Exhibit 99.1	Contact:
	Kathy Taylor
	Southwall Technologies Inc.
	Phone:  (650) 798-1200

For Immediate Release

Southwall Announces Year End 2007 Results

PROFITABLE 2007 AND FOCUS ON ENERGY CONSERVATION PRODUCTS

PALO ALTO, Calif.--(BUSINESS WIRE)--March 27, 2008--Southwall Technologies Inc. (OTCBB: SWTX) announced fourth quarter 2007 revenue of $8.7 million, down 5.6% from third quarter of 2007 and down 5.5% from the fourth quarter of 2006. Year end 2007 revenue was $37.7 million as compared to $40.2 million in 2006, a 6% decrease. The decrease was primarily due to a decline in revenue relating to Plasma Display products, which was partially offset by revenue increases for Automotive and Window Film products that improve energy efficiency in cars and buildings.

Fourth quarter 2007 net income was $2.6 million, or earnings per fully diluted share of $0.08, as compared with a net loss of $75 thousand, or a loss of $0.01 per fully diluted share, in the fourth quarter of 2006. Year end 2007 net income was $3.6 million, significantly higher as compared to a loss of $5.5 million for the year ending 2006. Year end 2007 earnings per fully diluted share were $0.11, as compared to earnings per fully diluted share of ($0.22) for the year ending 2006.  The increase was primarily due to lower operating expenses, a sales termination settlement agreement with a large plasma display customer, other income from a Technology Transfer and Service Agreement, and a shift in product mix toward higher margin energy conservation products.

"2007 was a turnaround year for Southwall", said Dennis Capovilla, Southwall's President. "We reduced operating expenses across the company, exited unprofitable business segments, and realigned management accordingly to focus on growth. As demand for and interest in energy conservation continues to increase in importance globally, we believe that Southwall is now in a better position to respond to the growing opportunity for products that improve energy efficiency."

About Southwall Technologies Inc.

Southwall Technologies Inc. is recognized as an innovator in the development and manufacture of high performance, energy-saving films and glass products that dramatically improve the energy efficiency of architectural and automotive glass. Southwall is an ISO 9001:2000-certified manufacturer with customers in over 25 countries around the world, including Audi, BMW, DaimlerChrysler, Guardian, Peugeot-Citroen, Philips, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.

This press release may contain forward-looking statements, including, without limitation, statements regarding the Company's expectations, beliefs, intentions, or strategies regarding the future.  All forward-looking statements in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements.  These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented.  These risks include the possibility that the Company’s expected future results will be materially worse than estimated, that the Company may not continue to be profitable in future quarters or may not be able to achieve future long-term growth, that there will be a decline in one or more portions of our business in 2008 or thereafter, that the Company will not be successful in improving operations performance or controlling costs, that the Company will suffer a decline in manufacturing or financial effectiveness, that the Company’s new product development will not be successful, that there may be decreasing demand in markets in addition to the electronic display market, and that the Company will not be able to secure additional financing if required, as well as risks associated with its failure to meet potential covenant requirements under future credit facilities.  Further risks are detailed in the Company's filings with the Securities and Exchange Commission, including those set forth in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2006, filed on April 02, 2007.

