Applied Materials signs letter of intent with SatCon

Business Wire, Oct 16, 1996

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 16, 1996--SatCon Technology Corporation (Nasdaq:SATC), today announced the signing of a Letter of Intent ("LOI") with Applied Materials, Inc., (Nasdaq:AMAT), the world's largest manufacturer of semiconductor manufacturing equipment. The LOI, regarding the development and supply of a semiconductor manufacturing equipment component, and other, later to be identified, development programs, outlines the basis for a long term sole source provider relationship for SatCon to Applied Materials for SatCon s semiconductor manufacturing components.

"This is a significant and long anticipated event for SatCon," said David Eisenhaure, president and chief executive officer. "It's a first step in a process that we expect will take us through a formal agreement and schedule of purchases. We've been working with Applied Materials for some time now, and have delivered some beta-site test and evaluation components that we developed with them. The components have been performing well, Applied Materials is excited about the technology and its performance, and they've committed to move forward."

Applied Materials, Inc., with revenues of $3.1 billion in 1995 is the world's largest producer of semiconductor manufacturing equipment. SatCon's product will be integrated into one of Applied Materials process chambers to provide improved processing of semiconductor wafers. A formal agreement setting forth terms and conditions is expected within the next couple of months.

SatCon Technology Corporation designs, develops, and manufactures Active Motion Control systems, advanced electric motors, high density power electronics, propulsion systems and flywheel energy storage systems for a variety of commercial and government customers.

Note: This release contains forward looking statements regarding timing and content of future agreements with Applied Materials and is subject to change based on market conditions.

CONTACT: SatCon Technology Corporation Morgen-Walke Associates

William O Donnell Jolinda Taylor, Beth Lewis,

Director, Corporate (617) 422-8620

Communications Media Contact:

(617) 349-0846 Stan Froelich, Jeff Siegel

(212) 850-5600