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Southwall to Open New German Facility

29 June 2000

Southwall to Open New German Facility

    PALO ALTO, Calif. - Southwall Technologies Inc., a global supplier of thin 
film coatings used in glass for architectural, automotive and electronic products,
will open a new manufacturing facility in Dresden, Germany.  A grand opening 
ceremony is scheduled for Friday, June 30, 2000 from 10 a.m. - 7:30 p.m.

    The new manufacturing facility in Dresden is the first plant expansion for
the company outside the U.S.  More than 70 percent of Southwall's revenues
represent international business.  The plant is well positioned to serve the
European automobile and glass manufacturing industry where the demand for
Southwall's XIR(R) film has grown significantly.  This year more than 1.5
million new European automobiles will be using Southwall's XIR(R) infrared
reflecting film.  Used in automobile windshields, sidelights, and backlights,
XIR(R) film reflects infrared light and reduces solar heat gain to improve
passenger comfort.  Glass laminated with XIR(R) film also significantly
retards the degradation of interior materials -- such as leather, fabrics and
plastics -- while blocking 99 percent of the harmful ultraviolet light.

    "The opening of our new Dresden facility is an important step in
supporting our key customers in this fast growing, solar control automotive
glass market where demand has outpaced the supply," said Thomas Hood,
president and CEO of Southwall Technologies.

    "We and our customers have been looking forward to the additional capacity
that our new thin-film vacuum sputtering machines will provide in the months
ahead," said Hood.  "The first of several identical machines will be ramping
up to capacity by the end of this year.  In the first quarter of 2001, a
second machine will begin production.  Eventually, we have plans for five
machines at Dresden to supply the worldwide automotive glass market."

    The grand opening ceremony will include a ribbon cutting ceremony,
facility tour, and the naming of a new street, "Southwall Strasse."  High-
ranking executives from the leading European automobile and glass companies,
German government and finance officers are expected to attend.

    Southwall Technologies designs and produces technologically advanced thin
film coatings that selectively absorb, reflect or transmit electromagnetic
radiation.  Southwall products are used in a number of architectural,
automotive and electronic products to enhance optical and thermal performance
characteristics, improve comfort and reduce energy costs.  Southwall exports
advanced thin film coating to more than 25 countries around the world for use
in products manufactured by such companies as Audi, BMW, DaimlerChrysler,
Renault, Peugot-Citroen, Volvo, Mitsubishi Electric and Samsung.