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<SEC-DOCUMENT>0001156973-05-000129.txt : 20050203
<SEC-HEADER>0001156973-05-000129.hdr.sgml : 20050203
<ACCEPTANCE-DATETIME>20050203133550
ACCESSION NUMBER:		0001156973-05-000129
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		11
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050203
DATE AS OF CHANGE:		20050203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ASML HOLDING NV
		CENTRAL INDEX KEY:			0000937966
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25566
		FILM NUMBER:		05572471

	BUSINESS ADDRESS:	
		STREET 1:		DE RUN 1110
		CITY:			LA VELDHOVEN NE
		STATE:			P7
		ZIP:			5503
		BUSINESS PHONE:		3140580800

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ASM LITHOGRAPHY HOLDING NV
		DATE OF NAME CHANGE:	19950215
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>u48286e20vf.htm
<DESCRIPTION>20-F
<TEXT>
<HTML>
<HEAD>
<TITLE>20-F</TITLE>
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<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">



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<P align="center" style="font-size: 18pt"><B>Form&nbsp;20-F</B>

<P align="center" style="font-size: 14pt"><B>Securities and Exchange Commission</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 20-F</B>


<DIV align="center" style="font-size: 12pt"><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)<BR>
OF THE SECURITIES EXCHANGE ACT OF 1934</B></DIV>

<DIV align="center" style="font-size: 10pt"><B>for the fiscal year ended December&nbsp;31, 2004</B></DIV>



<P align="center" style="font-size: 10pt"><B>Commission file number 025566</B>


<P align="center" style="font-size: 24pt"><B>ASML HOLDING N.V.</B>


<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>



<P align="center" style="font-size: 10pt"><B>THE NETHERLANDS</B>


<DIV align="center" style="font-size: 10pt">(Jurisdiction of Incorporation or Organization)</DIV>



<P align="center" style="font-size: 10pt"><B>DE RUN 6501<BR>
5504 DR VELDHOVEN<BR>
THE NETHERLANDS<BR>
(Address of Principal Executive Offices)</B>



<P align="center" style="font-size: 10pt">Securities registered or to be registered pursuant to<BR>
Section&nbsp;12(b) of the Act:<BR>
None<BR>
(Title of Class)



<P align="center" style="font-size: 10pt">Securities registered or to be registered pursuant to<BR>
Section&nbsp;12(g) of the Act:<BR>
Ordinary Shares<BR>
(nominal value Eur 0.02 per share)<BR>
(Title of Class)



<P align="center" style="font-size: 10pt">Securities for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act:<BR>
None<BR>
(Title of Class)



<P align="center" style="font-size: 10pt">Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock<BR>
as of the close of the period covered by the annual report.



<P align="center" style="font-size: 10pt"><B>483,676,483 Ordinary Shares<BR>
(nominal value Eur 0.02 per share)<BR>
23,100 Priority Shares<BR>
(nominal value Eur 0.02 per share)</B>



<P align="center" style="font-size: 10pt">Indicate by check mark whether the registrant: (1)&nbsp;has filed all reports required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been subject to such filing requirements for the past 90&nbsp;days.



<DIV align="center" style="font-size: 10pt">Yes
<FONT face="Wingdings">&#254;</FONT> No
<FONT face="Wingdings">&#111;</FONT></DIV>



<P align="center" style="font-size: 10pt">Indicate by check mark which financial statement item the registrant has elected to follow.



<DIV align="center" style="font-size: 10pt">Item&nbsp;17
<FONT face="Wingdings">&#111;</FONT> Item&nbsp;18
<FONT face="Wingdings">&#254;</FONT></DIV>



<P align="center" style="font-size: 10pt">Name and address of person authorized to receive notices and communications from the Securities and Exchange Commission:



<DIV align="center" style="font-size: 10pt"><B>Richard A. Ely<BR>
Skadden, Arps, Slate, Meagher &#038; Flom (UK)&nbsp;LLP<BR>
40 Bank Street, Canary Wharf<BR>
London E14 5DS England</B></DIV>



