were $130.6 million, compared with $145.4 million in the second quarter 2011. Net income for the second quarter 2012 decreased to $6.8 million, or $0.28 per fully diluted share, compared to a net income of $19.1 million, or $0.76 per fully diluted share in the second quarter 2011. Fully diluted average shares outstanding for the second quarter 2012 were 24,307,290 compared to 25,223,757 in the same period in 2011.

Gross profit margin was 28.1% of net sales in the second quarter 2012, compared to 36.4% in the same period in 2011. The provision for income taxes was 40.1% in the second quarter 2012, compared to a provision for income taxes of 34.8% in the same period in 2011.

Sales for the six months ended June 30, 2012 were $237.0 million, compared with $295.5 million in the same period last year. Net income for the six months ended June 30, 2012 was $10.6 million, or $0.44 per fully diluted share, on 24,300,045 shares, compared to net income of $42.7 million, or $1.70 per fully diluted share on 25,171,897 shares in the prior year period.

Gross profit margin was 27.8% of net sales in the six months ended June 30, 2012 compared to 37.6% in the same period in 2011. The provision for income taxes was 39.0% in the six months ended June 30, 2012, compared to a provision for income taxes of 33.4% in the same period in 2011.

New orders for the three months ended June 30, 2012 were $79.4 million, compared to $108.8 million for the same period last year. For the six months ended June 30, 2012, new orders were $160.2 million, compared to $340.5 million for the comparable period last year.

Total backlog as of June 30, 2012 was $208.8 million, compared to total backlog at June 30, 2011 of $230.8 million.

Total cash, cash equivalents and short-term investments decreased to $268.1 million at June 30, 2012 compared to $275.0 million at December 31, 2011.

Joel P. Moskowitz, Ceradyne president, chairman and chief executive officer, commented: “Although we are encouraged by the sequential increase in earnings from Q1’s $0.16 per share to Q2’s $0.28 per share, we continue to have short-term concerns regarding the anticipated solar rebound, its timing and the reduced gross profit margins we foresee. In the second quarter alone, operating losses from our solar crucible business, which twelve months ago had the highest gross profit margin in the Company, reduced our fully diluted earnings per share by $0.14.

“Without improved shipment levels in solar and defense, our second half 2012 operating results will likely be similar or somewhat greater than our first half 2012.

“Although the demand for photovoltaic solar energy, as measured by solar installations, increased 21% from 2010 to 2011 and is anticipated to have a more modest growth in 2012, our Chinese customers continue to have excess capacity and high levels of inventory, which have yet to be reduced to levels justified by demand. However, we continue to see increased solar use in China, the United States, India and other Asian countries offset to some degree by reduced European demand. However, the macro outlook for the solar business is very positive, primarily due to reduced costs resulting in “grid parity” even with reduced or no government subsidies.

“Our strategy will be to reduce costs primarily through technology and automation and to continue certain discussions with our Chinese customers to result in closer, long-term relationships.”

Mr. Moskowitz further commented: “The large (approximately $170 million) Enhanced Combat Helmet (ECH) award has been delayed due to technical issues which are being addressed by our staff. We anticipate that with certain tooling adjustments, we will be in volume production in Q3 this year.”

Mr. Moskowitz discussed his recent visit to our ESK Ceramics subsidiary’s operation in Kempten, Germany to celebrate its 90th year since their founding in 1922. Mr. Moskowitz stated, “The progress in our new product pipeline is excellent. I saw the largest component Ceradyne has ever made, a 10 meter long PetroCeram® ceramic sand screen for installation in Bolivia in Q3 as well as a stream of oil and gas opportunities. I reviewed with Dr. Christoph Lesniak, ESK’s Chief Technology Officer, our technology innovation advances in (patented) ceramic microreactors for next generation pharmaceutical production and (patented) diamond coated steel wires for slicing semiconductor and solar silicon wafers. The progress in polymer filled (with boron nitride ceramics) components for use as lithium ion battery casings and light emitting diode (LED) heat sinks is excellent.

“These are some of the products of the future which we believe will provide the basis for our diversification strategy and profitable future growth.”

Mr. Moskowitz concluded: “Our significant new product pipeline and strong balance sheet bode well for the future. However, as always, management will focus on both short-term and long-term results, with increasing emphasis on our solar crucible operation.”

Conference Call and Webcast Information

Ceradyne will host a conference call today at 8:00 a.m. PDT (11:00 a.m. EDT) to review the financial results for the second quarter ended June 30, 2012. To participate in the teleconference, please call toll free 800-946-0716 (or 719-457-2630 for international callers) approximately 10 minutes prior to the above start time and provide Passcode 9434924. Investors or other interested parties may listen to the teleconference live via the Internet at www.ceradyne.com or www.earnings.com. These web sites will also host an archive of the teleconference. A telephone playback will be available beginning at 12:00 p.m. PDT on July 24th through 12:00 p.m. PDT on July 26th. The playback can be accessed by calling 888-203-1112 (or 719-457-0820 for international callers) and providing Passcode 9434924.

