<![CDATA[
<table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" summary="2005 Annual Report no frames">
<tr class="HeaderEmail">
<td id="LogoDiv" rowspan="2">
<a target="_blank" href="http://www.lamrc.com/"><img border="0" src="http://www.shareholder.com/shared/dynamicdoc/LRCX/1019/logo_blue.gif" alt="logo"></a>
</td><td id="TitleDiv" rowspan="2">
<h1 id="DocTitle">2005 Annual Report</h1>
<div id="NavArrows">
<a href="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336&Page=1" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/rew_off.gif" width="14" height="14" alt="First Page" border="0"></a>
<span style="display:none;">|</span>
<a href="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336&Page=51" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/prev_off.gif" width="14" height="14" alt="Previous Page" border="0"></a>
<span id="PageLabel"> Page B-1 </span>
<a href="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336&Page=53" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/next_on.gif" width="14" height="14" alt="Next Page" border="0"></a>
<span style="display:none;">|</span>
<a href="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336&Page=145" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/ffwd_on.gif" width="14" height="14" alt="Last Page" border="0"></a>
</div></td>
<td colspan="2">
<form id="SectionSelect" name="SectionSelect" action="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336" method="post">
<label for="Sections">Table of Contents</label>
<br><select class="FormFields" name="Page" id="Sections" size="1">
<option value="1">Front Cover</option>
<option value="2">Mission, Vision, Core Values</option>
<option value="3">Letter to Stockholders</option>
<option value="3"> English</option>
<option value="5"> Japanese</option>
<option value="8"> Traditional Chinese</option>
<option value="10"> Simplified Chinese</option>
<option value="12">Notice of Annual Meeting</option>
<option value="13">Proxy Statement</option>
<option value="14"> Information Concerning Solicitation and Voting</option>
<option value="17"> Proposal 1. Election of Directors</option>
<option value="38"> Proposal 2. Approval of Amendment of Lam 2004 Executive Incentive Plan</option>
<option value="47"> Proposal 3. Ratification of Appointment of Independent Registered Public Accounting Firm</option>
<option value="48"> Section 16(a) Beneficial Ownership Reporting Compliance</option>
<option value="48"> Other Matters</option>
<option value="50"> Appendix A - Audit Committee Charter</option>
<option value="52" selected> Appendix B - 2004 Executive Incentive Plan, As Amended</option>
<option value="56">Form 10-K</option>
<option value="59"> Item 1. Business</option>
<option value="65"> Item 2. Properties</option>
<option value="65"> Item 3. Legal Proceedings</option>
<option value="65"> Item 4. Submission of Matters to a Vote</option>
<option value="66"> Item 5. Market for Common Stock and Related Stockholder Matters</option>
<option value="67"> Item 6. Selected Consolidated Financial Data</option>
<option value="70"> Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations</option>
<option value="93"> Item 7A. Quantitative and Qualitative Disclosures About Market Risk</option>
<option value="94"> Item 8. Consolidated Financial Statements and Supplementary Data</option>
<option value="94"> Item 9. Changes & Disagreements on Accounting and Financial Disclosure</option>
<option value="94"> Item 9A. Controls and Procedures</option>
<option value="95"> Item 9B. Other Information</option>
<option value="96"> Item 10. Directors and Executive Officers</option>
<option value="96"> Item 11. Executive Compensation</option>
<option value="96"> Item 12. Security Ownership and Related Stockholder Matters</option>
<option value="96"> Item 13. Certain Relationships and Related Transactions</option>
<option value="96"> Item 14. Accounting Firm Fees and Services</option>
<option value="97">Consolidated Financial Statement Schedules</option>
<option value="98"> Consolidated Balance Sheets</option>
<option value="99"> Consolidated Statements of Operations</option>
<option value="100"> Consolidated Statements of Cash Flows</option>
<option value="101"> Consolidated Statements of Stockholders' Equity</option>
<option value="102"> Notes to Consolidated Financial Statements</option>
<option value="127"> Report of Independent Registered Public Accounting Firm on Internal Control</option>
<option value="129">Signatures</option>
<option value="130">Schedule II - Valuation and Qualifying Accounts</option>
<option value="131">Exhibit Index</option>
<option value="143">Stockholder Information</option>
<option value="144">Board of Directors and Executive Management</option>
</select>
<input class="FormFields" type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/Go.gif" alt="Go" value="Go">
</form>
</td>
</tr>
<tr class="HeaderEmail">
<td>
<form id="Search" name="Search" action="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336" method="post">
<label for="keyword">Search</label><br><input class="FormFields" maxlength="100" name="keyword" id="keyword" size="10" type="Text" value="keyword search">
<input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/Search.gif" alt="Search" value="Search" class="FormFields"></nobr>
</form></td>
<td><form id="Jump" name="Jump" action="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336" method="post">
<label for="EmailGoTo">Go to page</label><br><input class="FormFields" maxlength="15" id="EmailGoTo" name="EmailGoTo" size="4" type="Text" value="52">
<input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/D/GoToPage.gif" alt="Go to page" value="Go to page" class="FormFields">
</form>
</td>
</tr><tr>
<td colspan="4" align="center" id="DisplayPage"><a href="http://LRCX.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=1019&companyid=LRCX&Pin=561678336&page=53"><img name="DisplayPage" src="http://www.shareholder.com/shared/dynamicdoc/LRCX/1019/Page_52.jpg" border="2" alt="Page B-1" longdesc="http://www.shareholder.com/visitors/dynamicdoc/v3/../page_longdesc.cfm?CompanyID=LRCX&documentID=1019&PIN=561678336&Page=52"></a>
<span style="display:none;">[<a href="../page_longdesc.cfm?CompanyID=LRCX&documentID=1019&PIN=561678336&Page=52">D</a>]</span></td>
</tr>
</table>
]]>