1. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use Main Color Palette R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 Streamlining Product Development at Applied Materials With Siemens PLM and Microsoft

2. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 2 Author’s Information Herman Harwell, Senior Member in Design For Excellence (DFx) Group of Applied Materials Global Operations Manufacturing Engineering Organization (GOME) 200mm – 300mm Wafer Semiconductor Processing Systems

3. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 3 Applied Materials Overview Applied Materials is the global leader in Nanomanufacturing Technology ™ 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. Results for Third Quarter of Fiscal 2007  Net Sales: $2.56 billion  Net Income: $474 million  EPS: $0.34  New Orders: $2.28 billion Flat Panel Display Processing Systems200mm – 300mm Wafer Inspection Systems

4. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 4 Product Development Roadmap People Driven Framework Research and Plan Concept Design/ Develop Validate/ Source Market/ Promote Produce/ Sell Support/ Retire Management Idea management Project and portfolio management Regulatory compliance Configuration management Sales and marketing Customer needsProduct marketing and publishing R&D and Engineering Requirements management Design data creation Visualization and digital mockup Product structure record Engineering change management Sourcing Direct material sourcing Mfg Manufacturing process management Customer Service Aftermarket support EOL

5. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 5 New Product Development Challenges  Common Issues In New Product Development –Design Issue capture mostly done with Excel spreadsheets –Issue closure difficult to track at all project levels (many ad hoc) –No consistent process for design issue identification in WIP –Design project management varies by business group & size –Lotus Notes databases most often utilized tool for design task tracking (EWR/PRIME/HSR/SPS) –Lack of consistent approach with PLC phase task deliverables –Few people proficient in use of all the new tools TcE/TcVis/NX –E-mail most often used tool to notify team members of project issues or changes –Supplier collaboration is needed earlier in design process –Cross-Functional team members aren’t involved early enough to identify design changes needed

6. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 6 Product Planning Process PPPMature ProductsVolume Manufacturing VM Product Development Process PDP Alpha Stage Beta Stage Gamma Stage 8 1246753 SMR PRSPDSS Vol Mfg Mature Product Validation (Gamma) Build Strategy Validation BOM(97% Accurate) Tooling/Fixture Validation Engineering Issues Closed Work Center Train Plan Complete Field NC Goals Met Pre-Build Requirements Strategies Manufacturing Test Sourcing Managed (1st Beta) Build OMS/SOE Verification Train the “Trainer” Started Engineering Issues Verification Digital Validation - DV PLC Product Development Roadmap TcCommunity-Based Activities: Use Case Roadmap for TcCommunity supporting PLC Deliverables & Tasks Controlled (2nd Beta) Build Strategy Verification Cost Goals Achieved MIT Goals Achieved BOM (EVAL Status) Material Status @ EVAL Critical Parts FAI’d OMS/SOE Released @ EVAL Tool/Fixture Implementation Engineering Issue List Addressed Train the “Trainer” Completed Field NC Input Engineering (Alpha) Build Strategy Trial BOM (Draft) OMS/SOE Draft Tool/Fixture Trial Initial Engineering Issue List Virtual Build - VB Detail Product Design BOM (Preliminary) Preliminary OMS/SOE Preliminary Tool/Fixture Critical Parts List PLC Task Assignments Digital Mockup - DMU

7. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 7  Utilize Teamcenter Community in Design Reviews  Conduct DMU activities on WIP design data in TcEngineering regardless of geographic location (PLC deliverables in Phase 4)  Capture design issues and disposition them before design freeze and procurement of physical materials  Provide extended design team with non-CAD tools to enable design reviews using most current TcEngineering data  Utilize Teamcenter Community in global design environment  Engage a product development team during PLC Phase 4 to conduct DMU tasks using TcCommunity, TcEngineering & TcVisualization tools  Have the team execute the Visualization process workflow and it’s discrete tasks utilizing the capabilities of TcC, TcE & TcVis  Evaluate TcCommunity performance when combined with TcE & TcVis against existing processes with only TcE and TcVis tools. Collaboration Objectives

8. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 8 Applied’s New Product Development Tools

9. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 9 New Product Development Process Deliverables  Governance By The Applied Materials PLC Phase Gated Development Model  Identified Use Cases** For TcCommunity Applications –Phase 3: Product Definition (Program Charter )  3 Deliverables [4 Tasks with 6** Sub-Tasks] –Phase 4: Alpha Development  9 Deliverables [18 Tasks with 56** Sub-Tasks] –Phase 5: Beta Development  7 Deliverables [19 Tasks with 59** Sub-Tasks]

10. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 10 Digital Mockup Teamcenter - Community - Engineering -Visualization - MS Excel - MS Word Cross-Functional Collaboration ** Future Implementation Applied Materials Visualization Process: DMU

11. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 11 TcCommunity Deployment Configuration 3 1 2 4 5 6 7 8 AMAT Community Home Login Page

12. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 12 3 12 TcCommunity Deployment Configuration AMAT Community Home Login Page (cont.) 4 5

13. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 13 6 1 2 3 4 5 7 8 PLC Program’s Design Review Workspace (Home Tab) TcCommunity Deployment Configuration

14. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 14 6 1 2 3 4 5 PLC Program’s Design Review Workspace (My Workspace Tab) TcCommunity Deployment Configuration

15. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 15 2D Drawing Issues Tracking Prior To Product MRP Release Applied DMU 2D Drawing Review Example

16. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 16 Closed Loop Corrective Action Process Product Design Issues Tracking Prior To MRP Release

17. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 17 Closed Loop Corrective Action Process Product Design Issues Tracking Prior To MRP Release

18. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 18 TcC Resource Usage Efficiencies –Lowest Administration Burden  Design Review Sites & Workspaces  DMU Roles Established Within TcC  Managed Review Tasks Assignments  Managed Review Scope & Agendas  TcC Event Links in Lotus Notes eMail –Lowest Data Management Burden  DMU Data Linked To TcE, Not Copied  DMU BOM Synced To TcE Eng_BOM  All TcE Sites Accessible Within TcC –Lowest PLC Deliverables Burden  PLC Deliverables Doc Libraries in TcC  TcE Item Issues Linked To PLC Docs –Lowest Issues Management Burden  Visual Issue Data Capture & Tracking  Visual Issues Link To TcE Design Data  Issue Routing Via Lotus Notes email  Issue Reporting, Rollups & Dashboards –Highest Reviewer Time Availability  83% Increase Over Vis-Based Reviews  175% Increase Over CAD-Based Basis: Equal Resource Allocation / Method / Assembly Reviewed (Avg.) New Product Development Integration TcCommunity Return On Investment

19. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 Future Direction  Applied Materials Roadmap –Deploy Teamcenter Engineering 2007 during FY 2008 –Deploy Microsoft Office SharePoint Server (MOSS) during FY 2009 –Deploy Teamcenter Community 2007 on MOSS during FY2009 19

20. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 20 Thank You, Herman Harwell Applied Materials

21. External Use Authorized Labels for Information: Applied Materials Confidential. Applied Materials Confidential Restricted/Modifier Applied Materials Confidential/Modifier External Use R 255 G 255 B 204 R 202 G 222 B 233 Light Background Palette R 235 G 169 B 0 R 124 G 165 B 0 R 208 G 0 B 30 Bingo Color Palette Main Color Palette R 0 G 204 B 255 R 0 G 153 B 204 R 0 G 51 B 102 R 255 G 153 B 0 R 204 G 51 B 0 R 162 G 0 B 108 R 124 G 168 B 0 21