<P>
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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left">
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</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Contents</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><B>Part I</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102"><B>Item&nbsp;1 Identity of Directors, Senior Management and Advisors</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103"><B>Item&nbsp;2 Offer Statistics and Expected Timetable</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104"><B>Item&nbsp;3 Key Information</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">A. Selected Financial Data</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">B. Capitalization and Indebtedness</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">C. Reasons for the Offer and Use of Proceeds</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">D. Risk Factors</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109"><B>Item&nbsp;4 Information on the Company</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">A. History and Development of the Company</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">B. Business Overview</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">C. Organizational Structure</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">D. Property,Plants and Equipment</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114"><B>Item&nbsp;5 Operating and Financial Review and Prospects</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">A. Operating Results</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#116">B. Liquidity and Capital Resources</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">C. Research and Development, Patents and Licenses</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">D. Trend Information</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">E. Off-Balance Sheet Arrangements</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#120">F. Tabular Disclosure of Contractual Obligations</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#121">G. Safe Harbor</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122"><B>Item&nbsp;6 Directors, Senior Management and Employees</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123">A. Directors and Senior Management</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">B. Compensation</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#125">C. Board Practices</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#126">D. Employees</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#127">E. Share Ownership</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128"><B>Item&nbsp;7 Major Shareholders and Related Party Transactions</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#129">A. Major Shareholders</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#130">B. Related Party Transactions</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#131">C. Interests of Experts &#038; Counsel</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132"><B>Item&nbsp;8 Financial Information</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#133">A. Consolidated Statements and Other Financial Information</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#134">B. Significant Changes</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135"><B>Item&nbsp;9 The Offer and Listing</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#136">A. Listing Details</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#137">B. Plan of Distribution</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#138">C. Markets</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#139">D. Selling Shareholder</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#140">E. Dilution</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#141">F. Expenses of the Issue</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#142"><B>Item&nbsp;10 Additional Information</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#143">A. Share Capital</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#144">B. Memorandum and Articles of Association</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#145">C. Material Contracts</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#146">D. Exchange Controls</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#147">E. Taxation</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#148">F. Dividends and Paying Agents</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#149">G. Statement by Experts</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#150">H. Documents on Display</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#151">I. Subsidiary Information</A></DIV></TD>
</TR>
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<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="100%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#152"><B>Item&nbsp;11 Quantitative and Qualitative Disclosures About Market Risk</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#153"><B>Item&nbsp;12 Description of Securities Other Than Equity Securities</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#154"><B>Part II</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#155"><B>Item&nbsp;13 Defaults, Dividend Arrearages and Delinquencies</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#156"><B>Item&nbsp;14 Material Modifications to the Rights of Security Holders and Use of Proceeds</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#157"><B>Item&nbsp;15 Controls and Procedures</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#158"><B>Item&nbsp;16</B></A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#159">A. Audit Committee Financial Expert</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#160">B. Code of Ethics</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#161">C. Principal Accountant Fees and Services</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#162">D. Exemptions from the Listing Standards for Audit Committees</A></DIV></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#163">E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers</A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#164"><B>Part III</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#165"><B>Item&nbsp;17 Financial Statements</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#166"><B>Item&nbsp;18 Financial Statements</B></A></DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#167"><B>Item&nbsp;19 Exhibits</B></A></DIV></TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv4w5.txt">Exhibit 4.5</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv4w10.txt">Exhibit 4.10</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv4w11.txt">Exhibit 4.11</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv4w12.txt">Exhibit 4.12</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv8w1.htm">EXHIBIT 8.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv12w1.htm">EXHIBIT 12.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv13w1.htm">EXHIBIT 13.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="u48286exv15w1.htm">EXHIBIT 15.1</A></FONT></TD></TR>
</TABLE>
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<P align="center" style="font-size: 10pt">3
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B><I>Part I</I></B>



<P align="left" style="font-size: 10pt"><B>Special Note Regarding Forward-Looking Statements</B>