SOUTHWALL TECHNOLOGIES INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

	Three months ended						Twelve months ended
	December 31,			December 31,			December 31,			December 31,
	2007			2006			2007			2006
Net Revenues	$	8,729		$	9,241		$	37,733		$	40,209
Cost of revenues		5,235			5,445			23,907			24,746
Gross profit		3,494			3,796			13,826			15,463
Operating expenses:
Research & Development		1,332			1,406			4,505			6,782
Selling, general and administrative		2,911			2,244			9,843			12,005
Recoveries for long-lived assets, net		(7	)		(97	)		(32	)		(214	)
Restructuring charges (recoveries)		56			(59	)		56			915
Contract termination settlement		(2,959	)		-			(2,959	)		-
Total operating expenses		1,333			3,494			11,413			19,488
Income (loss) from operations		2,161			302			2,413			(4,025	)
Interest expense, net		(221	)		(187	)		(692	)		(737	)
Other income, net		785			49			2,346			210
Income (loss) before provision for income taxes		2,725			164			4,067			(4,552	)
Provision for income taxes		112			239			510			958
Net income (loss)		2,613			(75	)		3,557			(5,510	)
Deemed dividend on preferred stock		123			122			489			489
Net income (loss) attributable to common stockholders	$	2,490		$	(197	)	$	3,068		$	(5,999	)
Net income (loss) per share:
Basic	$	0.09		$	(0.01	)	$	0.11		$	(0.22	)
Diluted	$	0.08		$	(0.01	)	$	0.11		$	(0.22	)
Weighted average shares used in computing net income (loss) per share :
Basic		27,820			27,073			27,576			26,949
Diluted		33,344			27,073			33,240			26,949

SOUTHWALL TECHNOLOGIES INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	December 31,			December 31,
	2007			2006
ASSETS
Current assets:
Cash and cash equivalents	$	6,492		$	5,524
Restricted cash		294			209
Accounts receivable, net		4,346			3,608
Inventories, net		5,640			5,598
Other current assets		837			1,064
Total current assets		17,609			16,003
Property, plant and equipment, net		17,071			17,232
Restricted cash loans		1,242			1,111
Other assets		1,345			1,155
Total assets	$	37,267		$	35,501
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long term debt	$	1,149		$	1,059
Short term obligations		-			2,996
Accounts payable		964			955
Accrued compensation		1,267			859
Other accrued liabilities		6,350			6,448
Total current liabilities		9,730			12,317
Term debt		8,277			8,568
Government grants advanced		-			220
Other long term liabilities		2,567			2,550
Total liabilities		20,574			23,655
Series A, convertible preferred stock		4,810			4,810
Stockholders' equity:
Common stock		28			27
Capital in excess of par value		78,290			78,081
Accumulated other comprehensive income:
Translation gain on subsidiary		4,776			3,696
Accumulated deficit		(71,211	)		(74,768	)
Total stockholders' equity		11,883			7,036
Total liabilities, preferred stock and stockholders' equity	$	37,267		$	35,501

SOUTHWALL TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years ended
	December 31,			December 31,
	2007			2006
Cash flows used in operating activities:
Net income (loss)	$	3,557		$	(5,510	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Deferred income tax		(126	)		51
Impairment recoveries for long-lived assets, net		(32	)		(214	)
Depreciation and amortization		2,812			2,406
Stock-based compensation charge		342			551
Changes in operating assets and liabilities:
Accounts receivable, net		(767	)		3,136
Inventories, net		(33	)		281
Other current and non-current assets		40			(81	)
Accounts payable and accrued liabilities		(98	)		128
Net cash provided by operating activities		5,695			748
Cash flows used in investing activities:
Restricted cash		(79	)		168
Proceeds from sale of property, plant and equipment		32			519
Expenditures for property, plant and equipment		(710	)		(1,192	)
Net cash used in investing activities		(757	)		(505	)
Cash flows used in financing activities:
Proceeds from exercise of stock options		357			123
Borrowings on line of credit		4			-
Repayments on line of credit		(3,000	)		-
Use of investment allowance		(246	)		(222	)
Repayments of notes payable		(1,148	)		(1,434	)
Net cash used in financing activities		(4,033	)		(1,533	)
Effect of foreign exchange rate changes on cash		63			214
Net increase (decrease) in cash and cash equivalents		968			(1,076	)
Cash and cash equivalents, beginning of year		5,524			6,600
Cash and cash equivalents, end of year	$	6,492		$	5,524
Supplemental cash flows disclosures:
Interest paid	$	837		$	944
Income taxes paid	$	462		$	836
Supplemental schedule of non-cash investing and financing activities:
Dividends accrued	$	489		$	489