Applied Materials and DuPont Photomasks to Collaborate Using the Applied ALTA 4700 for 90nm and 65nm Masks

SANTA CLARA, Calif. & ROUND ROCK, Texas--(BUSINESS WIRE)--Dec. 1, 2004--Applied Materials, Inc. (NASDAQ:AMAT) and DuPont Photomasks, Inc. (NASDAQ:DPMI) today announced a joint development program (JDP) for advanced photomasks supporting 90nm and 65nm technology. The collaboration will bring Applied Materials' newest deep ultraviolet laser-based pattern generation system, the Applied ALTA(R) 4700, into production early next year at DuPont Photomasks' advanced photomask production facility in Round Rock, Texas.

The JDP is expected to help DuPont Photomasks' customers maintain their competitive advantage in the face of rapidly advancing technology requirements for semiconductor devices at 90nm and below. DuPont Photomasks will be the world's first photomask manufacturer to offer production capabilities using the Applied ALTA 4700 system.

"An increasing number of semiconductor manufacturers will need a broad array of approaches for their next-generation devices," said Jim Northup, chief operating officer of DuPont Photomasks. "In early tests on DuPont Photomasks' customer patterns, the ALTA 4700 has demonstrated up to three times the throughput of competing platforms, setting a new standard for low cost of ownership in advanced binary and phase-shift mask production for 90nm and 65nm photomask technology. We are pleased to be working with Applied Materials to bring the ALTA 4700 online and ultimately offer our customers advanced photomask technology with reduced cycle times."

"Our JDPs with leading companies like Applied Materials are critical to our mission to deliver imaging solutions that meet the accelerated pace of wafer-manufacturing technology," continued Northup. "By taking a leadership role in our industry to introduce the Applied ALTA 4700, DuPont Photomasks is demonstrating its commitment to offer our customers a comprehensive 'mix and match' mask-pattern-generator strategy that offers both laser and e-beam systems."

Previously DuPont Photomasks was a pioneer in photomask production using the ALTA 4300, Applied Materials' first deep ultraviolet laser-based pattern generation system. Multiple ALTA 4300 systems are installed in DuPont Photomasks' Round Rock facility and in its new Dresden, Germany campus, which is the most advanced photomask development and production center in the world.

Technologists from Applied Materials and DuPont Photomasks' Round Rock and Dresden sites will share engineering expertise and utilize their previous experience with the ALTA 4300 to bring the ALTA 4700 rapidly to commercial production. In addition, the JDP will benefit from the ability to test a variety of device patterns on the ALTA 4700 from DuPont Photomasks' large and diverse customer base.

"The precision and cost of masks has been a central issue affecting IC product development decisions in advanced technology nodes," said Mark Pinto, senior vice president of Applied Materials. "The enhanced capabilities of the ALTA 4700, such as the higher NA lens and improved registration performance, were designed to enable the volume manufacturing of all 90nm and most 65nm critical photomask layers. We are excited to be working with DuPont Photomasks and believe that this joint effort will help to ensure that the highest precision DUV laser technology is available for mask patterning at next-generation design nodes."

About Applied Materials, Inc., headquartered in Santa Clara, California, (NASDAQ:AMAT) is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com.

Company Contact
Betty Newboe
Applied Materials, Inc.
Tel: 408-563-0647
Betty_X_Newboe@appliedmaterials.com

About DuPont Photomasks, Inc.

DuPont Photomasks, Inc. is a leading global provider of microimaging solutions. The Company develops and produces advanced photomasks, a key enabling technology used in the manufacture of semiconductor and other microelectronic devices, and through its wholly-owned subsidiary BindKey Technologies, Inc., electronic design automation (EDA) software. Headquartered in Round Rock, Texas, DuPont Photomasks operates a global network of manufacturing facilities serving semiconductor makers and other electronics producers around the world. DuPont Photomasks posted worldwide revenues of $354 million in fiscal 2004. Information about the Company can be found at www.photomask.com.

Company Contact
Tom Blake
DuPont Photomasks, Inc.
Tel: 512-310-6562
tom.blake@photomask.com

Forward-Looking Statements

Certain statements contained in this document that are not historical facts, are "forward looking statements," as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve a number of risks and uncertainties. Such forward-looking statements may concern new products and product enhancements, the future importance of photomask technology, the demand for products, competitive factors, research and development activities and expenditures, and strategic relationships with third parties. Such forward-looking statements are based upon management's current plans, expectations, estimates and assumptions and are subject to a number of risks and uncertainties. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. Additional risk factors affecting our business may include relationships with and dependence on the semiconductor industry, operating in a capital intensive industry, significant fixed costs, rapid technological change, competition, significant international operations, world-wide market volatility, manufacturing risks, concentration of customers, dependence on suppliers, dependence on management and technical personnel, volatility of market prices, technology challenges in the manufacture of advanced photomasks and intellectual property. More information about potential factors that could affect DuPont Photomasks' business and financial results is included in DuPont Photomasks' Annual Report on Form 10-K for the fiscal year ended June 30, 2004 which is on file with the SEC and available at the SEC's website at www.sec.gov. The forward-looking statements are made as of the release date hereof and DuPont Photomasks and Applied Materials disclaim any intention or obligation to update or revise any forward-looking statements or to update the reasons why the actual results could differ materially from those projected in the forward-looking statements, whether as a result of new information, future events or otherwise.