CleanTech: an Investor’s View

1. CleanTech: an Investor’s View J. Christopher MoranVP, GM Applied Ventures LLC Monte Jade & MJAA Cleantech Forum May 16th, 2007

2. But First … A word from my Sponsor … ABOUT US Applied Ventures, LLC is the venture capital fund of Applied Materials, Inc., (*NASDAQ: AMAT Applied Ventures invests in high-growth, early stage technology companies. Our mission is to profitably invest in companies that provide a window on technologies that advance the semiconductor and related industries. The fund focuses on companies pursuing technologies and markets that provide a natural extension to Applied Materials' core business in addition to innovations that stimulate the growth of applications for semiconductors, displays and related products and services. INVESTMENT FOCUS Applied Ventures invests in companies that drive change in industries that may be relevant to Applied Materials. We partner with talented teams to create value through industry access, engineering expertise, insight, contacts and partnership. As a result of our involvement, Applied Materials, Inc. may be partner with a portfolio company to commercialize its products. FUND CHARACTERISTICS - Up to $25M annually for new investments- Up to additional $25M annually for follow-on investments - Invest between $250,000 and $3 million per round- Co-Invest alongside industry-leading venture capital firms and other corporate-strategic investors - Invest globally - Board observer rights on a case-by-case basis • INVESTMENT INTERESTS • Metrology and inspection • Advanced materials • Display technologies • Process advances for the 32nm node and beyond • Advanced patterning for ICs, displays and related applications • Software to enhance manufacturing capabilities and improve yield • Photonics • Lighting • Data storage • Advanced packaging • Energy conversion and storage www.AppliedVentures.com

3. Conclusions • CleanTech is HOT • CleanTech is “Overheated” • CleanTech is a Very Broad Area of Technologies • Especially in Solar, there appears to be a “bubble” in valuations. • Lots of Deals • Lots of Money Chasing the Deals • However; Good Short-Term and Long-Term Opportunities Exist in all Spaces of CleanTech. • Just Be Careful !

4. CleanTech Funding as % of TTL VC Funding Source: Nth Power LLC and Clean Edge Inc.

5. Investment % by Segment

6. Average Size of CleanTech Investment Source: Cleantech Investment Monitor Q1-Q4 '06

7. China’s photovoltaic industry faces big potential risks China’s photovoltaic industry faces big potential risks Xinhua Economic News Service , May 11, 2007 Friday 6:00 AM EST SHANGHAI, May 11 (CEIS) – China has become the world’s third largest solar cell producer in the world after Japan and Europe, with the solar cell output reaching 370MW (Taiwan’s output of 200MW not included) last year. However, China’s photovoltaic market lags far behind the development of the photovoltaic industry, making the latter face big potential risks. At present, China has more than 500 photovoltaic enterprises including six listed on overseas stock markets, according to Wu Dacheng, head of the Renewable Energy Project Office of the National Development and Reform Commission. The six listed solar energy companies are Suntech (NYSE: STP), JA Solar (NASDAQ: JASO) Rene Solar (AIM: SOLA), Solarfun Power (NASDAQ: SOLF), Trina Solar (NYSE: TSL), and Canadian Solar (NASDAQ:CSIQ). Last year, the solar cell production capacity in the mainland of China amounted to 1,200 MW, soaring 280% over the previous year, and solar cell assembling capacity hit 2,000 MW and output, 600MW. Meanwhile, the country’s polysilicon material industry has developed rapid in the past three years. According to Zhao Yunwen, director of the Photovoltaic Branch of the China Renewable Energy Association, China’s polysilicon output was 80 tons in 2005 and 290 tons in 2006, and it is expected to exceed 1,000 tons in 2007 and top 10,000 tons by 2010. However, on a sharp contrast to the robust expansion of the production capacity, the overseas solar energy market is unsatisfactory. At present, the German market, the largest solar cell consumer in the world, is bearish, and other markets in the world grow slowly. Both have brought big risk China’s photovoltaic industry, which photovoltaic industry heavily depends on overseas market, said market analysts. About 95% of solar cell products made in China are for export, said Shi Dinghuan, former secretary general of the Ministry of Science and Technology. In the CNEC International Solar Energy and Photovoltaic Conference held in Shanghai on May 10, the industry circle thus advocates the Chinese government to offer subsidies and incentives to solar energy- based electricity generation so as to stimulate the demand on the domestic photovoltaic market and guarantee the development of the photovoltaic industry. China has so far issued the Renewable Energy Law and related Implementation Rules, but the detailed rules and policies are not fully conform to the industry target. So the photovoltaic market develops slowly in China. China has more than 500 photovoltaic enterprises … polysilicon output was 80 tons in 2005 … and it is expected to exceed …10,000 tons by 2010 … 95% of solar cell products made in China are for export

8. Cleantech M&A and IPO in 2006 • Q3 ’06: 34 M&As, 14 IPOs (total value =$1.1B) • Q4 ’06: 40 M&As, 15 IPOs M&A Q3’06 M&A Q4’06 Source: Cleantech Investment Monitor Q1-Q4 '06

10. It’s Crowded !