EXHIBIT 99.1
                        Applied Microsystems Corporation

                                  July 1, 2005

To the Shareholders of Applied Microsystems Corporation ("Applied"):

Pursuant  to the plan of  complete  liquidation  and  dissolution  (the "Plan of
Dissolution"), dated March 10, 2003, and approved by the shareholders of Applied
on May 22, 2003,  enclosed  herewith is the final liquidating  distribution.  In
connection with the final distribution, please be advised of the following:

     1.   The record date for the final liquidating distribution has been set by
the  Company's  board of  directors  as June 30,  2005.  The  Company  filed its
articles of dissolution with the Washington Secretary of State on June 30, 2003,
which became effective upon filing. The Company instructed its transfer agent to
close the share  transfer  records of the Company as of the close of business on
June 30, 2003,  and to no longer  recognize or record any transfers of shares of
the  Company's  common  stock after such date.  The Company  declared an initial
liquidating  distribution  and paid such  distribution  on or about November 21,
2003, to the Company's  shareholders  of record at the close of business on June
30, 2003. Because the Company's stock transfer books were closed effective as of
the close of business on June 30, 2003, the initial liquidating distribution was
made,  and  the  final  liquidating  distribution  will  be  made,  only  to the
shareholders of record at the close of business on June 30, 2003,  except as may
be necessary as a result of any  assignments  by will,  intestate  succession or
operation of law.

     2.   The payment date for the Company's final  liquidating  distribution is
July 1, 2005. The Company has appointed its transfer agent,  Mellon  Shareholder
Services,  to  serve  as  Paying  Agent  for  the  purpose  of  the  liquidating
distribution.  The  liquidating  distribution  has been mailed to the  Company's
shareholders  of  record  without  any  action  on the  part  of  the  Company's
shareholders.

     3.   The final  liquidating  distribution  is in an amount of  $0.0651  per
share of the Company's common stock.

     4.   Pursuant  to the Plan of  Dissolution,  the final  distribution  is in
complete  redemption and  cancellation of all of the  outstanding  shares of the
Company's  common stock. As a result,  by virtue of the final  distribution  and
without  any  action  on the  part  of  the  holders  of  any  of the  Company's
securities, upon the final distribution each share of the Company's common stock
outstanding  immediately  prior to the final  distribution will be cancelled and
extinguished.

Sincerely yours,


/s/ Stephen J. Verleye
- ----------------------
Applied Microsystems Corporation
By: Stephen J. Verleye
Its: Director