Liquidmetal(R) Technologies Reports Revenue of $4.6 Million for Fourth Quarter 2008

Overall Gross Margins was 17% in the Third Quarter versus 25% in the Third Quarter of 2008. Selling, General & Administrative Expenses came in at $1.9 million for the quarter, up from $1.4 million in the Third Quarter of 2008. Research & Development Expense was at $0.2 million in the Fourth Quarter, down from $0.3 million in the Third Quarter of 2008.

Commenting on the operations, Mr. Larry Buffington, President and CEO, pointed out, "The strategies we put into place in 2008 are allowing Liquidmetal Technologies to manage through the current challenging economic environment while continuing to push forward on the strategy of growing adoption of our technology. Although customer projects were impacted in the Fourth Quarter and into 2009, significant customer opportunities continue to exist in our key bulk alloys and coatings markets. Several important initiatives, including completion of our financial restructuring, commencement of mass production utilizing our next generation equipment, and more aggressive implementation of our licensing strategies, will allow us to continue to make strides in the adoption of our technology even during these challenging times."

Conference Call

As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EDT) on April 15th, 2009 to discuss the results. The dial-in-number to access this operator assisted call is toll free 1-866-409-1564 or Toll 1-913-312-1264 for International callers. Institutional Investors can access the call via CCBN's password protected event management site, StreetEvents (http://www.streetevents.com). Listeners may access the conference call live over the Internet from Liquidmetal Technologies' website http://ir.liquidmetal.com or at http://www.companyboardroom.com.

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.

Liquidmetal Technologies, Inc.
Consolidated Statements of Operations Data
(In thousands, except per share data)
                                                     For the three months ended              For the twelve months ended
                                                         12/31/2008          12/31/2007          12/31/2008          12/31/2007
                                                     (Unaudited)
Revenue                                              $   4,605           $   8,518           $   22,083          $   29,022
Cost of sales                                            3,806               7,138               17,131              26,459
Gross profit                                             799                 1,380               4,952               2,563
Operating expenses
Selling, general and administrative expenses             1,912               2,041               6,529               8,921
Research and development expenses                        207                 236                 1,022               1,123
Impairment of long-lived assets                          132                 -                   132                 -
Total operating expenses                                 2,251               2,277               7,683               10,044
Loss before interest, other income and income taxes      (1,452     )        (897       )        (2,731     )        (7,481     )
Loss from extinguishments of debt                        -                   -                   -                   (648       )
Change in value of warrants, (loss) gain                 (495       )        447                 1,890               4,923
Change in value of conversion feature, (loss) gain       (117       )        828                 1,987               6,965
Other expense                                            -                   -                   (17        )        -
Other income                                             182                 177                 429                 226
Interest expense                                         (2,432     )        (1,910     )        (7,712     )        (9,364     )
Interest income                                          -                   2                   3                   123
Loss before minority interests and income taxes          (4,314     )        (1,353     )        (6,151     )        (5,256     )
Minority interests                                       (80        )        (318       )        (421       )        (384       )
Income taxes                                             -                   -                   -                   -
Net loss                                             $   (4,394     )    $   (1,671     )    $   (6,572     )    $   (5,640     )
Net loss per share - basic and diluted               $   (0.10      )    $   (0.04      )    $   (0.15      )    $   (0.13      )
Weighted average common shares - basic and diluted       44,759              44,711              44,735              44,730

SOURCE: Liquidmetal Technologies Inc.

Liquidmetal Technologies 
Otis Buchanan, 949-635-2120 
otis.buchanan@liquidmetal.com