<P align="left" style="font-size: 10pt">In addition to historical information, this annual report on Form 20-F contains statements relating
to our future business and/or results. These statements include certain projections and business
trends that are &#147;forward-looking&#148; within the meaning of the Private Securities Litigation Reform
Act of 1995. You can generally identify these statements by the use of words like &#147;may&#148;, &#147;will&#148;,
&#147;could&#148;, &#147;should&#148;, &#147;project&#148;, &#147;believe&#148;, &#147;anticipate&#148;, &#147;expect&#148;, &#147;plan&#148;, &#147;estimate&#148;, &#147;forecast&#148;,
&#147;potential&#148;, &#147;intend&#148;, &#147;continue&#148; and variations of these words or comparable words.


<P align="left" style="font-size: 10pt">Forward-looking statements do not guarantee future performance and involve risks and uncertainties.
Actual results may differ materially from projected results as a result of certain risks and
uncertainties. These risks and uncertainties include, without limitation, those described under
Item&nbsp;3.D. &#147;Risk Factors&#148; and those detailed from time to time in our other filings with the U.S.
Securities and Exchange Commission (the &#147;Commission&#148; or the &#147;SEC&#148;). These forward-looking
statements are made only as of the date of this annual report on Form 20-F. We do not undertake to
update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.


<P align="left" style="font-size: 10pt"><B>Presentation of Financial and Operational Information</B>


<P align="left" style="font-size: 10pt">In May&nbsp;2001, we consummated our merger with Silicon Valley Group, Inc. (&#147;SVG&#148;), now part of ASML
US, Inc. (&#147;ASML US&#148;). The merger is accounted for under the &#147;pooling of interests&#148; method.
Therefore, the selected financial data of ASML Holding N.V. (&#147;ASML&#148; or the &#147;Company&#148;) for the years
ended December&nbsp;31, 2001 and 2000, reflect the combination of financial statements for ASML&#146;s
historical operations with those of SVG.


<P align="left" style="font-size: 10pt">Because SVG&#146;s year end prior to the merger differed from ASML&#146;s year end, in conformity with
accounting principles generally accepted in the United States (&#147;U.S. GAAP&#148;), ASML&#146;s selected
financial data for the year ended December&nbsp;31, 2000 contain the results of ASML&#146;s historical
operations for the twelve months ended December&nbsp;31, 2000 and the results of SVG&#146;s historical
operations for the twelve months ended September&nbsp;30, 2000.


<P align="left" style="font-size: 10pt">On December&nbsp;18, 2002, we announced the proposed divestiture of our Thermal business, including
related customer support activities, and the termination of our manufacturing activities in the
Track business. As a result of this decision, our consolidated financial statements for each of the
three years ended December&nbsp;31, 2004, our selected financial data for each of the five years ended December&nbsp;31, 2004 and the
financial and operational information presented in this annual report on Form 20-F have been
adjusted to present these businesses as discontinued operations, instead of as a separate segment
as they had been reported prior to the divestiture announcement.


<P align="left" style="font-size: 10pt">Subsequent to the issuance of
the Company&#146;s&nbsp;2003 financial statements, we concluded that the presentation under cash flows from
investing activities of the capitalization and sale of equipment that
is used for demonstration and training systems for a certain period of
time, before they are sold to customers, is inconsistent with the
fact that the actual initial cash outflow relating to the
construction of the equipment, and the ultimate cash inflow relating
to the sale of the equipment have the nature of operating cash flows.
We therefore have reclassified these cash flows from investing
activities to operating activities in our consolidated statements of
cash flows for each of the two years ended December&nbsp;31, 2003,
our selected financial data for each of the four years ended
December&nbsp;31, 2003 and the financial and operational information
presented in this annual report. See Note&nbsp;1 to
the Consolidated Financial Statements.


<DIV align="left">
<A name="102"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;1</U>



<P align="left" style="font-size: 10pt"><U>Identity of Directors, Senior Management and Advisors</U>


<P align="left" style="font-size: 10pt">Not applicable.


