News Release

AMD Purchases Applied Materials' Mirra CMP System to Develop Advanced Copper Chips; Copper Planarization Technology for Next-Generation Microprocessors

Jun 13, 2000 at 7:32 AM EDT

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 13, 2000--Applied Materials, Inc. (Nasdaq:AMAT) today announced that AMD has taken delivery of the company's Mirra(R) CMP (chemical mechanical polishing) system for development of copper interconnect structures in its next-generation microprocessors. The system will begin operation this month at AMD's Submicron Development Center in Sunnyvale, California.

Craig Sander, vice president, Technology Development for AMD, said, "Using the Mirra system enables us to test a variety of process conditions and slurries with a high degree of precision and flexibility. The Mirra system's unique architecture, head design and endpoint features give it the flexibility for development and production requirements. We have confidence that the resulting process will operate with high productivity in a volume manufacturing environment."

Chris Smith, vice president and general manager of Applied Materials' CMP product group, noted, "AMD's use of the Mirra CMP system for development of their critical copper interconnect structures shows the strength of our copper planarization technology in manufacturing the most advanced microprocessor designs. This program should be a key element in the industry's race toward greater processor speed and performance, which are expected to fuel many new computing applications."

CMP is a critical technology for dual damascene copper manufacturing since it provides a smooth, flattened surface for building multiple interconnect layers. The Mirra CMP system's copper processes are being widely used throughout the semiconductor industry for copper-based chip development and pilot production.

According to the market research firm Dataquest, the market for CMP systems was estimated to be $1.04 billion in 1999 and is expected to grow to $2.5 billion by the year 2004, making it one of the strongest growing segments of the semiconductor equipment market. In a report released in April 2000 from Dataquest, Applied Materials was ranked the global market share leader in CMP in 1999.

Applied Materials, Inc. is a Fortune 500 global growth company and the world's largest supplier of wafer fabrication systems and services to the global semiconductor industry. Applied Materials is traded on the Nasdaq National Market System under the symbol "AMAT." Applied Materials' web site is www.appliedmaterials.com.

CONTACT: Applied Materials, Santa Clara

Connie Duncan, 408/563-6209 (editorial/media)

Carolyn Schwartz, 408/748-5227 (financial community)