Exhibit
      99.1




FOR
                  IMMEDIATE RELEASE
              For
                  Additional InformationContact:
                  Robert Lentz(614)
                  876-2000




**SCI
      Engineered Materials, Inc. Reports First Quarter 2008
      Results**




**COLUMBUS,
      Ohio (May 5, 2008)**  SCI
      Engineered Materials, Inc. (OTC Bulletin Board: SCCI), a manufacturer of
      ceramics and metals for advanced applications such as optical, photonics
      including solar, thin film batteries, and semiconductors for select growth
      markets in the physical vapor deposition industry, today announced results
      for
      the three months ended March 31, 2008.




Dan
      Rooney, Chairman, President and Chief Executive Officer, said, “Further progress
      is being achieved in our markets, as we implement the Company’s growth strategy.
      We continued to make strategic investments in our business during the first
      quarter 2008. These included additional investments in equipment and marketing
      initiatives in the semiconductor and solar industries as well as further
      development of innovative products. There were encouraging signs from these
      efforts during the quarter, including trial orders
      to new customers in these industries that represented approximately 20% of
      first
      quarter 2008 revenues. Additionally, requests for quotes increased sharply
      during the first three months of this year, especially from international
      customers. We continue to anticipate that these initiatives will lead to
      substantial orders in the second half of 2008 as we pursue opportunities that
      offer substantial long-term growth and profitability for the Company.”




First
      Quarter 2008 Results




Total
      revenues decreased 30% to $1,713,940 for the first quarter 2008 from $2,454,009
      compared to the first quarter 2007. This decline was primarily due to the
      negative impact of lower prices for a high value raw material versus the same
      period last year and
      lower
      quantity used as customers improved their efficiency. The Company’s backlog was
      $1.5 million at March 31, 2008 an increase of $0.5 million during the
      quarter.




Reflecting
      positive benefits from product mix, gross profit declined only 6% to $429,025
      for the first quarter 2008 from $458,580 a year ago. The year-over-year
      difference was almost entirely attributable to higher depreciation expense
      related to investments made to develop new markets. Gross profit margin
      increased to 25.0% of total revenues for the first three months of 2008 from
      18.7% for the same period in 2007.




The
      Company incurred higher expenses during the first quarter 2008 to specifically
      support its entry as well as expanded presence in key markets compared to the
      first quarter 2007. Factors that impacted the year-over-year comparisons
      particularly included additional staff and development costs associated with
      the
      rapidly expanding Thin Film Solar industry. General and administrative expense
      increased 10% to $260,053, marketing and sales expense increased 30% to
      $126,270, and research and development expense increased 54% to $97,156 for
      the
      first quarter 2008 versus the same period in 2007.




Interest
      expense rose to $26,602 for the first quarter 2008 from $5,904 the prior year.
      This was due to the acquisition of approximately $ 1.5 million
      of equipment through purchases and leases during the twelve months ended March
      31, 2008.




The
      net
      loss applicable to common shares was $(78,368), or $(0.02) per share, for the
      first quarter 2008 versus net income of $61,316, or $0.01 per diluted share,
      for
      the same period in 2007. Calculation of the loss applicable to common shares
      for
      the first quarter 2008 was based on 21% fewer shares compared to the same period
      a year ago since all common stock equivalents were anti-dilutive for the first
      quarter 2008.









About
      SCI Engineered Materials, Inc.




SCI
      Engineered Materials, Inc. manufactures ceramics and metals for advanced
      applications such as optical, photonics including 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 and its management, and
      specifically include statements regarding encouraging signs including trial
      orders to new customers that represented approximately 20% of first quarter
      2008
      revenues (paragraph two), requests for quotes increased sharply during the
      first
      three months of this year, especially from international customers paragraph
      2),
      the Company continues to anticipate that these initiatives will lead to
      substantial orders in the second half of 2008 as it continues to pursue
      opportunities that offer substantial long-term growth and profitability
      (paragraph 2).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.*