<DIV align="left">
<A name="103"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;2</U>



<P align="left" style="font-size: 10pt"><U>Offer Statistics and Expected Timetable</U>


<P align="left" style="font-size: 10pt">Not applicable.


<DIV align="left">
<A name="104"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;3</U>



<P align="left" style="font-size: 10pt"><U>Key Information</U>



<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="105"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>A. Selected Financial Data</B>


<P align="left" style="font-size: 10pt">The following selected consolidated financial data should be read in conjunction with Item&nbsp;5
&#147;Operating and Financial Review and Prospects&#148; and Item&nbsp;18 &#147;Financial Statements.&#148;



<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands, except per share data)</I><SUP style="font-size: 85%; vertical-align: text-top"> <B>1</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Consolidated statements of operations data</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,672,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,589,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,958,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,465,377</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,571,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,558,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,491,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,173,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,559,738</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Gross profit on sales</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,100,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">467,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>905,639</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Research and development costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">327,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">324,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">305,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>352,920</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Research and development credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(24,983</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,223</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,015</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,119</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(21,961</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Selling, general and<BR>
administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">256,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">245,962</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>201,629</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Restructuring and merger and<BR>
acquisition costs (credits)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,862</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Operating income (loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">542,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(590,618</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(94,043</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(155,032</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>378,913</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Minority interest in net result from<BR>
subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,205</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Interest income (expense), net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,207</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36,781</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,149</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(16,073</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Income (loss)&nbsp;from continuing<BR>
operations before income taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(594,219</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(130,824</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(184,181</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>362,840</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">(Provision for) benefit from<BR>
income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(167,923</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(127,380</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cumulative effect of accounting<BR>
changes net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,676</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net income (loss)&nbsp;from<BR>
continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">381,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(415,202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(88,045</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(124,506</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Loss from discontinued operations<BR>
before income taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,685</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(103,001</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(183,624</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,026</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Benefit from income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net loss from discontinued<BR>
operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,011</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(63,790</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(119,778</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net income (loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">378,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(478,992</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,216</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings per share data </B><SUP style="font-size: 85%; vertical-align: text-top">2, 3</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Basic net income (loss)&nbsp;from continuing<BR>
operations per ordinary share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.89</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.26</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Basic net loss from discontinued<BR>
operations per ordinary share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.26</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.00</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Basic net income (loss)&nbsp;per ordinary share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Diluted net income (loss)&nbsp;per ordinary share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Number of ordinary shares used in<BR>
computing per share amounts<BR>
(in thousands)</B><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">461,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">465,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>483,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">483,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">465,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>484,661</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<HR size="1" width="18%" align="left" noshade color="#000000">

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">
1</SUP>&nbsp;The selected consolidated data for all periods presented have been adjusted
to reflect the effects of our decision in December&nbsp;2002 to discontinue our Track business and
divest our Thermal business which we substantially divested in
October 2003.
</DIV>

<DIV align="left" style="font-size: 8pt">
<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>&nbsp;All net income (loss)&nbsp;per ordinary share amounts have been
retroactively adjusted to reflect the three-for-one stock split in April&nbsp;2000,
as well as the issuance of 47,139,000 ordinary shares in connection with the May&nbsp;2001 merger with SVG, which
was accounted for as a pooling of interests.</DIV>

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP>&nbsp;The calculation of the number of ordinary shares used in computing
(i) diluted net income per ordinary share in 2001, 2002, 2003 and 2004 does not assume conversion
of ASML&#146;s outstanding Convertible Subordinated Notes and (ii)
diluted net income per ordinary share
in 2001, 2002 and 2003 does not assume the effect of the exercise of options issued under ASML&#146;s
stock option plans, as such conversions and exercises would have an
anti-dilutive effect.
</DIV>




