APPLIED MATERIALS INC /DE — Director's Dealing 2007

Oct 9, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: APPLIED MATERIALS INC /DE (AMAT)
CIK: 0000006951
Period of Report: 2007-10-05

Reporting Person: Kerschbaum Manfred (Senior Vice President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-10-05	Common Stock	M	54000	$21.0313	Acquired	305424	Direct
2007-10-05	Common Stock	S	54000	$21.21	Disposed	251424	Direct
2007-10-05	Common Stock	M	60000	$20.0625	Acquired	311424	Direct
2007-10-05	Common Stock	S	60000	$21.30	Disposed	251424	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-10-05	Employee Stock Option (right to buy)	$21.0313	M	54000	Disposed	2007-10-18	Common Stock (54000)	Direct
2007-10-05	Employee Stock Option (right to buy)	$20.0625	M	60000	Disposed	2008-04-03	Common Stock (60000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	9190.871	Indirect

Footnotes

F1: Number of shares includes 245,000 performance shares (restricted stock units) previously reported that in the future will be converted on a one-for-one basis into shares of Applied Materials, Inc. common stock immediately upon vesting, which vesting is scheduled to occur as follows: 20,000 performance shares are scheduled to vest in two equal annual installments beginning 8/31/08; and, provided specified performance goals are achieved, 225,000 performance shares are scheduled to vest no earlier than in four equal annual installments beginning 12/19/07 (all vesting is subject to continued employment).

F2: Increased number of shares reflects dividend reinvestment and periodic allocation of accrued interest (which interest was automatically converted into shares) to all participants under 401(k) Plan that are exempt under Rule 16b-3.