Southwall Technologies Requests a 15-Day Extension from the SEC for Filing the Company's Annual Report on Form 10-K

PALO ALTO, Calif.--March 30, 2004--Southwall Technologies Inc., a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, announced that it has filed a form 12b-25 which requests an automatic 15-day extension to file its Annual Report on Form 10-K. As a result of the extension, the Company's Form 10-K is now due on or before April 14th.

"As a consequence of closings in connection with a complex funding agreement during the fourth quarter of 2003 and the first quarter of 2004 and the impact on the completion of our annual financial audit, the Company will not be able to file its Annual Report on Form 10-K by the March 30 filing deadline," said Thomas G. Hood, Southwall's president and chief executive officer. "We expect to file our 10-K by April 14th and to hold an earnings conference call within a few days of the filing. The specific date and time of the earnings call will be announced shortly."

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 sells advanced thin film coatings to over 25 countries around the world. Southwall's customers include Audi, BMW, DaimlerChrysler, Hewlett-Packard, Mitsubishi Electric, Mitsui Chemicals, Peugeot-Citroen, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.

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 file its Form 10-K by April 14th, that a late filing will have a material adverse effect on the Company, and that the Over the Counter Bulletin Board will fail to approve the listing of the Company and there will be no market for the Company's stock. 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; its Quarterly Report on Form 10-Q for the quarter ended September 28, 2003, filed on November 17, 2003, as amended by its Quarterly Report Form 10-Q/A, filed on November 19, 2003; its Current Reports on Form 8-K, filed on December 9, 2003, December 16, 2003, December 23, 2003, January 9, 2004, January 29, 2004, February 10, 2004, February 25, 2004 and its Current Report on Form 8-K/A filed on March 3, 2004.