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To:    All Employees
From:    Mike Splinter
Subject:    2008 Proxy
Date:    February 13, 2008

In connection with our March 11, 2008 Annual Meeting of Stockholders, Applied’s Annual Report and Form 10-K for fiscal year 2007, and 2008 Proxy Statement are now available to you electronically. As in prior years, we have produced a “10-K wrap” – a shorter version of the Annual Report bound together with the Form 10-K into a single document. You may view and/or print these documents by visiting the company’s Web site.

I urge you to carefully read the 2008 Proxy Statement. This year we are asking our stockholders to elect 11 directors and to ratify the appointment of KPMG LLP as Applied’s independent registered public accounting firm for FY ‘08.

If you own Applied stock (1) through the Applied Materials Employee Savings and Retirement Plan (the “401(k) plan”); (2) that were purchased through the ESPP and held with UBS Financial Services; or (3) as a registered holder, you will receive instructions by e-mail in the next few days on how to vote for each account in which you hold shares.

If you own Applied stock in a separate brokerage account and have consented to receive the proxy materials electronically, you will receive voting instructions by e-mail. If you own Applied stock in a separate brokerage account and have not consented to receive the proxy materials electronically, you will receive the proxy materials in the mail.

Please note that if you vote over the Internet, there may be nominal costs associated with electronic access, such as usage charges from telephone companies and Internet access providers.

Additional information about Applied’s practice of delivering proxy materials electronically, which helps conserve natural resources and reduces printing costs and postage fees, is available by clicking on the link below or by visiting Inside Applied online. If you prefer to receive hard copies of the Annual Report and Form 10-K for fiscal year 2007, or the 2008 Proxy Statement, please contact Noe Gil Ochoa in Investor Relations in Santa Clara at ext. 32714.

Electronic Proxy Q&A