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                                                                    EXHIBIT 99.1

       APPLIED MATERIALS TO EXPAND NANOMANUFACTURING TECHNOLOGY SOLUTIONS
                        WITH ACQUISITION OF APPLIED FILMS

SANTA CLARA, Calif., and LONGMONT, Colo., May 4, 2006 -- Applied Materials, Inc.
(Nasdaq: AMAT) and Applied Films Corporation (Nasdaq: AFCO) today announced that
they have signed a definitive agreement for Applied Materials to acquire Applied
Films. Applied Films is a leading supplier of thin film deposition equipment
used in manufacturing flat panel displays (FPDs), solar cells, flexible
electronics and energy-efficient glass. This acquisition will complement Applied
Materials' thin film nanomanufacturing technology(TM) capabilities and provide
Applied Materials with an opportunity to expand into growing new markets.

Under the terms of the agreement approved by both boards of directors, Applied
Materials will pay $28.50 per share in cash for each outstanding share of
Applied Films, which represents a total purchase price of approximately $464
million, or approximately $303 million net of Applied Films' existing cash and
marketable securities. In addition, Applied Materials will assume Applied Films'
outstanding stock options and other equity awards.

"The acquisition of Applied Films expands our flat panel business to offer color
filter products, and opens the fast-growing solar market for us," said Mike
Splinter, president and CEO of Applied Materials. "Both companies have a strong
history of developing new and innovative technologies. Together, we expect to
speed the development and availability of new products for a variety of emerging
applications."

Applied Films' PVD (physical vapor deposition)-based flat panel display products
align well with Applied Materials' existing FPD thin film deposition
capabilities. Applied Materials is a leading supplier of CVD (chemical vapor
deposition) and test equipment for manufacturing the display's transistor layer,
while Applied Films is a recognized leader in the production of FPD color filter
systems and has developed significant expertise in large area PVD.

"The acquisition is also anticipated to provide growth opportunities for Applied
Materials in solar cell as well as flexible electronics applications where our
combined knowledge and capabilities will enable us to bring a new level of
expertise to these expanding markets," said Mark Pinto, senior vice president
and chief technical officer of Applied Materials. "In solar cell manufacturing,
we expect to help customers deliver higher levels of output at lower production
cost -- a critical step to making alternative forms of clean energy more
available and affordable. By combining Applied Films' existing platforms with
Applied Materials' broad process portfolio and global customer relationships, we
can also accelerate a number of new applications for electronics on flexible
substrates."

"We are excited by the opportunity to join a global leader that has provided
innovative technology benefiting the electronics industry for nearly 40 years,"
commented Thomas T. Edman, president and CEO of Applied Films. "We look forward
to having the substantial expertise and resources of Applied

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                                 Applied Materials, Inc. and Applied Films Corp.
                                                                     May 4, 2005
                                                                     Page 2 of 3



Materials to drive new applications, innovations and efficiencies for our global
customer base -- while providing the potential to reach many new customers."

Applied Materials and Applied Films will discuss today's announcement on a
conference call today beginning at 7:00 a.m. Pacific Daylight Time. A live
webcast of the conference call will be available on Applied Materials' web site
at www.appliedmaterials.com and a replay will be available after 2:00 p.m.
Pacific Daylight Time.

Completion of the transaction is subject to customary closing conditions,
including the approval of Applied Films' shareholders and receipt of regulatory
approvals. Applied Films will file a proxy statement in connection with the
proposed merger, which will be mailed to its shareholders. The companies expect
to close the transaction during Applied Materials' third fiscal quarter of 2006.

This press release contains forward-looking statements relating to Applied
Materials' anticipated acquisition of Applied Films and expected benefits of the
transaction, including growth opportunities in existing and emerging markets,
technology leadership and improved product capabilities. These statements are
subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those stated or implied, including but not
limited to: the satisfaction of closing conditions; the successful integration
and performance of the acquired business; sustainability of demand in the
semiconductor and semiconductor-related industry, and broadening of demand for
emerging applications such as solar cells and flexible electronics, which are
subject to many factors, including global economic conditions, business
spending, consumer confidence, demand for electronic products and integrated
circuits, and geopolitical uncertainties; Applied Materials' ability to develop,
deliver and support a broad range of products and to expand its markets and
develop new markets; the ability to obtain and protect intellectual property
rights in key technologies; the retention of key employees; the ability to
realize synergies expected to result from the acquisition; successful
commercialization of purchased technologies; the effectiveness of internal
controls; unknown, underestimated or undisclosed commitments or liabilities; and
other risks described in Applied Materials' and Applied Films' Forms 10-K, 10-Q
and 8-K filed with the Securities and Exchange Commission. All forward-looking
statements are based on managements' estimates, projections and assumptions as
of the date hereof and Applied Materials and Applied Films assume no obligation
to update any such statement.

Applied Films Corporation is a leading provider of thin film deposition
equipment to diverse markets such as the flat panel display, architectural
glass, solar cell, and the consumer products packaging and electronics
industries. For more information, please visit www.appliedfilms.com.

Applied Materials, Inc. is the global leader in nanomanufacturing
technology(TM)solutions for the electronics industry with a broad portfolio of
innovative equipment, service and software products. At Applied Materials, we
apply nanomanufacturing technology to improve the way people live. Learn more at
www.appliedmaterials.com.


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                                 Applied Materials, Inc. and Applied Films Corp.
                                                                     May 4, 2005
                                                                     Page 3 of 3


IMPORTANT ADDITIONAL INFORMATION TO BE FILED WITH THE SEC

Applied Films will file a proxy statement in connection with the proposed
merger, which will be mailed to its shareholders. Applied Films' shareholders
and other investors are urged to carefully read the proxy statement and other
relevant materials when they become available because they will contain
important information about the transaction. Investors and security holders may
obtain free copies of these documents (when they are available) and other
documents filed by Applied Films with the SEC through the web site maintained by
the SEC at www.sec.gov. In addition, investors and security holders may obtain
free copies of the documents filed with the SEC by Applied Films by going to the
investor relations page of its web site at www.appliedfilms.com or by
contacting: Applied Films Corporation Chief Financial Officer, 9586 I-25
Frontage Road, Suite 200, Longmont, Colorado 80504.

Applied Films and its directors and executive officers may be deemed to be
participants in the solicitation of proxies in respect of the transactions
contemplated by the agreement with Applied Materials. A description of any
interests that Applied Films' directors and officers have in the transaction
will be available in the proxy statement. Information regarding certain of these
persons and their beneficial ownership of Applied Films common stock as of
August 19, 2005, is also set forth in the Schedule 14A filed by Applied Films on
September 30, 2005, with the SEC. These documents are available free of charge
at the SEC's web site at www.sec.gov or by going to the investor relations page
of Applied Films' corporate website at www.appliedfilms.com.

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CONTACTS IN THE U.S.:

APPLIED MATERIALS
Dave Miller (business media)                408/563-9582
Betty Newboe (technical media)              408/563-0647
Randy Bane (financial community)            408/986-7916

APPLIED FILMS
Lawrence Firestone (CFO)                    303/774-3200


CONTACT IN GERMANY:

FLEISHMAN-HILLARD GERMANY
Patrick Racky                     0049 (0) 69-405702-464