ASM rejects Applied offer for ALD and PECVD

BILTHOVEN, THE NETHERLANDS: ASMI's management board and supervisory board have duly and carefully considered the indicative offer from Applied Materials.

ASMI has responded to Applied Materials that, as such, it has no interest to sell the ALD and/or PECVD activities. These activities are an integral part of ASMI's Front-End business. These activities are also at the heart of ASMI's strategy, and the key drivers underlying ASMI's objectives to achieve significant growth in revenues and operating margins by 2009, as publicly announced in the Roadmap Presentation on 28 April 2008.

However, ASMI is willing to explore and discuss with Applied Materials whether any alternative arrangements between ASMI and Applied Materials could be pursued in a way that would be beneficial to ASMI and its stakeholders. Further announcements on the progress of any discussions with Applied Materials will be made if and when appropriate.