Related Party Transactions and Outside Related Director Information

Applied Materials, Inc. (AMAT)

2/21/2006 Proxy Information

Mr. Morgan served as Chief Executive Officer of Applied Materials, Inc. from February 1977 to April 2003 and as President of Applied from 1976 to 1987.

Applied sponsors a relocation policy for the benefit of eligible employees who are newly hired or transfer locations at our request. The relocation benefits offered under the policy generally include, among other benefits, a home sale assistance benefit, which is designed to provide a relocating employee with assistance in selling his or her residence in a prior location. The home sale assistance benefit provides for AppliedŐs purchase of an employeeŐs residence if, in accordance with the relocation policy and the specific benefit terms, the employee has made specified efforts to sell the property but has not secured an outsider buyer to purchase it at its appraised value within a 60-day period.

Pursuant to the terms of AppliedŐs relocation policy and Michael R. SplinterŐs hire as our President and Chief Executive Officer, Mr. Splinter was entitled to assistance with his relocation. In accordance with the terms of the home sale assistance benefit, Mr. Splinter made the required efforts to sell his former residence but could not secure an outside buyer within the 60-day period specified in AppliedŐs relocation policy. After this period, Applied purchased Mr. SplinterŐs residence for $1,775,000 in November 2005. As provided in AppliedŐs relocation policy, the purchase price was determined by averaging the appraised value assigned to the property by two independent real estate valuation experts. The sale of Mr. SplinterŐs former residence is currently pending, and Applied will retain all net proceeds upon the completion of the transaction.

2/17/2005 Proxy Information

No related party transactions or special relationships reported for this company. Director relationships marked "Outside Related" at this firm will most often be former executives of the company. Additional information regarding these relationships will be added during our regular updates.

2/17/2004 Proxy Information

Prior to joining Applied in April 2003, Michael R. Splinter, our President and Chief Executive Officer, was Executive Vice President and Director of the Sales and Marketing Group at Intel Corporation. During fiscal 2003, net sales to Intel Corporation represented 13% of AppliedŐs net sales.