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Under the agreement, IBM will be responsible for software application development, support and deployment. It will help centralize application support and increase efficiencies for Applied by providing a stable, flexible and scalable IT platform for its worldwide operations.

"As the leading provider of equipment to manufacture semiconductors, flat panel liquid crystal displays and solar photovoltaic cells, we depend on world-class operations within our enterprise," said Ron Kifer, Group Vice President and Chief Information Officer at Applied Materials. "Information technology is a critical enabler of our business, and we selected IBM because it has the technical capabilities and portfolio of services to meet these needs worldwide."

IBM will provide Applied with an innovative service management framework that includes: application development, diagnostic and issue resolution support, database monitoring, security and controls monitoring, performance services, batch scheduling and data interface monitoring.

"In today's economy, our clients are looking for new ways to increase their IT efficiencies, and they are looking to service providers they can count on to help balance costs and system performance requirements," said Frank Kern, IBM Global Business Services. "With IBM's capabilities in application development and through its global delivery centers, we can help Applied Materials realize its business objectives."

About Applied Materials, Inc.

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 panel displays, 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 http://www.appliedmaterials.com/.

   About IBM   For more information, visit http://www.ibm.com/.       Contact:  Jan Walbridge             IBM Media Relations             203 430 9874             walbridge@us.ibm.com  

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IBM Corporation

CONTACT: Jan Walbridge, IBM Media Relations, +1-203-430-9874,walbridge@us.ibm.com

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