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Editors' Choice Best Product Award Presented To Novellus Systems For Semiconductor Manufacturing Excellence
July 10, 2006

San Jose, Calif. – July 10, 2006 – Novellus Systems, Inc. (Nasdaq: NVLS) today announced it has received the prestigious Editors' Choice Best Product Award presented annually by Semiconductor International magazine. The award is for Novellus' ALTUS® systems, which are used to deposit conductive metal films on semiconductor wafers during the manufacturing process. In a ceremony on July 12, 2006 in San Francisco, Calif., Semiconductor International will present the award to Novellus and other winners whose products are making a difference in semiconductor manufacturing.

"Advances in semiconductor technology are only possible because of the kinds of products being honored in this year's Editors' Choice Best Product Awards program," said Pete Singer, editor-in-chief of Semiconductor International. "Chipmakers rely on these products to create electronics that are smarter, smaller, faster, less expensive and more reliable. We congratulate the people and the companies that have had the insight and fortitude to bring these products to the market."

"We are honored to receive the Editors' Choice Best Product Award from Semiconductor International. As the most production-worthy, flexible and extendible platform in the industry, ALTUS systems continue Novellus' tradition of offering innovative technologies that enhance customers' productivity and lower their cost of ownership," said Karl B. Levy, vice president and general manager of Novellus' Direct Metals business unit. "Our ALTUS systems set the standard for the deposition of tungsten contacts, interconnects and vias in DRAM, flash and logic devices extending to 32nm and beyond."

Novellus' ALTUS systems deposit tungsten metal films used in semiconductor devices for filling contact, via and interconnect structures. Since the platform's introduction in 1994, the ALTUS systems have incorporated technology innovations that enable Novellus' customers to consistently meet the challenges of successive technology nodes with minimal capital investment. Some of the industry leading innovations include:

- CMP-compatible tungsten deposition using Minimum Overlap Exclusion Ring technology (MOER) - Pulsed Nucleation Layer technology which provides excellent step coverage and fill for high aspect ratio contacts and vias - Low Resistivity Tungsten (LRW) which can reduce contact resistance by more than 20 %

Semiconductor International, published by Reed Business Information and a part of Reed Elsevier's global array of information products, is the leading technical publication reaching and covering the global semiconductor manufacturing industry. SI boasts the industry's most experiences full-time technical editorial team, and has the largest circulation to semiconductor manufacturers of any industry publication. Additional information about SI and its many products and activities are available at www.semiconductor.net

About Novellus:

Novellus Systems, Inc. (NASDAQ: NVLS) is a leading provider of advanced process equipment for the global semiconductor industry. The company's products deliver value to customers by providing innovative technology backed by trusted productivity. An S&P 500 company, Novellus is headquartered in San Jose, Calif. with subsidiary offices across the globe. For more information please visit www.novellus.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statement regarding the ALTUS systems' continuation of Novellus' tradition of offering innovative technologies that enhance customers' productivity and lower their cost of ownership. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Such risks and uncertainties include, but are not limited to, engineering and design flaws or operational difficulties that limit productivity or extendibility; failure to accurately anticipate and timely respond to customers' evolving needs and ALTUS systems' inability to enhance customer productivity; as well as other risks indicated in our filings with the Securities and Exchange Commission (SEC). For more details, please refer to our SEC filings and the amendments thereto, including our Annual Report on Form 10-K for the year ended December 31, 2005, our Quarterly Report on Form 10-Q for the quarter ended April 1, 2006 and our Current Reports on Form 8-K. Forward-looking statements are made and based on information available to us on the date of this press release, and we assume no obligation to update them.

ALTUS is a registered trademark of Novellus Systems, Inc.

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