Liquidmetal(R) Technologies Reports Revenue of $3.6 Million for First Quarter 2009

Overall Gross Margins was 40% in the First Quarter versus 17% in the Fourth Quarter of 2008. Selling, General & Administrative Expenses came in at $1.6 million for the quarter, down from $1.9 million in the Fourth Quarter of 2008. Research & Development Expense was at $0.2 million in the First Quarter, consistent with $0.2 million in the Fourth Quarter of 2008.

Commenting on the operations, Mr. Larry Buffington, President and CEO, pointed out, "Despite the challenges impacting our Company due to the economic environment, our business was able to adjust well in the first quarter. We were able to reduce and variablize our cost structure dramatically in alignment with the market. As a result, our gross margin increased to 40% or $1.4 million vs. 17% and $0.8 million respectively in the Fourth Quarter of 2008.

"In addition, the Company was finally able to complete the restructuring of the January 2007 convertible notes. While this has been a major undertaking, completion of the financial restructuring has put the Company in a solid position. By converting $13.0 million of debt into equity, leaving $7.5 million remaining in long term notes and bringing capital infusion into the Company of $2.5 million, we are well positioned to move forward.

"We were able to accomplish a great deal in the first quarter and are optimistic that our business is poised well given the current economic environment and the prospects for recovery late this year."

Conference Call

As previously announced, Liquidmetal Technologies will host a conference call at 4:30 pm (EDT) on May 20th, 2009 to discuss the results. The dial-in-number to access this operator assisted call is toll free 1-877-502-9276 or Toll 1-913-905-1086 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
                                                              3/31/2009            3/31/2008
                                                         (Unaudited)
Revenue                                                  $    3,592           $    6,768
Cost of sales                                                 2,141                4,901
Gross profit                                                  1,451                1,867
Operating expenses
Selling, general and administrative expenses                  1,588                1,875
Research and development expenses                             247                  258
Total operating expenses                                      1,835                2,133
Loss before interest and other income                         (384      )          (266      )
Change in value of warrants, (loss) gain                      (126      )          106
Change in value of conversion feature, gain                   30                   222
Other expense                                                 -                    (17       )
Interest expense                                              (2,290    )          (1,703    )
Interest income                                               -                    2
Net loss                                                      (2,770    )          (1,656    )
Net income attributable to noncontrolling interest            (31       )          (160      )
Net loss attributable to Liquidmetal Technologies, Inc.  $    (2,801    )     $    (1,816    )
Net loss per share - basic and diluted:
Net loss attributable to Liquidmetal Technologies, Inc.  $    (0.06     )     $    (0.04     )
Weighted average common shares - basic and diluted            44,825               44,726

SOURCE: Liquidmetal Technologies Inc.

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