<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Consolidated balance sheets data</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Working capital<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,161,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">912,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">993,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">435,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>640,741</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,432,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,643,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,301,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,868,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,243,766</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Long-term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">871,742</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,588,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,233,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,040,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,039,023</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,666,212</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,226,287</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,315,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,141,207</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,391,602</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Consolidated statements of cash flows data</I></B><SUP style="font-size: 85%; vertical-align: text-top"><B>5</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchases of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,167</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(89,282</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(48,567</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(74,979</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Depreciation, amortization and impairment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>93,144</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in)<BR>
operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(328,017</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">532,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>257,147</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash used in investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(89,331</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(197,693</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,028</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(60,398</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in)<BR>
financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">664,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(68,156</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18,871</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in)<BR>
discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45,048</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(69,815</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127,473</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,880</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in cash and<BR>
cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">248,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(73,522</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(241,918</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200,324</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Ratios and other data</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Increase (decrease)&nbsp;in net sales from<BR>
continuing operations (in percent)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(40.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>59.8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross profit from continuing operations<BR>

as a percentage of net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>36.7</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating income (loss)&nbsp;from continuing<BR>
operations as a percentage of net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(37.2</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.8</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15.4</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)&nbsp;from continuing<BR>
operations as a percentage of net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.1</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9.6</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity as a percentage<BR>
of total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>42.9</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog of new systems (in units) at<BR>
year end for continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>119</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog of used systems (in units) at<BR>
year end for continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog of systems (in units) at<BR>
year end for continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>131</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Sales of systems (in units) from<BR>
continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>282</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Number of employees at year end<BR>
for continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,071</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Number of ordinary shares<BR>
outstanding (in thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>483,676</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Stock price ASML at year end<SUP style="font-size: 85%; vertical-align: text-top">6</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11.81</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Volatility % ASML shares (260&nbsp;days)<SUP style="font-size: 85%; vertical-align: text-top">7</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">80.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">71.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">60.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>37.4</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<HR size="1" width="18%" align="left" noshade color="#000000">


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">
4</SUP>&nbsp;Working Capital is calculated as the difference between total current assets,
excluding cash and cash equivalents, and total current liabilities.</DIV>

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">
5</SUP>&nbsp;Cash flows from operating activities for the
years 2000 through 2003 have been restated to reflect our reclassification
of the cash in- and outflow from sales of equipment that is
initially used for demonstration and training purposes, from cash flows from
investing activities to cash flows from operating activities. The net
effect of these reclassifications did not have any impact on our cash and
cash equivalents or total cash flows. See note&nbsp;1 to the
Consolidated Financial Statements.</DIV>

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">
6</SUP>&nbsp;Closing price of ASML&#146;s ordinary shares listed on the Official Segment of
the stock market of Euronext Amsterdam N.V. (Source: Bloomberg)</DIV>

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">
7</SUP>&nbsp;Volatility represents the variability in our share price on the Official
Segment of the stock market of Euronext Amsterdam N.V. as measured over the last 260 business days
of each year presented. (Source: Bloomberg)
</DIV>


<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="font-size: 10pt"><B>Exchange Rate Information</B>


<P align="left" style="font-size: 10pt">We publish our consolidated financial statements in euro. In this Annual Report, references to
&#147;<FONT face="'Times New Roman',times,serif">&#128;</FONT>&#148;, &#147;EUR&#148; or &#147;euro&#148; are to euro, and references to &#147;$&#148;, &#147;dollars&#148;, &#147;U.S. dollars&#148;,
&#147;USD&#148; or &#147;US$&#148; are to United States dollars. Solely for the convenience of the reader, certain euro
amounts presented as of and for the year ended December&nbsp;31, 2004 have been translated into United
States dollars using an exchange rate in effect on December&nbsp;31, 2004 of US$ 1.00 = EUR 0.73292.
These translations should not be construed as representations that the euro amounts could be
converted into U.S. dollars at that rate.


<P align="left" style="font-size: 10pt">Historically, a portion of our revenues and expenses has been denominated in currencies other than
the euro. For a discussion of the impact of exchange rate fluctuations on our financial condition
and results of operations, see Item&nbsp;5.A. &#147;Operating results, Foreign Exchange Management&#148; and Note
1 to our consolidated financial statements.


