Filed pursuant to Rule 425

Presenter

Date

Filed by Novellus Systems, Inc.

Pursuant to Rule 425 under the Securities Act of 1933

and deemed filed pursuant to Rule 14a-12

under the Securities Exchange Act of 1934

Subject Company: Novellus Systems, Inc.

Commission File No.: 000-17157

Lam

–

Novellus

Merger

Lam

–

Novellus

Merger

P. 2

A Transformative Transaction

Lam Research and Novellus Systems have signed an agreement to

combine the two companies

The deal is expected to close in Q2 of CY2012

The new company will be called Lam Research

Senior leadership team will come from both companies

•

Martin Anstice will be the President and CEO

•

Tim Archer will be the COO

•

Ernie Maddock will be the CFO

Expected Synergies

•

Combined management strength can grow the company to new heights

•

Complementary products and technology

•

Accelerating the pace of innovation

•

Superior ability to meet customer requirements

•

Significant operational synergies

Novellus Systems Confidential

P. 3

Complementary Technology

Novellus’

technical core competencies align with Lam’s strengths

in etch and single-wafer clean

The

combination

Lam’s

and

Novellus’

adjacent

technologies

will deliver enhanced process integration knowledge

The merger will create a company that will lead the development of

next generation semiconductor manufacturing technology

providing direct benefits to our customers

With significant synergies across our product lines, we will offer a

broader equipment portfolio and wider range of technology

solutions

Novellus Systems Confidential

P. 4

12% -

14%

of WFE

5% -

of WFE

12% -

14%

of WFE

Etch

Surface

Preparation

Deposition

Industrial

Applications

Complementary Product Leadership

Spares &

Services

Novellus Systems Confidential

Note: CVD: chemical vapor deposition; Cu ECD: copper electrochemical deposition; WCVD: tungsten chemical vapor deposition.

Source: Leadership positions based on Gartner Dataquest and company data specific to 2010 shares; WFE percentages based on Gartner Dataquest

and company data.

Leadership

Position in

Emerging

Markets

#1 in Etch

#1 in Cu ECD

#1 in W CVD

#2 in PECVD

World

Class

Customer

Support

#2 in Dry Strip

#2 in Clean

P. 5

Greater Support for Our Customers

Both management teams are fully committed to supporting ongoing

business requirements and enhancing the performance of the world

wide installed base

Increased scale enables more comprehensive support tailored to

our customers’

needs

Subsequent to closing, our highest priority is to create a “single

face”

to our customers

•

The sales and service organizations of the two companies will form a single

organization supporting all of our products and customers

Until the merger is complete, Lam and Novellus will continue to

operate as independent companies. Throughout this process, it is

our commitment that our service and support will continue to serve

our customers needs in the same manner as prior to the

announcement.

Novellus Systems Confidential

P. 6

Next Steps

As your trusted supplier, Novellus believes in open communication

regarding significant changes to our business

Our focus during this transition will be to create value and provide

greater efficiency for our customers. This is a unique opportunity to

join two outstanding organizations into one company with a broader

platform for greater innovation and more cost-effective solutions.

Our first and foremost priority in the transition is to better serve our

customers’

development and production needs

This communication is the first in a series of communications that

our account leadership will provide. Both Lam and Novellus account

executives will provide regular communication updates to you

regarding the transition plans.

Novellus Systems Confidential

P. 7

How to Find Further Information

Novellus Systems Confidential

This communication does not constitute an offer to sell or the solicitation of an offer to buy any

securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any

jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or

qualification under the securities laws of any such jurisdiction. In connection with the proposed

merger, Lam Research intends to file with the SEC a registration statement on Form S-4 that will

include a joint proxy statement of Lam Research and Novellus Systems that also constitutes a

prospectus of Lam Research. Lam Research and Novellus Systems will furnish the joint proxy

statement/prospectus and other relevant documents to their respective security holders in connection

with the proposed merger of Lam Research and Novellus Systems. BEFORE MAKING ANY VOTING OR

INVESTMENT DECISION, WE URGE SECURITY HOLDERS AND INVESTORS TO READ THE JOINT

PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO)

AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY

BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LAM

RESEARCH AND NOVELLUS SYSTEMS AND THE PROPOSED MERGER. The proposals for the merger

will be made solely through the joint proxy statement/prospectus. In addition, a copy of the joint proxy

statement/prospectus (when it becomes available) may be obtained free of charge from Lam Research

Corporation, Investor Relations, 4650 Cushing Parkway, Fremont, CA 94538-6401, or from Novellus

Systems, Investor Relations, 4000 North First Street, San Jose, CA 95134. Security holders will be able

to obtain, free of charge, copies of the joint proxy statement/prospectus and S-4 Registration

Statement and any other documents filed by Lam Research or Novellus Systems with the SEC in

connection with the proposed Merger at the SEC’s website at http://www.sec.gov, and at the

companies’ websites at www.Lam Research.com and www.Novellus.com, respectively.

