News Release

SANTA CLARA, Calif., Mar 17, 2003 (BUSINESS WIRE) -- Applied Materials, Inc. has received a Supplier Excellence award from Analog Devices, Inc. (ADI) for its efforts in supporting ADI's global chipmaking operations in the U.S. and Europe. Analog Devices, Inc. is a leader in manufacturing high-performance analog, mixed-signal and digital signal processing (DSP) integrated circuits.

The ADI Supplier Excellence award honors companies that have shown exceptional performance in categories such as on-time delivery, cycle time, yield, competitiveness, quality and responsiveness.

Liam McCaffrey, Manager of Purchasing, Worldwide Manufacturing for Analog Devices, said, "Applied Materials is a major supplier of capital equipment, and its support of our diverse Wafer Fabrication operations during 2002 fully merited this award. Having Applied as a key supplier has helped Analog Devices achieve our production and profitability goals."

ADI has semiconductor manufacturing facilities in Massachusetts, California, and Ireland. These fabs contain a wide range of Applied Materials' equipment, including deposition, etch, ion implantation, RTP (rapid thermal processing) and CMP (chemical mechanical polishing) systems. Additionally, in its U.S. fabs, ADI utilizes Applied Materials' Total Parts Management(R) (TPM) service program,, which provides a highly efficient, vendor-managed methodology for supplying parts to these systems.

"Our relationship with Analog Devices goes back many years, and we are pleased to contribute to their technical innovation and business success," said David Wang, executive vice president and member of the Global Executive Committee of Applied Materials. "Receiving this supplier excellence award not only shows our commitment to ADI's production needs, but also the customer-focused advantages of our flexible service programs, which can benefit chipmakers of any size."

Applied Materials, the largest supplier of products and services to the global semiconductor industry, is one of the world's leading information infrastructure providers. Applied Materials enables Information for Everyone(TM) by helping semiconductor manufacturers produce more powerful, portable and affordable chips. Applied Materials' web site is www.appliedmaterials.com.

CONTACT:          Applied Materials, Inc.
                  Betty Newboe, 408/563-0647 (editorial/media) 
                  Carolyn Schwartz, 408/748-5227 (financial community)

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