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Social Responsibility Report: Spring 2006

Applied Materials is committed to being a responsible corporate citizen in communities where we do business. By donating our time, energy and resources where we can have the greatest impact, we are collectively acting upon our belief that making a positive social contribution defines not only who we are, but what we do.

Included below are this quarter's highlights of our activities in the community, demonstrating our dedication to corporate social responsibility. For previous reports, visit our archive.

Employees Give Generously

Santa Clara employees and their families pitched in to pack
food at the 10th Annual Helping Hands Day.
In 2005 Applied employees gave in record numbers through annual company programs, such as the Employee Giving Program and disaster-relief efforts after Hurricanes Katrina and Rita, the tsunami in Southeast Asia and the earthquake in South Asia. Employee donations, plus a generous company match, generated approximately $2.1 million through these programs.

In addition, as part of traditional winter holiday activities, employees participated in a variety of volunteer activities to meet local community needs. Applied Materials Southeast Asia (AMSEA) organized a campaign to raise money and in-kind donations for low-income families and sponsored a holiday lunch for 60 elderly adults and more than 30 children. In Santa Clara, 400 employees and their families gathered on a Saturday morning to pack 4,500 boxes of food for distribution to hungry families in Silicon Valley as part of the annual Helping Hands Day.

Applied Materials Taiwan (AMT) partnered with customers Powerchip, Winbond, Micronix and UMC to provide Christmas gifts to kids in low-income families. AMT alone presented more than 150 gifts to the Taiwan Children and Families Association. In Austin, a team of employees from the Global College Program organized a Toy Drive to collect, wrap and deliver more than 200 gifts to registered daycare homes and other youth service agencies.

Related Link:
Legacy Programs
Applied Earns High Marks

Steve Taylor, North America Corporate Affairs senior manager, accepted the official Blood Match belt signifying the company’s victory
over AMD and Freescale in the Austin,
Texas competition.
Applied Materials was recognized in 2005 for achievements in a variety of areas, from business to ethics to philanthropy. Rankings, including those listed below, reflect the Company's commitment to its core value of making a positive social contribution.

100 Best Corporate Citizens List: Recognition for high standards of business ethics and best practices in corporate social responsibility.

Fortune's 2005 "Top 50 Employers for Minorities" List: Listed in Fortune's prestigious ranking.
San Francisco Bay Area's Top Corporate Philanthropists: Ranked among the top five on the San Francisco Business Times listing of the Top Corporate Philanthropists in the Greater Bay Area and No. 2 on the San Jose Business Journal list of corporate philanthropists in Silicon Valley.

Fortune's 2005 "America's Most Admired Companies" List: Rated on the list, based on eight criteria: Innovation, Financial Soundness, Employee Talent, Use of Corporate Assets, Long-Term Investment, Social Responsibility, Quality of Management and Quality of Products/Services.

Corporate Blood Donations: Named largest Corporate Blood Donor for 8th consecutive year by the Central Texas Blood and Tissue Center.

Education Philanthropy: Honored by the Manor Education Foundation in Austin, Texas, and San Jose Chamber of Commerce in San Jose, California, for targeted education efforts that are making an impact in each region.

Related Links:
Social Responsibility
Education Initiative

Applied India Launches Community Education Initiative

Students from a local high school welcomed
Senior Vice President, Chief Technology Officer and General Manager New Business and New Products Group,
Mark Pinto as he arrived to open the new Digital Equalizer
Center in Bangalore, India.
Through collaboration with the American India Foundation (AIF), Applied Materials recently launched a center for local high school children in Bangalore, India, to increase student exposure to technology. Ten computers, as well as software and internet connectivity, offer predominantly low-income students the opportunity to learn how to use computers — an opportunity they might not otherwise have.

At the grand opening of the Digital Equalizer (DE) Center at the Government High School B Narayanapura in November, Mark Pinto, Senior Vice President, Chief Technology Officer and General Manager New Business and New Products Group, reminded attendees that "Applied Materials has a long-term commitment to making a meaningful social investment in every community in which it operates."

By working closely with AIF — the largest U.S.-based foundation focused on development in India — Applied is attempting to narrow the digital divide.

By April 2006, Applied plans to help create five DE Centers where Applied Materials India employees will also mentor and teach students. The DE Centers will bring together both male and female students who work together while receiving guidance from center-trained teachers. Girls are still under-represented in India's classrooms. But due to education initiatives by many organizations, including Applied Materials and AIF, an increasing number of female students have the opportunity to attend school.
North America Food Drive Raises Millions

To support the local food bank, the Vancouver and
Hillsboro offices created a lighthouse using 5,278 cans of
tuna, winning the annual Tower of Tuna competition.

Employees responded with incredible generosity during the Annual Food Drive in North America. As a result of employee contributions and the company match, as well as focused corporate initiatives including a Thanksgiving Day Turkey Trot in Santa Clara, nearly 4.1 million pounds of food – valued at $1.5 million and enough to purchase 3 million meals - have been donated to local food banks across the country during Q1. With 13 million children living in poverty in the United States, and 4 million low income families using a food pantry at least once this year, the need continues to be great.

In addition to making charitable donations to the cause and contributing nonperishable foods, employees participated in creative events to raise funds and awareness to combat hunger.

North America sales and service sites excelled during the annual Tower of Tuna competition. The Vancouver and Hillsboro offices took top honors by creating a lighthouse using 5,278 cans of tuna. A photography exhibit was added to Austin's menu of fundraising activities and the Food Fund Fest in Santa Clara included the always-popular dunk tank.

Related Link:
Community Commitment
Coplin to Lead Global Community Affairs

Bill Coplin brings global perspective
and experience to the Community
Affairs function.
Bill Coplin has assumed leadership of the Applied Materials' Global Community Affairs efforts bringing extensive global perspective and experience to the role. During his more than nine years at Applied, Bill has had responsibility for Global Benefits, Relocation & Immigration and Wellness. He has served as the head of Human Resources supporting the Regions and Sales & Marketing organizations, and, most recently, the Etch Product Business Group.

Bill's prior HR and corporate focus allow him to step quickly into his new role and work closely with the various corporate support functions, including Finance and Legal. His global experience also will allow for a strong connection to community affairs programs in the regions.

Bill assumes the role of Mike O'Farrell who led the Global Community Affairs team for six years and began a leave of absence in January.

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