ASML intends to mitigate potential dilution from convertible bonds due October 2006

ASML Holding NV (ASML) today announced its conditional agreement to enter into financial transactions to reduce partly the dilutive impact of shares that may be issued upon conversion under the 5.75% subordinated convertible bonds due October 15, 2006.

The transactions will be consistent with prior disclosures and authorization by the Annual General Meeting of Shareholders held on March 23, 2006, to repurchase up to 10% of the issued share capital of ASML, and the company’s subsequent share buyback program completed on July 13, 2006, through which ASML acquired 5.25% of its outstanding shares.

“Along with these intended transactions, we reiterate ASML’s commitment to return excess cash to the shareholders and reduce the number of shares outstanding,” said Peter Wennink, executive vice president and Chief Financial Officer, ASML.

The proposed transactions will become effective subject to prevailing market conditions and liquidity.