Park Electrochemical Corp. Declares Cash Dividend

The Board of Directors of Park Electrochemical Corp. (NYSE: PKE) declared a regular quarterly dividend of $0.10 per share payable February 4, 2013 to stockholders of record at the close of business on January 4, 2013.

The Company expects that all of this dividend and a portion or all of the dividends previously paid by the Company during the 2012 calendar year will not be treated as a taxable dividend for Federal income tax purposes, although the Company cannot finalize this treatment until it files its Federal income tax return for its current fiscal year ending March 3, 2013.

Park’s cash dividends are treated as taxable dividends to the extent of the Company’s current or accumulated earnings and profits (computed using U.S. Federal income tax principles), with any amount in excess of such current or accumulated earnings and profits treated as a non-taxable return of capital to the extent of the shareholder’s adjusted tax basis in the holder’s shares and with any amount in excess of such current or accumulated earnings and profits and the holder’s adjusted tax basis treated as a capital gain. Distributions treated as returns of capital generally reduce the basis in the shares on which the distributions were made, unless the basis is lower than the amount of the distributions in which case the amount by which the distributions exceed the basis is capital gains. Because the Company’s current earnings and profits must take into account the Company’s results of operations for the entire fiscal year in which the cash dividends were paid, the Company will not be able to determine with certainty the portion of the cash dividends that will be treated as a taxable dividend until after the close of the Company’s fiscal year on March 3, 2013. While the tax treatment of the cash dividends is complex and cannot be concluded with any degree of certainty at this time, the Company currently estimates that a portion of the cash dividends paid in the 2012 calendar year will exceed the Company’s current or accumulated earnings and profits for U.S. Federal income tax purposes and, therefore, will not be treated as a taxable dividend.

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