Southwall Technologies Inc(SWTX) - 500 Beiträge pro Seite

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Profile:Southwall Technologies Inc. develops, manufactures and markets thin-film coatings for the electronic display, automotive glass and residential and commercial building glass markets. Southwall has developed a proprietary thin-film sputtering technology to manufacture and market a variety of products that absorb, reflect or transmit light, and electromagnetic and infrared emissions. Southwall`s products are based on a wide-web roll coating process on flexible, clear substrate such as polyethyleneterepthalate. Southwall is currently supplying products for use in three broad markets, which include electronic displays, automotive glass and architectural glass.

http://www.southwall.com

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Southwall and Globamatrix Sign New 10-Year Supply and Distribution Agreement
PALO ALTO, Calif.--(BUSINESS WIRE)--April 24, 2002--Southwall Technologies Inc. (Nasdaq:SWTX - news) and Globamatrix Holdings Pte. Ltd. (previously known as GMX) announced today the signing of a ten-year supply and distribution contract that includes commitments by Globamatrix to purchase, and by Southwall to supply, minimum amounts of Southwall solar control film. The minimum amount covered by this commitment is approximately $75 million during the first five years of the agreement. The new agreement supersedes existing supply agreements between the two companies. Under this agreement, Globamatrix will be the exclusive, worldwide distributor of these Southwall solar control products for retrofit applications to the automotive and residential and commercial architectural glass markets. Globamatrix will continue to sell these products under its V-KOOL® trademark.

``This new contract represents a significant increase in anticipated revenues from Globamatrix over the next ten years compared to our previous business with Globamatrix,`` said Thomas G. Hood, President and CEO of Southwall. ``Now that our new production machines, PM 6 in Tempe and PM 8 and PM 9 at our new Dresden plant, have reached commercial production levels, we believe we are in a position to supply increasing amounts of the products that our business partners at Globamatrix require,`` added Hood.

``We view this contract as a very clear alignment of our mutual business interests and objectives in the years ahead,`` continued Mr. Hood. ``The aftermarket demand for infrared reflecting film has been growing due to an increased emphasis on energy conservation and occupant comfort in existing automobiles, homes and commercial buildings. We believe Globamatrix`s worldwide distribution network is well positioned to capitalize on this demand,`` he concluded.

``This Agreement builds upon an already strong and proven relationship between the two companies that dates back to 1993 when the Southwall manufactured V-KOOL® product was first introduced to the world,`` noted Andrew Kwan, Director of Globamatrix. ``Through the years, the demand for this product has grown steadily. V-KOOL® is now sold exclusively by Globamatrix in more than 500 locations in over 20 countries worldwide,`` added Mr. Kwan.

``Together, we have set benchmarks in the window film industry through product enhancements and advanced product constructions to serve newly created market segments. In tandem with the growing demand, we believe that Southwall`s U.S. machines and its newly installed production capacity in Germany are well positioned to provide a greater volume of the high quality products we have come to expect from Southwall,`` Mr. Kwan said.

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) designs and produces thin film coatings that selectively absorb, reflect or transmit light. Southwall film products are used in a number of automotive, electronic and architectural glass products to enhance optical and thermal performance characteristics improve user comfort and reduce energy costs. Southwall sells its automobile and electronic display products primarily to original equipment manufacturers. Southwall supplies its Heat Mirror architectural products to insulated glass and window fabricators and distributors worldwide, and its applied solar control films through Globamatrix.

About Globamatrix Holdings Pte. Ltd.

Globamatrix (www.globamatrix.com) markets a range of specialty solar control films through its subsidiaries and affiliates in over 20 countries worldwide. V-KOOL® is a trademark registered to Globamatrix.

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 Southwall`s expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements in this press release are based on information available to Southwall on the date hereof, and Southwall 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 that the supply and distribution agreement (the ``Agreement``) between Southwall and Globamatrix will be terminated by either party, that certain provisions of the Agreement (including those requiring Globamatrix to purchase set amounts of product from Southwall and to pay even if it does not accept delivery) may be declared unenforceable, customer demand for Southwall`s or Globamatrix`s products will not grow or will decline, that Southwall will experience manufacturing or quality problems in the future that will impair its ability to produce or provide sufficient quantities of the product under the Agreement, that actual orders for products or revenues to Southwall under the Agreement will be materially lower than those described above, that Southwall will experience significant warranty or indemnification obligations in connection with the Agreement, that Southwall`s costs to produce product for Globamatrix will be higher than anticipated, that the Agreement will not be profitable for Southwall, that penalty provisions in the Agreement for late product delivery will adversely affect Southwall, that Southwall will be directly or indirectly harmed by negative developments to Globamatrix, and/or that the exclusivity provisions applicable to Southwall will have a negative effect. Further risks are detailed in Southwall`s filings with the Securities and Exchange Commission, including those set forth in Southwall`s most recent Form 10-K filed on April 1, 2002.



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Contact:

Southwall Technologies Inc.
Thomas G. Hood, 650/962-9111 (Pres. & CEO)
[e-mail]
Robert R. Freeman, 650/962-9111 (Sr. VP & CFO)
[e-mail]
www.southwall.com

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Southwall Announces Production of a New Product for LCD and Plasma Displays
PALO ALTO, Calif.--(ENTERTAINMENT WIRE)--May 20, 2002--Southwall Technologies Inc. (Nasdaq:SWTX - News) announced today it has started shipping production quantities and sizes of its new clear anti-reflective film specifically designed for the Liquid Crystal Display (LCD) and Plasma Display Panel (PDP) markets. This coated film provides high visible light transmission to maintain optical clarity, yet reduces glare from reflected ambient light. High volume, roll-to-roll production allows display manufacturers quick and flexible integration of the film into existing manufacturing lines.

"By combining our extensive thin film sputtering technology and manufacturing expertise, Southwall is now able to supply product with excellent optical and mechanical performance in widths previously unavailable from the Company," said Dr. Sicco Westra, Senior Vice President of Engineering and CTO. "Electronic display screens, such as LCD and PDP, continue to demand improved viewing optics, and this product`s glare reducing properties measurably enhances the user`s viewing experience," added Westra.

"We have been producing this product for over a year on a smaller pilot line at widths of 12 inches," continued Dr. Westra. "This successful scale-up allows us to manufacture the product on one of our Palo Alto production machines at widths of 40 inches. We expect to have this process also established in one of our newer production machines in Tempe by the end of the year, which we anticipate will give us better control and substantial additional capacity," he concluded.

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) 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 user comfort and reduce energy costs. Southwall exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, and Mitsubishi Electric.

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 that customer demand for Southwall`s LCD products or PDP filter products will not grow or will decline, that Southwall will experience manufacturing or quality problems in the future or that the Company will not have production capability for its new LCD product in place on a machine in Tempe by the end of 2002 or ever. 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 Form 10-Q.



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Contact:

Southwall Technologies Inc.
Thomas G. Hood, 650/962-9111
[e-mail]
Robert R. Freeman, 650/962-9111
[e-mail]

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Southwall Technologies Inc. Announces Closing of Public Offering of Shares of Common Stock
PALO ALTO, Calif.--(BUSINESS WIRE)--July 8, 2002--Southwall Technologies Inc. (SWTX) announced the completion on June 8, 2002 of a follow-on public offering of 3,500,000 shares of its common stock at a price of $4.50 per share. The managing underwriters for the offering were Needham & Company, Inc., Adams, Harkness & Hill, Inc. and Wells Fargo Securities, LLC. All of the shares were sold by the company. The net proceeds to the company from the offering were approximately $14.8 million.

Southwall 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 user comfort and reduce energy costs.

Copies of prospectuses relating to the offering may be obtained from the offices of Needham & Company, Inc., 445 Park Avenue, New York, NY 10022, Telephone Number: [phone].

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 are detailed in the Company`s filings with the Securities and Exchange Commission, including those set forth in the Company`s S-1, as amended, that was declared effective by the SEC on June 27, 2002.



