News Release

    Business Editors/Technology Writers

    SHANGHAI, China--(BUSINESS WIRE)--Sept. 30, 1999--

    James C. Morgan Recognized for Contributions to City's High Tech
    Development and Growth

    On the eve of the 50th Anniversary of the People's Republic of China, and on the heels of Shanghai's largest gathering of CEOs and business leaders ever, Applied Materials' chief executive was recognized by Shanghai's Municipal Government for his support of the city's burgeoning high technology industry. At ceremonies held at City Hall today, James C. Morgan, chairman and chief executive officer of Applied Materials, the world's largest manufacturer of semiconductor fabrication equipment, received the Magnolia Award, presented annually to non-citizens who make a significant contribution to the development of Shanghai. Morgan was in Shanghai to participate in the Fortune Global Forum, a gathering of CEOs of the largest 500 companies in the world.

"Applied Materials is deeply honored by this award, which reflects the warm friendship between Applied Materials and Shanghai," Morgan said. "During the last five years, we have successfully worked as partners with the Shanghai R&D Fund to help foster microelectronics and information technology development in China's universities and research institutes."

Established in 1993, the Magnolia Award is considered the most prestigious honor bestowed upon a non-citizen of Shanghai. This year's recipients of the award also include Mr. Toshihiko Kuniyoshi of Huahong-NEC, Mr. William Keller of Roche Shanghai, and Mr. William Walsh, Jr. of Project Hope.

Applied Materials founded the Shanghai R&D Fund in 1995 with the Shanghai Commission of Science and Technology to encourage and promote microelectronics and information technology development in China's universities and research institutes. The Company has contributed more than $1 million to this fund.

Applied Materials, Inc. began its operations in China in 1984, and opened its branch office, operating as Applied Materials China (AMC), in Shanghai in 1995. Currently, AMC has over 70 employees and operates four offices in China.

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 under the symbol, "AMAT". Applied Materials' website is http://www.appliedmaterials.com

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     CONTACT: Applied Materials Inc.
              Jeff Lettes, 408/563-5161 (editorial/media) 
              Carolyn Schwartz, 408/748-5227 (investment community)

     KEYWORD: CALIFORNIA INTERNATIONAL ASIA PACIFIC
     INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS