<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>lon349141.txt
<DESCRIPTION>ENVIRONMENT, HEALTH & SAFETY REPORT 2003
<TEXT>
                                                                    Exhibit 99.2
                                                                    ------------


Environment, Health & Safety Report 2003


ASML Mission Providing leading edge imaging solutions to continuously improve
our customers' global competitiveness
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Contents

 3  About ASML

 4  Message to Our Stakeholders

 5  Environmental, Health and Safety Policy

 6  EHS Management System

 7  Highlights

 9  Environment

13  Health and Safety

18  Compliance

19  Goals for 2004

20  ASML Worldwide Contact Information

(C) 2004, ASML Holding N.V. All Rights Reserved

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About ASML

ASML is the world's leading provider of lithography systems for the
semiconductor industry, manufacturing complex machines critical to the
production of integrated circuits or chips.

ASML technology transfers circuit patterns onto silicon wafers to make every
kind of chip used today and tomorrow. As digital products, such as PCs and
mobile phones, become more pervasive, the technology behind chip manufacturing
becomes more advanced.

With each generation of chips, personal and business products become smaller,
lighter, faster, more powerful, more precise, more reliable and easier to use.
In parallel, the global semiconductor industry is pursuing its long term
roadmap for imaging ever-finer circuit lines on silicon wafers.

Core business: semiconductor lithography

The technology behind our business is known as lithography, and we have always
been at the leading edge of that technology. ASML systems - called steppers
and Step & Scan tools (scanners) respectively - use a photographic process to
image nanometric circuit patterns onto a silicon wafer, much like a camera
prints an image on film.

ASML researches, develops, designs, manufactures, markets and services
lithography systems used by the semiconductor industry to fabricate
state-of-the-art chips. Most of the major global semiconductor manufacturers
are ASML customers. For chipmakers, technological advancement in imaging means
increased manufacturing productivity and improved profitability.

The ASML TWINSCAN(TM) lithography system exemplifies our technology
leadership. It is the industry's only dual-stage system that allows exposure
of one wafer while simultaneously measuring another wafer. This gives our
customers greater productivity and improved yield when producing high volumes
of chips.

ASML is committed to providing customers with the right technology that is
production-ready at the right time. Doing so enables our customers and their
customers to sustain their competitive edge in the marketplace.

ASML Special Applications focuses on solutions for application markets, where
it has evolved as the lithography market leader in serving the Thin Film Head
and Compound Semiconductor industry. We have also developed expertise to
certify and relaunch previously used ASML equipment into the market.

ASML MaskTools provides innovative mask technologies and software products
that extend the limits of optical lithography for chip manufacturing at 90
nanometer and beyond. These are optimized for ASML's advanced scanners,
enabling the delivery of complete and integrated mask design to wafer imaging
solutions.

ASML Optics is an extreme precision optical foundry offering design-to-image
solutions for the semiconductor and optical manufacturing industries. Expert
resources and capabilities in optical design and manufacturing, cleanroom
assembly, systems engineering, test and metrology offer solutions across a
range of application requirements.

ASML facilities, like its customers, are worldwide, in 14 countries and over
50 sales and service locations. ASML is a responsible global citizen committed
to safeguarding the welfare of our employees and of the communities and
environments we work in.

ASML is not only technically driven, but also expresses its long-term
commitment to the community we live in. ASML Trust is a foundation, which
operates in countries where ASML is present. Its purpose is to extend
financial support for projects that focus on technical education, as well as
charities in general. ASML Trust encourages self-reliance of parties involved.

Headquartered in the Netherlands

ASML's corporate headquarters is in Veldhoven, the Netherlands. The company
has lithography research, development and manufacturing operations in Wilton,
Connecticut, U.S., and Veldhoven, the Netherlands. Technology development
centers and training and application facilities are located in Asia, Europe
and the United States.

ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML.

For more information, visit www.asml.com
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Message to Our Stakeholders

The year 2003 was a turbulent year for ASML, but although uncertain business
conditions led us to cut costs and delay some projects, our commitment to
world-class performance in terms of the Environment, Health and Safety (EHS)
has not wavered. ASML understands that the continued success of our company
must be measured not only in terms of our commercial and financial success,
but also in terms of our responsibility to the well-being of all of our
stakeholders and the welfare of the environments in which we operate. The
strength of our Commitment to Leadership depends, at least in part, on the
strength of our commitment to this responsibility. Our participation in the
Semiconductor Equipment Manufacturing Institute (SEMI) Global Care Initiative,
which promotes excellence in workplace health and safety, resource
conservation, product stewardship and community service, is a clear statement
of our commitment to sustainable development.

I am therefore pleased to be able to include in this report our new, combined
Environmental, Health and Safety Policy, which sums up the EHS mission and
objectives for our entire company. This is our first policy statement to
encompass both environmental and health and safety issues, and will provide a
yardstick against which each of our employees can measure their activities,
and our stakeholders can monitor our progress. Combined with the many other
initiatives outlined in this report, this policy demonstrates our efforts to
embed and integrate EHS management throughout our company, providing our
people with the knowledge and tools to improve performance, and ensuring that
we have the structures and systems in place to assess that performance.

I am also proud to announce that we continued to make great headway toward
global ISO 14001 environmental standard certification for all our facilities.
At the time of publishing this report, the certification process is still
ongoing. I expect ASML to be certified by the first half of 2004. Our
Veldhoven operations obtained certification in 2002, and in 2003, we focused
on aligning our U.S. production plants with the standard. In 2004, we will
focus on the activities of our global Customer Support and Sales groups. These
groups operate out of offices that already have a minimal environmental
footprint, in many different locations and with staff often working irregular
hours and at the factories of our customers. The ISO 14001 program for these
groups will therefore focus on extensive training programs for staff. These
will be substantially facilitated by the new EHS management system for Asia
that we have put in place in 2003. Globally, over the coming year, we will
also focus on meeting the requirements of the international OHSAS 18001
specification for occupational health and safety assessment.

We look forward to continuing to improve our EHS performance worldwide in
2004, in the interests of all our stakeholders.

Doug J. Dunn
President, Chief Executive Officer and
Chairman of the Board of Management
ASML Holding N.V.

Veldhoven, January 30, 2004
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Environmental, Health and Safety Policy Statement

ASML is a responsible global citizen committed to safeguarding the welfare of
our employees and the community and environment we work in. We therefore
strive to conduct our operations in an environmentally responsible manner, and
to create health and safety practices and work environments that protect
employees from injury or occupational illness.

We will achieve this by:
o Meeting or exceeding applicable EHS regulatory requirements
o Proactively promoting employee health and safety, continuously improving our
  performance in this area
o Ensuring the safety of our products and auxiliary equipment for our
  employees, distributors and customers through appropriate design
o Continuously improving our environmental performance using materials and
  energy efficiently and reducing waste, emissions and discharge as much as
  practically achievable
o Developing and implementing EHS procedures and reviewing them periodically
  to ensure their effectiveness
o Informing and educating our employees about the EHS policy and procedures
o Communicating EHS issues with our stakeholders and all interested parties
o Communicating our EHS performance in an annual report

To enable us to achieve these objectives, ASML will integrate EHS into our
business planning and decision-making as much as possible, monitoring our
performance and establishing clear targets on an ongoing basis.

Doug J. Dunn
President, Chief Executive Officer and
Chairman of the Board of Management
ASML Holding N.V.
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EHS Management System
Global commitment, local requirements

ASML is firmly committed to world-class EHS performance at each and every one
of its sites, and our newly drafted, combined Environmental, Health and Safety
Policy applies around the globe. For all countries in which we operate, the
twin pillars for EHS management are the same:  the ISO 14001 standard for the
environment and the OHSAS 18001 standard for occupational health and safety.
At the same time, complex and differing local regulatory requirements and
different cultural attitudes to EHS issues require a decentralized - but
aligned - EHS management system.

Regional management, central alignment

ASML believes that effective EHS management depends
on timely and direct communication and control, and this is reflected in our
EHS management system, which focuses on regional management and limited
central directives. In 2003, we established an EHS organization for our
operations in Asia, thereby completing our regional EHS management system.

ASML's headquarters in Veldhoven is responsible for developing policies and
procedures in close consultation with the Board of Management. For each of our
production sites in Europe and the U.S., full-time EHS managers are assigned.
In Asia, the U.S. and in Europe, an overall EHS manager coordinates EHS issues
via local EHS facilitators, of which there is at least one per country. In
addition, within Marketing and Technology System Engineering, Product Safety
engineers based in Wilton and Veldhoven monitor all EHS issues relating to
product safety.

In total, ASML employs around 14 full-time employees to monitor and manage EHS
issues. Our Product Safety and Manufacturing groups employ full-time EHS
staff. Within our Customer Support group, EHS management in the field is
carried out by EHS managers, coordinators and facilitators on a part-time
basis, as part of their engineering role. However, responsibility for EHS
issues resides with each and every ASML employee.
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Highlights

EHS objectives for 2003

The table below summarizes ASML's performance in 2003 against the goals
outlined in the 2002 EHS report.

Objective                                        Performance
---------                                        -----------

Reduce energy consumption                        Worldwide, our energy
                                                 consumption fell by 2.5%.
                                                 Although plans for
                                                 underground energy storage in
                                                 an aquifer at Veldhoven
                                                 proved not to be feasible,
                                                 operational adjustments to
                                                 our co-generation plant will
                                                 in due course result in
                                                 savings that exceed those
                                                 predicted for the aquifer.

Reduce water consumption                         Our global water consumption
                                                 rose by 1% in 2003, mainly
                                                 due to increased use of
                                                 cooling water. To address
                                                 this, a feasibility study
                                                 into using non-potable rather
                                                 than potable water as cooling
                                                 water at Veldhoven was
                                                 completed. The perational
                                                 changes made to the
                                                 co-generation plant will
                                                 result in reduced water
                                                 consumption.

Reduce waste and optimize recycling              The first phase of a
                                                 waste-stream separation
                                                 project has been implemented,
                                                 starting in Veldhoven. In
                                                 close cooperation with our
                                                 SITA waste hauler, we have
                                                 cut domestic waste by 20% and
                                                 increased the proportion of
                                                 waste that is recyclable by
                                                 3%. Also in Veldhoven, we
                                                 began separating foil from
                                                 other plastic waste and
                                                 installed a foil-compressing
                                                 machine: the collected foil
                                                 is baled and exported for
                                                 recycling.

Manage, measure and monitor EHS                  A formal EHS organization for
performance more effectively                     operations in Asia has been
                                                 created and EHS staff trained.

Obtain global certification of our               Our operations have now
environmental management system                  implemented ASML's Environ-
                                                 mental Management System, and
                                                 the certification process is
                                                 still ongoing.

Initiate inclusion of OHSAS 18001 criteria       In 2003, we launched a project
our health and safety management system          to map ASML's existing health
                                                 and safety into measures
                                                 against legal requirements
                                                 and those of the OHSAS 18001
                                                 standard. In the fourth
                                                 quarter, this project was
                                                 staffed, tasks assigned and
                                                 targets set. A number of
                                                 OHSAS 18001 safety management
                                                 criteria have already been
                                                 incorporated into our health
                                                 and safety management system.
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Other developments

Environmental benefits of immersion technology
On December 2, 2003, ASML proudly announced it had received orders for its
first immersion tool. Developments in immersion technology, which allow finer
patterns to be printed on wafers, have significant environmental benefits.
Because as many as 10 to 15% more chips can be put on each wafer, fewer
resources such as chemicals and energy are required per chip, and each chip
has increased capacity. The full environmental benefit is realized at the chip
production facilities.

Extending system lifetimes
ASML also minimizes its impact on the environment by reusing older
lithographic systems for specific customer groups. In high-volume production,
the emphasis is on both the productivity and performance of the chips. In
contrast, producers of smaller series (to be used in research, in the
biochemistry or aerospace industries, for instance) and producers of chips
with an unusual format are often satisfied with the lower productivity or
lesser performance of older generation systems. ASML helps these special
customers by providing the technology, expertise and lithographic systems
suitable for their special purposes. This kind of recycling allows us to
extend the lifetime of a number of our older products.

Consolidating sites
During 2003, ASML streamlined its offices, training and manufacturing
facilities, resulting in considerable operational savings and a more efficient
use of resources, through lower power consumption and reduced waste for
instance, as well as secondary environmental benefits (less commuting, etc.).
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Environment

Toward global IS0 14001 certification

In 2002, ASML's facilities in the Netherlands were granted ISO 14001
certification. Building on this success, we focused in 2003 on ensuring our
U.S. production sites met the requirements of the standard. Toward the end of
2003, we launched a number of ongoing initiatives and actions from our
environmental management system in our global Customer Support organization.

ASML operates in over 50 sites in Asia, Europe and the U.S. Most of these are
offices, with a very limited environmental impact and minimal occupational
health and safety risks. We concentrated on increasing EHS awareness
throughout ASML by training employees in environmental management. Cultural
and legal differences between East and West make standardizing EHS processes
across the globe a challenge. However, taking local differences into account,
we are committed to obtaining full global certification in 2004. ASML will
continue to increase environmental awareness throughout the company.

Conserving energy

ASML actively seeks out and pursues opportunities to use energy in the most
efficient way possible, minimizing associated gas emissions in the process. We
do this by developing energy-efficient products, investigating alternative
energy sources and reducing energy consumption in all our operations. Our
Product Safety engineers ensure the energy specifications for all our products
remain as low as possible without compromising performance. One example of
this is the installation in our products of motors that not only meet but
exceed the requirements of the U.S. Energy Policy Act (1992).

Reducing energy consumption

In 2001, ASML launched an investigation into using an underground aquifer to
store water to cool our cleanrooms in Veldhoven. ASML's facilities there are
located near the Dommel river basin, which is designated as an area of natural
beauty by the Dutch Nature Conservancy Act. The Dutch government therefore
imposes stringent requirements with regard to the variation in the groundwater
level of the surrounding area. In-depth research in 2003 into a number of well
configurations concluded that plans for underground energy storage in an
aquifer were not feasible. However, the research showed that by changing how
the co-generation plant in Veldhoven is operated, we will nevertheless be able
to reduce energy consumption by as much as or even more than the underground
storage.

Performance

Total electricity use fell by 2% compared to 2002, and total fuel consumption
decreased by 1%.

Energy (TJ)(1)                         2002        2003
Electricity                            454.7       447.1
Fuels                                  388.7       385.7
Total                                  843.4       832.8
(1)  TJ = Terajoule = 10(12) joules

Energy consumption
[GRAPHIC OMITTED]

Reducing emissions

ASML closely monitors emissions from its operations to the air in order to
minimize them or eliminate any adverse impact on the environment. Emissions of
greenhouse gases, i.e., nitrogen oxide (NOx) and carbon dioxide (CO2), are
by-products of our combustion processes. In addition, a number of specialty
gases (natural constituents of the atmosphere), including helium, krypton and
fluorine,are used in varying quantities and compositions in our lithographic
systems. The fluorine is captured, and the inert gases emitted into the
atmosphere. The fluorine traps are subsequently returned to the manufacturer
for recycling.
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Improved gas management system

In 2003, ASML Veldhoven completed the implementation
of our new gas management system by connecting the individual gas controls to
our PRIVA building intelligence system. This management system enables us to
monitor the flow of these gases online, thereby detecting any gas leakages and
indicating trends in usage.

Performance

Due to careful pollution control, the use of design-for-environment principles
and reductions in energy consumption, emissions of greenhouse gases in 2003
were almost 2% lower than in 2002.

Emissions of greenhouse gases (tons)   2002        2003
CO2 direct                            22,811      22,191
CO2 indirect (1)                      40,941      40,433
NOx direct                                17.6        23.7
Total                                 63,770      62,648
(1) by purchased electricity

Emissions of inert gases (tons)        2002        2003
Nitrogen produced                      5,180       5,893
Nitrogen bulk                          1,109         820
Specialty gases                           39.4        27.2
Total                                  6,328       6,740

Our consumption (and consequently emissions) of inert gases (i.e., nitrogen
and specialty gases) increased by 6.5%. This was due to a change we effected
from noble gases to nitrogen to ensure a protective atmosphere for ASML
machines. In total, specialty gas emissions were cut by as much as 31%.

Gas emissions (kilotons)
[GRAPHIC OMITTED]

Cutting water consumption

ASML is committed to reducing its water consumption through comprehensive,
state-of-the-art reuse, recycling and other water-reduction projects. In 2002,
we launched an investigation to identify means of lowering consumption in the
Netherlands. This investigation continued throughout 2003, and the various
measures proposed are now being evaluated for feasibility, with a view to
implementation in 2004.

Performance

Worldwide, ASML water consumption rose by 1% compared to 2002. This rise can
be explained by increases in the temperature of water used for cooling. Both
the Wilton and Veldhoven sites, with their large cleanroom areas, contributed
to the increased consumption. However, this was almost entirely compensated
for by the reduction in water consumption that resulted from ASML's withdrawal
from Track and Thermal in 2003.

Water (1000 m3 )                       2002        2003
                                       437.3       442.2

Water consumption
[GRAPHIC OMITTED]

Reducing waste

We are continuing to make strides in minimizing waste and enhancing efficiency
in the use of materials throughout our processes. In addition, by maximizing
our recycling efforts, we promote sustainable production practices and reduce
landfill.
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Recycling

Almost all ASML facilities operate a glass, paper and plastic collection and
recycling program. In addition, product shipping containers are returned to
the company for reuse. Exact procedures vary per site and region. In the U.S.,
for instance, our California and Connecticut sites collect waste batteries,
obsolete electronics and waste lamps for recycling, whereas in Tempe, Arizona,
all waste collected in Tempe and neighboring cities is separated at the county
dump site.

Separating waste streams

In 2003, the project initiated in 2002 to separate waste streams at all major
locations in order to optimize recycling was rolled out in the Netherlands. At
our Veldhoven facility, we have begun to separate foil from plastic waste, and
installed a foil-compressing machine, which also bales the foil. The foil is
separated by type of polymer (into polyethylene [PE] and polypropylene [PP]),
then recycled into granules ready for use by the plastic processing industry.

Performance

Our Waste Optimal project in Veldhoven, in conjunction with our SITA waste
hauler, delivered particularly impressive results in 2003, with an overall
reduction in waste of 11% and reductions of almost 23% in domestic waste and
24% in hazardous waste. Globally, some 57% of the waste generated at ASML
facilities (metal, wood, electronics, paper, glass, etc.) was recycled - an
increase of 3% compared to 2002. In Veldhoven, some 199.4 tons of paper were
collected for recycling in 2003, and 6.7 tons of plastic foil was separated
from the domestic waste stream, baled and exported for recycling.

Veldhoven waste (metric tons)           2002        2003
Domestic                                 477         368
Recyclable                               461.9       482.4
Hazardous waste                          101          76.6
Total                                  1,039.9       927

Veldhoven waste
[GRAPHIC OMITTED]

Also in Veldhoven, the quantity of sulfuric acid used (and disposed of) fell
by 68% from 47.1 tons to just 19.9 tons. This was due to the increased use of
300-mm wafers as well as a plasma-stripper for cleaning wafers.

Waste water analysis

ASML's 18-month waste water analysis program in the Netherlands drew to a
close in 2003. The insights that resulted from the analysis program have
enabled less frequent sampling and reduced parameters, and therefore the Water
Board and ASML have agreed to a new reduced waste water inspection regime.

Due to a technical failure, the neutralization unit in Veldhoven twice
accidentally discharged waste water with a lower pH than permitted. Waste
water is discharged into ASML's sewage, where it is diluted with other waste
water streams before entering the public sewage system. ASML reported both
incidents to the authorities, enabling them to monitor any possible effects.
To prevent this from occurring again, ASML plans to connect the pH meter to
the PRIVA intelligence system, which will raise an immediate alarm in the
event of a permit threshold being exceeded. As PRIVA runs 24 hours a day, this
will dramatically cut response time.
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Environmental training

ASML seeks to ensure that all its employees are able to contribute to
environmental excellence. We do this through formal training and through
internal communications media, including a number of dedicated intranet sites.

In 2003, 131 employees received formal training in environmental issues - over
twice as many as in 2002.

Environmental training (attendees)     2002        2003
Introduction to Environmental
Management                              40          106
Environmental Management
for Supervisors                         15           16
Auditors (Internal and Lead Auditors)    5            9
Total                                   60          131
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Health and Safety

Reducing risks, protecting people

The health and safety of all those who come into contact with our products and
services is an overriding concern at ASML. This means making sure that all our
facilities are safe to be in, that our business processes are safely carried
out, and that our products are safe to use. It also means ensuring that our
employees and users are properly informed about safety procedures.

To monitor that our health and safety system is operating effectively and
efficiently, we conduct annual routine assessments, followed by corrective
actions and periodic management reviews. In 2003, we performed 6 safety audits
at 5 sites, including all manufacturing sites in the U.S. The same number of
reviews was conducted in 2002. As a result of these audits, ASML's Goodsflow
group also completed a comprehensive revision of work instructions based on an
updated risk assessment.

Toward OHSAS 18001 certification

OHSAS 18001 is the voluntary international specification for occupational
health and safety management systems. In 2003, we began to evaluate our
existing measures and procedures against the OHSAS 18001 (or equivalent)
safety management criteria. This process will continue throughout 2004 and
2005, with the ultimate aim of global certification for all our facilities.

One global health and safety policy manual

In the last quarter of 2003, we launched a key project to develop a single,
worldwide ASML health and safety policy manual. Overseen by a Steering
Committee and carried out by a working group, this project consists of
compiling a total inventory of all legal health and safety requirements in the
countries in which we operate, as well as an inventory of all the many
internal measures, procedures and customs within our facilities. These
inventories are expected to be completed by mid-2004. A gap analysis will then
be conducted for the two inventories to reveal any deficiencies and regional
differences. This will enable an exhaustive, globally applicable policy manual
to be drawn up that will meet all local requirements as well as laying down
standard processes and procedures wherever possible. The aim is to complete
the policy manual by the end of 2004.

Preventing incidents

Through comprehensive safety training, stringent safety practices, control of
workplace hazards and design-for-safety principles, ASML aims to achieve a
zero occupational injury rate in all its facilities. In the event that an
incident does occur, procedures are in place for effective investigation. In
the U.S., our Customer Support group developed an accident investigation
toolkit that managers must use to investigate any incident.

