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Silicon Valley Initiative

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APPLIED MATERIALS EDUCATION INITIATIVE

Information for everyone begins with an effective education for all children.
--James C. Morgan, Chairman and CEO

Applied Materials targets 65% of its philanthropy towards education. We believe that the education gap between economically advantaged and disadvantaged children is the most pressing educational issue in the United States today. As part of a new Education Initiative, the Company is further concentrating its educational philanthropy and efforts within areas of our communities that have the lowest educational performance and will forge public/private partnerships to yield significant improvement and lasting results. Over time, we intend to support the entire educational life of a child, through post-secondary education or training, bringing in resources that will enable each child to become engaged citizens equipped for success in the Information Age.

Our objective is to transform learning and to improve academic achievement and long-term educational opportunities for students in specific, carefully targeted, high-need communities. Our strategy will commit the Company's leadership and philanthropy in targeted communities, over a sustained period of time, in order to achieve significant and measurable improvement. Our Initiative will encompass the entire educational process from pre-school through successful post-secondary education completion.

Applied Materials launched its Education Initiative in San Jose, California. In consultation with local education leaders, we identified two geographic areas of San Jose: (1) the downtown area served by San Jose Unified School District, and (2) portions of the south and east sides of the City, initially focusing on areas within Oak Grove School District and East Side Union High School District.

In 2001, Applied Materials made a substantial, three-year commitment to expand the work of Partners in School Innovation to the South Bay; based on outstanding student achievement results, we renewed our three-year commitment in 2004. In 2007, Applied Materials will significantly renew its investment once again, working in close partnership with San Jose Unified School District and Partners in School Innovation to provide results-oriented services to 12 low-performing elementary schools in downtown San Jose and transform the quality of education for our Latino, African American and English learner students.