Information about Ceradyne, Inc.

Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, energy, automotive/diesel and commercial applications.

In many high performance applications, products made of advanced technical ceramics meet specifications that similar products made of metals, plastics or traditional ceramics cannot achieve. Advanced technical ceramics can withstand extremely high temperatures, combine hardness with light weight, are highly resistant to corrosion and wear, and often have excellent electrical capabilities, special electronic properties and low friction characteristics. Additional information can be found at the Company’s web site: www.ceradyne.com.
 

Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially from those projected. Words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions are intended to identify forward-looking statements. These risks and uncertainties are described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and its quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date thereof.

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CERADYNE, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

	Three Months Ended  June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
NET SALES	$	130,643		$	145,376		$	236,952		$	295,478
COST OF GOODS SOLD		93,941			92,419			171,106			184,433
Gross profit		36,702			52,957			65,846			111,045
OPERATING EXPENSES
Selling, general and administrative		18,839			19,456			36,349			38,292
Research and development		4,717			3,214			8,347			6,281
Restructuring - plant closure and severance		-			-			673			-
Acquisition related charges		231			838			231			1,422
		23,787			23,508			45,600			45,995
INCOME FROM OPERATIONS		12,915			29,449			20,246			65,050
OTHER INCOME (EXPENSE):
Interest income		1,128			877			2,194			1,675
Interest expense		(1,825	)		(1,669	)		(3,568	)		(3,117	)
Miscellaneous		(791	)		677			(1,449	)		590
		(1,488	)		(115	)		(2,823	)		(852	)
INCOME BEFORE PROVISION FOR INCOME TAXES		11,427			29,334			17,423			64,198
PROVISION FOR INCOME TAXES		4,581			10,203			6,795			21,472
NET INCOME	$	6,846		$	19,131		$	10,628		$	42,726
BASIC INCOME PER SHARE	$	0.28		$	0.77		$	0.44		$	1.72
DILUTED INCOME PER SHARE	$	0.28		$	0.76		$	0.44		$	1.70
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC		24,204			24,898			24,207			24,869
DILUTED		24,307			25,224			24,300			25,172

CERADYNE, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

	June 30, 2012			December 31, 2011
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	35,261		$	50,275
Short-term investments		232,821			224,772
Accounts receivable, net of allowances for doubtful accounts of $2,789
and $1,547 at June 30, 2012 and December 31, 2011, respectively		73,834			73,646
Other receivables		5,084			6,040
Inventories		130,130			117,273
Production tooling, net		10,833			11,792
Prepaid expenses and other		35,300			43,860
Deferred tax asset		5,191			5,782
TOTAL CURRENT ASSETS		528,454			533,440
PROPERTY, PLANT AND EQUIPMENT, net		235,525			243,376
LONG TERM INVESTMENTS		21,785			15,026
INTANGIBLE ASSETS, net		98,136			100,690
GOODWILL		42,720			42,926
OTHER ASSETS		13,520			12,673
TOTAL ASSETS	$	940,140		$	948,131
CURRENT LIABILITIES
Accounts payable	$	22,999		$	29,191
Accrued expenses		26,340			30,470
Income taxes payable		7,082			5,331
Short-term debt		91,241			89,294
TOTAL CURRENT LIABILITIES		147,662			154,286
EMPLOYEE BENEFITS		24,078			24,462
OTHER LONG TERM LIABILITIES		37,569			37,224
DEFERRED TAX LIABILITY		23,429			23,461
TOTAL LIABILITIES		232,738			239,433
COMMITMENTS AND CONTINGENCIES (Note 13)
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value, 100,000,000 authorized, 24,179,414 and 24,175,051 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively		242			242
Additional paid-in capital		121,263			121,940
Retained earnings		586,793			583,420
Accumulated other comprehensive income (loss)		(896	)		3,096
TOTAL SHAREHOLDERS’ EQUITY		707,402			708,698
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	940,140		$	948,131

