Applied Materials and Ion Implant Services -- IISSM -- Forge New Relationship to Supply Chipmakers With Comprehensive Ion Implant Capability

July 10, 2000 - San Jose, CA

Sunnyvale, Calif. -- July 10, 2000 -- Applied Materials, Inc., the leading supplier of high-current ion implantation systems to the semiconductor industry, and Ion Implant Services (IISSM) today announced a new program to supply IISSM and its customers with Applied Materials' advanced ion implant systems.


Under a cooperation agreement, Applied Materials will sell ion implant systems to support IIS'SM new "insourcing" business model in which IISSM owns and performs all implant operations within a chipmaker's wafer fab. The agreement provides for the preferred use of Applied Materials' Quantum(TM) and Quantum LEAP implant systems for all pertaining applications.

"This agreement with IISSM is an endorsement of the advanced technology and high productivity of Applied Materials' ion implant systems," said Craig Lowrie, vice president and general manager of Applied Materials' Ion Implant Division. "Working with IISSM under their insourcing model allows us to maximize our implant technology and process integration capabilities, as well as explore new methods to improve fab efficiency and reduce implant cost."

Chipmakers who adopt IIS'SM insourcing concept will benefit by having the combined implant resources of IISSM and Applied Materials, thus reducing their overall risk and cost while having access to new implant technology as it is developed. In addition to purchasing Applied Materials systems for use in chipmakers' fabs, IISSM will use the cooperation arrangement to beta test new productivity enhancements and technology for Applied Materials, providing early production feedback and allowing IISSM to bring the most advanced features to its customers.

Dr. Wes Weisenberger, CEO of IISSM, said, "This cooperative arrangement with Applied Materials significantly increases the resources IISSM can offer our chipmaker customers, and also potentially makes IISSM a major customer for Applied Materials' ion implant products and services."

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 and flat panel display industries. Applied Materials' web site is http://www.appliedmaterials.com.

CONTACT: Applied Materials, Santa Clara
Betty Newboe, 408/563-0647 (media)