Why does the MATLAB Windows installer fail with the error: "Application has generated an exception that could not be handled."?

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When installing MATLAB on my Windows system, the installation fails at about 90% with the following error:
Application has generated an exception that could not be handled.
Process ID=0x1278 (4728), Thread ID=0xf48 (3912)
The Event viewer shows the following System Error regarding .NET Runtime:
.NET Runtime cannot be found. The local computer may not have the necessary registry information or message DLL files to display messages from a remote computer. You may be able to use the /AUXSOURCE= flag to retrieve this description; see Help and Support for details. The following information is part of the event: .NET Runtime version 2.0.50727.832 - Fatal Execution Engine Error (000006427F888C38) (80131506).
How can I resolve this and finish the MATLAB installation?

Accepted Answer

MathWorks Support Team
MathWorks Support Team on 10 Jul 2009
This error will occur during installation if there is an issue with the .NET Framework that has been installed on this computer. To resolve this you can install/reinstall the Microsoft .NET Framework. You can download this from http://www.microsoft.com/. Please consult Microsoft if you have any trouble downloading or installing the .NET framework.
To confirm the missing .NET Framerwork is the cause of this error, you can use the event viewer:
1. Run the installer to generate the same error.
2. Right-click your My Computer icon and select Manage.
3. In the panel on the left, go to System Tools, Event Viewer, System.
4. In the panel on the right, sort by Date and look at the most recent entries.
5. Look for any errors. These will have a red "X" for an icon. If you find any, double-click the entry to see the description.

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