Cymer to Ship First XLR 500i Laser Light Source to Nikon.

Chipmakers to Benefit from Improved Dose Stability and Reduced Cost of Ownership

SAN JOSE, Calif. -- At SPIE Advanced Lithography 2007, Cymer, Inc. (Nasdaq:CYMI), the world's leading supplier of excimer laser light sources used in semiconductor manufacturing, today announced it has reached an agreement to ship its first revolutionary XLR 500i light source, to leading lithography system provider--Nikon Corporation. The XLR 500i is the world's first argon fluoride (ArF) laser light source for 45nm production immersion photolithography.

"Last quarter, we celebrated our longstanding partnership with Cymer on the occasion of their 1,000th excimer laser shipment," said Mr. Kazuo Ushida, president of the Nikon Precision Equipment Company, Nikon Corporation. "Nikon is pleased to be the first recipient of the XLR 500i light source. We look forward to integrating this laser into our leading-edge NSR-S610C immersion tool."

"This milestone shipment illustrates Cymer's continued commitment to push the limits of DUV lithography in order to advance the production of chips that power the electronic devices we rely on each day," said Ed Brown, Cymer's president and chief operating officer. "As immersion lithography is deployed into 45nm full production environments, we look forward to providing our customers with laser light sources that enable improved critical dimension control and manageable operating costs."

A major advancement for the industry, the XLR enhances Cymer's flagship dual-chamber Master Oscillator Power Amplifier (MOPA) platform with groundbreaking Recirculating Ring Technology. The new architecture replaces the conventional power amplifier stage with an innovative Recirculating Ring, delivering a 1.5X improvement in pulse energy stability performance, increasing yield and productivity and accounting for a significant reduction in cost of ownership (CoO) compared to previous generation ArF products.

Unveiled at SEMICON West 2006, the XLR system is an optical evolution based upon the XL platform, which has been quickly adopted by the industry as the standard in next-generation ArF lithography. More than 360 XL Series systems have been shipped to date and XLR customers can be confident in a smooth, low-risk transition to volume manufacturing of a production-proven design. The XLR 500i leverages Cymer's past research and development efforts to take ArF capabilities to the next level of performance and cost efficiency, advancing the production of chips that power everyday electronic devices.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include, but are not limited to references to the timing for the initial shipment of the XLR 500i; the XLR 500i being used in high volume immersion applications at the 45 nm production node and supporting Cymer's record of providing cutting-edge light source technology; expectations for the XLR 500i's performance and benefits including improved dimension control and manageable operating costs; and advancing chips that power everyday electronic devices. These statements are based only on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in these statements due to various factors, including but not limited to: the possibility that the XLR 500i may not perform up to expectations or deliver the expected level of savings; that the system will not ship when anticipated; new and enhanced product offerings by competitors; cyclicality in the semiconductor equipment industry; the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; the rate at which semiconductor manufacturers take delivery of photolithography tools from the company's customers; delays or cancellations by customers of their orders; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; and inability of the company to secure adequate supplies of critical components for its advanced products. For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission.

About Cymer

Cymer, Inc. is the world's leading supplier of deep ultraviolet (DUV) laser illumination sources, the essential light source for DUV photolithography systems. DUV lithography is a key enabling technology, which has allowed the semiconductor industry to meet the exacting specifications and manufacturing requirements for volume production of today's advanced semiconductor chips. Further information on Cymer may be obtained from the Company's SEC filings, the Internet at www.cymer.com or by contacting the company directly.