News Release

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 28, 2004--On September 24, 2004, Applied Materials (Nasdaq:AMAT) received notification of an unsolicited mini-tender offer being made by TRC Capital Corporation (TRC), a Toronto-based company, to purchase up to 6 million shares of Applied Materials common stock, representing approximately 0.35 percent of Applied Materials' shares outstanding as of August 1, 2004, for a price of $16.15 per share in cash.

Applied Materials does not in any way recommend or endorse TRC's mini-tender offer and expresses no opinion as to whether Applied Materials stockholders should tender their shares in the mini-tender offer. Applied Materials is not associated with TRC, the offer or the offer documentation. TRC's offer of $16.15 per share is approximately 5.61% less than the $17.11 per share closing price of Applied Materials' shares on the Nasdaq National Market on September 22, 2004, the day before TRC purports to have commenced the offer. The offer price is also below the September 27, 2004 closing price of $16.41 per share.

The TRC offer is subject to a number of conditions, including TRC's obtaining financing. There is no assurance that the conditions to the offer will be satisfied.

Applied Materials stockholders are cautioned that TRC has made numerous below-market mini-tender offers for the shares of other companies, and that TRC can extend the offer and delay payment beyond the currently scheduled expiration date of October 22, 2004, or amend the offer, including the price.

The Securities and Exchange Commission (SEC) has posted on its website an investor alert regarding mini-tender offers, cautioning that, "Some bidders make mini-tender offers at below-market prices, hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price." Applied Materials stockholders should be aware that many of the SEC's tender offer rules do not apply to mini-tender offers, which are offers to buy less than 5 percent of a company's stock. To read more about the risks of mini-tender offers, please review the SEC's alert at: http://www.sec.gov/investor/pubs/minitend.htm.

Applied Materials stockholders who have tendered their shares are advised that, according to TRC's offering documents, they may withdraw their shares by providing written notice to TRC in accordance with the offering documents prior to the expiration of the offer. According to the offering documents, TRC's offer will expire at 12:01 a.m. on October 22, 2004, unless the offer is extended by TRC.

Applied Materials advises stockholders to consult their financial advisors concerning this offer.

Applied Materials, Inc. (Nasdaq:AMAT) is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com.

CONTACT: Applied Materials, Inc.
Steve Taylor, 512-272-2120 (Business Media)
Paul Bowman, 408-563-1698 (Financial Community)

SOURCE: Applied Materials, Inc.