SAN DIEGO and SANTA CLARA, Calif., Jan. 26, 2004—Cymer, Inc. (Nasdaq NM:
CYMI), the world's leading supplier of deep ultraviolet (DUV) light sources used in
semiconductor manufacturing, and Intel Corporation today announced they have signed a
development agreement for Intel to provide US$20 million in funding over the next three
years to accelerate development of production-worthy extreme ultraviolet (EUV)
lithography light sources.

EUV lithography is positioned for commercial deployment in 2009, but several issues
must be addressed to keep the technology on track.  A key issue confronting the
commercialization efforts of EUV lithography is the ability to increase source output
power to meet the wafer throughput requirements of high volume manufacturing, while
minimizing the cost of ownership for EUV lithography tools. 

"Accelerating EUV technology development to enable its successful implementation in
high volume manufacturing for the 32nm node in 2009 is a critical mission at Intel," said
Peter Silverman, Intel Fellow and director of Intel's Lithography Capital Equipment
Development. "This agreement will further enable Intel and Cymer to concentrate on the
critical technology challenges and on delivering a cost-effective, commercial EUV source
solution to produce development tools in 2006 and meet the industry's 2009 production
timeline."  

"Cymer welcomes this opportunity to accelerate and intensify our EUV development
efforts and further validate our EUV source expertise," said Bob Akins, Cymer's
Chairman and Chief Executive Officer.  "In addition to augmenting our current EUV
R&D efforts, this will help enhance our technology leadership and competitive edge in
the semiconductor capital-equipment marketplace."

Further details of the agreement were not disclosed.

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 Intel
providing $20 million in funding over the next three years to accelerate Cymer's
development of EUV lithography light sources; the expected commercial deployment of
EUV lithography in 2009; the agreement enabling Intel and Cymer to deliver EUV
development tools in 2006 to meet the 2009 production timeline; and Cymer accelerating
and intensifying its EUV R&D efforts and enhancing Cymer's technology leadership and
competitive edge.  Each of these statements is based only on current information and
expectations that are inherently subject to change 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 possibility that
Cymer's EUV light source will not perform up to expectations or that a competing
technology may prove to be superior; the possibility that the need for EUV technology
will be pushed out beyond 2009 or that technology roadblocks will prevent the R&D
effort from being completed on time; 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.

About Cymer, Inc.
Cymer, Inc. is the world's leading supplier of DUV illumination sources, the essential
light source for DUV photolithography systems.  DUV lithography is a key enabling
technology that has allowed the semiconductor industry to meet the exacting
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, on the Internet at www.cymer.com or by contacting the company
directly.

About Intel Corporation
Intel, the world's largest chip maker, is also a leading manufacturer of computer,
networking and communications products. Additional information about Intel is available
at www.intel.com/pressroom

Intel is a trademark or registered trademark of Intel Corporation or its subsidiaries in the
United States and other countries. Cymer is a registered trademark of Cymer, Inc.

###

Company Contact: Meggan Powers PR Manager Cymer, Inc. Tel: (858) 385-6327 Fax: (858) 385-6045 mpowers@cymer.com

Investor Relations Contact: Terry Slavin Director, Corp. Communications & IR Cymer Inc. Tel. (858) 385-5232 Fax. (858) 385-6090 investorinfo@cymer.com