Applied Materials Achieves Major CVD Milestone with 750 Applied Producer Systems Shipped.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 19, 2004

Applied Materials, Inc. (Nasdaq:AMAT) announces a major industry milestone with the shipment of more than 750 Applied Producer(R) CVD (chemical vapor deposition) systems to customers worldwide. The high productivity and versatility of the Producer system have made it the industry's leading system for a range of CVD applications, as well as chipmakers' choice for depositing Applied's speed-boosting Black Diamond(R) low k dielectric technology. Of the 750 Producer systems installed, more than 200 are being used in 300mm fabs -- by far the largest 300mm installed base of any CVD system.

"The Producer is the only system that combines multi-generation processing technology with cost-effective, high-volume production capability," stated Dr. Farhad Moghadam, vice president and general manager of Applied Materials' Dielectric Systems and Modules Group. "The Producer's single-wafer design offers chipmakers compelling advantages in process control and flexibility over batch systems. These benefits become increasingly important with each new device generation, as ultra-thin layers require the hardware capability to run multiple complex deposition steps in a single, tightly-controlled environment."

The unique Applied Producer platform can be configured with up to 6 single-wafer process stations, for exceptional flexibility and high throughput. The 300mm Producer system carries forward the innovative technology, productivity and reliability of Applied's 200mm Producer product, providing customers with a distinct advantage as they transition to 300mm manufacturing.

The Producer system is used by every major chipmaker in the world for a wide range of thick and thin film transistor and interconnect process applications. The system's most advanced CVD application, Black Diamond, has become the industry's low k film of choice to boost speed and reduce power consumption in advanced chip designs. Numerous semiconductor and foundry manufacturers now use Black Diamond in production to make devices as diverse as 64-bit microprocessors, high-speed logic, high-speed ASIC, field programmable gate arrays (FPGAs) and graphics accelerators.

In the critical gate structure of the device, the Applied Producer enables chipmakers to achieve enhanced lithography control with its Advanced Patterning Film(TM) and DARC(R) 193 applications, which enable the thin gate dielectric layers needed for 90nm and below devices. Other Producer applications include the industry's broadest range of silicon dioxide and silicon nitride films, including ozone/TEOS films used for blanket and gap-fill deposition in logic and memory devices. For more information on the Applied Producer system, please visit http://www.appliedmaterials.com/products/blanket_dielectrics.html

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