Incident definition

In the U.S., the injury rate as defined by the Occupational Safety and Health
Administration (OSHA) as the number of recordable injuries multiplied by
200,000 and divided by the number of hours worked. Recordable injuries are
divided into occupational deaths, 6 types of injury and 4 types of illness
resulting from occupational exposure.

In Europe and Asia, accidents are divided into lost time injuries (accidents
resulting in a worker being absent for at least a day) and medical attention
incidents (incidents whereby a worker receives attention either from a medic
or an outpatient clinic, but is able to continue working thereafter). At our
Veldhoven site, we also record those incidents in which a member of staff is
examined by a First Aider.

The definitions for near misses and environmental incidents apply globally. A
near miss is defined as an incident that did not result in injury or financial
damage, but which could easily have become an incident in which injuries or
damage were sustained. An environmental incident is defined as an incident
with a negative impact on the environment but no personal injury (e.g., a
spill or violation of permit requirements).

Performance

As part of our focus on continually improving our health and safety standards,
in 2003 we launched a program in Veldhoven emphasizing the need to report near
misses, however unimportant these may seem. ASML is a learning
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organization that uses the information from near-miss reports to prevent
accidents. The fact that the environmental management system was extended to
all locations in 2003 also contributed to the number of near misses reported.
While the inclusion of near misses inflates the overall number of incidents,
it does not indicate a rise in the number of actual OSHA recordable incidents
or lost time injuries. There was a slight rise in medical attention injuries,
which is entirely due to an increase in First Aid Assistance reports by our
Customer Support and Optics groups. In 2003, ASML's global employee injury
rate was 1.3 incidents per 100 workers - well below the U.S. industry injury
rate of 4.6 injuries per 100 workers, and there were no work-related
fatalities.

Incident                               2002        2003
OSHA recordable incident               15            15
Lost time injury                        3             3
Medical attention injury               33            39
Near miss                              15            45
Total                                  66           102

[GRAPHIC OMITTED]
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Product safety

ASML's existence depends upon our ability to provide customers with products
that are not only superior in terms of performance, but also in terms of
safety. Our Product Safety engineers make certain that safety measures are
incorporated into equipment from the earliest design stage. All potential
hazards are identified early, when most problems can still be easily and
cost-effectively resolved. Where equipment hazards cannot be designed out,
steps are taken to design safeguards into the system to make certain that no
single failure mode or operator error can lead to a hazardous exposure of the
operator, facility personnel or the environment. This is achieved through
investigating and reviewing new designs, often directly with the customer on
site, and providing advice and information within the company. Product safety
at ASML is literally "cradle to the grave": Product Safety engineers are not
only responsible for reviewing the design, but also for defining
specifications for the safe disposal of equipment once it reaches the end of
its lifecycle.

Meeting SEMI standards

Standards followed for product safety include all applicable regional
regulations and the Semiconductor Equipment Manufacturing Institute (SEMI) S2
Safety Guidelines for Semiconductor Manufacturing Equipment, which address
chemical, radiation, electrical, physical, mechanical or environmental
hazards, as well as fires and explosions, earthquake protection, ventilation
and exhaust, and ergonomics. Third-party audits are conducted to ensure these
standards are met. We also apply our own additional safety standards.

Leading the way

ASML seeks to participate actively in raising product safety standards for the
semiconductor industry. In 2003, one of our Product Safety engineers was
appointed co-Chair of the European SEMI EHS Committee. Participating in
activities of this kind enables us to proactively look ahead and plan our
response to proposals for standards that are still to be finalized. One
example is the proposal currently out for ballot at SEMI with regard to EHS
metrics for lifecycle analyses of tools. ASML is already investigating and
preparing data to enable the new standard to be implemented as soon as it is
passed.

Performance

Throughout 2003, an extensive program was rolled out to inspect, test and
certify the tools we design for special applications, and to place them within
a calibration and re-examination scheme. In addition, SEMI S2 reviews were
conducted both for the PAS 5200 product series and our AT:1200 series,
demonstrating our commitment to compliance for our entire range, from the very
oldest to the very newest products. At the start of the year, an S2 review was
completed for our SVG heritage Micrascan VII product,
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now on the market. Product Safety was also responsible for ensuring all tools
and equipment transferred from the Netherlands to our Wilton facility met or
exceeded U.S. safety regulations, including compliance with the National
Electric Code (NEC). Other indicators of our successful product safety program
include rapid and smooth safety negotiations with customers and the limited
number of product safety-related complaints and requests for changes to
lithography equipment.