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Contact:

Southwall Technologies Inc.
Thomas G. Hood, 650/962-9111 (President and CEO)
[e-mail]
Robert R. Freeman, 650/962-9111 (Sr. VP and CFO)
[e-mail]
www.southwall.com

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Southwall Announces Positive Earnings for Second Quarter
PALO ALTO, Calif.--(BUSINESS WIRE)--July 22, 2002--Southwall Technologies Inc. (NASDAQ:SWTX - News):

Selected Second Quarter Highlights

Southwall recorded net income in the second quarter of 2002 of $1.4 million compared to net income of $1.2 million for the second quarter of 2001
Southwall generated revenues of $19.7 million in the second quarter of 2002 compared to revenues of $21.9 million in the second quarter of 2001
Earnings per share were $0.15 per diluted share on 1.5 million more shares, compared to $0.15 per diluted share in the second quarter of 2001
Southwall Technologies Inc. (NASDAQ:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, today reported financial results for the quarter ended June 30, 2002.

Revenues for the second quarter of 2002 were $19.7 million, a decrease of $2.2 million, or 10 percent, from the $21.9 million achieved in the second quarter of 2001. Sequentially revenues increased 2 percent from $19.3 million in the first quarter of 2002. Automotive product sales were down by 29 percent from the second quarter of 2001. The decline was primarily due to less volume and lower average prices of products sold. Sales of electronic display products decreased 13 percent from the comparable quarter of 2001 primarily as a result of a decrease in Southwall`s average sales prices for products used in flat screen CRT monitors, partially offset by higher sales of products used in LCD`s and Plasma Display products. Sales of architectural products were up 27 percent from the same quarter of 2001 as a result of increased sales of Heat Mirror® products produced as a result of increased manufacturing capacity.

Net income for the second quarter of 2002 was $1.4 million, or $0.15 per diluted share, compared to $1.2 million, or $0.15 per diluted share in the comparable period last year. The net income increase of 17 percent was the result of improved gross margins of 34 percent compared to 26 percent for the same period in 2001. Sequentially net income increased $0.2 million, or 17 percent, from $1.2 million in the first quarter of 2002.

"I am pleased to report another quarter of positive earnings despite a softening of demand in the European automobile markets that use our solar control film in the windshields of cars", said Thomas G. Hood, Chief Executive Officer of Southwall Technologies. "Despite the 10 percent revenue reduction in the second quarter of 2002, net income increased as a result of continuing improved gross margins. We were able to improve our gross margins by lowering costs across the company and we continued to benefit from lower cost production from the Company`s plant in Germany."

"On July 8th, Southwall completed its follow-on public offering sale of 3.5 million shares of common stock, raising just under $15 million," reported Robert R. Freeman, Southwall Technologies Senior Vice President and Chief Financial Officer. "This has strengthened the Company`s balance sheet, after a period of significant capital investment, and improved its liquidity during this economic slowdown. As a result of this additional capital, we expect to accelerate the repayment of certain debt this year and we look to put in place more competitively priced credit lines," concluded Mr. Freeman.


Conference Call Information
When: Tuesday July 23, 2002
Time: 11:00am Pacific Daylight Time
Dial-In Number: 1-877-481-7179 (USA/ Canada)
1-706-634-0663 (International)
Name of call: Southwall
Leader: Tom Hood
Playback Number: 1-800-642-1687; 1-706-645-9291 (International)
(2 Hours after Completion of Call)
ID Number: 4994649
Playback Dates: July 23-30, 2002

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) 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 user comfort and reduce energy costs. Southwall exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, and Mitsubishi Electric.

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 shipments to customers will be materially less than anticipated, that production costs at the Company`s German facility, or elsewhere, will increase, that yields and throughputs will not be improved and production targets may not be met, that the building and automotive markets will soften, or that the Company will not repay debt or put in place more competitively priced credit lines, as described above, as well as risks associated with its failure to meet covenants under credit facilities and strains on the Company`s liquidity. Further risks are detailed in the Company`s filing with the Securities and Exchange Commission, including those set forth in the Company`s most recent Form 10-K filed on April 1, 2002 and Form 10-Q, filed May 17, 2002.


Consolidated Balance Sheet
(dollars in thousands, except per share data)

June 30, Dec. 31,
2002 2001
(unaudited)

ASSETS
Current assets
Cash and cash equivalents $ 1,561 $ 3,362
Restricted cash 987 1,602
Accounts receivable, net of allowance
for bad debts of $329 and $389 9,783 9,020
Inventories, net 7,036 6,151
Other current assets 2,512 3,471
Total current assets $21,879 $23,606

Property, plant and equipment, net 48,368 47,841
Restricted loan proceeds 836 738
Other assets 1,627 973
Total assets $72,710 $73,158

LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Current portion term debt $ 7,586 $ 8,315
Line of credit 3,385 2,974
Accounts payable 7,554 10,338
Accrued compensation 2,524 2,794
Other accrued liabilities 4,838 5,656
Total current liabilities 25,887 30,077

Term debt 13,361 14,513
Government grants advanced 762 941
Other 1,158 1,175
Total liabilities 41,168 46,706

Stockholders` equity:
Common stock, $0.001 par value,
20,000 shares authorized; issued
and outstanding 8,666 and 8,332 9 8
Capital in excess of par value 54,348 52,614
Notes receivable (122) (88)
Other comprehensive income
Translation loss on subsidiary 645 (172)
Accumulated deficit (23,338) (25,910)
Total stockholders` equity 31,542 26,452
Total liabilities and
stockholders` equity $72,710 $73,158

Consolidated Statements of Operations
(dollars and shares in thousands, except per share data)

Three Months Ended Six Months Ended
June 30, July 1, June 30, July 1,
2002 2001 2002 2001
(unaudited) (unaudited)

Net revenues $19,676 $21,946 $38,945 $39,659
Cost of sales 12,954 16,320 25,379 31,169
Gross profit $ 6,722 $ 5,626 $13,566 $ 8,490
Operating expenses
Research and development 2,060 1,184 3,837 2,609
Selling, general
and administrative 2,997 3,057 6,742 5,713
Total costs and expenses 5,057 4,241 10,579 8,322

Income (loss)
from operations 1,665 1,385 2,987 168

Interest expense, net (526) (781) (992) (1,538)

Other income, net 89 500 467 1,364

Income (loss) before provision
for income taxes 1,228 1,104 2,462 (6)

Provision for income taxes (166) (80) (113) (59)

Net income (loss) $1,394 $1,184 $2,575 $ 53

Net income (loss) per share:
Basic $ 0.16 $ 0.15 $ 0.30 $ 0.01
Diluted $ 0.15 $ 0.15 $ 0.27 $ 0.01

Weighted average shares
of common stock and dilutive
potential common stock:
Basic 8,624 8,066 8,521 7,904
Diluted 9,552 8,086 9,417 7,918



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Contact:
Southwall Technologies Inc.
Thomas G. Hood, President and CEO, 650/962-9111
[e-mail]
or
Robert R. Freeman, Sr. VP & CFO, 650/962-9111
[e-mail]
www.southwall.com

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Californian visionaries look east
By By Peter Marsh Jul 26 2002 04:00

A technology once touted as capable of protecting military aircraft from attack is coming to the aid of car drivers.

The process involves "printing" atoms on to thin strips of plastic to reduce the amount of heat passing through vehicle windows, to give motorists a more comfortable ride in hot climates.

It has been pioneered by Southwall Technologies, a 25-year-old company, based in California, that is investing $50m (£32m) in a plant in eastern Germany, its first outside the US.

The factory near Dresden underlines how fairly small companies - in niche areas of technology and with a strong accent on providing a service to their customers - can use overseas investments to increase their market presence.

In the case of Southwall, roughly a third of the costs of establishing its German plant two years ago came through government grants aimed at helping to boost the economy of the comparatively depressed former East Germany.

Inside the plant are three giant machines, each costing about $7m. These coat atoms such as indium, silver and gold on to layers of film to modify the wavelength of light that passes through. The film is sold in strips to glassmakers, which place them between layers of glass in special laminates. These are used in the windows of buildings and vehicles for changing the windows` thermal properties - preventing heat entering and escaping and thus helping in energy conservation.

While use of such glass laminates is far from new, Southwall believes it has a technological lead on other companies that make the plastic film used in such products. An alternative process - used by many of the glassmakers that are Southwall`s customers - is to build up layers of atoms directly on to glass to achieve the same goal of modifying its thermal characteristics. The drawback of treating glass directly is that the glassmaker must invest in expensive thin-film coating machines that are in use for only short periods and whose costs therefore are difficult to justify.

