Press Release

LAKE FOREST, Calif.--(BUSINESS WIRE)--Feb. 20, 2004--Liquidmetal(R) Technologies, Inc. (Nasdaq:LQMT) today said that it expects to restate revenues for the third and fourth quarters of 2002 and the first quarter of 2003. The revenues relate to sales of alloy melting and casting equipment to a former supplier and licensee with whom the company recently settled a contract dispute, as announced in early January.

The equipment was the subject of a previously reported dispute between a Liquidmetal Technologies subsidiary, Liquidmetal Korea ("LMK"), and Growell Metal ("Growell"), a former supplier of alloy ingots to the company's Pyongtaek, South Korea manufacturing plant and also a die casting licensee of the company. Under terms of a January 10 settlement of the dispute, LMK agreed to buy out Growell's investment in alloy inventories, proprietary alloying equipment purchased from LMK, as well as supporting equipment purchased from other suppliers. Also as part of the settlement, Growell satisfied in full a balance owed to LMK for the die casting machines Growell purchased from LMK in the first quarter of 2003 as part of a license agreement to manufacture Liquidmetal alloy parts for the South Korean automotive industry. The contract dispute arose late last year when Growell discontinued its Liquidmetal alloying operations following a decision by Liquidmetal Technologies to sharply curtail its internal manufacturing operations as part of a sweeping change in its business strategy.

The expected restatement of revenues from the equipment sales is a result of an analysis initiated by the company based upon the dispute settlement and a determination that the original revenue recognition decision did not include consideration of at least one agreement identified during a review of the originating transaction documents. The review and analysis indicated that the equipment sales should have been viewed as being contingent upon LMK's continued performance under its agreements with Growell, which would have precluded revenue recognition until the contingency ended.

The sales to Growell, which were previously disclosed in the company's public financial reports, were comprised of $1.7 million of revenue from alloying equipment sales in the third and fourth quarters of 2002 and $2.5 million of revenue from the sale of Liquidmetal die casting machines in the first quarter of 2003. However, an ongoing analysis and review by the company will determine the full extent of the expected restatement and corresponding impact on previously reported results of operations.

The company said it will report on the full extent of the financial restatement upon completion of the analysis.

About Liquidmetal Technologies, Inc.

Liquidmetal Technologies, Inc. (www.liquidmetal.com) is the leading developer, manufacturer, and marketer of products made from amorphous alloys. Amorphous alloys are unique materials that are characterized by a random atomic structure, in contrast to the crystalline atomic structure possessed by ordinary metals and alloys. Bulk Liquidmetal(R) alloys are two to three times stronger than commonly used titanium alloys, harder than tool steel, and relatively non-corrosive and wear resistant. Bulk Liquidmetal alloys can also be molded into precision net-shaped parts similar to plastics, resulting in intricate and sophisticated engineered designs. Liquidmetal Technologies is the first company to produce amorphous alloys in commercially viable bulk form, enabling significant improvements in products across a wide array of industries. The combination of a super alloy's performance coupled with unique processing advantages positions Liquidmetal alloys for what the company believes will be The Third Revolution(TM) in material science.

This press release may contain "forward-looking statements" that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or result, and undue reliance should not be placed on these statements. These risks and uncertainties may include: our limited operating history in developing and manufacturing products from bulk amorphous alloys; the adoption of our alloys by customers; the commercial success of our customer's products; our ability to identify, develop, and commercialize new applications for our alloys; competition with suppliers of incumbent materials; the development of new materials that render our alloys obsolete; the ability to manage our anticipated growth; our limited direct experience in manufacturing bulk alloy products; scaling-up our manufacturing facilities; protecting our intellectual property; problems associated with manufacturing and selling our alloys outside of the United States; and other risks and uncertainties discussed in filings made with the Securities and Exchange Commission (including risks described in subsequent reports on Form 10-Q, Form 10-K, Form 8-K, and other filings). Liquidmetal Technologies disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    CONTACT: Liquidmetal Technologies, Inc.
             David Townsend, 813-314-0280
             david.townsend@liquidmetal.com

    SOURCE: Liquidmetal Technologies, Inc.