SUPERCONDUCTOR TECHNOLOGIES INC
EXHIBIT 10.1
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<TITLE>Superconductor Technologies Inc., Exhibit 10.1</TITLE>
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<P align="center"><FONT size="2">EXHIBIT 10.1</FONT>

<P align="left"><FONT size="2"><B>SUPERCONDUCTOR TECHNOLOGIES INC. CONVERTS</B></FONT>

<P align="left"><FONT size="2"><B>SERIES E PREFERRED STOCK</B>

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<P><FONT size="2"><B>SANTA BARBARA, Calif., September&nbsp;30, 2002 </B>&#151; Superconductor Technologies Inc.
(Nasdaq: SCON) (&#147;STI&#148;), the global leader in high-temperature superconducting
(HTS)&nbsp;products for wireless applications, today announced it has converted the
remainder of its Series&nbsp;E preferred stock into 2,155,261 common shares in
accordance with the contractual requirements of the private placement issued
September&nbsp;29, 2000. The associated conversion premium was paid with $3.0
million in cash and $1.7&nbsp;million in a subordinated note, rather than issuing
stock as was allowed under the original agreement. The subordinated note
carries eight percent interest and is due in eighteen months.
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<P><FONT size="2">After conversion of the Series&nbsp;E preferred stock, STI has 25,198,270 common
shares outstanding.
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<P><FONT size="2"><B>About Superconductor Technologies Inc.</B>
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<P><FONT size="2"><B>Superconductor Technologies Inc., headquartered in Santa Barbara, CA, is the
global leader in developing, manufacturing, and marketing superconducting
products for wireless networks.</B>
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<P><FONT size="2"><B>STI&#146;s SuperLink&#153; products are proven to increase capacity utilization, lower
dropped and blocked calls, extend coverage, and enable higher wireless
transmission data rates. SuperFilter&#174;, the company&#146;s flagship product,
incorporates patented high-temperature superconductor (HTS)&nbsp;technology to
create a cryogenic receiver front-end (CRFE)&nbsp;used by wireless operators to
enhance network performance while reducing capital and operating costs.</B>
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<P><FONT size="2"><B>More than 1,600 SuperFilter Systems have been deployed worldwide, logging in
excess of 20&nbsp;million hours of cumulative operation. In 2002, STI was named one
of Deloitte &#038; Touche&#146;s prestigious &#147;Technology Fast 50&#148; companies for the Los
Angeles area, a ranking of the 50 fastest-growing technology companies in the
area.</B>
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<P><FONT size="2"><B>SuperFilter and SuperLink are trademarks or registered trademarks of
Superconductor Technologies Inc. in the United States and in other countries.
For information about STI, please visit http://www.suptech.com.</B>
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<P><FONT size="2">For further information please contact Martin McDermut, Senior Vice President,
Chief Financial Officer of Superconductor Technologies Inc., &#043;1-805-690-4500,
mmcdermut@suptech.com; or Investors, Lillian Armstrong, lillian@lhai-sf.com or
Moriah Shilton of Lippert / Heilshorn &#038; Associates, &#043;1-415-433-3777, for
Superconductor Technologies Inc.
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