Press Release

    LAKE FOREST, Calif.--(BUSINESS WIRE)--May 30, 2006--

       Funding Continued Under Defense Appropriations Allocation

Liquidmetal(R) Technologies Inc. (OTCBB:LQMT) today announced it has signed a contract extension with the U.S. Army for continued development of KEP (Kinetic Energy Penetrator) rods. The twenty month contract is directed at completing the development of Liquidmetal(R) alloy based composite KEP rods for armor-piercing ammunition systems. The contract extension follows the previous development program of $3.0 million which was supplemented to $3.8 million late last year.

The program goal is to develop a generic high-performance KEP material system which can be applicable to both current and future ammunition systems. The overall goal is the development of higher-performance, environmentally safe KEPs as an alternative to depleted uranium rods currently used by the military.

Upon the successful completion of the program, the initial application is expected to be directed to medium caliber ammunition systems for the U.S. Army.

About Liquidmetal Technologies

Liquidmetal Technologies (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.

    CONTACT: Liquidmetal Technologies
             Otis Buchanan, 949-206-8020
             otis.buchanan@liquidmetal.com

    SOURCE: Liquidmetal Technologies