Southwall Announces New Directors

    PALO ALTO, Calif.--March 25, 2003--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 Mr. William A. Berry, Mr. Bruce M. Jaffe and Ms. Jami Dover Nachtsheim have joined the Company's board of directors, effective immediately.
    Mr. Berry is Senior Vice President and Chief Financial Officer of The Electric Power Research Institute (EPRI), an organization that performs collaborative research activity for the global electric power industry. Prior to joining EPRI, Mr. Berry spent 27 years with Raychem Corporation, a material sciences company, serving in several senior financial and operational executive positions including Corporate Vice President, General Manager of the Electronics Group, and Chief Administrative Officer. Mr. Berry also served as President of Optical Shields, Inc. and Chief Financial Officer of Compression Labs, Inc. Mr. Berry holds a Bachelor of Science Degree and a Master of Business Administration Degree, both from Stanford University.
    Mr. Jaffe has over 31 years of executive leadership experience in financial and operational positions. He currently serves on the Board of Directors of Metron Technology and Pemstar . He was most recently with Bell Microproducts, Inc. , where he held the position of Senior Vice President, Operations and Finance and Chief Financial Officer, and was responsible for mergers and acquisitions. Prior to joining Bell Microproducts, Mr. Jaffe held various positions over 29 years with Bell Industries, Inc. (AMEX: BI), including President and Chief Operating Officer. Additionally, Mr. Jaffe held the position of Chief Financial Officer for 17 years. Mr. Jaffe has also served as an accountant with Price Waterhouse early in his career. Mr. Jaffe holds a Bachelor of Science Degree in Business Accounting from the University of Southern California.
    Ms. Nachtsheim's career in the semiconductor industry includes over 20 years with Intel Corporation where she served as a Corporate Vice President of the Sales and Marketing Group and Director of Worldwide Marketing responsible worldwide for Intel's marketing efforts, including the highly successful Intel Inside(R) branding program, advertising, internet marketing, channel marketing, market research and corporate marketing communications. Ms. Nachtsheim also serves on the Board of Directors of Vixel Corporation and the Tech Museum of Innovation. Ms. Nachtsheim is a magna cum laude graduate of Arizona State University with a Bachelor Degree in Business Management.
    "I am very pleased to announce the additions of Bill, Bruce and Jami to our Board and am delighted that they have decided to join us," said Thomas G. Hood, President and CEO. "Collectively, these three individuals bring a wealth of financial, operational, sales and marketing experience to our Company. We believe our board, management team and shareholders will benefit greatly from the addition of these independent directors."
    In addition, Bruce J. Alexander, a Director of the Company since May 1981, and the Managing Director of Needham & Company, Inc., one of the Company's investment bankers, has announced his intention not to run for re-election to the Board at the Shareholders meeting to be held in May 2003. Addressing Mr. Alexander's intention, Mr. Hood commented, "We thank Bruce for his many years of invaluable contributions to the Board and the Company and we will miss him greatly."
    Following these changes, Southwall's Board will consist of eight members, including seven whom the Company believes are independent within the meaning of current Nasdaq and governmental standards.

    About Southwall Technologies Inc.

    Southwall Technologies Inc., 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 customers include Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain SEKURIT, Pilkington, HP 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 possibility that one or more of the seven directors that the Company believes are independent are not or will not be as a result of anticipated amendments to Nasdaq listing requirements, that the addition of new directors will not have a positive effect on the company, and that shipments to customers will be materially less than anticipated, as well as risks associated with its failure to meet covenants under credit facilities and strains on the company's liquidity. 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 November 13, 2002 and those to be set forth in the company's Form 10-K to be filed for the year ended December 31, 2002.