September 18, 2006 – On the heels of its newly announced plans to seek new growth in the solar cell market, Applied Materials Inc., Santa Clara, CA, says its board has authorized the repurchase of up to $5.0 billion in company stock over the next three years.

Applied already has repurchased 145 million shares worth about $2.5 billion under an existing stock buyback program, reducing its common stock outstanding by 10% at the end of fiscal 3Q06, to about 1.53 billion shares. Since the beginning of fiscal 2005, Applied has repurchased over $5.8 billion of its common stock, or nearly 340 million shares, representing 20% of its common stock outstanding.

“We believe the long-term outlook for Applied Materials is excellent and we are confident in our strategy,” stated Mike Splinter, president and CEO, noting that the company’s balance sheet and cash flows “enable us to invest in our future business, pursue strategic opportunities, repurchase shares, and pay quarterly dividends.”