Southwall Technologies Inc. Joins the Advanced Automotive Glazing Manufacturers Association -AAGMA- and Expands Global Influence

PALO ALTO, Calif.--June 24, 2005--Southwall Technologies (OTCBB:SWTX) announced today that it has joined the Advanced Automotive Glazing Manufacturers Association (AAGMA). Southwall, a leader in automotive laminated solar control glazing, will work closely with the members of AAGMA to globally advance awareness of the advantages of automotive laminated glazing, regarding its comfort, safety and security and to encourage increased adoption of laminated glazing in the automotive industry. Southwall produces XIR(R) automotive solar reflective film used in windshields by many global automotive manufacturers.

"We believe that AAGMA offers a platform for substantial industry support of the advancement of automotive laminated glazing technologies," said Dennis Capovilla, Southwall Senior Vice President of Worldwide Sales. "We are very excited about our membership and look forward to working closely with fellow members. Southwall's many years of experience in manufacturing IR reflective films for laminated glazing allows us to bring significant experience to the partnership."

"We welcome Southwall to the Association," said Michel Van Russelt, Chairman, AAGMA and Market Development Manager for Solutia Europe. "Southwall's many years of providing the XIR solar reflective film to many of the major manufacturers of laminated windshields will bring valuable experience and aid us in promoting the benefits of laminated glazing."

About Laminated Glazing

Laminated glazing is a "sandwich" comprising two glass sheets and a tough plastic interlayer, bonded under controlled heat and pressure. While all windshields have been made of laminated glass for safety reasons for more than 20 years, only a minority of side and rear windows are constructed of laminated glazing. The benefits of laminated glazing throughout the vehicle are numerous:

-- Provides superior noise insulation for acoustic comfort.

-- Blocks approximately 99% of UV radiation to protect the vehicle occupants against harmful UVA and UVB radiation.

-- Reflects solar energy, reducing temperature build-up and improving fuel consumption as a result of reduced air conditioning load.

-- Protects the occupants from ejection in an accident. Since the glass remains adhered to the plastic interlay, the window stays in the frame acting as a safety net.

About AAGMA (www.aagma.com)

AAGMA was initially formed in 1998 as an advocate of the benefits of advanced automotive laminated glazing and current membership includes the leading European automotive glass manufacturers and interlayer suppliers. Its members represent 75% of the world's automotive glass producers and nearly 100% of the interlayer providers. Its objective is to define and quantify the benefits of laminated glazing in terms of passive safety, security, and passenger comfort and to educate the public, government bodies, and emergency services on the benefits and behaviors of laminated glazing.

About Southwall Technologies Inc. (www.southwall.com)

Southwall Technologies Inc., (SWTX.OB) designs and produces thin film coatings that selectively absorb, reflect or transmit light. Southwall products are used in a number of automotive, electronic display and architectural glass products to enhance optical and thermal performance characteristics, improve user comfort and reduce energy costs. Southwall is an ISO 9001:2000-certified manufacturer and exports advanced thin film coatings to over 25 countries around the world. Southwall's end customers include Audi, Berliner Glas, BMW, DaimlerChrysler, Hewlett-Packard, Mercedes, Mitsui Chemicals, Peugeot-Citroen, Philips, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.