P. 8

Forward Looking Statements

This announcement contains, or may contain, “forward-looking statements”

concerning

Lam Research and Novellus Systems (together such companies and their subsidiaries

being the “Merged Company”), which are subject to the safe harbor provisions created

by the Private Securities Litigation Reform Act of 1995. Generally, the words “believe,”

“anticipate,”

“expect,”

“may,”

“should,”

“could,”

and other future-oriented terms identify

forward-looking statements. Forward-looking statements include, but are not limited to,

statements relating to the following: (i) the expected benefits of the Merger and the

repurchase program, the expected accretive effect of the Merger and the repurchase

program on the Merged Company’s financial results, expected cost, revenue, technology

and other synergies, the expected impact for customers, employees and end-users,

future capital expenditures, expenses, revenues, earnings, economic performance,

financial condition, losses and future prospects; (ii) business and management

strategies and the expansion and growth of Lam Research’s or Novellus Systems’

operations; (iii) the effects of government regulation on Lam Research’s, Novellus

Systems’

or the Merged Company’s business; (iv) future industry developments and

trends; (v) the anticipated timing of shareholder meetings and completion of the

proposed

merger

and

the

repurchase

program;

and

(vi)

assumptions

underlying any of

the foregoing statements.

Novellus Systems Confidential

P. 9

Forward Looking Statements (cont.)

Novellus Systems Confidential

These forward-looking statements are based upon the current beliefs and expectations of the management of Lam Research and Novellus

Systems and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking

statements. Many of these risks and uncertainties relate to factors that are beyond Lam Research’s and Novellus Systems’ ability to control or

estimate precisely and include, without limitation: the ability to obtain governmental or stockholder approvals of the Merger or to satisfy other

conditions to the Merger on the proposed terms and timeframe; the possibility that the Merger does not close when expected or at all, or that the

companies may be required to modify aspects of the Merger to achieve regulatory approval; the ability to realize the expected synergies or other

benefits from the transaction in the amounts or in the timeframe anticipated; the potential harm to customer, supplier, employee and other

relationships caused by the announcement or closing of the Merger; the ability to integrate Novellus Systems’ and Lam Research’s businesses

in a timely and cost-efficient manner; uncertainties in the global economy and credit markets; unanticipated trends with respect to the cyclicality

of the semiconductor industry; and rates of change in, future shipments, margins, market share, capital expenditures, revenue and operating

expenses generally; volatility in quarterly results and in the stock price of the Merged Company; customer requirements and the ability to satisfy

those requirements; customer capital spending and their demand for the Merged Company’s products; the ability to defend the Merged

Company’s market share and to gain new market share; anticipated growth in the industry and the total market for wafer-fabrication and support

equipment and the Merged Company’s growth relative to such growth; levels of research and development expenditures; the estimates made,

and the accruals recorded, in order to implement critical accounting policies (including but not limited to the adequacy of prior tax payments,

future tax liabilities and the adequacy of the Merged Company’s accruals relating to them); access to capital markets; the ability to manage and

grow the Merged Company’s cash position; the sufficiency of the Merged Company’s financial resources to support future business activities

(including but not limited to the repurchase program, operations, investments, debt service requirements and capital expenditures); inventory

levels and inventory valuation adjustments; the impact of legal proceedings; unexpected shipment delays which adversely impact shipment

volumes; inaccuracies related to the timing and satisfaction of remaining obligations related to vacated leases; the inability to recover the

amortized cost of investments in auction-rate securities, market changes negatively affecting auction-rate securities and the government’s

inability to guarantee the underlying securities; the inability to enforce the Merged Company’s patents and protect its trade secrets; and other

risks and uncertainties, including those detailed from time to time in Lam Research’s and Novellus Systems’ periodic reports (whether under the

caption Risk Factors or Forward Looking Statements or elsewhere). Neither Lam Research nor Novellus Systems can give any assurance that

such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking

statements, which speak only as of the date of this announcement. Neither Lam Research nor Novellus Systems nor any other person

undertakes any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new

information, future events or otherwise, except to the extent legally required.

Nothing contained herein shall be deemed to be a forecast, projection or estimate of the future financial performance of Lam Research,

Novellus Systems, or the Merged Company, following the implementation of the Merger or otherwise. No statement in this announcement

should be interpreted to mean that the earnings per share, profits, margins or cash flows of Lam Research or the Merged Company for the

current or future financial years would necessarily match or exceed the historical published figures.

P. 10

Participants in the Solicitation

The directors and executive officers of Lam Research and Novellus Systems may be

deemed to be participants in the solicitation of proxies in connection with the approval of

the proposed transaction. Lam Research plans to file the registration statement that

includes the joint proxy statement/prospectus with the SEC in connection with the

solicitation of proxies to approve the proposed transaction. Information regarding Lam

Research’s directors and executive officers and their respective interests in Lam

Research by security holdings or otherwise is available in its Annual Report on Form 10-

K filed with the SEC on August 19, 2011 and its Proxy Statement on Schedule 14A filed

with

the

SEC

September

19,

2011.

Information

regarding

Novellus

Systems’

directors

and executive officers and their respective interests in Novellus Systems by security

holdings or otherwise is available in its Annual Report on Form 10-K filed with the SEC

on February 25, 2011 and its Proxy Statement on Schedule 14A filed with the SEC on

April 8, 2011. Additional information regarding the interests of such potential

participants is or will be included in the joint proxy statement/prospectus and

registration

statement,

and

other

relevant

materials

filed

with

the

SEC,

when

they

become available, including in connection with the solicitation of proxies to approve the

proposed transaction and to elect directors.

Novellus Systems Confidential