SCI Engineered Materials, Inc. Enters Into Business Loan Agreement

COLUMBUS, OH--(Marketwire - January 23, 2009) - SCI Engineered Materials, Inc. (SCI) (OTCBB: SCIA), a manufacturer of ceramics and metals for advanced applications in the physical vapor deposition industry, today announced it has entered into a $1 million business loan agreement with a regional commercial bank. These funds will be used to support SCI's working capital needs as the Company continues to implement its growth strategy.

Dan Rooney, Chairman of the Board of Directors, President and Chief Executive Officer, commented, "We are pleased to expand SCI's access to capital, especially in the midst of the challenging economic environment. It complements the Company's capital structure, increases financial flexibility, and reflects our improved financial performance. We continue to pursue opportunities in select markets by leveraging SCI's manufacturing capabilities, developing new products, and expanding our sales and marketing activities in key global markets."

About SCI Engineered Materials, Inc.

SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company to use the Business Loan Agreement for working capital needs, to implement the Company's growth strategy, and pursuing opportunities in select markets. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-KSB for the year ended December 31, 2007. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

Contact Information: For Additional Information Contact: Robert Lentz (614) 876-2000