Applied Materials Achieves #1 Position in PVD for 13 Years.

SANTA CLARA, Calif. -- Applied Materials, Inc. (Nasdaq:AMAT) increased its lead in PVD (physical vapor deposition) technology to 78% of the estimated $1.6 billion PVD market in calendar year 2004, according to market researcher VLSI Research's 2004 IC Manufacturing Equipment Market Share report. Applied has been the leading supplier of PVD systems to the semiconductor industry for 13 consecutive years. Through important innovations, Applied continues to enhance PVD technology to meet the needs of current and emerging 65nm and 45nm designs.

"Applied's ability to extend cost-effective PVD to each succeeding generation of devices has helped chipmakers manage their technology transitions, while also enabling improved copper interconnect circuitry at each device node," said Dr. Farhad Moghadam, senior vice president and general manager of Applied Materials' Thin Films Product Business Group. "Our latest advances in PVD source technology continue this trend, providing the capability for depositing high-purity films in very high aspect ratio interconnect structures, with the high productivity that customers depend on to stay competitive."

Customers' preference for Applied's new Endura2(TM) platform, which supports the industry's broadest portfolio of PVD technologies, contributed to this boost in Applied Materials' PVD market position. Since its introduction in February, 2004, more than 100 Endura2 systems have been shipped to customers worldwide. The Endura2 was selected by Solid State Technology magazine as a top product of 2004.

The rapid customer acceptance of the latest Applied Endura(R) CuBS copper barrier/seed system for fabricating copper interconnects is another validation of Applied's innovations in PVD technology. The system's SIP EnCoRe(TM) II process chambers provide customers with a major leap forward in barrier-seed deposition capability for the 45nm device generation and beyond. Combining these chambers on the reliable Endura2 platform also dramatically cuts operating costs and enables chipmakers to push cost-effective PVD technology to future chip generations.

Forward-Looking Statements. This press release contains forward-looking statements, including those related to Applied Materials' technological leadership, product capabilities, strategic position and opportunities. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to: the sustainability of demand in the semiconductor and semiconductor equipment industries, which is subject to many factors, including global economic conditions, business spending, consumer confidence, demand for electronic products and semiconductors, and geopolitical uncertainties; the timing, rate, amount and sustainability of capital spending for new technology, such as 300mm and sub-100 nanometer applications; the company's ability to successfully develop, deliver and support a broad range of products and services and expand its markets; and other risks described in Applied Materials' Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof and the company undertakes no obligation to update any forward-looking statement.

Applied Materials, Inc. (Nasdaq:AMAT), headquartered in Santa Clara, California, is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com