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Powerchip Orders Nikon Immersion Scanner for Next-Generation Memory Line

Major Taiwanese Memory Manufacturer Selects Nikon

BELMONT, California — December 14, 2006 — Nikon Precision announced its NSR-S610C ArF immersion scanner has been selected by Powerchip Semiconductor Corporation as the leading edge tool for its 50 nm NAND flash process. The tool will be installed in Powerchip’s fab in Hsinchu, Taiwan. This system was selected over the competition because of Nikon’s proven ability to print immersion exposures with no immersion-induced defects and overlay accuracy equivalent to or better than dry systems.

“We are pleased that Powerchip selected us as their supplier for immersion lithography technology,” said Kazuo Ushida, President of Nikon Precision Equipment Company. “This continues our strong, existing relationship with Powerchip for both leading edge tools and non-critical layer lithography.”

The NSR-S610C builds on the immersion technology developed for the NSR-609B, the world’s first production immersion tool, shipped in January of 2006. Nikon’s proprietary Local Fill Technology is proven to eliminate scanner-induced immersion defects with no bubbles, water spots, or backside wafer contamination. This technology also eliminates evaporation of the immersion fluid, providing a critical advantage in preventing immersion related overlay problems. The Nikon Tandem Stage utilizes two stages with different functions to increase throughput, improve accuracy, and enhance long-term stability. The NSR-610C, with its catadioptric optics of NA 1.3, is the world first immersion scanner capable of 45 nm half-pitch volume production.

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 7,800 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