Southwall's Dresden Facility Remains Dry and in Full Production During Record Rainfall

    PALO ALTO, Calif.--Aug. 15, 2002--Southwall Technologies Inc. , a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, today reported that its German production plant, near the city of Dresden, has not experienced any interruption in operation in spite of the reported heavy rains and flooding in the city and surrounding region. Southwall's Dresden plant is a supplier of automotive and architectural energy management films used by glass companies to enhance the thermal performance of their products.
    "I'm pleased to report that the location of our German plant in the town of Grossroehrsdorf is situated well away from the Elbe, the river threatening the City of Dresden," said Thomas G. Hood, President and Chief Executive Officer of Southwall Technologies. "We have been in constant contact with the facility and presently there is no reason to believe that we will encounter any weather-related stoppages. The electrical and communications infrastructure has also remained uninterrupted throughout this severe flooding, giving us a good indication of the integrity of these critical support functions. We do not expect the flooding to adversely affect our shipment schedules," continued Hood.
    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, Saint-Gobain Sekurit, Pilkington, and Mitsubishi Electric.

    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 the Company's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements in this press release are based on information available to the Company on the date hereof, and the Company 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 the future possibility that the Dresden plant's operation, or shipments from the plant, will be adversely affected by weather or other natural events outside of the Company's control. Further risks are detailed in the Company's filing with the Securities and Exchange Commission, including those set forth in the Company's most recent Form 10-K filed on April 1, 2002, and Form 10-Q, filed August 14, 2002.