News Release

TAIPEI, Taiwan--(BUSINESS WIRE)--Nov. 28, 2000--Applied Materials, Inc. announced today the signing of a memorandum of understanding with the Republic of China National Science Council to establish a research and development fund in Taiwan. Based on this agreement, Applied Materials plans to donate a total of US$1 million over the next five years to encourage and promote innovative research and semiconductor applications development programs in Taiwan.

"Applied Materials is committed to providing Information for Everyone(TM), and to promoting local innovation in the areas we serve around the globe," said James C. Morgan, chairman and chief executive officer. "This donation will establish a cooperative research and development fund in Taiwan. We hope that it will help attract other companies and organizations to engage in research and development in the region, which is already a major driving force in the global semiconductor industry."

"The planned development of Taiwan into `Silicon Island' is one of our government's most important policies," said Cheng-I Weng, chairman of the National Science Council. "Applied Materials' commitment to the research and development fund will help to promote more innovative product development activities and to establish a good model for private enterprises to work together with the Taiwanese government. This should enhance the competitiveness of our industry, as well as better lives in our communities."

The donation demonstrates Applied Materials' commitment to globalization and the growth of Taiwan's domestic semiconductor industry. As the first semiconductor equipment supplier to establish a subsidiary in the region, Applied Materials has more than a 10 year history of partnering with the Taiwanese semiconductor industry.

"The agreement will allow us to work closely with industry, government and universities to improve the competitiveness of the local high-tech industry, which in return will further enhance Taiwan's global resources and infrastructure," added Chiam Wu, group vice president of Applied Materials, Inc. and general manager of Applied Materials Taiwan.

Applied Materials (Nasdaq:AMAT) is a leader of the Information Age and the world's largest supplier of products and services to the global semiconductor industry. Applied Materials' Web site is www.appliedmaterials.com.

Applied Materials Taiwan (AMT), a subsidiary of Applied Materials in Taiwan, was established in December 1989. AMT's Web site is www.amt.com.tw.

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