CERADYNE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Six Months Ended June 30,
	2012			2011
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	10,628		$	42,726
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization		18,215			19,678
Amortization of bond premium		223			661
Non cash interest expense on convertible debt		1,952			1,795
Deferred income taxes		(266	)		249
Stock compensation		2,266			2,026
(Gain) loss on marketable securities		(54	)		103
(Gain) loss on equipment disposal		(12	)		178
Change in operating assets and liabilities (net of effect of businesses acquired):
Accounts receivable, net		(647	)		914
Other receivables		904			1,638
Inventories		(13,908	)		(11,287	)
Production tooling, net		946			(2,866	)
Prepaid expenses and other assets		8,494			(9,600	)
Accounts payable and accrued expenses		(10,386	)		6,001
Income taxes payable		1,919			3,384
Other long term liability		373			2,762
Employee benefits		645			422
NET CASH PROVIDED BY OPERATING ACTIVITIES		21,292			58,784
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(10,524	)		(17,055	)
Purchases of marketable securities		(29,354	)		(63,053	)
Proceeds from sales and maturities of marketable securities		16,499			35,757
Cash paid for acquisitions		-			(27,673	)
Cash paid for other investments		(939	)		-
Proceeds from sale of equipment		42			1,442
NET CASH USED IN INVESTING ACTIVITIES:		(24,276	)		(70,582	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of stock due to exercise of options		317			991
Excess tax benefit due to exercise of stock options		618			1,827
Common stock cash dividends paid		(7,255	)		-
Shares repurchased		(4,027	)		(3,889	)
NET CASH USED IN FINANCING ACTIVITIES		(10,347	)		(1,071	)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS		(1,683	)		3,896
DECREASE IN CASH AND CASH EQUIVALENTS		(15,014	)		(8,973	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		50,275			53,436
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	35,261		$	44,463

CERADYNE, INC.

SEGMENT FINANCIAL INFORMATION

(Amounts in thousands)

The financial information for all segments is presented below (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue from External Customers
Advanced Ceramic Operations	$	70,395		$	66,637		$	119,100		$	143,267
ESK Ceramics		37,524			45,880			79,932			86,003
Thermo Materials		15,290			29,295			30,156			60,406
Boron		13,820			11,420			21,023			19,360
Inter-segment elimination		(6,386	)		(7,856	)		(13,259	)		(13,558	)
Total	$	130,643		$	145,376		$	236,952		$	295,478
Depreciation and Amortization
Advanced Ceramic Operations	$	2,358		$	2,514		$	4,651		$	5,385
ESK Ceramics		2,925			3,276			5,900			6,415
Thermo Materials		1,934			2,094			3,954			3,778
Boron		1,855			2,047			3,710			4,100
Total	$	9,072		$	9,931		$	18,215		$	19,678
Segment Income (Loss) from Operations and Income Before Provision for Income Taxes
Advanced Ceramic Operations	$	9,749		$	14,041		$	13,144		$	31,055
ESK Ceramics		4,066			9,201			11,243			17,006
Thermo Materials		(2,474	)		6,066			(4,257	)		16,920
Boron		1,930			726			1,054			726
Inter-segment elimination		(356	)		(585	)		(938	)		(657	)
Income from Operations		12,915			29,449			20,246			65,050
Other Income (Expense)		(1,488	)		(115	)		(2,823	)		(852	)
Income before Provision for Income Taxes	$	11,427		$	29,334		$	17,423		$	64,198
Segment Assets
Advanced Ceramic Operations	$	486,404		$	468,385		$	486,404		$	468,385
ESK Ceramics		162,998			190,440			162,998			190,440
Thermo Materials		164,637			169,420			164,637			169,420
Boron		126,101			127,670			126,101			127,670
Total	$	940,140		$	955,915		$	940,140		$	955,915
Expenditures for Property, Plant & Equipment
Advanced Ceramic Operations	$	911		$	2,076		$	2,724		$	3,475
ESK Ceramics		1,501			1,322			3,675			1,984
Thermo Materials		351			4,672			911			9,622
Boron		1,855			1,324			3,214			1,974
Total	$	4,618		$	9,394		$	10,524		$	17,055

CERADYNE, INC.

MARKET APPLICATION INFORMATION

(Dollar amounts in millions)

We categorize our products into five market applications. The tables below show our sales by market application and the percentage contribution to our total sales of each market application in the different time periods.

Sales by Market Application (in millions):

	Three Months Ended June 30,							Six Months Ended June 30,
	2012		2011		Change			2012		2011		Change
Defense	$	55.6	$	55.9		(0.5	%)	$	92.2	$	120.6		(23.6	%)
Industrial		40.8		42.8		(4.8	%)		81.0		82.3		(1.6	%)
Energy		21.0		34.0		(38.3	%)		35.8		67.2		(46.6	%)
Automotive/Diesel		8.0		10.3		(21.3	%)		17.9		20.0		(10.3	%)
Commercial		5.2		2.4		115.8	%		10.1		5.4		85.9	%
Total	$	130.6	$	145.4		(10.1	%)	$	237.0	$	295.5		(19.8	%)

Percentage Contribution:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Defense		42.6	%		38.5	%		38.9	%		40.9	%
Industrial		31.2			29.4			34.1			27.8
Energy		16.0			23.3			15.1			22.7
Automotive/Diesel		6.2			7.1			7.6			6.8
Commercial		4.0			1.7			4.3			1.8
Total		100.0	%		100.0	%		100.0	%		100.0	%

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