ASML Ships 100th Step & Scan System; Milestone Demonstrates Company's Leadership in Scanning Lithography.

VELDHOVEN, The Netherlands--(BUSINESS WIRE)--Sept. 14, 1999--

The landmark 100th Step & Scan lithography system manufactured by ASML (Nasdaq:ASML) has been shipped to Taiwan Semiconductor Manufacturing Company's (TSMC) facility in Taiwan's Hsinchu Science-based Industrial Park.

The tool, an ASML PAS 5500/700 deep ultraviolet (DUV) Step & Scan system, will be used by TSMC to produce ICs with feature sizes of 150 nm and below.

"TSMC has been a long-term partner to ASML since 1988," said Steve Tso, TSMC's senior vice president of operations. "The long-standing relationship has been mutually beneficial for both companies and has served as a catalyst to TSMC's success."

"The shipment of our 100th Step & Scan system is a significant milestone in the semiconductor equipment industry and speaks to the position that ASML's technology has attained," said Dave Chavoustie, ASML executive vice president of worldwide sales. "IC manufacturers clearly recognize the PAS 5500/700 as the most technologically advanced and most cost-effective lithography tool in the industry."

The shipment to TSMC is the latest development in a long-standing customer/supplier relationship between the two companies. TSMC, the world's largest silicon foundry, was ASML's first customer in the Taiwanese marketplace and has been a key partner in ASML's success throughout Asia.

The PAS 5500/700 DUV Step & Scan system combines the imaging power of a high numerical aperture (0.7NA), a 4X reduction lens and the latest innovation in illumination technology, the AERIAL II illuminator, to extend KrF lithography down to 150nm design rules. Utilizing ASML's proven PAS 5500 body design and high-speed scanning stages, the PAS 5500/700 delivers production throughputs of more than 120 200 mm wafers per hour.

About TSMC:

TSMC is the world's largest dedicated IC foundry and offers a comprehensive set of IC fabrication processes, including processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory, and BiCMOS chips. Currently, TSMC operates two six-inch wafer fabs (Fabs 1 and 2) and three eight-inch wafer fabs (Fabs 3, 4 and 5), all located in Taiwan. In addition, TSMC takes a very active role in the management of its international affiliates TASMC, Vanguard, Wafertech and SSMC. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.tw.

About ASML:

ASM Lithography was founded in 1984 and is a world leader in advanced photolithography systems that are essential to the fabrication of modern integrated circuits. The company now has an installed base of more than 1,200 systems at customer sites around the world. Recognized as one of the two largest suppliers of wafer steppers and Step & Scan systems, ASML operates demonstration and application laboratories at its corporate headquarters located in Veldhoven, The Netherlands, and at its U.S. headquarters in Tempe, Arizona. Regional sales and service facilities are located worldwide near its customers' premises.

ASML is publicly traded on both the Amsterdam Exchanges and on the Nasdaq Stock Market(R) under the symbol "ASML." Visit the company's web site at http://www.asml.com for more information on ASML.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.