<P align="left" style="font-size: 10pt">The following are the Noon Buying Rates certified by the Federal Reserve Bank of New York for
customs purposes (the &#147;Noon Buying Rate&#148;) expressed in euro per U.S. dollar.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Calendar period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>(Jan. 26)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Period End</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">High</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Low</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<HR size="1" width="18%" align="left" noshade color="#000000">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt">

<TR valign="top">

<TD width="1%" nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1&nbsp;</SUP></TD>

    <TD width="98%">The average of the Noon Buying Rates on the last business day of each month during
the period presented.</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>August</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>September</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>October</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>November</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>December</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>January 26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Months of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">High</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Low</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>B. Capitalization and Indebtedness</B>


<P align="left" style="font-size: 10pt">Not applicable.

<DIV align="left">
<A name="107"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>C. Reasons for the Offer and Use of Proceeds</B>


<P align="left" style="font-size: 10pt">Not applicable.


<DIV align="left">
<A name="108"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>D. Risk Factors</B>


<P align="left" style="font-size: 10pt">In conducting our business, we face many risks that may interfere with our business objectives.
Some of these risks relate to our operational processes, while others relate to our business
environment. It is important to understand the nature of these risks and the impact they may have
on our business, financial condition and results of operations. Some of the more relevant risks are
described below.



<P align="left" style="font-size: 10pt"><U>Risks Related to the Semiconductor Industry</U>


<P align="left" style="font-size: 10pt"><B>The Semiconductor Industry is Highly Cyclical and We May be Adversely Affected by Any Future
Downturns</B>


<P align="left" style="font-size: 10pt">As a supplier to the global semiconductor industry, we are subject to the industry&#146;s business
cycles, the timing, duration and volatility of which are difficult to predict. The semiconductor
industry has historically been cyclical. Sales of our photolithography systems depend in large part upon the level of capital expenditures by
semiconductor manufacturers. These capital expenditures depend upon a range of competitive and
market factors, including:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the current and anticipated market demand for semiconductors and for
products utilizing semiconductors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>semiconductor prices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>semiconductor production costs; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>general economic conditions.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Changes in demand for our products as a result of these business cycles have affected the timing
and amounts of customers&#146; capital equipment purchases and investments in new technology. Future
reductions or delays in capital equipment purchases by our customers could have a material adverse
effect on our business, financial condition and results of operations.



<P align="center" style="font-size: 10pt">8
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">In anticipation of periods of increasing demand for semiconductor manufacturing equipment, we must
maintain sufficient manufacturing capacity and inventory, and we must attract, hire, integrate and
retain a sufficient number of qualified employees to meet customer demand. Our ability to predict
the timing and magnitude of industry fluctuations is limited and our products require significant
lead time to complete. Accordingly, we may not be able to effectively increase our production
capacity to respond to an increase in customer demand in an industry upturn resulting in lost
revenues and damage to customer relationships.


<P align="left" style="font-size: 10pt">Conversely, in an industry downturn, our ability to maintain profitability will depend
substantially on whether we are able to lower our costs and break-even level, which is the number
of lithography systems we must sell in a year to achieve positive net income. If we are unable to
lower costs in an industry downturn, our net income may decline significantly. As we need to keep
certain levels of inventory on hand to meet anticipated product demand, we also incur costs related
to inventory obsolescence in an industry downturn. In addition, industry downturns generally result
in overcapacity, exercising downward pressure on prices, which has had in the past, and could have
in the future, a material adverse effect on our results of operations.


