THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Novellus Systems, Inc. (NVLS)

4/17/2006 Proxy Information

Company incurred lease expense of $566,817, $918,230 and $789,025 for the years ended December 31, 2005, 2004 and 2003, respectively. As part of the CompanyŐs internal audit plan, in January 2004, the Audit Committee authorized the CompanyŐs internal audit function to conduct a study of lease rates for similar aircraft. The results of this study confirmed that rates charged by the third-party entity would be comparable to amounts charged by third-party commercial charter companies for similar aircraft.

Mr. Hill is a member of the Board of Directors of the University of Illinois Foundation. The Company regularly provides research funding to certain groups, and the Company provided research grants to the University of Illinois and certain of its professors in the amount of $120,250, $100,000 and $100,000 in the years ended December 31, 2005, 2004 and 2003, respectively.

During the years ended December 31, 2005, 2004 and 2003, Mr. Hill was also a member of the Board of Directors of LTX Corporation. We recorded sublease income from LTX Corporation of $1,402,790 in each of the years ended December 31, 2005, 2004 and 2003, respectively. Mr. HillŐs term as a member of the Board of Directors of LTX Corporation expired in November 2005.

During each of the years ended December 31, 2005, 2004 and 2003, the Company employed, in non-executive positions, an immediate family member of each of Richard S. Hill, Jeffrey C. Benzing and Wilbert van den Hoek. The aggregate compensation amounts paid to the three family members during the years ended December 31, 2005, 2004 and 2003 were $387,931, $515,400 and $466,418, respectively. Their compensation is commensurate with their peersŐ.

3/21/2005 Proxy Information

The Company leases an aircraft from a third-party entity wholly owned by Richard S. Hill, the CompanyŐs Chairman and Chief Executive Officer. Under the aircraft lease agreement, the Company incurred lease expense of $ 918,230, $ 789,025 and $ 202,205 for the years ended December 31, 2004, 2003 and 2002, respectively. As part of the CompanyŐs internal audit plan, in January 2004, the Audit Committee authorized the CompanyŐs internal audit function to conduct a study of lease rates for similar aircraft. The results of this study confirmed that rates charged by the third-party entity would be comparable to amounts charged by third-party commercial charter companies for similar aircraft.

Mr. Hill is a member of the Board of Directors of the University of Illinois Foundation. The Company regularly provides research funding to certain groups, and the Company provided research grants to the University of Illinois and certain of its professors in the amount of $ 100,000 in each of the years ended December 31, 2004, 2003 and 2002, respectively.

Mr. Hill is also a member of the Board of Directors of LTX Corporation. The Company recorded sublease income from LTX Corporation of $ 1,402,790, $ 1,402,790, and $ 1,119,398 for the years ended December 31, 2004, 2003 and 2002, respectively.

During each of the years ended December 31, 2004, 2003 and 2002 the Company employed, in non-executive positions, an immediate family member of each of Richard S. Hill, Jeffrey C. Benzing and Wilbert van den Hoek, executive officers of the Company. The aggregate salary, bonus and profit-sharing amounts excluding any perquisites paid to the three immediate family members during the years ended December 31, 2004, 2003 and 2002 were $ 515,400, $ 466,418 and $ 402,959 respectively.

3/12/2004 Proxy Information

The Company leases an aircraft from a third-party entity wholly owned by Richard S. Hill, our Chairman and Chief Executive Officer. Under the aircraft lease agreement, the Company incurred lease expense of approximately $789,025 through December 31, 2003. The Board of Directors authorized the Company to commission an accounting firm to conduct a study of lease rates for similar aircraft. The results of this study confirmed that rates charged by the third-party entity are comparable to amounts charged by third-party commercial charter companies for similar aircraft.

During 2003, a member of the Board of Directors, D. James Guzy, was also a member of the Board of Directors of Intel Corporation, which was and is a significant customer of the Company

3/7/2003 Proxy information

The Company leases an aircraft from a third-party entity wholly owned by Richard S. Hill, our Chairman and Chief Executive Officer. Under the aircraft lease agreement, the Company incurred lease expense of approximately $202,000 through December 31, 2002. The Board of Directors authorized the Company to commission an accounting firm to conduct a study of lease rates for similar aircraft. The results of this study confirmed that rates charged by the third-party entity are comparable to amounts charged by third-party commercial charter companies for similar aircraft.

A member of the Board of Directors, D. James Guzy, is also a member of the Board of Directors of Intel Corporation, which is a significant customer of the Company.