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Social Responsibility Report: Spring 2005
Applied Material is committed to being the leader—in technology and service, in customer satisfaction, and in social responsibility. Each day we focus on our core value of making a positive social contribution. This is reflected in the company’s long-standing practice of active engagement in community issues, innovative philanthropy, strategic partnerships, and employee involvement. At Applied Materials, we value diversity, ethical business conduct and environmental stewardship.

Beginning with this inaugural report, Applied Materials will highlight key activities addressing social responsibility issues on a quarterly basis. Here are this quarter’s highlights:

Asia Tsunami Relief
Water Boys
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Youth in refugee camps in Tamil Nadu, India benefit from Applied Materials support of water
purification systems servicing areas
impacted by the tsunami
In early January, Applied Materials set up a Tsunami Relief Fund to match employees' donations to the International Federation of Red Cross and Red Crescent Societies. Through this fund, donations from employees around the globe were matched on a dollar-for-dollar basis for a combined monetary contribution of $645,000.

In addition to matching employees' donations, Applied Materials leveraged its existing partnership with the Tech Awards, which annually honors the best applications of technology that are improving the quality of life around the world. The Applied Materials Foundation donated an additional $400,000 so that two of these innovations can be used to help the tsunami victims: water purification systems that are expected to provide clean water to nearly 20,000 people a day for up to 20 years and a logistics software package that will help global and local relief agencies better coordinate and track financial support and supplies.

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Philanthropy Recognized
As part of its commitment to making a positive social contribution, Applied Materials places a high priority on strengthening the communities in which it does business through support of selected local educational, civic development and arts & culture programs. Recent recognition of Company initiatives includes:

The Northern California Grantmakers Association together with the San Francisco Business Times presented Applied Materials with its inaugural Education Partner of the year Award which honored the Company for working to improve education in the Bay Area.

In Austin, Applied Materials was named 2004 Outstanding Corporate Philanthropist by the Association of Fundraising Professionals of Greater Austin for making a significant impact in the Central Texas area.

In addition, the Company ranked No. 2 on The San Jose Business Journal’s list of corporate donors in Silicon Valley while the San Francisco Business Times acknowledged the Company’s charitable efforts when it placed it at No. 5 on the paper’s Top 50 List of giving organizations in the Bay Area.

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Community Commitment
North America Food Drive 2004
North America Food Drive 2004
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Employees and their families pack 3000 boxes of food for distribution to the hungry at the Food Drive’s annual Helping Hands Day in Santa Clara, California.
Applied Materials employees across North America joined together to creatively raise four million pounds of food for hungry families across the country. As a result, food banks in 17 North America communities benefited from the success of the Applied Materials 2004 Holiday Food Drive.

Employees in Portland, OR organized a fundraising rummage sale; Chandler, AZ staff built a “Tower of Tuna” in tribute to former NFL star Pat Tillman who was killed in service to the country and who reflected the Drive’s theme of “community heroes”; and Austin coordinated a Food Drive Olympics that engaged employees in competitive events.

CEO Mike Splinter hosted the first-ever Mike’s 5K Fun Run and Turkey Trot in Santa Clara and Austin and personally matched entry fees paid by the more than 1,500 people who participated in both races.

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Legacy Programs
China Environmental Symposium
Applied Materials will convene a group of industry leaders, government officials, and content experts to address environmental issues in China during an Environmental Health & Safety Exhibit and Symposium scheduled for March 15-16, 2005.

Through an accelerated sharing of best practices and solutions, along with semiconductor industry policy recommendations for the future, the Symposium will address current environmental, health and safety challenges and cost reduction opportunities in energy management. Workshops will address the advantages of operating in an environmentally sound manner including the benefits of enhanced profitability and positive corporate citizenship.

The event which coincides with Semicon China includes prominent speakers David N.K. Wang, Executive Vice President, Applied Materials, Inc.; Limin Chang, Director, Department of Science & Technology, Division of Basic Technical Support, Ministry of Information Industry (MII), The People's Republic of China; and Amory Lovins, CEO, Rocky Mountain Institute.

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Environmental Health and Safety
Applied Materials Triumphs in Blood Match
Blood Match
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Applied Materials employee Russell Duke claims victory in a Blood Match recently held to increase blood donations in Austin, Texas.
Competing with customers Freescale Semiconductors and Advanced Micro Devices, Austin employees won first place in a recent blood drive contest and received recognition from an international blood donor recruitment organization.

The partnership between the three companies provided a total donation of 3,364 units of blood over a one-year period, an increase of 1,962 units and a 139 percent increase in the combined number of blood donations from the prior year.

These results and the innovative collaboration between industry leaders are being noticed at an international level. To honor the three companies and their employees, the Association of Donor Recruitment Professionals (ADRP) will present the 2005 ADRP Organization Award to the group in April. ADRP, dedicated to blood-donor recruitment, includes a membership of over 500 recruitment professionals in 16 countries.

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