Southwall Signs $30 Million Supply Agreement With Sekurit St. Gobain

26 May 1999

Southwall Technologies Signs $30 Million Supply Agreement With Sekurit St. Gobain for Future Supply of XIR Film for European Automotive Use

    PALO ALTO, Calif.--May 24, 1999--Southwall Technologies Inc. today announced it will be signing a $30-35 million supply contract with Sekurit St. Gobain, one of the world's largest automotive glass suppliers.
    The contract covers the years 2000 and 2001. Southwall, to meet the significant demand for XIR(R) film, is building a new manufacturing facility in Groessroehrsdorf (Dresden), Germany.(1)
    Southwall's patented Heat Mirror XIR(R) solar control film is the key interlayer component in St. Gobain's high performance solar control glass. Major German and French car makers, such as Audi, Renault, Mercedes, BMW and VW, are incorporating glass with XIR(R) film. XIR(R) film is laminated in the windscreen, and in some cases on the side and rear glass, by Saint Gobain before the glass is delivered to the auto company.
    Solar control glass with XIR(R) film provides important benefits for occupants and the environment. The reduction in solar energy transmitted through the glass improves occupant comfort and puts a lower requirement on the air conditioning system.
    Southwall's President and CEO, Thomas G. Hood, highlights the close partnership relationship with St. Gobain. Said Hood, "This contract effectively establishes St. Gobain as a leading European supplier of automotive solar control glass.
    "Both companies believe that the market potential for this product is significant. The popularity of clear XIR(R) glass results from its excellent performance, and the trend towards clear solar control glass technology in vehicles is gaining rapid momentum."
    Southwall Technologies Inc. designs and produces thin film coatings that selectively absorb, reflect or transmit certain types of electromagnetic radiation. Southwall products are sold into the architectural, automotive and electronics.

    This press release may contain forward-looking statements as that term is defined in the Private Securities Reform Act of 1995, including, without limitation, statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements included in the document 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. 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 Form 10-K and Quarterly Reports on Form 10-Q.

    (1) Note to Editors: See Press Release of May 24, 1999