There may also be technical difficulties in coating atoms on to the increasing quantity of glass now made in curved or other unusual shapes (such as that used in car windscreens) and this is another limitation on direct coating .

Wolfgang Heinze, head of Southwall`s European operations, says his company`s film is easy to transport and handle and can be sold to glassmakers in relatively small volumes. That fits in with the trend in many forms of manufacturing to making products in small batches to suit the final user.

"What we do allows customers with no direct coating equipment of their own to offer to the market competitive products," says Mr Heinze.


According to Robert Freeman, Southwall`s chief financial officer, the Dresden plant has significantly lower costs than the company`s two other factories in California and Arizona, partly because of lower labour rates and because of the government contributions to its start-up costs. Most of the grants came through the Berlin-based Industrial Investment Council, a government body aimed at increasing inward investment into the former East Germany.

Mr Freeman says the three special "sputtering" machines in the plant - made by Von Ardenne Anlagen Technik, a Dresden company - are due to be supplemented by two more.

Later on, machines from the same company could be ordered for Southwall`s US plants, both of which rely on machines made by competitors to Von Ardenne.

Southwall was formed in California in 1977 by scientists at Massachusetts Institute of Technology who were keen to capitalise on academic work in making thin films (only a few atoms thick) to change the thermal properties of glass.

One of Southwall`s shareholders in the early 1980s was Lockheed, the US space and defence group. Lockheed believed that some of the company`s basic technology could be used in exotic coatings that would make bomber and fighter aircraft invisible to radar; however, Lockheed`s interest in Southwall was short-lived and the company is no longer a shareholder.

Last year Southwall, which is quoted on the Nasdaq, had sales of $85m, of which about $12m came from the Dresden plant. However, nearly 90 per cent of the company`s total sales go to customers based outside the US. These include glassmakers including Pilkington of the UK, Saint Gobain of France and Asahi of Japan, as well as vehicle makers such as the US- German DaimlerChrysler, Renault of France and Germany`s BMW and Audi.

In the sputtering process, groups of atoms in a vacuum are aimed at a substrate (in this case a plastic film) to build up, atom by atom, a layer of material that is just a few nanometres thick. The modified plastic sheet is sold in rolls typically 2m wide and up to 3km long, for a few dollars per square metre.

Southwall is not the only company selling such modified films; others include 3M and Solutia of the US and Bekaert, a Belgian company best known for making steel wire.

However, Southwall - which recently raised $15m in the stock market to support future investments - believes its long experience with sputtering technology gives it an advantage over its larger competitors. "There are alternative ways of building up atoms on to plastic but we think we have a lead both technically and in terms of our relations with customers," says Mr Heinze. With its low costs and closeness to many of the large European businesses that Southwall expects to be users of its technology, the Dresden plant is likely to play a bigger part in the fortunes of the company in the next few years.

[MoMoFai]

SWTX ist ein ganz klarer Kauf, kein Verlustquartal, aber man kann das nur in den USA tun, da hier keine Liquidität ist. -MoMoFai-

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Southwall Names Michael E. Seifert as Sr. Vice President and Chief Financial Officer
Tuesday December 17, 7:01 am ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 17, 2002--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, has named Michael E. Seifert to the position of senior vice president and chief financial officer. Seifert most recently served as chief financial officer of SiteSmith, Inc., a privately held provider of Internet infrastructure and managed services, located in Santa Clara, Calif. He replaces Robert R. Freeman, who joined Southwall in September 2000 and has left the company to pursue other business interests.
Prior to joining SiteSmith, Seifert held a number of senior financial management positions in the high-technology industry, including vice president and chief financial officer of Wayfarer Communications, Inc.; vice president of finance at Compression Labs, Inc.; and corporate controller at PMC-Sierra (Nasdaq:PMCS - News). Seifert also spent 10 years at Ernst & Young, where he became senior manager and principal in the firm`s San Jose, California office. He presently serves on the board of directors of Applied Wave Research, Inc., a privately held software company located in Southern California. Seifert is a magna cum laude graduate of Santa Clara University with a B.S. degree in commerce with a major in accounting and a certified public accountant in the State of California.

"The board of directors and I want to express our heartfelt thanks to Bob Freeman for assisting Southwall in the strengthening and management of our finance and accounting operations over the last two years. We wish him well in his future endeavors," said Thomas G. Hood, president and chief executive officer of Southwall Technologies. "Mike Seifert is an excellent complement to our present management team. We believe that his broad and diverse financial experience will help us to focus the company on increasing sales while improving profitability in the coming years."

Southwall Technologies (www.southwall.com) 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 exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, Hewlett-Packard, and Mitsubishi Electric.

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 addition of Mr. Seifert will not be successful, that the Company will not be able to increase sale or improve profitability, that shipments to customers will be materially less than anticipated, that the installation of the new production machine in Germany will take longer or be more expensive than we anticipate, that yields and throughputs will not be improved and production targets may not be met, or that the markets will soften, as well as risks associated with its failure to meet covenants under credit facilities and strains on the Company`s liquidity. Further risks are detailed in the Company`s filing with the Securities and Exchange Commission, including those set forth in the Company`s most recent Form 10-K filed on April 1, 2002, and Form 10-Q, filed November 13, 2002.



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Contact:
Southwall Technologies Inc.
Thomas G. Hood, 650/962-9111
[e-mail]
www.southwall.com



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Source: Southwall Technologies Inc.

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Southwall and BERLINER GLAS Announce New Product Designed Into Hewlett-Packard`s New Tablet PC
Tuesday December 17, 1:26 pm ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 17, 2002--Southwall Technologies Inc. (Nasdaq:SWTX - News) and BERLINER GLAS, Berlin, Germany, revealed today that the new Compaq 1000 Tablet PC`s LCD display benefits from a high performance film to glass laminate produced by the two companies. Combining Southwall`s anti-reflective film with Berliner Glas` anti-glare technical glass greatly reduces unwanted reflected light and provides a smooth, strong writing surface. Both are important needs for Tablet PC users.
ADVERTISEMENT


The Compaq 1000 is a fully functional PC in a slate like design on the display of which the user is able to write to take notes or access files. The unit can be used flat on a desk like a pad of paper, or held at an angle. Southwall`s sputter coated thin film ARC2 product provides high visible transmission to maintain optical clarity, while greatly reducing reflected ambient light and significantly improving the viewing experience for LCD users.

The glass finished by BERLINER GLAS is etched in order to avoid reflection and to guarantee clear, true colors. The glass can be etched single or double sided in a thickness of 1mm - 6 mm with various levels of surface roughness and gloss values. Additionally, the panel is chemically strengthened and laminated with Southwall`s anti-reflective film. Finally, the silk screen printing provides functional support and accentuate the design of the Tablet PC.

"The Southwall anti-reflective film allows us to achieve the critical optical and mechanical performance demands for the Compaq Tablet PC display glass," stated Jorg Bannicke, Vice President of Berliner Glas. "Laminating the Southwall Technologies film to our glass easily integrates into our manufacturing process."

"The ARC2 high performance anti-reflective film enhances the Berliner Glas anti-glare glass providing the highly desirable surface characteristics for the new Compaq 1000 Tablet PC," said Thomas G. Hood, President and CEO, Southwall Technologies. "This application is complementary with other high performance films we have employed in electronic displays to reduce reflection. This new and exciting application showcases our ability to quickly develop high performance antireflective solutions to satisfy the display industry`s increasing needs for improved optical performance. We are pleased to be partnering with Berliner Glas."

According to several industry sources, tablet PC units sold by all manufacturers are expected to reach at least 7 million over the next year, depending on, among other market factors, the rate of early adoption.

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) 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 exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, and Mitsubishi Electric.

About BERLINER GLAS

BERLINER GLAS offers display panels made of glass or plastics with various functional features like single or double-sided optical or chemical anti-reflection layers, lamination with coated films, mesh films to avoid electromagnetic radiation (EMC), PVB films and silk screen printing with 2-component, UV or frit-ink colors. Furthermore, BERLINER GLAS offers a wide range of options for glass refinement. These panels constitute an important component for all applications in which making information visible is involved.