<P align="left" style="font-size: 10pt"><B>Our Business Will Suffer If We Do Not Respond Rapidly to Commercial and Technological Changes in
the Semiconductor Industry</B>


<P align="left" style="font-size: 10pt">The semiconductor manufacturing industry is subject to:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>rapid change towards more complex technologies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>frequent new product introductions and enhancements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>evolving industry standards;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>changes in customer requirements; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>continued shortening of product life cycles.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Our products could become obsolete sooner than anticipated because of a faster than anticipated
change in one or more of the technologies related to our products or in market demand for products
based on a particular technology. Our success in developing new products and in enhancing our
existing products depends on a variety of factors, including the successful management of our
research and development programs and timely completion of product development and design relative
to competitors. If we do not develop and introduce new and enhanced systems at competitive prices
on a timely basis, our customers will not integrate our systems into the planning and design of new
fabrication facilities and upgrades of existing facilities, which would have an adverse impact on
our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt">In addition, we may invest considerable financial and other resources to develop and introduce new
products and product enhancements that our customers may not ultimately adopt. If our customers do
not adopt these or other products or enhancements that we develop, we would not recoup any return
on our investments in these technologies, which may result in charges to our statement of
operations.


<P align="left" style="font-size: 10pt"><B>We Face Intense Competition</B>


<P align="left" style="font-size: 10pt">The semiconductor equipment industry is highly competitive. The principal elements of competition
in our markets are:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the technical performance characteristics of a photolithography system;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the value of ownership of that system based on its purchase price, maintenance costs, productivity and customer service and
support; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the strength and breadth of our portfolio of patents and other intellectual property rights relative to those of our
competitors.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Our competitiveness will increasingly depend upon our ability to protect and defend our patents, as
well as our ability to develop new and enhanced semiconductor equipment that is competitively
priced and introduced on a timely basis. See Item&nbsp;4.B. &#147;Business Overview, Intellectual Property&#148;
and Note 14 to our consolidated financial statements.


<P align="left" style="font-size: 10pt">The costs to develop new systems, in particular photolithography systems, are extremely high and
accordingly, the photolithography equipment industry is characterized by the dominance of a few
suppliers. ASML&#146;s primary competitors are Nikon Corporation (&#147;Nikon&#148;) and Canon Kabushika Kaisha
(&#147;Canon&#148;). Nikon and Canon are the dominant suppliers in the Japanese market, which accounts for a
significant portion of worldwide semiconductor production. This market historically has been
difficult for non-Japanese companies to penetrate, and ASML has sold only a limited number of
systems to Japanese customers.


<P align="left" style="font-size: 10pt">Both Nikon and Canon have substantial financial resources and broad patent portfolios. Each has
stated that it will introduce new products with improved price and performance characteristics that
will compete directly with our products, which may cause a decline in our sales or loss of market
acceptance for our photolithography systems. In addition, adverse market conditions, industry
overcapacity or a decrease in the value of the Japanese yen in relation to the euro or the U.S.
dollar could lead to intensified price-based competition in those markets that account for the
majority



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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">of our sales, resulting in lower prices and margins and an adverse impact on our business,
financial condition and results of operations.



<P align="left" style="font-size: 10pt"><U>Risks Related to ASML</U>


<P align="left" style="font-size: 10pt"><B>The Number of Systems We Can Produce is Limited by Our Dependence on a Limited Number of Suppliers
of Key Components</B>


<P align="left" style="font-size: 10pt">We rely on outside vendors for the components and subassemblies used in our systems, each of which
is obtained from a single supplier or a limited number of suppliers. Our reliance on a limited
group of suppliers involves several risks, including a potential inability to obtain an adequate supply
of required components and the risk of untimely delivery of these components and subassemblies.


<P align="left" style="font-size: 10pt">The number of photolithography systems we have been able to produce has occasionally been limited
by the production capacity of Carl Zeiss SMT AG (&#147;Zeiss&#148;). Zeiss is our sole supplier of lenses and
other critical optical components. The inability of Zeiss to maintain and increase production
levels or our inability to maintain our business relationship with Zeiss in the future could result
in our inability to fulfill orders, which could damage relationships with current and prospective
customers and have an adverse effect on our business, financial condition and results of
operations. If Zeiss were to terminate its relationship with us or if Zeiss were unable to maintain
production of lenses over a prolonged period, we would effectively cease to be able to conduct our
business. See Item&nbsp;4.B. &#147;Business Overview, Manufacturing, Logistics and Suppliers.&#148;


<P align="left" style="font-size: 10pt">In addition to Zeiss&#146; current position as our sole supplier of lenses, the excimer laser
illumination systems that provide the ultraviolet light source, referred to as &#147;deep UV,&#148; used in
our high resolution steppers and Step &#038; Scan systems, are available from only a limited number of
suppliers.


