News Release

Applied Materials' FAB300 Sets Major Benchmark With 10X Boost in Chip Tracking Capability

May 4, 2005 at 8:46 PM EDT

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 4, 2005--Applied Materials, Inc. (Nasdaq:AMAT), the leading supplier of factory control solutions to the semiconductor industry, today announced the latest extension of its Applied FAB300(R) system that targets test, assembly and packaging (TAP or back-end) facilities. Providing the most advanced, comprehensive solution for efficient, cost-effective management of all semiconductor facilities, FAB300 is the only factory control system that delivers die-level-traceability from fab to packaging for over one billion chips per year. This is an order of magnitude improvement over existing products and matches the projected capacity of today's largest back-end facilities.

"Die-level-traceability is becoming an essential capability that provides customers with a faster and better response to chip failures," said Jeremy Read, general manager of Applied Materials' Factory Software division. "Utilizing the FAB300 system for both front and back-end facilities allows the individual tracking of ten times more chips a year, while enhancing yield and profitability throughout the complete manufacturing chain. This is a simple and extendible solution for every kind of chip factory, including today's most advanced, high-volume fabs."

The Applied FAB300 solution is an open, framework-based system that allows customers to write, improve and execute business processes without the need for vendor or third party support, significantly reducing customers' ongoing operating expenses. Its common code throughout the factory chain also streamlines data transfer, while simplifying upgrades, maintenance and training.

In addition to its unmatched die-level-traceability feature, the FAB300 system's test, assembly and packaging functions also offer automatic parts binning based on test characteristics, so that specific parts can be built into different end products.

Applied Materials' FAB300 system is used at 10 major sites around the world to run both semiconductor and TAP facilities, including a recent deployment in China. In addition to having the largest installed base of manufacturing execution systems (MES) in the semiconductor industry, the company provides round-the-clock MES support service to over 200 customer factories worldwide.

Applied Materials, Inc. (Nasdaq:AMAT), headquartered in Santa Clara, California, 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.
Betty Newboe, 408-563-0647 (editorial/media)
Paul Bowman, 408-563-1698 (financial community)

SOURCE: Applied Materials, Inc.