BERLINER GLAS supplies precision optics and technical glass to top suppliers in the strategic market segments of information technology and communications, industrial sensors, the semiconductor industry, as well as medical technology and biotechnology, and offers solutions for all areas of industry making use of light. The BERLINER GLAS Group employs around 630 people today in Germany, Switzerland and the USA.

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 Compaq will decide to use another supplier of anti-reflective films for some or all of its Tablet PC in the future, that the number of Tablet PCs sold will be significantly fewer than expected, that production costs at the company`s facilities will increase, that Southwall will experience manufacturing or quality problems in the future that will impair its ability to produce or provide sufficient quantities of product for Compaq, that actual orders for products or revenues to Southwall for use in Tablet PCs will be materially lower than expected, that Southwall will experience significant warranty or indemnification obligations in connection with the product produced for Compaq, that Southwall`s costs to produce product for Compaq will be higher than anticipated, that the agreement will not be profitable to Southwall, that Southwall will be directly or indirectly harmed by negative developments for Compaq and/or Berliner Glas, as well as risks associated with Southwall`s failure to meet covenants under credit facilities and strains on the company`s liquidity. 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 filed on April 1, 2002 and its most recent Form 10-Q filed on November 13, 2002.



--------------------------------------------------------------------------------
Contact:
Southwall Technologies
Sicco W. T. Westra, 650/962-9111
[e-mail]
John J. O`Reilly, 650/962-9111
[e-mail]
Fax: [phone]
or
BERLINER GLAS
Jorg Bannicke, [phone]
[e-mail]
Astrid Freiding, [phone]
[e-mail]
Fax: [phone]
www.berlinerglas.com



--------------------------------------------------------------------------------
Source: Southwall Technologies

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Southwall Restructures Palo Alto Operations to Improve Cost Structure
Wednesday December 18, 5:01 pm ET
Expects to Take Charge in Fourth Quarter


PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 18, 2002--Southwall Technologies Inc. (NASDAQ: SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, today announced that it has commenced restructuring actions to improve its cost structure for 2003 and 2004.
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These actions include a reduction in force and a progressive consolidation of facilities in the company`s Palo Alto, California operations, in conjunction with a transfer of product lines to its expanding manufacturing operations in Dresden, Germany. In the fourth quarter, Southwall expects to take a restructuring charge of between $2.5 million and $3.0 million for severance costs related to the reduction in force and recognition of remaining lease obligations for excess facilities in Palo Alto.

The reduction in force affected approximately 37 positions, or 13% of Southwall`s total headcount, and followed the earlier reductions announced in August 2002. Severance costs associated with these positions are estimated to be approximately $0.4 million. Southwall has reduced its work force by 20% since the beginning of the year and now has approximately 243 employees worldwide. Palo Alto operations currently consist of approximately 107 employees, down from 170 a year ago.

The consolidation of facilities is expected to reduce Southwall`s facilities requirements in Palo Alto from six buildings to three buildings by the end of 2003. The lease on one building is scheduled to expire at the end of 2002. The company plans to vacate two other buildings prior to the expiration of their leases in 2003 and recognize the remaining lease obligations, estimated to be between $2.1 million and $2.6 million, in the fourth quarter of 2002.

As a result of these restructuring actions, Southwall expects to reduce its total operating expenses by approximately $3.7 million in 2003 and approximately $4.4 million in 2004.

"The continued growth and success of our manufacturing operations in Germany have provided sufficient capacity for us to transition a number of product lines from California," said Thomas G. Hood, president and chief executive officer of Southwall Technologies. "Since California operations carry disproportionately higher costs relative to our other plants in Germany and Arizona, it is in the company`s best interests to balance its cost base geographically for improved efficiencies and economies. We believe that reducing our labor and facilities costs now will lead to lower operating expenses and position us for sustainable profitability in the years ahead."

Southwall management plans to have a teleconference at 10:30 a.m. ET / 7:30 a.m. PT on Thursday, December 19, to discuss today`s news and introduce its new senior vice president and chief financial officer, Michael E. Seifert, as announced on December 17. This call will be broadcast live for all investors and archived for one month, until 1/19/03 at www.southwall.com. In addition, a telephone replay will be available until 12/26/02 at [phone], code number 7238130.

Southwall Technologies (www.southwall.com) 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 exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, Hewlett-Packard, and Mitsubishi Electric.

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 cost savings from the above-described restructuring will not be as substantial or as beneficial to the Company as indicated, that the German facility will not have the excess capacity that is anticipated in the future, that the Company`s competitiveness and productivity will not improve, that shipments to customers will be materially less than anticipated, that yields and throughputs will not be improved and production targets may not be met, or that the markets will soften, as well as risks associated with its failure to meet covenants under credit facilities and strains on the Company`s liquidity. Further risks are detailed in the Company`s filing with the Securities and Exchange Commission, including those set forth in the Company`s most recent Form 10-K filed on April 1, 2002, and its most recent Form 10-Q, filed November 13, 2002.



--------------------------------------------------------------------------------
Contact:
Southwall Technologies Inc.
Thomas G. Hood
[e-mail]
Michael E. Seifert
[e-mail]
Phone: [phone]
Fax: [phone]
www.southwall.com



--------------------------------------------------------------------------------
Source: Southwall Technologies Inc.

[megatip]

http://www.securitymagazine.com/CDA/ArticleInformation/featu…

Window Film`s Capacity to Protect Glass
By Bill Zalud


From vandalism and natural disasters to terrorist attacks, one of the most vulnerable and potentially dangerous elements of a building is the glass in windows. One solid product that can help minimize damage and injuries is security window film—and such products are a natural in retrofit situations. Existing glass in buildings was not designed to resist wind blown debris, earthquakes, gunfire, forced entry, explosions and terrorist attacks. Subject to such stresses, existing glass often breaks into lethal shards and falls or is hurled from the window frame, endangering building occupants and passers by. Broken glass also causes damage to the building that would not have occurred had the glass remained in its frame.



Holding Power
Security window film can improve the ability of existing glass to mitigate the impact of explosive force and wind blown debris. The primary function of security film is to hold glass intact in the event of it being broken. If a window with security window film breaks, the film holds the glass shards intact preventing them from becoming lethal flying or falling projectiles. In some cases, the glass may shatter but remain intact in its original frame. The need to better protect glass in buildings has been sharpened after a series of natural disasters and international terrorist attacks during the late 1990s and culminating in the shock of September 11th. For example, according to the Downing Assessment, an unclassified report by the U.S. Secretary of Defense, broken glass in the terrorist bombing of Khobar Towers, a housing facility at the US Air Force base in Dhahran, Saudia Arabia, resulted in over 330 injuries and 19 fatalities. The report estimates 80-90 percent of those injuries were caused by broken glass.



Common Incidents
Beyond rare terrorism incidents, most injuries from glass, says the Houston, Tex.-based V-Kool, Inc., a source from reflective and security applied films, center on people walking into or through a pane of glass. By the time an individual realizes that he has walked into the glass he has already broken the glass and does not have sufficient time to backtrack. As soon as the glass is broken, it falls and causes injuries to the knee and upper leg. Statistically, the next most likely area of injury is to the head, neck and shoulder. There are about 150,000 glass-related accidents in the U.S. annually. No matter the cause of damage, there are products that can reduce the danger of injury and death from glass. One option is laminated glass. This is where there are two or more pieces of glass bonded by a polyvinyl butyral (PVB) plastic interlayer used in architectural glass products and in automotive and aircraft windshields. Many manufacturers including Guardian, Cardinal and Southwall Technologies make laminated glass. Laminated glass can provide both insulation and solar reflectivity plus increased resistance to forced entry, wind blown debris, seismic and explosive force. Not all window frames can support the weight and thickness of laminated glass. With laminated glass, there is a trade off between energy and safety/security performance. Resistance to force also impedes the ability to break laminated glass for emergency entrance or egress though such concerns are not relevant in high rise applications. Another option is security window film.