Screening new materials

In pursuit of innovation, ASML continually investigates new technologies and
materials. As part of our commitment to responsibility, our EHS experts
regularly screen new materials for any chemical, physical or toxicological
properties or hazards in order to protect both the environment and our people.

Performance

In 2003, we investigated 6 chemicals for use in advanced processes in our
laboratories. Of these, 5 were approved and are currently in use.

Rapid emergency response

In the event of an emergency, such as a fire or earthquake, responding rapidly
can save lives. ASML ensures its employees are taught how to respond, and has
appointed designated emergency response teams trained to assist and lead other
employees in dangerous situations. These teams are trained in First Aid,
building evacuation and fire-fighting.

Safer buildings

In 2003, our Veldhoven facility opened its new 20-story office building to
staff. With such tall constructions, in the event of a disaster, emergency
services often face delays or difficulties in accessing parts of the site. To
address this issue, the building has been fitted with sprinklers throughout,
and for each floor, two evacuation leaders have been appointed, ensuring that
at least one trained member of staff is always present during working hours.
Test drills to highlight any areas for improvement have already been conducted
with the local fire brigade, and relevant actions taken. All Veldhoven
manufacturing facilities were also fitted with sprinkler systems.

In the course of the year, all other ASML buildings were audited in terms of
fire safety performance by FM Global, one of the world's largest commercial
and industrial property insurance and risk management organizations
specializing in property protection. All were rated good to excellent.

Safer storage

At the ASML Optics Richmond facilities, a new storage facility for hazardous
solvents was erected to replace an old one. The new facility, located at a
distance from the factory itself, is fitted with alarms and an automatic fire
extinguisher.

First Aid

In addition to its existing First Aid provisions, our Veldhoven facility has
now installed four defibrillators (AEDs) on site, to be used by trained staff,
to enable rapid treatment for any employee or visitor suffering from a heart
rhythm disorder.

Preventing work-related conditions

ASML is aware that employees who suffer physical discomfort in the performance
of their duties are vulnerable to conditions such as Repetitive Stress Injury
(RSI). Such conditions can be serious and debilitating, and disrupt operations
and affect employee motivation. We address this issue by providing
ergonomically optimized workplaces and workstations for all employees.

Advice

Upon request, at each of its main sites, ASML provides ergonomic advice to any
employee suffering from discomfort. In Veldhoven, in 2003, this resulted in an
audit of 113 workstations, the provision of 14 chairs with special features,
and 22 corrections to chair settings and desk heights.

Cleanroom audits

In 2003, all types of cleanroom workstation in Veldhoven were examined for
ergonomic fit. The resulting recommendations for improvements will be
implemented in 2004.
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Assembly working conditions

We continuously monitor the impact of manufacturing requirements upon our
employees' health, and make adjustments accordingly. For instance, the
construction of our TWINSCAN machines begins with the attachment of devices to
the bottom of the base frame. This used to require employees to lie beneath
the frame in order to accomplish the task. We therefore developed a tool
allowing the height and angle of the base frame to be adjusted so that
employees have easy access and can attach and line up the devices from a
standing position.

Performance

Workplace ergonomics                               2003
Adjustments and ergonomic advice                     27
Myo-feedback, posture advice                         20
Neck/shoulder/back complaints                        52
RSI grades 2/3                                       69
Total no. of workplaces investigated                113

Note: No figures are available for 2002, as ASML began providing ergonomic
advice at the end of 2002, after a period of training. The figures for 2003
are inflated due to the fact that some employees have received more than one
visit, and some may be counted in several of the categories listed (e.g., an
employee visited with regard to RSI may receive posture advice during the same
visit).

Health and safety training

As in the case of environmental issues, ASML seeks to ensure all its employees
are aware of the relevant health and safety issues, and able to play their
part in upholding standards and following procedures. We do this through
formal training and through internal communications media.

Our company recognizes that management commitment to health and safety is
vital. In the U.S. in 2003, Customer Support therefore rolled out a new
program entitled MESH (Managing Employee Safety and Health), which was
compulsory for all regional managers. Also, in the U.S., Customer Support have
recruited and trained 13 health and safety facilitators (bringing the total of
trained facilitators up to 15), and implemented a system for documenting and
tracking all safety training given to field service engineers. Customer
Support North America implemented a program to ensure that all Customer
Support engineers who work on ASML equipment received appropriate safety
training in compliance with state and federal standards. This included a
minimum of 10 contact hours, plus training on First Aid and Adult CPR. Some
92% of engineers were trained, with the remainder to receive training in
January 2004.

