Cymer Expects Third Quarter Results to Be in Line With Guidance.

SAN DIEGO, Sept. 6 /PRNewswire/ --

Cymer, Inc. (Nasdaq CYMI), the world's leading supplier of excimer light sources used in semiconductor manufacturing, today announced that it expects third quarter 2001 results to be generally in line with the guidance provided in the press release the company issued on July 24, 2001. Specifically, Cymer expects that revenue and gross margin will be in line with the lower end of the range of guidance provided in the company's July 24 press release, and that certain expenses will be at the higher end of their ranges.

Bob Akins, Cymer's chairman and chief executive officer, said, "As of today's date, the third quarter has developed, with a few exceptions, according to our expectations. We have seen a number of system pushouts, and a somewhat larger than anticipated decline in sales of spares and consumables. Therefore, we now expect third quarter revenue to be between 24 percent and 26 percent below the $70,411,000 recorded in the second quarter. In addition, we anticipate that gross margin will be at the lower end of the 37 percent to 40 percent range of our previous guidance, while expenses such as R&D and SG&A are currently trending toward the high end of the range. We continue to expect to post a loss for the third quarter and will report our third quarter results in detail on October 23."

Commenting on market conditions, Akins continued, "Visibility remains very limited, and market conditions continue to be volatile and unpredictable. If current trends continue, we would expect fourth quarter revenue to decline from the levels expected in the third quarter. We will provide more detailed guidance in our press release and conference call on October 23."

Because of current market conditions, including extremely limited visibility and potential volatility, any forecast or projection is subject to future revision.

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, references to expected operating results for the third quarter of 2001, and the potential for fourth quarter results to decline from expected third quarter levels. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in such statements due to various factors, including but not limited to: the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; the rate at which semiconductor manufacturers take delivery of photolithography tools from the company's customers; delays or cancellations by customers of their orders; new and enhanced product offerings by competitors; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; inability of the company to secure adequate supplies of critical components for its advanced products; and failure by the company to manage its expense levels and unanticipated expenses. 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.

Cymer, Inc. is the world's leading supplier of excimer laser illumination sources, the essential light source for deep ultraviolet (DUV) photolithography systems. DUV lithography is a key enabling technology, which has allowed the semiconductor industry to meet the exact specifications and manufacturing requirements for volume production of today's advanced semiconductor chips. Further information on Cymer may be obtained from the Company's SEC filings, the Internet at http://www.cymer.com or by contacting the company directly.

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