Layered Protection
Security window film is comprised of either optically clear, tinted or reflective layers of polyester film (from 4-mil to 15-mil in thickness) that have an adhesive on one side so that it can be adhered to the interior surface of existing glass. Multiple layers of film can be laminated together, with commercially available overall thicknesses ranging from two to 15 mils. The material is packaged in rolls, with a maximum available width of 72 inches. It is usually applied in the field with the glass and frame already in place. Occasionally film is applied on new glass before that glass has been installed. Typical film installations cover the visible portion of the interior surface of the glass all the way to the edge of the frame, but do not extend to the glass edge within the frame. Film can be applied to both single pane and many types of insulating glass. Proper application of appropriate film to insulating glass does not impact integrity of insulating glass sealant or generate thermal stress to glass from uneven heat absorption. However, even proper film installation may invalidate glass and window manufacturer warranties. Security film with solar control and other energy saving capability greatly varies depending on the type of existing glass to which it is applied. Applied security window film is available with and without solar control capabilities. When properly installed, this film forms an invisible protective coating over the glass. When the glass breaks, the film holds the glass shards intact, preventing them from becoming lethal flying or falling projectiles. In some cases, the glass may shatter but remain intact in its original frame.



Absorbs Shocks, Too
Because security window film has the ability to stretch without tearing, it can absorb a significant degree of the shock wave of an explosion. As this explosive force moves toward the glass and pushed it inward, the glass eventually cracks and breaks. However, the security film applied to the rear of this pane of glass continues to absorb the shock wave and stretches until it reaches the point that it can no longer bear the pressure, at which time it will burst. In some cases, the shock wave, when great enough to break the glass, is not enough to shear the safety film. This results in the pane of glass being broken but held intact by the film. In these cases, not only are there no injuries, but there is no damage to the property inside the building. In other cases, the shock wave is sufficient to break the glass and shear the film. In many of these cases, the glass collapses in one pile attached to the security film with minimal damage and injuries. In multi-story buildings, security film may also prevent glass from falling out of its frames to the street below. Both laminated glass, if properly installed in window frames capable of supporting its weight, and security window film, if properly installed in existing window frames, may mitigate the impact of explosions, forced entry, wind blown debris and seismic forces generated by earthquakes. It is important to note that the ability of both laminated glass and security window film to mitigate the impact of explosions, wind, earthquakes and forced entry depends to a great extent on the relationship of the glass and film to the supporting window frames.



Window Frame Important
In the case of laminated glass, the window frame must support the weight of the glass in order for the total glass and window system to increase the ability to mitigate explosive and other forces. Just installing laminated glass in existing window frames may not prevent the glass from separating from the frames when force is experienced. Similarly, the ability of security window film to empower existing glass and windows to mitigate explosive and other forces may increase if the film is not only applied to the glass, but attached to the frame as well. Many window film manufacturers, distributors and installers have developed retrofit film attachment mechanisms for securing the film to the window frame. Such mechanisms include securing bars, edge-to-edge dry lamination techniques and proprietary frames and sealants. One final film twist: V-Kool markets a spectrally selective security film that also blocks heat while transmitting normal levels of light. Beyond helping to minimize glass break damage, this approach saves energy dollars by minimizing overheating while insulating against heat loss.





Bill is the Editor of Security Magazine, and he can be reached at [phone].






die übersetzung:




