Southwall Names Dennis Capovilla as Vice President of Worldwide Sales

    PALO ALTO, Calif.--July 15, 2003--Southwall Technologies Inc. , a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, has named Dennis Capovilla to the position of vice president of Worldwide Sales.
    Capovilla most recently served as vice president of Enterprise Sales for Palm, Inc. , a global provider of handheld computing devices and operating systems. Prior to joining Palm, he held various management positions with Fatbrain, LLC, including president and chief executive officer. Additionally, Capovilla held various sales and marketing positions with Apple Computer and Xerox. In his new position, he will report to Thomas G. Hood, president and chief executive officer of Southwall.
    "Dennis is a great addition to Southwall and will play an important role in leading our global sales efforts," said Hood. "His experience with new ventures, as well as established companies -- combined with proven business leadership -- will be of significant value to Southwall as we work to expand our customer base and product lines in the future."
    Capovilla's appointment as vice president of Worldwide Sales follows the appointment of Kevin Walker as vice president of Worldwide Marketing, as announced by Southwall on July 1, 2003. With these appointments, Dr. Sicco Westra, who had been senior vice president, Sales and Marketing, becomes vice president, Business Development.

    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, Mitsui Chemicals, Renault, Peugeot-Citroen, Volvo, Saint-Gobain SEKURIT, Pilkington, Hewlett-Packard, 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 the company will not achieve any future growth or will experience losses, that Southwall's growth strategies will not be successful, that Dennis Capovilla's appointment and subsequent activities will not benefit the company, and that shipments to customers will be materially less than anticipated, as well as risks associated with the company's failure to meet covenants under credit facilities and strains on the company's liquidity. Further risks are detailed in the company's filings with the Securities and Exchange Commission, including those set forth in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2002, filed on March 31, 2003, and Quarterly Report on Form 10-Q for the quarter ended March 30, 2003, filed on May 14, 2003.