Southwall Completes New 2-Year Supply Contract With Saint-Gobain Sekurit for XIR Automotive Films

    PALO ALTO, Calif.--Jan. 9, 2002--Southwall Technologies Inc. (Nasdaq Symbol: SWTX) announced today that a new, 2-year supply agreement has been signed with Saint-Gobain Sekurit of France for XIR(R) automotive films. The contract covers the calendar years 2002 and 2003 and stipulates a minimum quantity of XIR(R) film products that will be bought by Saint-Gobain Sekurit and supplied by Southwall during that period. The agreement also gives Saint-Gobain Sekurit options to purchase additional amounts of XIR(R) automotive film in each of the two years.
    "We are very pleased with this new contract," stated Thomas G. Hood, President and CEO of Southwall. "The value of this supply agreement to Southwall is somewhere between $20 and 30 million over the next 2 years, depending on the product mix and whether Saint-Gobain Sekurit exercises their options for additional XIR(R) film. Saint-Gobain Sekurit has become a very important customer for Southwall, and we will continue to work hard to meet their needs for volume and quality, as we have over the last 2 years," continued Hood.
    "We expect that a substantial portion of their total XIR(R) film demand will be supplied from our new Dresden facility, however, we will continue to produce film for them in our Palo Alto plant as well," he added.

    About Southwall Technologies Inc.

    Southwall Technologies (www.southwall.com) designs and produces technologically advanced thin film coatings that selectively absorb, reflect or transmit electromagnetic radiation. Southwall products are used in a number of architectural, automotive and electronic products to enhance optical and thermal performance characteristics, improve user comfort and reduce energy costs. Southwall exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, and Mitsubishi Electric.

    About Saint-Gobain

    Saint-Gobain Sekurit (www.sekurit.com) is a worldwide leader in the supply of specialty glass for the transportation industry. With 12,000 employees and a commercial presence in 22 countries, Saint-Gobain Sekurit supplies automotive glass for one out of every two cars in Europe. In 2000, total sales were 1,528 million euros with approximately 80% coming from the automotive OEM market. The remaining sales stem from the automotive replacement glass market, buses, trains, aeronautics, and heavy vehicles.

    This press release may contain forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), including, without limitation, statements regarding Southwall's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements in this press release are based on information available to Southwall on the date hereof, and Southwall assumes no obligation to update any such forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented. These risks include that customer demand for Southwall's products will not grow or will decline or that Southwall will experience manufacturing or quality problems in the future despite being ISO 9001 compliant. Further risks are detailed in Southwall's filings with the Securities and Exchange Commission, including those set forth in Southwall's most recent Form 10-K and Form 10-Q.