In Asia, we focused on training staff members within the EHS organization
there for their new responsibilities. All facilitators from Taiwan, Singapore,
Korea, Japan and China came together in an intensive four-day workshop in
Shanghai to cover all necessary topics and provide a consistent approach.
Topics covered included lock out/tag out, electrical safety, bloodborne
pathogens, job hazard analysis and ladder safety.

Performance

In 2003, 2,462 employees received formal training in health and safety issues:
6% more than in 2002.

Health and Safety training         No. of       No. of
                                   employees    employees
                                   2002         2003
Dangerous Goods                       36           12
ERT Training (1)                      48           84
Ergonomics                         1,320            -
FP&BE (2)                            740        1,053
First Aid                            103          112
Workshop/Introduction to EHS           -           14
Laser Safety                          70           82
OHSA training (U.S.)                 N/A        1,014
Use of Fire Extinguishers              -           91

(1) Emergency Response Team Training
(2) Fire Prevention and Building Evacuation

Recognized leaders in safety

ASML is proud of its achievements in the continuous improvement of health and
safety measures within the company, and never more so than when these
achievements are recognized by the customers we serve. A number of our
customers have expressed their conviction that our tools are so safe that they
do not require reviewing within the customer's own safety review process.
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Compliance

ASML takes its commitment to complying with all applicable safety laws and
regulations extremely seriously. We therefore believe we have a duty of
transparency toward all our stakeholders in identifying any non-compliance,
whatever the cause, and stating what prompt action we have taken or will be
taking. There were 4 incidences of non-compliance in 2003.
<TABLE>
<CAPTION>

<S>                                                    <C>             <C>                                      <C>
Incident                                               Location        Action taken                             Penalty/fine
Late report to Labor Inspectorate                      Veldhoven       Instructed relevant EHS personnel        No
Late payment of emission taxes                         Wilton          Paid                                     Yes
Discharge of waste water with insufficiently high pH   Veldhoven       Reported to authorities                  No
Dangerous goods shipment violation                     Tempe           Project on shipping procedures started   Yes
</TABLE>
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Goals for 2004

In 2004, ASML will focus on the following EHS objectives:

Increasing EHS awareness worldwide
As part of our continued efforts toward global ISO 14001 and OHSAS 18001
certification, we will roll out EHS awareness and training programs to create
the necessary knowledge base. This will include ensuring facilitators in the
U.S. are fully trained with regard to the ISO 14001 standard and certified to
train others. We will also conduct internal EHS audits within an intensive
global audit schedule, for both checking and training purposes. Throughout
North America, we will maintain the safety certification for all Customer
Support engineers. All staff at Customer Support and Sales sites will also
receive initial or advanced training in environmental and safety management.

Ensuring consistent incident analysis
ASML is firmly committed to investigating all incidents objectively and
consistently, learning from each one and using what has been learnt to improve
EHS performance. To this end, in 2004, we plan to implement the Tripod Beta
system, a structured process of incident investigation and analysis that
provides insight into the effectiveness of control mechanisms and latent
failures, and lists the necessary remedial actions. The strength of Tripod
Beta is that it identifies the latent failures in the organization that
contribute to incidents, rather than focusing on immediate causes. This allows
these failures and their causes to be addressed as efficiently as possible.

Cutting energy and water consumption and waste
We will build on the findings of our investigations to date into how to reduce
energy and water consumption and waste by implementing those measures that
have proved feasible. For this purpose, we will define key environmental
performance indicators per site for 2005 to 2008.

Meeting OHSAS 18001 standards
Company-wide, we will focus on bringing health and safety practices up to and
in line with the requirements of OHSAS 18001 (or equivalent), continuing the
project launched in 2003 to develop a single, worldwide ASML health and safety
policy manual by the end of 2004, with the ultimate objective of starting the
global certification in 2005.
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ASML Worldwide
Contact Information

Corporate Headquarters

De Run 6501
5504 DR Veldhoven
The Netherlands

Mailing address

P.O. Box 324
5500 AH Veldhoven
The Netherlands

U.S. main offices

8555 South River Parkway
Tempe, AZ 85284
U.S.A.

77 Danbury Road
Wilton, CT 06897
U.S.A.

Asia main office

Suite 603, 6/F
One International Finance Center
1, Harbour View Street
Central, Hong Kong, SAR

Corporate Communications

phone: +31 40 268 4941
fax: +31 40 268 3655
e-mail: corpcom@asml.com

Investor Relations

phone: +31 40 268 3938
fax: +31 40 268 3655
e-mail: investor.relations@asml.com

For more information please visit our website www.asml.com

Environmentally-friendly reporting as part of our commitment to the environment,
ASML produces its Environment, Health & Safety Report in digital format only.

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