News Release

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 27, 2000--

           Expansion of Manufacturing Capabilities, Products
               and Technologies Support Leadership Drive

Applied Materials, Inc. is rapidly boosting its ion implant operations with the addition of laboratories and manufacturing sites to enhance the company's capability to provide advanced implant systems and technologies for building next-generation, high-speed transistors in sub-0.13 micron devices. Applied Materials' investment builds on increasing industry demand and on growing success in the implant market, highlighted by its meteoric 300 percent rise in business volume over the past year.

Setting the standard in high throughput and productivity for critical low-energy implant applications with its Quantum(TM) and xR(TM) series of products established Applied Materials as the leading supplier in the high current market segment. According to market research firm Dataquest, the market for all implant semiconductor applications is expected to more than double in five years from $649 million in 1999 to $1.7 billion by 2005.

"Advanced ion implantation has become a critical technology as chipmakers scale their device designs to the sub-0.13 micron technology node and 300mm wafer size," said Craig Lowrie, vice president and general manager of Applied Materials' Parametric and Conductive Implantation Group. "Our goal is to continue building our leadership as a supplier of implant solutions by offering customers the advanced technologies and programs needed for the volume manufacture of transistors that are smaller, faster and more power efficient. We are making all the necessary investments to our product portfolio and infrastructure to achieve this aim."

Applied Materials' investment includes hiring, increased applications development as well as facility expansion to meet projected technology and production requirements. The company is upgrading its implant facility in Horsham, England for increased capacity, which is expected to triple the system production capability. Additionally, a new manufacturing line is being established in North America to supply further capacity. Construction of additional Class 1 applications laboratories in North America, Europe and Japan for advanced process development are also underway.

Along with these added facilities, Applied Materials ensures the highest standard of customer satisfaction through its ISO 9001 certified Customer Productivity Support (CPS) organization. The CPS organization is a global service network dedicated to supporting customers' fabs around the world. Among the many CPS offerings are the Total Service Solutions(TM) (TSS) products, which have transformed service and support for fabrication equipment by lowering customers' overall operating costs while improving fab and system productivity. The TSS Total Parts Management(TM) (TPM) package enables customers to dramatically streamline inventory administration and reduce costs, while the Total Support Package(TM) (TSP) provides expert service support to maximize the productivity of Applied Materials' equipment, allowing customers to focus on their key business strategy.

Applied Materials' high current and low energy implant technology supported by its Quantum and xR series has been key in increasing the company's global presence in ion implantation. The Quantum's productivity at very low energies, as well as traditional energies, enables high utilization at current and future implant requirements. Virtually all advanced logic and foundry manufacturers around the globe use the Quantum system, which bridges 200mm and 300mm wafer sizes. Strong customer acceptance for the Quantum has led to it receiving an "Editors' Choice Best Products" award from Semiconductor International for providing a significant contribution to semiconductor manufacturing.

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 http://www.appliedmaterials.com.

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