Belmont, Calif., July 8, 2003 -Targeted for mass production of advanced 80 nm devices and development of 65 nm devices, Nikon Corporation has introduced the NSR-S307E. This scanner is the next generation in Nikon's successful ArF scanner series. The system combines the world’s highest NA (0.85) projection lens with a newly developed, high productivity platform, improving resolution while significantly increasing throughput.

With the cost for IC manufacturing for next generation devices continually increasing, Nikon focused on leading-edge technology with high productivity. The NSR-S307E can process more than 160 wafers per hour for 200 mm applications (112 for 300mm).

Nikon continues to raise the bar for image quality with the industry’s highest quality projection lens. High quality materials and proprietary manufacturing technology provides a virtually perfect lens. The NSR-S307E includes detailed environment control systems to ensure the lens quality is maintained over the life of the product. Nikon’s lenses are recognized throughout the industry for their high quality and durability.

“One of the greatest challenges is continually to provide tools that meet your customers’ next generation requirements”, stated Geoff Wild, CEO of Nikon Precision, Inc. “We not only exceeded their technical requirements but we were able to provide a significant productivity improvement”.

Nikon will begin shipping systems after October of this year.

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.

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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.

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