Applied responds to ASMI Supervisory Board

SANTA CLARA, USA: Applied Materials Inc. announced that its non-binding proposal to the Supervisory Board of ASM International N.V. for the possible acquisition of ASMI's ALD (Atomic Layer Deposition) and CVD (Chemical Vapor Deposition) businesses remains open, despite the Supervisory Board's recent rejection of the offer and counter-reply. Applied Materials' proposal reflects a purchase price of between US $400 million and US $500 million in cash for these businesses, subject to due diligence.

Applied Materials believes that completion of a transaction along the lines of its proposal would provide substantial value to ASMI and its shareholders, customers and employees.

* Among other things, the transaction would provide value well in excess of the negative value which has been attributed to ASMI’s entire front end business for significant periods during the past three years and infuse a significant amount of cash into ASMI that could be used for the benefit of ASMI’s stakeholders.

* Applied Materials believes that the strategic fit with Applied Materials uniquely enables it to deliver the best value for the businesses.

* Applied Materials believes that it would provide an excellent environment for the businesses for the benefit of customers, employees and other stakeholders.

Applied Materials welcomes the statement made by ASMI’s Supervisory Board regarding its willingness to explore possible alternative arrangements between ASMI and Applied Materials. Applied Materials has a strong interest in meeting with ASMI early this week to discuss possible transactions, including its proposed transaction, to begin due diligence and to arrive at a solution that delivers the most compelling value to ASMI and its stakeholders. By working collaboratively, Applied Materials believes that the parties could reach final agreement and an executed transaction in a matter of weeks