Exhibit 99

NEWS RELEASE

News Contact: Bill Ulland
Chairman, President & CEO
(218) 628-2217 For Immediate Release
July 31, 2008

IKONICS POSTS RECORD SECOND QUARTER PROFITS

DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today record second quarter profits of $358,000, or $0.17 per share, an 8% increase over the second quarter of 2007. Second quarter sales were down 1% to $4,330,000 compared to the second quarter of 2007. Income from operations was up 23% for the quarter and 34% for the six month period compared to the same periods in 2007. Compared to the first quarter of 2008, sales were up 15% and earnings up 23%.

Bill Ulland, Ikonics CEO, said that, given the softening economy, these results are encouraging. Both sales and earnings for the company were the second best quarterly results on record.

Ulland added, “In July we took delivery of production equipment for our new Digital Texturing enterprise. The fluid deposition machine is being tested for production and is currently meeting our expectations. We also continue to make progress with our Photo-Machining technology and expect that business to continue to grow in the second half.”

Ulland also said, “Our investment in new technologies is beginning to translate into sales which should help offset the current weak domestic demand for our traditional products, and we believe these new technologies will position us for significant growth in the future.”

During the quarter, the company broke ground on a 35,000 square foot facility to house its new technologies. The project is on budget, and the company plans to take occupancy before the end of the year.

This press release contains forward-looking statements regarding sales, net earnings, and new products that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, as well as the factors described in the Company’s Form 10-KSB, Forms 10-QSB and 10-Q, and other reports on file with the SEC.

IKONICS Corporation

Condensed STATEMENTS OF OPERATIONS (unaudited)
For the Three Months and Six Months Ended June 30, 2008 and 2007

	Three Months Ended				Six Months Ended
	6/30/08		6/30/07		6/30/08		6/30/07
Net Sales	$	4,330,059	$	4,374,677	$	8,110,907	$	7,882,444
Costs and expenses		3,791,173		3,934,716		7,524,901		7,446,150
Income from operations		538,886		439,961		586,006		436,294
Gain on sale of investment		—		—		—		55,159
Interest income		23,697		36,724		67,372		69,631
Income before income taxes		562,583		476,685		653,378		561,084
Federal and state tax expense		204,146		145,283		189,303		90,585
Net income	$	358,437	$	331,402	$	464,075	$	470,499
Earnings per common share-diluted	$	0.17	$	0.16	$	0.22	$	0.23
Average shares outstanding-diluted		2,080,617		2,064,698		2,068,292		2,056,762

Condensed Balance Sheets
As of June 30, 2008 and December 31, 2007

	6/30/08		12/31/07
	(unaudited)
Assets
Current assets	$	9,300,221	$	9,315,737
Property, plant and equipment, net		2,391,985		1,320,591
Investment in non-marketable equity securities		855,201		855,201
Intangible assets		486,163		479,888
Deferred income taxes		11,000		11,000
	$	13,044,570	$	11,982,417
Liabilities and Stockholders’ Equity
Current liabilities	$	1,376,334	$	936,703
Long term debt		—		—
Stockholders’ equity		11,668,236		11,045,714
	$	13,044,570	$	11,982,417