### For Immediate Release

Contact:Carolyn SchwartzApplied Materials(investment
            community)(408) 748-5227

Jeffrey LettesApplied Materials(editorial/media)(408)


            563-5161

Dave MillerEtec Systems, Inc.(marketing
            communications)(510) 780-3710



Applied Materials to Enter the Mask Making Equipment Market

SANTA CLARA, Calif., January 12, 2000 -- Applied Materials, Inc.
            and Etec Systems, Inc. announced today that they have reached a
            definitive agreement for Applied Materials to acquire Etec in a
            stock-for-stock merger. Each share of Etec's stock will be exchanged
            for .649 shares of Applied Materials' common stock. The proposed
            acquisition is expected to combine the strengths of the world's
            largest semiconductor equipment company with the leading
            manufacturer of mask pattern generation solutions for the
            semiconductor and electronics industries.

"The combination of two industry leaders, Etec and Applied
            Materials, will enable us to better meet the most advanced
            manufacturing requirements of our customers," said James C. Morgan,
            chairman and chief executive officer of Applied Materials. "With
            increasingly smaller geometries used in semiconductor manufacturing,
            mask making is becoming a critical component in the manufacturing
            process. By combining our expertise in process technology and
            metrology with the leading supplier of advanced mask pattern
            generation equipment, we have the opportunity to advance mask making
            technology. Further, the synergies between mask patterning
            technology and our etch and metrology and inspection business units
            have the potential to expand opportunities in all of these
            complementary technologies."

"Etec delivers industry leading mask pattern generation
            technology and has an established record of success," said Steve
            Cooper, chairman, president and chief executive officer of Etec
            Systems. "Applied Materials' global infrastructure, financial
            strength and technical expertise will enable us to leverage our
            existing products and product development to address the advancing
            technical requirements of smaller geometries."

The acquisition, which will be accounted for as a
            pooling-of-interests, is expected to be closed after approval of the
            stockholders of Etec and clearance by regulatory authorities.

This press release contains certain forward-looking statements
            that are subject to known and unknown risks and uncertainties that
            could cause actual results to differ materially from those expressed
            or implied by such statements. Such risks and uncertainties include,
            but are not limited to, the possible inability to complete the
            merger as anticipated, or at all, and the performance and successful
            integration of acquired businesses. The Company assumes no
            obligation to update the information in this press release.

Applied Materials is a Fortune 500 global growth company and the
            world's largest supplier of wafer fabrication systems and services
            to the global semiconductor industry. Applied Materials is traded on
            the Nasdaq National Market under the symbol, "AMAT". Applied
            Materials' website is www.appliedmaterials.com.

Etec is a leader in mask patterning solutions for the worldwide
            semiconductor and electronics industries. Its products include
            electron- and laser-beam systems that produce high-precision masks,
            which are used to print circuit patterns onto semiconductor wafers,
            and high-speed, large-area laser direct imaging systems for
            electronic interconnect production applications. Founded in 1970,
            the company is headquartered in Hayward, Calif., with sales and
            service offices worldwide. Etec's stock is traded on the Nasdaq
            National Market under the symbol "ETEC". The company's worldwide web
            site can be accessed at www.etec.com.

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