Cymer Demonstrates 25 Watts of Average EUV Power for 1 1/2 Hours; Completes Development of EUV Manufacturing Facility; EUV Milestone and Facility Build-Out Support Industry's Future Goals and Technology Roadmap

Cymer, Inc. (Nasdaq:CYMI), the world's leading supplier of light sources used in semiconductor lithography, announced this week at the Sematech EUV Source Workshop in New York that it has reached a milestone 25 watts of average extreme ultraviolet (EUV) power continuously for 1 1/2 hours duration, and is on track to achieve the 100 watts of average power needed for the first-scheduled delivery of production-ready EUV lithography tools in 2009. Additionally, Cymer announced the completion of its EUV manufacturing facility located in San Diego, a reflection of the company's leadership and dedication to its lithography tool and chipmaker customers, who will rely on EUV technology to advance the semiconductor industry. The first pilot EUV sources are currently being assembled and tested in this new facility.

Throughout its EUV system research and development, Cymer has demonstrated a consistent track record of source improvement. In November 2007, Cymer became the first in the industry to achieve 100 watts of EUV burst power, which confirmed the ability to reach high energy conversion efficiency (CE) from 10.6 micron drive laser to 13nm EUV output. With this high CE, Cymer then focused development on increasing the duty cycle of the source, and by doing so, demonstrated 35 watts of average EUV power for a few seconds in February. Cymer has now achieved a continuous run of its source for 1 1/2 hours at an average power of 25 watts, marking a significant milestone toward meeting the industry's production requirements.

"Just three months after achieving 35 watts of EUV power for a short burst, Cymer has made significant progress in reaching 25 watts of average EUV power for more than one hour," said Ed Brown, president and chief operating officer for Cymer. "This power and duration achievement paired with the completion of our EUV manufacturing facility reflects Cymer's commitment to EUV and the commercialization of future lithography tools."

For more than a decade, the world's foremost scientists at Cymer have been developing the critical light source customers will need to launch EUV into production. Cymer has reached all of its EUV power performance milestones using a laser-produced plasma (LPP) system consisting of a multi-staged carbon dioxide laser and tin droplet target, which has been in operation since June 2006. In the first quarter of 2007, Cymer also disclosed a breakthrough in debris mitigation technology that will substantially extend the lifetime of the multi-layer mirror collector - a key component of the source system, enabling an economically viable cost of operation. These rapid advancements in technology validate the LPP architecture's ability to scale to high-volume manufacturing performance requirements.

For additional information and/or images about Cymer's progress in EUV, please contact Kelly Hamor at 619.234.0345 or hamor@formulapr.com

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 Cymer achieving 100W of constant power with its EUV source and the first delivery of these sources in 2009; the industry's reliance on EUV technology, and meeting the industry's production requirements; a debris mitigation breakthrough enabling economically viable cost of operation; and the scalability of LPP technology to high volume manufacturing performance requirements. 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 development of Cymer's EUV technology may not continue to make rapid progress, or that a competing technology will displace EUV on the semiconductor industry's roadmap; or that the EUV source does not perform as anticipated; 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; new and enhanced product offerings by competitors; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; inability of the company to secure adequate supplies of critical components for its advanced products; and failure by the company to manage its expense levels and unanticipated expenses. 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. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

About Cymer

Cymer, Inc. is a leading supplier of DUV laser illumination sources the essential light source for DUV photolithography systems. The company has been committed for more than two decades to providing advanced lithography tools to its worldwide base of valued customers. 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 atwww.cymer.comor by contacting the company directly.