Kapazität des Fenster-Filmes, Glas durch Bill Zalud zu schützen Vom Vandalismus und von den Naturkatastrophen zu den Terroristangriffen, ist eins der verletzbarsten und möglicherweise gefährlichsten Elemente eines Gebäudes das Glas in den Fenstern. Ein festes Produkt, das helfen kann, Beschädigung und Verletzungen herabzusetzen, ist Sicherheit Fenster film?and, das solche Produkte in den Umbausituationen ein natürliches sind. Vorhandenes Glas in den Gebäuden wurde nicht entworfen, um Wind durchgebranntem Rückstand, Erdbeben, Maschinengewehr, Zwangseintragung, Explosionen und Terroristangriffen zu widerstehen. Abhängig von solchen Drücken bricht vorhandenes Glas häufig in lebensgefährliche Shards und in Fälle oder wird vom Fensterrahmen geschleudert und gefährdet Gebäudeinhaber und passers durch defektes Glas verursacht auch Beschädigung des Gebäudes, das nicht hatte das Glas blieb in seinem Rahmen aufgetreten sein würde. Das Halten des Energie Sicherheit Fensterfilmes kann die Fähigkeit des vorhandenen Glases verbessern, die Auswirkung der explosiven Kraft abzuschwächen und durchgebrannten Rückstand zu wickeln. Die Primärfunktion des Sicherheit Filmes ist, Glas intact zu halten im Falle von ihr brechend. Wenn ein Fenster mit Sicherheit Fensterfilm bricht, hält der Film die Glasshards intakt, sie an werdenem lebensgefährlichem Fliegen oder an fallenden Geschossen verhindernd. In einigen Fällen kann das Glas intact zerbrechen aber in seinem ursprünglichen Rahmen bleiben. Nach einer Reihe Naturkatastrophen und internationalen Terroristangriffen während der späten neunziger Jahre und dem Kulminieren im Schlag von September 11. die Notwendigkeit, Glas in den Gebäuden besser zu schützen ist geschärft worden. Z.B. entsprechend der niederwerfenden Einschätzung, resultierte ein nicht klassifizierter Report durch die VEREINIGTE STAATEN Sekretärin der Verteidigung, gebrochenes Glas in der Terroristbombardierung der Khobar Aufsätze, ein Gehäuse-Service am US Luftwaffenstützpunkt in Dhahran, Saudia Arabien, innen über 330 Verletzungen und 19 Verhängnissen. Die Reportschätzungen 80-90 Prozent jener Verletzungen wurden durch defektes Glas verursacht. Allgemeine Ereignisse über seltenen Terrorismusereignissen hinaus, die meisten Verletzungen vom Glas, sagt das Houston, Tex.-based V-Kool, Inc., eine Quelle von den reflektierenden und Sicherheit aufgetragenen Filmen, Mitte auf den Leuten, die in oder durch eine Scheibe des Glases gehen. Bis eine Einzelperson feststellt, daß er in das Glas gegangen ist, hat er bereits das Glas gebrochen und nicht genügende Zeit hat denselben Weg zurüczukverfolgen. Sobald das Glas defekt ist, fällt es und verursacht Verletzungen zum Knie und zum oberen Bein. Statistisch ist der folgende meiste wahrscheinliche Bereich der Verletzung zum Kopf, zum Ansatz und zur Schulter. Es gibt ungefähr 150.000 Glas-in Verbindung stehende Unfälle in den VEREINIGTEN STAATEN jährlich. Keine Angelegenheit die Ursache der Beschädigung, dort sind Produkte, die die Gefahr der Verletzung und des Todes vom Glas verringern können. Eine Wahl ist lamelliertes Glas. Dieses ist, wo es zwei oder mehr Stücke Glas abgebunden durch eine butyral (PVB) Plastikpolyvinylzwischenlage gibt, die in den architektonischen Glasprodukten und in den Automobil- und Flugzeugwindschutzscheiben benutzt wird. Viele Hersteller einschließlich des Wächters, des Kardinals und der Southwall Technologien bilden lamelliertes Glas. Lamelliertes Glas kann Isolierung und Solarreflexionsvermögen plus erhöhten Widerstand zu Zwangseintragung, zu Wind durchgebrannter Rückstand-, seismischer und explosiverkraft zur Verfügung stellen. Nicht alle Fensterrahmen können das Gewicht und die Stärke des lamellierten Glases stützen. Mit lamelliertem Glas gibt es einen Kompromiß zwischen Energie und safety/security Leistung. Widerstand zur Kraft behindert auch die Fähigkeit, lamelliertes Glas für Dringlichkeitseingang oder Egress zu brechen, obwohl solche Interessen nicht in den hohen Aufstieg Anwendungen relevant sind. Eine andere Wahl ist Sicherheit Fensterfilm. Überlagerter Schutz-Sicherheit Fensterfilm wird entweder optisch von den freien, abgetönten oder reflektierenden Schichten des Polyester-Filmes enthalten (von 4-mil zu 15-mil in der Stärke) die einen Kleber auf einer Seite haben, damit sie die Innenoberfläche des vorhandenen Glases angehaftet werden kann. Die mehrfachen Schichten des Filmes können zusammen lamelliert werden, wenn die im Handel erhältlichen gesamten Stärken von zwei reichen, bis 15 Mil. Das Material wird in den Rollen, mit einer maximalen vorhandenen Breite von 72 Zoll verpackt. Es wird normalerweise auf dem Gebiet mit das Glas und Rahmen bereits im Platz angewendet. Gelegentlich wird Film auf neuem Glas vorher aufgetragen, daß Glas angebracht worden ist. Typische Filminstallationen umfassen den sichtbaren Teil der Innenoberfläche des Glases vollständig zum Rand des Rahmens, aber verlängern nicht auf den Glasrand innerhalb des Rahmens. Film kann einzelne Scheibe und viele Arten isolierendes Glas. Korrekte Anwendung des passenden Filmes zu isolierendem Glas wirkt nicht Vollständigkeit des isolierenden Glasdichtungsmittels aus oder erzeugt thermischen Druck zum Glas von der ungleichen Hitzeabsorption. Jedoch sogar kann korrekte Filminstallation Glas- und Fensterherstellergarantien ungültig erklären. Sicherheit Film mit Solarsteuerung und andere Energieeinsparungfähigkeit schwankt groß abhängig von der Art von des vorhandenen Glases, an der sie angewendet wird. Angewandter Sicherheit Fensterfilm ist mit und ohne Solarsteuerfähigkeiten vorhanden. Wenn er richtig angebracht wird, bildet dieser Film eine unsichtbare schützende Schicht über dem Glas. An wann das Glas bricht, hält der Film die Glasshards intakt und verhindert sie werdenes lebensgefährliches Fliegen oder fallende Geschosse. In einigen Fällen kann das Glas intact zerbrechen aber in seinem ursprünglichen Rahmen bleiben. Saugt Schläge, auch, weil Sicherheit Fensterfilm die Fähigkeit hat, auszudehnen, ohne heftig zu zerreißen, es kann einen bedeutenden Grad der Stoßwelle einer Explosion aufsaugen auf. Wie diese explosive Kraft in Richtung zum Glas und es schließlich gedrückt Innere, die Sprünge des Glases und Brüche bewegt. Jedoch fährt der Sicherheit Film, der hinter dieser Scheibe des Glases aufgetragen wird fort, die Stoßwelle aufzusaugen und dehnt aus, bis er den Punkt erreicht, daß er den Druck nicht mehr tragen kann, zu welcher Zeit er birst. In einigen Fällen ist die Stoßwelle, wenn groß genug, das Glas zu brechen, nicht genug, zum des Sicherheit Filmes zu scheren. Dieses ergibt die Scheibe des Glases, das intact gebrochen ist, aber durch den Film gehalten ist. In diesen Fällen gibt nicht nur es keine Verletzungen, aber es gibt keine Beschädigung der Eigenschaft innerhalb des Gebäudes. In anderen Fällen ist die Stoßwelle genügend, das Glas zu brechen und den Film zu scheren. Mit in vielen dieser Fälle, stürzt das Glas in einem ein Stapel, der zum Sicherheit Film minimale Beschädigung und Verletzungen angebracht wird. In den Multigeschichte Gebäuden kann Sicherheit Film auch verhindern, daß Glas aus seinen Rahmen heraus zur Straße unten fällt. Beide lamellierten Glas, wenn sie richtig in die Fensterrahmen angebracht werden, die zum Stützen seines Gewichts fähig sind, und Sicherheit Fensterfilm, wenn er richtig in vorhandene Fensterrahmen angebracht wird, kann die Auswirkung von Explosionen, von Zwangseintragung, von Wind durchgebranntem Rückstand und seismischen von Kräften abschwächen, die durch Erdbeben erzeugt werden. Von es ist wichtig, zu merken, daß die Fähigkeit lamelliertes Glas und Sicherheit Fensterfilm, die Auswirkung von von Explosionen, von von Wind, von von Erdbeben und von von gezwungener Eintragung abzuschwächen in einem großen Umfang vom Verhältnis das Glas und Film zu den stützenden Fensterrahmen abhängt. Das Fenster-Feld, das im Kasten des lamellierten Glases, der Fensterrahmen wichtig ist, muß das Gewicht des Glases stützen damit das Gesamtglas- und Fenstersystem, um die Fähigkeit zu erhöhen, abzuschwächen Explosivstoff und andere Kräfte. Lamelliertes Glas in vorhandene Fensterrahmen gerade anbringen kann möglicherweise nicht verhindern, daß das Glas von den Rahmen sich trennt, wenn Kraft erfahren ist. Ähnlich können die Fähigkeit des Sicherheit Fensterfilmes, vorhandenes Glas und Fenster, um Explosivstoff abzuschwächen und andere Kräfte zu bevollmächtigen sich erhöhen, wenn der Film nicht nur am Glas aufgetragen wird, aber außerdem angebracht zum Rahmen. Viele Fensterfilmhersteller, -verteiler und -installateure haben Umbaufilm-Zubehöreinheiten für das Befestigen des Filmes an den Fensterrahmen entwickelt. Solche Einheiten umfassen das Sichern der Stäbe, Rand-zu-Rand der trockenen Laminierungtechniken und der eigenen Rahmen und der Dichtungsmittel. Eine abschließende Filmtorsion: V-Kool vermarktet einen spektral vorgewählten Sicherheit Film, der auch Hitze beim Übertragen der normalen Niveaus des Lichtes blockiert. Über dem Helfen hinaus, Glasbruchbeschädigung herabzusetzen, speichert diese Annäherung Energiedollar, indem sie herabsetzt die Überhitzung beim Isolieren gegen den Wärmeverlust.

[panik]

Southwall Signs Chinese Supply and Manufacturing Agreement
Monday January 6, 9:15 am ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Jan. 6, 2003--Southwall Technologies Inc. (Nasdaq:SWTX - News) announced today that it signed a new, four-year supply and manufacturing agreement with Xinyi Group (Glass) Co. Ltd. of China. Under the contract Southwall agreed to supply Xinyi with Southwall`s automotive and architectural XIR® films products through September 2006. During the term of the agreement, Southwall will license Xinyi to manufacture laminated glass units using XIR® film. Southwall has agreed that it will not appoint other companies to manufacture laminated glass units using XIR® films in Peoples Republic of China, including Hong Kong and Macau, during the term of the agreement, so long as Xinyi purchases minimum annual amounts of XIR film. Based on current pricing and assuming Xinyi purchases the minimum required amounts, sales volumes of Southwall products shipped to Xinyi over the life of the contract are expected to grow significantly year-to-year, and totaling at least $6.5 million over the contract term.
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The XIR®-based glass products manufactured under the new agreement were officially launched by Xinyi on January 6, 2003, at the opening of their new tempering facility in Shenzhen, China.

"This is our first agreement with respect to our automotive XIR® films in mainland China, and we are very pleased to be doing business with Xinyi," stated Thomas G. Hood, President and CEO of Southwall. "Xinyi will not only export the glass units, but also sell them domestically. China has a burgeoning passenger vehicle market that has shown astounding growth this year, with sales numbers running at a 40% increase over 2001 numbers. Presently 95% of the passenger cars sold in China are built there."

"Our high performance XIR® products block near infrared and ultraviolet energy," Hood continued, "while allowing visible light to pass through. Consumers with XIR® films in their autos and residences will enjoy clear unobstructed views, with less sun damage while also receiving the benefits of comfort and energy savings."

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) 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 exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, HP and Mitsubishi Electric.

About Xinyi

Xinyi Group (Glass) Co., Ltd., founded in Shenzhen, China in 1989, is one of the leading manufacturers of automobile glass products in the world and is an OEM glass supplier for automobile manufacturers in China. The company specializes in manufacturing glass for automobile, architecture, furniture, electronic, bulletproof, and other safety glass products. It can produce over 15,000 models of auto glass and has the largest laminated windshield workshop in China with annual capacity of 3 million pieces. With an enterprising spirit Xinyi has the largest tempered glass workshop in China with annual consumption of more than 80,000 tons of float glass in 2002. Since its inception, Xinyi has invested 850 million RMB and currently covers an area of 296,000 square meters. Xinyi is the largest safety glass manufacturer in China and one of the largest automobile glass suppliers in the world. For more information contact Mr. Zhenguo Wang, XIR Project Manager, [phone], [e-mail], www.xinyiglass.com.

