System will be used for manufacturing of 110 nm or smaller devices

Belmont, California – November 11, 2004 – Nikon continues its focus on high productivity lithography solutions with the introduction of the NSR-S208D, an advanced KrF scanner with 25% higher throughput and extremely low cost of ownership. Customers can use the system for mass production of 110 nm or smaller devices. The system combines a high NA projection lens (0.82 NA) with a newly developed, high productivity platform that enables dramatic improvements in alignment. Alignment accuracy was reduced to 10 nm or less, a 33% improvement over Nikon’s previous generation KrF scanner.

To ensure tight profile and CD control across the wafer, Nikon designed the projection lens with the lowest aberration and flare levels in the industry. High quality materials and proprietary manufacturing technology provide a virtually perfect lens. In addition, the NSR-S208D includes detailed environment control systems to ensure the lens quality is maintained over the life of the product. Nikon lenses are recognized throughout the industry for their high quality and durability.

Nikon continues to extend its leadership position with the introduction of its sixth completely new lithography system in the last 18 months, more than any of its competitors. Nikon also shipped more systems overall and more advanced ArF scanners than any of its competitors in 2003 (based on information from Gartner Dataquest). Nikon continues to invest in new product development, bringing more products to the market, all with improved performance and reduced cost of ownership.

“We continue to provide solutions for our customers’ needs” stated Geoff Wild CEO of Nikon Precision, Inc. He continued “KrF scanners are used for the majority of the advanced scanner applications for 110 nm down to 65 nm. Our customers have asked for a tool with extremely high productivity and lower cost of ownership and we delivered just that.”

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 7,600 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. For more information about Nikon, access our web site at www.nikonprecision.com

Forward Looking Statements
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