Southwall Technologies Inc. Announces R. Eugene Goodson to Serve as President and Chief Executive Officer

PALO ALTO, Calif.--Sept. 8, 2006--Southwall Technologies Inc. (OTCBB:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that its board of directors has named R. Eugene Goodson to serve as President and Chief Executive Officer effective November 1, 2006.

Dr. Goodson joined Southwall's board of directors in April 2006. Dr. Goodson has held leadership positions in industry, government and universities. Most recently he was the Chief Executive Officer and President of Williams Controls Inc., a manufacturer of electronic throttle controls, and is current Chairman of the Board of Williams Controls. Prior to Williams Controls, Dr. Goodson was Chairman and Chief Executive Officer of Oshkosh Truck Corporation, a developer and producer of heavy-duty on and off road trucks. After retiring from Oshkosh in 1998, Dr. Goodson became an Adjunct Professor at the University of Michigan Business School, teaching operations management. He was a director of the Executive Officer Association of American Industrial Partners, a private equity firm, from 1998 to 2005.

"We are extremely pleased that Gene has accepted our offer to serve as President and Chief Executive Officer," said George Boyadjieff, Chairman of the Board and interim CEO. "The board of directors believes that Gene's extensive experience in leading manufacturing companies and his proven executive management skills will enable Southwall to successfully execute its corporate strategies for profitability and growth."

About Southwall Technologies Inc.

Southwall Technologies Inc., designs and produces thin film products 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, Philips, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.