[GRAPHIC OMITTED]                        PRESS RELEASE


3975 East Bayshore Road
Palo Alto, CA 94303
Phone: (650) 962-9111                        Contact:
Fax: (650) 967-8713                          Renate  Merredew
www.southwall.com                            Southwall  Technologies
                                             Phone: (650) 962-9111



For Immediate Release
---------------------

      Southwall Technologies Inc. Announces Successful Annual Stockholder
                                Meeting Results

PALO  ALTO, CALIFORNIA - OCTOBER 6, 2004 - SOUTHWALL TECHNOLOGIES INC. announced
today that received sufficient votes during its Annual Stockholders meeting held
Tuesday  October  5, 2004 to successfully approve all four proposals included in
its  Proxy  Statement  dated  September  13,  2004.

"I  am  pleased to report that yesterday Southwall received the support from the
majority  of  our Shareholders to reelect our Directors, to amend our charter to
authorize  additional  common  stock  and  to  approve  increases  in the shares
reserved  under  our  Employee  and  Director  option  plans," said Thomas Hood,
Southwall's president and chief executive officer.  "The approval of the charter
amendment  accomplishes the final action item in connection with our Needham-led
financing  initiated  late  last  year,  in that the Company now has available a
sufficient  number  of  shares  to  cover  all  possible  future conversions and
exercises  of  all  outstanding convertible notes and warrants.  The company can
now  fully  devote  its  management  focus  towards  developing new and exciting
products  while  continuing  to  improve  operational efficiencies," added Hood.

ABOUT SOUTHWALL TECHNOLOGIES INC.

Southwall  Technologies  Inc.  designs  and  produces  thin  film  products that
selectively absorb, reflect or transmit light.  Southwall products are used in a
number  of  automotive,  electronic  display and architectural glass products to
enhance  optical  and  thermal performance characteristics, improve user comfort
and  reduce  energy costs.  Southwall is an ISO 9001:2000-certified manufacturer
and  sells  advanced  thin  film coatings to over 25 countries around the world.
Southwall's  customers  include  Audi,  BMW,  DaimlerChrysler,  Hewlett-Packard,
Mitsubishi  Electric,  Mitsui  Chemicals, Peugeot-Citro n, Pilkington, Phillips,
Renault,  Saint-Gobain  Sekurit,  and  Volvo.


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