Applied Materials Announces Cost Reduction Plan

SANTA CLARA, Calif.--(Business Wire)--Applied Materials, Inc. (Nasdaq:AMAT) today announced a global
cost reduction plan that primarily affects its semiconductor equipment
and services businesses and related support organizations. As part of
the plan the company will reduce its global workforce by approximately
1,000 positions or about 7%, through a combination of job elimination
and attrition.

"To better serve our customers, last summer we reorganized our
semiconductor equipment business into a single Silicon Systems Group,
and we have achieved synergies across this organization as a result,"
said Mike Splinter, president and CEO. "We are focused on improving
operational efficiencies and the cost structure of our businesses, as
well as enhancing our ability to pursue growth opportunities."

Applied expects to record charges of approximately $20 million
related to the plan, with the majority of the charges being recorded
in the first quarter of fiscal 2008, and to complete the plan by the
fourth quarter of fiscal 2008. The plan is expected to result in
annualized savings of about $150 million from fiscal 2007 spending
levels.

This press release contains forward-looking statements, including
those relating to the expected scope, costs, timing and benefits of
the plan, and Applied's operational efficiencies and growth
opportunities. All forward-looking statements are based on
management's estimates, projections and assumptions as of the date
hereof and include the assumptions that underlie such statements.
These statements are subject to known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements, including but not
limited to: the sustainability of demand in the nanomanufacturing
technology industry and broadening of demand for emerging applications
such as solar, which are subject to many factors, including global
economic conditions, business and consumer spending, demand for
electronic products and integrated circuits, and geopolitical
uncertainties; the timing, rate, amount and sustainability of capital
spending for nanomanufacturing technology products; changes in
Applied's business requirements; Applied's ability to (i) successfully
develop, deliver and support a broad range of products, expand its
markets and develop new markets, and (ii) timely align its cost
structure with business conditions; and other risks described in
Applied's SEC filings, including its most recent Form 10-K. Applied
undertakes no obligation to update any forward-looking statements.

Applied Materials, Inc. is the global leader in Nanomanufacturing
Technology(TM) solutions with a broad portfolio of innovative
equipment, service and software products for the fabrication of
semiconductor chips, flat panels, solar photovoltaic cells, flexible
electronics and energy efficient glass. At Applied Materials, we apply
Nanomanufacturing Technology to improve the way people live. Learn
more at www.appliedmaterials.com.

Applied Materials, Inc.
David Miller, 408-563-9582 (business media)
Randy Bane, 408-986-7977 (financial community)

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