ASML announces plan to optimize capital structure

ASML Holding NV (ASML) today announced that it will further optimize its capital structure through a return of approximately €960 million to shareholders in combination with a reverse stock split.

“ASML has clearly shown its ability to be profitable throughout industry cycles and generate cash above its operational needs,” said Peter Wennink, Chief Financial Officer of ASML. “We are committed to return excess cash to our shareholders and to regularly review the efficiency of our capital structure. We have concluded that our debt-to-equity ratio could be further optimized and have undertaken initiatives to address that issue. We feel that the capital repayment combined with a reverse stock split will allow us to create additional value for our shareholders. “

ASML believes that, within the current Dutch regulatory tax environment, the most efficient method to return cash to shareholders is through a capital repayment. This capital repayment will be effected by paying a total cash distribution of approximately €960 million to the shareholders as repayment of capital of €2.04 per share, and will be combined with a subsequent reduction of the number of outstanding ordinary shares by 11% through a 8 for 9 reverse share split.

An Extraordinary General Meeting of Shareholders will be held on July 17, 2007 (the 'EGM') to vote on the proposed capital repayment and share reduction plan. ASML has set a record date of June 18, 2007, for participation at the EGM. Convocation of the EGM and distribution of all relevant materials is expected to be on or about June 14, 2007.

At this meeting, ASML will propose:

• Conversion of €2.10 per ordinary share of the share premium reserve into nominal ordinary share capital
• Reduction of the adjusted nominal value of each ordinary share through a distribution of a cash amount of €2.04 per ordinary share
• Consolidation of all outstanding ordinary shares at a ratio of 8 for 9, which will then have a nominal value of €0.09

Subject to shareholder approval and the amendment of ASML’s articles of association, it is expected that the capital repayment and the share reduction plan will be executed before the end of September 2007.

Investor and Media Call

A conference call for investors, media and other interested parties will be hosted by CFO Peter Wennink at on May 31, 15:00 CET/09:00 ET. Dial-in numbers are +31 205315871 in the Netherlands and +1 706 6790473 in the US. The call can be listened to via asml.com.