Applied Materials Launches Strategy to Reduce the Cost Per Watt of Solar Power

Applied Materials, Inc. (NASDAQ:AMAT), the global leader
in equipment and services for manufacturing semiconductors and flat
panel displays, today launched its strategy to enter the rapidly
growing solar photovoltaic (PV) equipment market. Applied Materials
will provide a combination of manufacturing tools, together with
technology and process innovations from the flat panel and
semiconductor industries, that are expected to enable customers to
increase conversion efficiency and yields, helping to lower the
overall cost per watt for solar electricity users.
"The solar industry has reached the inflection point that Applied
Materials has been waiting for, as solar customers seek economies of
scale with suppliers who can better meet their needs for global
support and who can provide advanced systems that meet technology,
throughput, quality and yield goals," said Mike Splinter, president
and CEO. "We plan to change the cost equation for solar power through
adaptation of our existing technology and new innovation in order to
help make solar a more meaningful contributor to the global energy
supply."
As worldwide energy demand continues to rise, the overall solar
equipment market is expected to grow from approximately $1 billion in
2006 to more than $3 billion in 2010, according to industry estimates
that do not include additional opportunities for service-related
growth.
"Our solar PV products, together with our roadmap for new
technology and services, provide an exciting new growth engine for
Applied Materials," said Mark Pinto, senior vice president and chief
technology officer. "We have assembled a team of industry veterans
who, combined with our global reach and technology leadership in
semiconductors and flat panel display equipment, can enable customers
to move through the expected transition from small-scale 20MW-40MW
factories to sophisticated gigawatt-level facilities."
This week, at the world's largest solar show, the European
Photovoltaic Solar Energy Conference in Dresden, Germany, Applied is
showcasing several PVD(1) and PECVD(1) products as well as processes,
material-handling technologies and services to support solar cell
production for both crystalline-silicon and thin-film solar
applications. These include Applied Materials' ATON(TM) in-line
sputtering system, which is already installed in numerous customer
locations around the world and which provides quality deposition, high
throughput and lower cost of ownership for both thin-film and multi-
or mono-crystalline silicon. Other products highlighted at the show
include Applied Materials' New Aristo(TM) in-line PVD/CVD(1) system,
PECVD technology and the SmartWeb(TM) PV roll-to-roll coater for
flexible solar cell applications.
"We believe that Applied Materials is the right company, at the
right time, with the right technologies to lead the next wave of solar
industry growth," continued Splinter. "This is an exciting new chapter
in Applied Materials' growth story, and we are confident that our
experience, products and nanomanufacturing technology solutions can
advance the industry and improve people's lives through cleaner, more
affordable energy."
Applied Materials will hold its "Applied Materials Going Solar"
Event on Tuesday, September 5, 2006 at 10:00 a.m. Eastern Time (7:00
a.m. Pacific Time), and provide information about its exciting step
forward into the world of solar energy. A live webcast of the event
will be available on Applied Materials' website at:
http://www.appliedmaterials.com. If you are unable to join the live
webcast, replays and audio/MP3 will be available. Replay start date:
Tuesday, September 5 at 5:00 p.m. PT; replay end date: Tuesday,
September 19 at 5:00 p.m. PT. More information about Applied Materials
and solar technology, including exclusive Harris Consumer Poll data
can be found on the company's online media kit at
http://appliedmaterials.com/news/solar_strategy.html.

Safe Harbor Statement

This press release contains forward-looking statements, including
those relating to Applied Materials' entry into the solar PV equipment
market, growth opportunities, strategy to lower solar electricity
costs, product capabilities and development plans; customers' plans;
and the outlook for the solar industry. 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 without limitation: (a) broadening of demand in
the solar industry, which is subject to many factors, including global
economic conditions, the cost-effectiveness and performance of
photovoltaic (PV) products compared to conventional and other
alternative energy sources, technological innovations, availability
and cost of raw materials such as silicon, evolving industry
standards, changing customer and end-user requirements, government
subsidies and economic incentives for alternative energy development,
and geopolitical uncertainties; (b) customers' capacity requirements
and timing, rate and amount of capital spending for new technology;
(c) Applied Materials' ability to accurately predict the
characteristics of, and capitalize on opportunities in, the emerging
PV market; successfully adapt its existing products and develop and
commercialize new products that enable increased solar cell efficiency
and performance at a lower cost; recruit, incent and retain key
employees; obtain and protect intellectual property rights in key
technologies; develop, deliver and support a broad range of products;
integrate acquired businesses; maintain effective cost controls and
timely align the company's cost structure with business conditions;
and effectively manage its resources and production capability; and
(d) other risks described in Applied Materials' SEC filings. All
forward-looking statements are based on management's estimates,
projections and assumptions as of September 5, 2006 and Applied
undertakes no obligation to update any such statements.

Applied Materials, Inc. is the global leader in Nanomanufacturing
Technology(TM) solutions for the electronics industry with a broad
portfolio of innovative equipment, service and software products. At
Applied Materials, we apply Nanomanufacturing Technology to improve
the way people live. Learn more at www.appliedmaterials.com

(1) CVD = chemical vapor deposition

(1) PVD = physical vapor deposition

(1) PECVD = plasma enhanced chemical vapor deposition

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