Applied Materials Demonstrates Clean Energy Leadership.

SANTA CLARA, Calif. -- Applied Materials, Inc., the largest participant in Silicon Valley Power's (SVP) green power initiative, announced today its expanded agreement to purchase 8,220,000 kilowatt-hours (kWh) of clean renewable energy annually from wind and solar generation sources in California in lieu of energy from nonrenewable sources. The annual amount represents approximately 12 percent of the energy used in the company's Santa Clara facilities and will reduce the company's greenhouse gas emissions in Silicon Valley by more than five percent.

"We are committed to demonstrating practical environmental leadership in industry and the conservation of natural resources," said Mike Splinter, president and CEO of Applied Materials. "We challenge other companies to join us in purchasing renewable power as we believe heightened demand will lower cost and increase availability for both business and consumer use."

This new purchase is part of the company's comprehensive environmental responsibility programs and a response to the U.S. Environmental Protection Agency's Fortune 500 Green Power Challenge. Quadrupling an earlier agreement, Applied Materials' pledge is the largest to date in the Santa Clara Green Power program, a 100 percent renewable energy program sponsored by SVP, The City of Santa Clara's municipal electric utility.

Applied Materials is dedicated to dramatically reducing its carbon footprint around the world by designing and enabling environmentally friendly products, improving energy efficiency and reducing the impact of operations. According to SVP, Applied Materials' clean power commitment in Santa Clara will aid environmental conservation by preventing the annual release of more than 3,736 metric tons of carbon dioxide. By some calculations, the pledge is equivalent to planting 1,107 acres of forest or removing 782 cars from the road for one year.

"Through this agreement Applied Materials becomes the top purchaser of renewable energy from Silicon Valley Power and one of the largest in the nation," said Larry Owens, Division Manager, SVP. "As such a significant purchaser of clean power, we are proud of the strong investment Applied Materials has made in the Santa Clara Green Power program and hope their example will motivate others to follow suit."

Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in Nanomanufacturing Technology[TM] solutions with a broad portfolio of innovative equipment, services and software products for the fabrication of semiconductor chips, flat panels, solar photovoltaic cells, flexible electronics and energy efficient glass. At Applied Materials, we apply Nanomanufacturing Technology to improve the way people live. Learn more at www.appliedmaterials.com.