System will be used for 65 nm or smaller devices

Belmont, Calif., February 23, 2004 - Nikon Corporation introduced today the NSR-S308F, an advanced ArF scanner with the world’s highest NA projection lens of 0.92, targeted at mass production of 65 nm and smaller devices. The system combines the world’s highest NA projection lens with a newly developed, high productivity platform, which improves resolution while significantly increasing throughput and lowering the cost of ownership.

Nikon continues to extend its leadership position with the introduction of the NSR-S308F. Nikon introduced four new lithography systems in 2003, more than any of its competitors. Nikon also shipped more systems overall and more advanced ArF scanners than any of its competitors in 2003.

The NSR-308F has a newly developed platform that enables dramatic improvements in alignment accuracy and throughput. Alignment accuracy has been reduced to 8 nm or less, a 44% improvement over Nikon’s previous generation ArF scanner, while throughput was increased to 140 wafers or more per hour for 300 mm wafers, an improvement of approximately 25%. With this significant increase in productivity, the system delivers next-generation process capabilities at a lower overall cost of ownership.

To ensure the highest possible image quality, Nikon leveraged its optics design and manufacturing expertise to develop the industry’s highest quality projection lens. High quality materials and proprietary manufacturing technology provide a virtually perfect lens. Nikon’s lenses are recognized throughout the industry for their high quality and durability.

“Nikon was the first company to ship a 0.85 NA lens for advanced 90 nm device production and now we are introducing the world’s highest NA lens at 0.92 for 65 nm production” stated Geoff Wild CEO of Nikon Precision, Inc. He continued “We continue to provide our customers with the solutions they need to maintain a technological edge over their competition.”

About Nikon
Since 1980, Nikon Corporation has been revolutionizing lithography with innovative products and technologies. The company is a worldwide leader in lithography equipment for the microelectronics manufacturing industry with more than 7,200 exposure systems installed worldwide. Nikon offers the most extensive selection of production-class steppers and scanners in the industry. These products serve the semiconductor, flat panel display (LCD) and thin-film magnetic head (TFH) industries. Nikon Precision Inc. provides service, training, applications and technical support, as well as sales and marketing for Nikon lithography equipment in North America.

This press release contains forward-looking statements as that term is defined in the Private Securities Reform Act of 1995, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such statements are subject to risks, uncertainties and changes in condition, particularly those related to industry requirements and other risks. The Company undertakes no obligation to update the information in this press release.

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Contact:
Bernie Wood
Director of Marketing
Nikon Precision Inc.,
(650) 413-8533 phone
bwood@nikon.com