CVD Equipment Corporation Purchases the Assets of Stainless Design Corporation (SDC)

Ronkonkoma, NY - Dec. 17, 1998 - CVD EQUIPMENT CORPORATION (CVD) has purchased the tangible and intangible assets together with the intellectual property of Stainless Design Corporation (SDC), Saugerties, NY. CVD is a manufacturer of Chemical Vapor Deposition equipment for the semiconductor industry, while SOC was a manufacturer of Ultra-High-Purity(UHP) gas and chemical delivery systems for state-of-the-art semiconductor fabrication processes.   It is expected that UHP delivery systems will continue to be manufactured at the former SOC facility. The addition of the former SOC facility gives CVD the ability to manufacture in a state-of-the art location the new CVD production systems for UHVCVD of Silicon-Germanium, Rapid Thermal Processing, Thermal Desorption Spectroscopy and LPCVD of Oxide, Nitride and Polysilicon layers.

This public announcement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, ad Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results.  Investors and potential investors should review carefully the description of the risks and uncertainties which, together with other detailed information about CVD Equipment Corporation, is contained in the periodic reports that CVD files from time to time with Securities and Exchange Commission.

The risks and uncertainties include, but are not limited to: the ability to successfully integrate the acquired assets and facility into CVD Equipment Corporation; CVD's dependence upon the ability to attract and retain qualified personnel; competition and technological changes in both CVD and the former SOC businesses; the company's dependence upon proprietary technology and the potential need for additional financing.

For further information Contact:
CVD Equipment Corporation
Karen Hamberg
Phone: 516-981-7081
Fax:  516-981-7095