Applied Materials Expands Its Presence in the People's Republic of China.

Business Editors/High-Tech Writers

SHANGHAI, China--(BUSINESS WIRE)--Oct. 18, 2001

In a ceremony today, Applied Materials, Inc. (Nasdaq:AMAT), the world's largest supplier of equipment and services to the global semiconductor industry, marked the opening of the Company's major new facility and technical training center in the Pudong Zhangjiang High-Tech Park, Shanghai. The opening ceremony was officiated by James C. Morgan, chairman and chief executive officer of Applied Materials, and attended by Samuel Bodman, deputy secretary of the United States Department of Commerce, Zhou Yu Peng, vice mayor of Shanghai, and other officials from the United States and China.

"Recognizing the tremendous potential of China as a major consumer and producer of semiconductors over 15 years ago, Applied Materials made a long-term commitment to help build the infrastructure that is now a critical part of the region's emerging semiconductor market," stated Morgan. "With today's announcement, Applied Materials has enhanced its capabilities to support semiconductor manufacturers here as they prepare to meet the rapidly growing demand within China for more powerful, portable and affordable chips."

Establishing offices in Beijing in 1984, Applied Materials was the first semiconductor equipment company to operate a service center in the People's Republic of China, offering system service and support to local semiconductor manufacturers. Applied Materials China maintains sales and support offices in Beijing, Shanghai, Tianjin and Wuxi.

The new 90,000 square foot facility will incorporate a state-of-the-art Technical Training Center where engineers and customers will receive training on Applied Materials' sophisticated wafer processing equipment used to make semiconductors. The Pudong facility will also serve as the regional center for administration, sales and marketing for the Company.

"The opening of this new facility signifies Applied Materials' commitment to the regional wafer fabrication industry to provide advanced wafer processing technologies and solutions to our customers in China," said Dr. Naisin Lee, general manager of Applied Materials China.

According to the Semiconductor Equipment and Materials International (SEMI) trade organization, the planned semiconductor fab investment in China is expected to reach over $4 billon in 2002 to meet fast growing domestic semiconductor demands.

Applied Materials (Nasdaq:AMAT), the largest supplier of products and services to the global semiconductor industry, is one of the world's leading information infrastructure providers. Applied Materials enables Information for Everyone(TM) by helping semiconductor manufacturers produce more powerful, portable and affordable chips. Applied Materials' Web site is http://www.appliedmaterials.com.