DULUTH, Minn., Nov. 6, 2009 (GLOBE NEWSWIRE) -- IKONICS Corporation (Nasdaq:IKNX), a Duluth-based imaging technology company, reported sales for the third quarter of 2009 of $3,921,000, a 2.3% increase over the third quarter of 2008, and a 3.5% increase over the second quarter of 2009. Excluding the previously disclosed $919,000 write off of an investment in Imaging Technology International (iTi), pre-tax earnings for the third quarter of 2009 were $320,000, up 48% over pre-tax earnings for the second quarter of 2009 and up 9.6% compared to the third quarter of 2008. Pre-tax loss for the third quarter of 2009 was $599,000 and the net loss for the quarter was $709,000, or $0.36 per share. This is IKONICS' second consecutive quarter of sales growth, and management believes the recession may be weakening. At the end of the 2009 third quarter, the company's cash and short term investment position had increased to $1,578,000.

The recession was a contributing factor to IKONICS' third quarter write off of its $919,000 investment in iTi, as iTi was unable to refinance its debt and has ceased operations.

Bill Ulland, IKONICS CEO, said, "The write off and the loss of iTi as a supplier for our DTX printers is certainly an unwelcomed event. However, we believe we have viable options to replace iTi as our supplier of printers and hope to be in the market with this technology in the first half of 2010. I am pleased that our sales are improving and particularly gratified by the progress of our IKONICS Acoustics and Photo-Machining initiatives, both of which are showing good sales. We are also in the process of doubling our Photo-Machining manufacturing capacity," said Ulland.

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, and new products and businesses that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, the ability to control 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 OPERATIONS (Unaudited)
               For the Three Months and Nine Months Ended
                    September 30, 2009 and 2008

                       Three Months Ended         Nine Months Ended
                      09/30/09     09/30/08     09/30/09     09/30/08
                    -----------  -----------  -----------  -----------
 Net sales          $ 3,920,663  $ 3,832,783  $11,270,376  $11,943,690

 Cost of goods sold   2,337,757    2,178,597    6,825,654    6,798,858
                    -----------  -----------  -----------  -----------

 Gross profit         1,582,906    1,654,186    4,444,722    5,144,832

 Operating expenses   1,266,276    1,406,983    3,906,972    4,311,623
                    -----------  -----------  -----------  -----------

 Income from
  operations            316,630      247,203      537,750      833,209

 Gain on sale
  of investment              --       24,550       29,762       24,550

 Loss on investment    (918,951)          --     (918,951)          --

 Interest income          3,070       19,890        5,190       87,262
                    -----------  -----------  -----------  -----------

 Income (loss)
  before income
  taxes                (599,251)     291,643     (346,249)     945,021

 Income tax expense     110,134       53,810      163,253      243,113
                    -----------  -----------  -----------  -----------

 Net income (loss)  $  (709,385) $   237,833  $  (509,502) $   701,908
                    ===========  ===========  ===========  ===========

 Earnings per
  common share-
  diluted           $     (0.36) $      0.11  $     (0.26) $      0.34
                    ===========  ===========  ===========  ===========

 Average shares
  outstanding-
  diluted             1,967,057    2,073,925    1,975,911    2,070,134


                       CONDENSED BALANCE SHEETS
             As of September 30, 2009 and December 31, 2008

                                                09/30/09     12/31/08
                                              -----------  -----------
                                              (Unaudited)

 Assets
 Current assets                               $ 5,920,080  $ 5,562,130
 Property, plant and equipment, net             5,345,301    5,602,063
 Investment in non-marketable
  equity securities                                    --      918,951
 Intangible assets                                357,619      403,285
                                              -----------  -----------
                                              $11,623,000  $12,486,429
                                              ===========  ===========
 Liabilities and Stockholders' Equity
 Current liabilities                          $   627,682  $   909,789
 Deferred income taxes                            178,000      143,000
 Long term debt                                        --           --
 Stockholders' equity                          10,817,318   11,433,640
                                              -----------  -----------
                                              $11,623,000  $12,486,429


              CONDENSED STATEMENTS OF CASH FLOW (Unaudited)
       For the Nine Months Ended September 30, 2009 and 2008

                                                9/30/09      9/30/08
                                              -----------  -----------
 Net cash provided by operating activities    $   857,258  $ 1,009,363

 Net cash provided by (used in)
  investing activities                           (657,289)     621,926

 Net cash used in financing activities           (123,844)    (380,181)
                                              -----------  -----------

 Net increase in cash and cash equivalents         76,125    1,251,108

 Cash and cash equivalents at
  beginning of period                             901,738    1,230,020
                                              -----------  -----------

 Cash and cash equivalents at end of period   $   977,863  $ 2,481,128
                                              ===========  ===========

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