Cymer Announces Reduction in Work Force

Cymer, Inc. (Nasdaq: CYMI), the global leader of light sources used to pattern advanced semiconductor chips, today announced that the company will reduce its worldwide workforce by approximately 8 percent, or 85 total employees. On November 14, 2008 the company began providing notices to those employees whose employment would be affected by the reduction in work force. Cymer expects to record restructuring related charges of approximately $3.2 million in conjunction with the work force reduction in the company's fourth quarter 2008 financial results. This restructuring related charge was not included in the company's fourth quarter earnings guidance provided on October 21, 2008. The company anticipates that this action will result in annualized savings of approximately $8.4 million.

Ed Brown, Cymer's president and chief operating officer, commented, "These types of actions which impact valued employees are always difficult. We have closely managed our resource levels over the last several years, but given the severity of the slowdown in the economy and semiconductor industry, this step is necessary to align our cost structure with forecasted business levels. Prior to this reduction in force we implemented a number of companywide cost-saving measures, including outside service and travel reductions, employee use of accrued vacation, a planned holiday shutdown, and other discretionary spending cuts. We are doing our best to minimize the impact on those affected by offering competitive separation packages and outplacement services."

"We believe the cost cutting actions we are taking will enable us to better serve our customers, employees and shareholders. We remain confident that the long-term growth opportunity for Cymer remains intact, driven by our market leading ArF light sources for advanced immersion and double patterning, our leadership in EUV source development, and a strong installed base products and services portfolio dedicated to our customers' success," concluded Brown.

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 statements regarding the company's timing and amount of headcount reductions, restructuring related costs and associated annual savings, the anticipated impact of the headcount reductions on the company's customers, employees and shareholders, forecasted business levels, and the long-term growth opportunity for the company. These statements are predictions based on current information and expectations that involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to: the company's ability to achieve forecasted headcount reductions and savings; its ability to align its cost structure with forecasted business levels; the company's ability to manage its expense levels and unanticipated expenses; the performance and conditions in the United States and world financial markets; the policies and actions of the United States and other governments; and general economic conditions. 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 the market leader in developing laser light sources, used by nearly every major chipmaker around the world to manufacture advanced semiconductor chips. For more than two decades, Cymer has created light sources that are essential in creating the technology that impacts the way people work, communicate and play each day. Whether one has an iPod, computer, Blackberry or other electronic item, chances are Cymer's light helped create the chip inside. In addition, Cymer is leading the industry in its transition to extreme ultra-violet lithography, the next viable technology needed to manufacture smaller, faster chips. In 2007, Cymer was named one of the "100 Fastest Growing Tech Companies" in the world by CNN Money/Business 2.0. The company was founded and is headquartered in San Diego, Calif. and supports its customers from two dozen offices around the globe. Cymer maintains a website at www.cymer.com to which Cymer regularly posts copies of its press releases as well as additional information about Cymer. Interested persons can subscribe on Cymer's website to email alerts or RSS feeds that are sent automatically when it issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the website.