September 6, 2006 – Citing strong demand from DRAM and NAND flash customers, ASML has increased its outlook for tool orders in 3Q by about 50% to be flat with 2Q levels — 93 new orders, vs. original 3Q projections of 62 orders — across a broad range of tools, as customers using ASML’s ArF and KrF systems are now also ordering i-line systems in volume, the company indicated.

About 75% of the new orders will be shipped in 2007, mainly to support new fab ramp-ups — ASML’s earlier 3Q projections several weeks ago indicated the vast majority of unit backlog would be shipped in 3Q and Q4. Based on ASML’s 3Q estimates for new unit shipment average selling prices (14.5 million euros/$18.6 million), the extra orders influx could mean an additional 450 million euros ($577.5 million) in sales in upcoming quarters.

The increased demand “is indicative of the industry’s fairly sustained need for capacity, as customers are building new fabs for 2007,” stated Eric Meurice, ASML president and CEO. He projected full-year 2006 net sales will be about 40% higher than 2005 sales of 2.53 billion euros (US $3.06 billion).