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 agreement between Southwall and Xinyi will be terminated by either party, that provisions of the agreement may be declared unenforceable, that customer demand for the products covered by the agreement will be less than expected, that production costs at the company`s facilities will increase, that Southwall will experience manufacturing or quality problems in the future that will impair its ability to produce or provide sufficient quantities of product under the agreement with Xinyi, that actual orders for products or revenues to Southwall under the agreement with Xinyi will be materially lower than those described above, that Xinyi will not purchase the minimum amounts set forth In the agreement, that Southwall will experience significant warranty or indemnification obligations in connection with the agreement, that Southwall`s costs to produce product for Xinyi will be higher than anticipated, that the agreement will not be profitable to Southwall, that Southwall will be directly or indirectly harmed by negative developments for Xinyi and/or that the exclusivity provisions applicable to Southwall will have a negative affect, as well as risks associated with doing business in China and Hong Kong and/or Southwall`s failure to meet covenants under credit facilities and strains on the company`s liquidity. 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 filed on April 1, 2002 and its most recent Form 10-Q filed on November 13, 2002.



--------------------------------------------------------------------------------
Contact:
Southwall Technologies Inc.
Sicco W. T. Westra, 650/962-9111
[e-mail]
John J. O`Reilly, 650/962-9111
[e-mail]



--------------------------------------------------------------------------------
Source: Southwall Technologies Inc.

[panik]

Southwall Technologies and Mitsui Chemicals Sign Volume Supply Agreement with Expected Minimum Value of $21 Million
Wednesday July 23, 4:14 pm ET


PALO ALTO, Calif.--(BUSINESS WIRE)--July 23, 2003--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, and Mitsui Chemicals, Inc. of Japan, a leading global manufacturer of high-performance optical filters and backlighting substrates for flat panel displays, have signed an exclusive agreement for Southwall to supply Mitsui with sputtered film products for Plasma Display Panel (PDP) and Liquid Crystal Display (LCD) applications.
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Under the terms of the agreement, Southwall will supply certain proprietary sputtered film products to Mitsui Chemicals for its exclusive use worldwide through December 31, 2006. Mitsui has an option to extend the agreement beyond that date. Based on the current pricing and the minimum quantities required for purchase and delivery, the sales value for Southwall over the initial two years of the agreement is expected to be at least U.S. $21 million. Mitsui may also purchase other Southwall sputtered film products for use in automotive and architectural applications on a non-exclusive basis under the agreement.

The optical films to be supplied by Southwall under this agreement perform a number of important functions in flat panel displays. These include reducing ambient surface light reflection from the front of display screens, decreasing electronic and infrared emissions within displays, and increasing the brightness of LCDs through the enhancement of backlighting.

"Mitsui Chemicals and Southwall Technologies have a long and productive history of working together," said Mr. Akihide Kudoh, general manager, Information Materials Division, Functional Chemicals and Engineered Materials Business Group of Mitsui Chemicals. "We are very excited about the growth potential of the PDP and LCD display markets and view Southwall as an excellent strategic supply partner. Mitsui plans continued strong investment in these new display areas and has expectations of continuing its market leadership through the use of Southwall`s products."

"Mitsui Chemicals and Southwall are now aligned to effectively serve the rapidly growing needs of the flat panel display market," said Mr. Thomas Hood, president and chief executive officer of Southwall Technologies. "This agreement recognizes and capitalizes on the strengths of both companies. We have worked closely with Mitsui for over 18 years and view this as an exciting opportunity. Continued strong demand in the PDP and LCD display markets, along with Southwall`s continued product innovation, has the potential to increase the expected value of the agreement significantly through the end of 2006. In addition to the display markets, we also expect this agreement to enhance our sales in the automotive and architectural markets in Japan."

About Mitsui Chemicals, Inc.

Headquartered in Tokyo, Japan, Mitsui Chemicals, Inc. is a diversified chemical company with offices in Europe, China, Korea, Southeast Asia, and America. A worldwide leader in the chemical industry, the company is actively engaged in numerous industry segments, including Petrochemicals, Basic Chemicals, Functional Polymeric Materials, and Functional Chemicals and Engineered Materials. For more information on Mitsui Chemicals, Inc., visit the corporate website at www.mitsui-chem.co.jp

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 exports 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 agreement between Southwall and Mitsui (the "Agreement") will be terminated in whole or in part by one party or the other, that provisions of the Agreement (including those requiring Mitsui to purchase set amounts of products from Southwall and to pay even if it does not accept delivery) may be declared unenforceable, that customer demand for the products covered by the Agreement will be less than expected, that Southwall`s production costs associated with the products covered by the Agreement will increase, that Southwall will experience manufacturing or quality problems in the future that will impair its ability to produce or provide sufficient quantities of products under the Agreement, that the Agreement will not enhance Southwall`s sales in the automotive and architectural markets in Japan, that actual orders for products or revenues to Southwall under the Agreement will be materially lower than those described above, that Mitsui will not purchase the minimum amounts set forth in the Agreement, that Southwall will experience significant warranty or indemnification obligations in connection with the Agreement, that Southwall`s costs to produce product for Mitsui will be higher than anticipated, that the Agreement will not be profitable to Southwall during some or all periods covered by the Agreement, that Southwall will be directly or indirectly harmed by negative developments for Mitsui, that the exclusivity provisions in the Agreement applicable to Southwall will have a negative effect, that the penalty provisions in the Agreement for late product delivery will adversely affect Southwall, that Southwall will not achieve any future growth or will experience losses, that Southwall`s growth strategies will not be successful, and that shipments to customers will be materially less than anticipated, as well as risks associated with Southwall`s failure to meet covenants under credit facilities and strains on the company`s liquidity. 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, and Quarterly Report on Form 10-Q for the quarter ended March 30, 2003, filed on May 14, 2003.



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Contact:
Southwall Technologies
Thomas G. Hood, 650-962-9111 (President & CEO)
[e-mail]
Michael E. Seifert, 650-962-9111 (Sr. VP & CFO)
[e-mail]
www.southwall.com



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Source: Southwall Technologies

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Southwall Technologies Secures New Bank Loan and Equity Financing Agreement Led by Needham & Company
Friday December 19, 7:50 am ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 19, 2003--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
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"As noted in our news release on third-quarter 2003 results, we recognize the urgent need to reduce our spending and raise additional cash," said Thomas G. Hood, Southwall`s president and chief executive officer. "We believe that this agreement, led by Needham, in conjunction with significant internal changes already in progress, will enable Southwall to achieve quarterly cash break-even in 2004 and begin generating positive cash flow from operations as soon as possible after that. We expect that the Needham led financing will give us the additional time we need to achieve production qualification for the exciting design-ins we have been actively working in the electronic display market."

If all of the transactions contemplated by the agreement between Southwall and the Needham led group are completed, Southwall will receive up to $3,000,000 in new borrowings from Pacific Business Funding(1) (which are to be guaranteed by Needham) and up to $4,500,000 in cash in exchange for 4,500,000 shares of a newly issued convertible preferred stock. As part of the guarantee and equity purchases, if any, the investors will also receive warrants to purchase common stock. If Needham and its affiliated entities were to exercise all such warrants and convert all such shares of preferred stock, while maintaining its current position of approximately 1,481,000 shares of common stock, then the firm and its affiliated entities would own approximately 6,865,000 shares of Southwall common stock, or about 31% of the total shares outstanding. Dolphin currently does not own any shares of common stock but upon exercise of its warrants would own approximately 2,692,000 shares of Southwall common stock, or about 12% of the total shares outstanding.

Under the terms of the agreement, Needham will issue the guarantees of Southwall`s bank line of credit facility in two separate pieces of $2.25 million and $750,000, respectively, and Needham and Dolphin will purchase the equity in two separate tranches of $1.5 million and $3.0 million, respectively, following the extensions of credit under the new facility. The new borrowings and the purchase of each equity tranche would be subject to Southwall`s satisfaction, in Needham`s reasonable discretion, of certain conditions. These conditions would include, among other things, the receipt of concessions from creditors and landlords, completion of certain restructuring actions and the achievement of cash flow break-even at quarterly revenue levels below those of third quarter 2003. There is no assurance, however, that any of these conditions will be satisfied.

