1. Lam Research Corporation (LRCX) Balal Javed Adam Martin Wes Rucinski Chi Ho Tang LaKesha Wilson Tuesday, November 14, 2005

2. Company Overview Lam Research Corporation was founded in 1980 and is headquartered in Fremont, California. Lam Research Corporation engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. The company markets its products and services primarily to companies involved in the production of semiconductors in the United States, Europe, Asia Pacific, Korea, and Japan.

3. Semiconductors At A Glance A semiconductor is a solid such as silicon or germanium that has electrical conductivity between that of a conductor and an insulator. Semiconductors are an important part of ICs and are used in all sorts of chips. ICs are created by etching on wafers. They are then combined into chips and sawed off from wafers.

4. Lam’s Products Lam specializes in making wafer fabrication and cleaning products. Lam offers a next-generation wafer cleaning solution, which employs proprietary technology and can be used throughout the semiconductor manufacturing process Lam has a platform called the 2300. It allows customers to use this one tool on both the 200mm and the 300mm wafers. Other companies have two separate tools for the different sizes.

5. Markets Year Ended June 26,2005 June 27,2004June 29,2003 (In Thousands) Net Sales: United States234,112164,528207,938 Europe184,014177,380148,284 Asia Pacific582,033397,681223,353 Korea280,60592,063111,022 Japan221,689104,29464,637 Total Net Sales:1,502,453935,941755,234

6. Market Outlook The overall Asian region has historically accounted for a significant portion of our revenues but has significantly grown in the past few years

7. Leading Competitor Applied Materials, Inc –One of the largest integrated circuit fabrication equipment company –Engaged mainly in deposition –2004 acquired Torrex Equipment Corporation Parallel Wafer Processing systems FlexStar system –R&D: outsource certain RD&E activities to lower cost

8. Products and Services Applied Centura SiNgen®Plus LPCVD –Silicon Nitride Deposition Applied Centura Sprint™Tungsten CVD System –Tungsten Deposition Applied Centura eMax® system –Etching Flat Panel Displays –AKT supplies plasma-enhanced CVD (PECVD) systems and electron beam array testers to FPD manufacturers

9. Ratios Comparison Applied MaterialsLam Research Market Cap29.08B5.09B Return on Equity (ROE)15.61%26.26% Free Cash Flow$1,638,673,000$376,273,000 EPS0.8461.814 PE21.820.62 Debt to Equity0.510 Cash and Cash Equivalent1255746514818 Operating Margin22.21%24.48% Interest Coverage Ratio40.50%283.50%

10. Recent Headlines and Executions Ending August 23th- Previous $250 repurchasing program accumulated 7 million shares, or net value of $214 million. August 24 th - Announce $500 million share buyback program. October 12 th - Revenue slides, 1 Q profits drop 45% from last year, but results beat expectations. October 13 th - Morgan Stanley upgrades Lam Research from “underweight” to “equal weight”

11. Charting the Headlines Aug. 24th- Repurchase program announced. No real effect on stock price Nov. 2nd- Breaks through 52-week high at a price of $34.84. Begins rally. Oct. 13th-Morgan Stanley upgrades to “equal weight

12. Recommendation Hold (Equalweight) Future Upside -Possible buyout -Increase in semiconductor industry DCF = $31.96

13. Questions????