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Southwall                                                          PRESS RELEASE
Technologies
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3975 East Bayshore Road
Palo Alto, CA 94303
Phone:     (650) 962-9111                                Contact:
Fax:       (650) 967-8713                                Renate  Merredew
www.southwall.com                                        Southwall  Technologies
                                                         Phone:  (650) 962-9111


EXHIBIT 99.1

For Immediate Release
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Southwall Technologies Inc. announces Burr, Pilger & Mayer LLP as the Company's
                              Independent Auditor

PALO  ALTO,  CALIFORNIA  -  AUGUST  23,  2004 - SOUTHWALL TECHNOLOGIES INC. (OTC
BB:SWTX.OB),  global  developer, manufacturer and marketer of thin-film coatings
for  the  electronic  display,  automotive  glass  and  architectural  markets,
announced  today  that it has engaged the services of Burr Pilger and Mayer, LLP
(BPM)  as  the  company's  independent auditors for the year ending December 31,
2004.

Southwall's  audit  committee approved the appointment of BPM following a review
the company's current audit requirements and the qualifications and fees of both
BPM  and several other accounting firms. BPM will replace PricewaterhouseCoopers
effective  immediately.

"BPM  is  an  excellent  choice  for a company of our size and with our auditing
requirements,"  said  Maury  Austin,  Southwall's  Chief  Financial  Officer.
"PricewaterhouseCoopers has been a great partner to Southwall over the years and
I would like to take this opportunity to thank them for their support".

For  a  more  detailed  description  of  the  company's  relationship  with
PricewaterhouseCoopers,  please  refer  to Southwall's Form 8-K, which was filed
with  the  Securities  and  Exchange  Commission  on  August  23,  2004.

ABOUT SOUTHWALL TECHNOLOGIES INC.

Southwall  Technologies  Inc.,  designs  and  produces  thin  film products that
selectively absorb, reflect or transmit light.  Southwall products are used in a
number  of  automotive,  electronic  display and architectural glass products to
enhance  optical  and  thermal performance characteristics, improve user comfort
and  reduce  energy costs.  Southwall is an ISO 9001:2000-certified manufacturer
and  sells  advanced  thin  film coatings to over 25 countries around the world.
Southwall's  customers  include  Audi,  BMW,  DaimlerChrysler,  Hewlett-Packard,
Mitsubishi  Electric,  Mitsui  Chemicals,  Peugeot-Citroen, Pilkington, Renault,
Saint-Gobain  Sekurit,  and  Volvo.


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