The board has appointed George Boyadjieff to succeed Joseph B. Reagan as Southwall chairman effective on Dec. 18, 2003. Dr. Reagan will remain on the board. Mr. Boyadjieff is the chairman emeritus and recently retired chief executive officer of Varco International, Inc. (NYSE:VRC - News), a diversified oilfield equipment manufacturer and service provider with over $1.3 billion in fiscal 2002 revenues.

For a complete description of the Needham bank guarantee and equity financing package, please refer to Southwall`s Form 8-K, to be filed with the Securities and Exchange Commission on or about Dec. 22, 2003, which will include as exhibits the investment agreement and loan documents. The descriptions of those documents in this press release are qualified in their entirety by reference to the actual documents.

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 exports 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.

About Needham & Company

Needham & Company, Inc. is a leading U.S. investment banking, securities and asset management firm focused primarily on serving emerging growth industries and their investors. Further information is available at www.needhamco.com.

About Dolphin Asset Management

Dolphin Asset Management Corp. is a New York-based asset management firm investing exclusively in micro-cap opportunities.

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, specifically that the conditions for Needham`s obligations to provide one or more of the guarantees or to buy some or all of the company`s preferred stock will not be satisfied or that such guarantees will otherwise not be provided or that such shares will otherwise not be purchased; that the conditions for Dolphin`s obligations to buy some of the company`s preferred stock will not be satisfied, that the company`s lenders, landlords, lessors, vendors, or other creditors will not agree to amendments of their arrangements with the company that are satisfactory to Needham or at all; that Southwall will not have enough authorized capital stock to fulfill its obligations to Needham and Dolphin which may result in damages or the inability of Southwall to sell the company`s preferred stock, that the guarantees and the proceeds from the stock sales described herein will not be sufficient to allow Southwall to meet its obligations or otherwise remain liquid; that the company will default under its credit facility or under agreements with Needham or Dolphin; that the company will not receive an exemption from the Nasdaq National Market stockholder approval requirements; that Southwall`s common stock may be voluntarily or involuntarily removed from listing on the Nasdaq National Market; that the company`s circumstances will trigger defaults under one or more of its borrowing arrangements; and that the transactions contemplated in this release will have a material adverse effect on the trading price of Southwall`s common stock, as well as risks associated with the company`s failure to meet covenants under credit facilities and strains on its liquidity. The failure of Southwall to satisfy the conditions to the completion of the financing package, including entering into satisfactory arrangements with its landlords and other creditors, will have a material adverse effect on Southwall`s future viability. 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 Dec. 31, 2002, filed on March 31, 2003; its Quarterly Report on Form 10-Q for the quarter ended Sept. 28, 2003, filed on Nov. 17, 2003, as amended by its Quarterly Report Form 10-Q/A, filed on Nov. 19, 2003; its Current Reports on Form 8-K, filed on Dec. 9, 2003 and Dec. 16, 2003, respectively; and its Current Report on Form 8-K to be filed on or about Dec. 22, 2003.

(1) Pacific Business Funding is a division of Cupertino National Bank, which is a subsidiary of Greater Bay Bancorp (Nasdaq:GBBK - News). Southwall announced a one-year, $10-million factoring line of credit facility with Pacific Business Funding on May 21, 2003.

--------------------------------------------------------------------------------
Contact:
Southwall Technologies
Thomas G. Hood, 650-962-9115 ext. 1139 (President/CEO)
[e-mail]
Michael E. Seifert, 650-962-9115 ext. 1225 (Sr. VP/CFO)
[e-mail]



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Source: Southwall Technologies Inc.

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Southwall Technologies Wins Judgment in Product Liability Case
Wednesday January 7, 8:11 am ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Jan. 7, 2004--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass, and architectural markets, today announced that the United States District Court for the Northern District of California has rendered a final judgment in Southwall`s favor in a product liability case filed by Wasco Products, Inc., a manufacturer and assembler of skylight systems. The judgment resolved a dispute over insulated glass units (IGU`s) manufactured by third parties, which utilized the company`s Heat Mirror® solar control film together with a polyurethane sealant manufactured by Bostik, Inc.
In the matter of Wasco Products, Inc. v. Southwall Technologies Inc., et al., (Civil Action No. 02-2926, pending in the U.S. District Court for the Northern District of California), Judge Saundra Brown Armstrong granted Southwall`s motion for summary judgment on all remaining claims and ruled in favor of Southwall on all of Wasco`s claims for relief. The court also entered final judgment in favor of Bostik. The court denied Wasco`s motion for summary judgment and also dismissed the motion for class certification as moot in light of its final judgment in favor of both defendants. The judgment is subject to appeal by Wasco until January 22, 2004.

"Southwall is very pleased with Judge Armstrong`s ruling on this matter," said Thomas G. Hood, president and chief executive officer. "We have believed from the beginning that the suit was without merit, and the court`s dismissal supports this belief."

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 exports 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. Such risks include without limitation the possibility that the plaintiff may prevail upon appeal or that future plaintiffs making similar or other claims will prevail in lawsuits against Southwall. 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, to be filed on or about January 8, 2004.



--------------------------------------------------------------------------------
Contact:
Southwall Technologies Inc.
Thomas G. Hood, 650-962-9111 (President and CEO)
[e-mail]
Michael E. Seifert, 650-962-9111 (Sr. VP and CFO)
[e-mail]
www.southwall.com



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Source: Southwall Technologies Inc.

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Southwall Technologies Awarded New Two-Year Contract from Saint-Gobain Sekurit
Wednesday January 28, 8:01 am ET


PALO ALTO, Calif.--(BUSINESS WIRE)--Jan. 28, 2004--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, announced today that it has signed a new two-year agreement with Saint-Gobain Sekurit, a worldwide leader in the production of automotive glass, for the purchase of Southwall XIR® solar control films. Under the terms of the agreement, Saint-Gobain Sekurit will purchase more than US$14 million of XIR® 70 and XIR® 75 film between January 1, 2004 and December 31, 2005. Optional volumes available in the final year could increase the total contract value by as much as 30%. This agreement follows a previous two-year agreement between the companies, which expired on Dec. 31, 2003.
"This contract represents an important extension of our ongoing business with Saint-Gobain Sekurit," said Dennis Capovilla, Southwall vice president of worldwide sales. "They are a very important customer in the automotive space for Southwall. We consider the new contract a tremendous vote of confidence from both Saint-Gobain Sekurit and the key European automakers it supplies."

"Southwall has been supplying solar control films to Saint-Gobain Sekurit for more than eight years," added Kevin Walker, Southwall vice president of worldwide marketing. "We are very pleased to continue our partnership in the automotive laminated glass market with one of the leaders in the field."

About Southwall Technologies Inc.

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

About Saint Gobain Sekurit International

Saint-Gobain Sekurit is a leader in the innovation and manufacture of high quality glazing solutions. With a manufacturing presence throughout Europe and extending to Asia and the Americas, Saint-Gobain Sekurit can truly be considered one of the top suppliers of automotive glass to the world.

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 agreement between Southwall and Saint Gobain Sekurit (the "Agreement") will be terminated in whole or in part by one party or the other, that provisions of the agreement, (including those relating to Saint Gobain Sekurit`s purchase obligations) may be declared unenforceable, that customer demand for the products covered by the Agreement will be less than expected, that Southwall`s production costs associated with the products covered by the agreement will increase, that Southwall will experience manufacturing or quality problems in the future that will impair its ability to produce or provide sufficient quantities of products under the agreement, that actual orders for products and/or revenues to Southwall under the Agreement will be materially lower than those described above, that Saint Gobain Sekurit will not purchase the amounts described above, that Southwall will experience significant warranty or indemnification obligations in connect with the Agreement, that the Agreement will not be profitable to Southwall during some or all of the periods covered by the agreement,. That Southwall will be directly or indirectly harmed by negative developments for Saint Gobain Sekurit, and that force majeure events could prevent the performance of the Agreement, as well as risks associated with Southwall`s ability to continue to as a going concern. 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 January 9, 2004.



--------------------------------------------------------------------------------
Contact:
Southwall Technologies Inc.
Dennis, F. Capovilla, 650-962-9111
Vice President, Worldwide Sales
[e-mail]
N. Kevin Walker, 650-962-9111
Vice President, Worldwide Marketing
[e-mail]
www.southwall.com



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Source: Southwall Technologies Inc.

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