Why now? Applied Materials has been making venture investments for some time. We are simply creating a more focused approach to investing by establishing a new vehicle where we can manage our existing portfolio while growing our effort. How is this different from what you had before? The focus of the program has changed to better align our investments with our overall growth strategy and business development activities. By investing closer to our core, future portfolio companies can potentially take advantage of access to Applied Materials’ strong global business relationships and management teams, global brand awareness, laboratories and strong market presence while we benefit from the window they provide into new technology. How much will you invest in companies? In total and per company? Our typical investments range from $250,000 to $3,000,000 per round. And while we do plan to make follow-on investments in our portfolio companies, we will not exceed 20% of investments in any company. What does Applied expect to get in return for these investments? In addition to financial returns our expectation is that Applied Ventures will provide a window to technologies and businesses we don’t necessarily seek to own, but ones that show promise of breakthrough technologies, disruptions or advances that could benefit from Applied’s involvement and lead new growth opportunities. Do you have financial goals (ROI) for the investments? Goals will be established for each investment and measured internally. As with typical venture investments, ROI on individual companies will be expected in 3-6 years. How will you account for the investments made? As we will maintain ownership interest at less than 20%, investments will be accounted for under the Cost Method of accounting for investments. The consideration, plus transaction costs, will be recorded on Applied Materials' balance sheet at fair value, as Other Long Term Assets, and reviewed periodically for declines in value (determined to be other than temporary). Will shareholders have visibility into these investments? We will disclose these activities in our public documents and on this Web site as appropriate. What is the governance structure of Applied Ventures? Applied Ventures, LLC, will be a wholly-owned subsidiary established with the approval of the Board of Directors. The Fund will be managed by George Davis, group vice president of new business development and Mark Pinto, CTO, giving it a base of both technology and financial management. Chris Moran will serve as vice president and general manager of Applied Ventures. Why is the company doing this? This is one facet of our overall growth strategy and is a way of employing assets to identify and stimulate future growth opportunities. These are strategic investments that will be closely managed. What strategic objectives do you hope to accomplish? The new venture program will invest in promising early stage, privately held companies with an intent to stimulate technical innovation in markets that could help drive future growth. Why don’t you just buy these companies? There is much that we can learn from companies in industries where we don’t intend to compete. This provides an excellent way for us to participate in industries and markets where we think we can provide a significant impact without necessarily acquiring companies there. How much money is in the fund? Applied Ventures is targeting total annual investment of up to $25 million in seed through early stage companies. Have you had any success from earlier venture activities? Yes, we have seen returns from the early investments. What kind of investments will the program make? The fund will make minority investments alongside other investors, traditional venture firms and other corporate investors, in a number of market areas including nanotechnology, materials, energy conversion and storage, advanced patterning, metrology & inspection, software related to semiconductor manufacturing, advanced packaging technologies, device and process integration technology, process advances at the 32nm node and beyond, and others. Where is the fund located? The fund will be managed from our headquarters in Santa Clara but will invest globally.