<P align="left" style="font-size: 10pt">Although the timeliness, yield and quality of deliveries to date from our remaining subcontractors
generally have been satisfactory, manufacturing certain of these components and subassemblies is an
extremely complex process and delays caused by suppliers may occur in the future. A prolonged
inability to obtain adequate deliveries, or any other circumstance that requires us to seek
alternative sources of supply, could significantly hinder our ability to deliver our products in a
timely manner, which could damage relationships with current and prospective customers and have a
material adverse effect on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>A High Percentage of Net Sales is Derived from a Few Customers</B>


<P align="left" style="font-size: 10pt">Historically, we have sold a substantial number of lithography systems to a limited number of
customers. While the identity of our largest customers may vary from year to year, we expect sales
to remain concentrated among relatively few customers in any particular year. The loss of any
significant customer or any reduction in orders by a significant customer may have an adverse
effect on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt">In 2004, sales to one customer accounted for EUR 434&nbsp;million, or 18&nbsp;percent of net
sales, compared to EUR 314&nbsp;million, or 20&nbsp;percent of net sales, in 2003. As a result of the limited
number of our customers, credit risk on our receivables is concentrated. Our three largest
customers accounted for 38&nbsp;percent of accounts receivable at December&nbsp;31, 2004, compared to 44
percent at December&nbsp;31, 2003. Business failure of one of our main customers may result in adverse
effects on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>The Pace of Introduction of Our New Products is Accelerating and is Accompanied by Potential Design
and Production Delays and by Significant Costs</B>


<P align="left" style="font-size: 10pt">The development and initial production, installation and enhancement of the systems we produce is
often accompanied by design and production delays and related costs of a nature typically
associated with the introduction and transition to full-scale manufacturing of complex capital
equipment. While we expect and plan for a corresponding learning curve effect in our product
development cycle, we cannot precisely predict the time and expense required to overcome these
initial problems and to ensure full performance to specifications. There is a risk that we may not
be able to introduce or bring to full-scale production new products as quickly as we expected in
our product introduction plans, which could adversely affect our business, financial condition and
results of operations.


<P align="left" style="font-size: 10pt"><B>We Derive Most of Our Revenues from the Sale of a Relatively Small Number of Products</B>


<P align="left" style="font-size: 10pt">We derive most of our revenues from the sale of a relatively small number of lithography equipment
systems (282 units in 2004 and 169 units in 2003), with an average selling price in 2004 of EUR 7.7
million (EUR 9.3&nbsp;million for new systems and EUR 2.6&nbsp;million for used systems). As a result, the
timing of recognition of revenue from a small number of transactions may have a significant impact
on our net sales and



<P align="center" style="font-size: 10pt">10
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">other operating results for a particular reporting period. Specifically, the
failure to receive anticipated orders, or delays in shipments near the end of a particular
reporting period, due, for example, to:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the highly cyclical semiconductor business industry;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>unanticipated shipment rescheduling;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>cancellation by customers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>unexpected manufacturing difficulties; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>delays in deliveries by suppliers,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">may cause net sales in a particular reporting period to fall significantly below our expectations,
which would, in turn, adversely affect our operating results for that period.


<P align="left" style="font-size: 10pt">Since the first quarter of 2003, we have published financial results on a quarterly basis. Our
published quarterly earnings have varied significantly from quarter to
quarter and may vary in the future as a result of the above .


<P align="left" style="font-size: 10pt"><B>Our Financial Condition and Results of Operations Reported in Accordance with International Financial Reporting Standards May Differ from our Financial
Condition and Results of Operations Reported in Accordance with U.S. GAAP</B>


<P align="left" style="font-size: 10pt">Beginning in 2005, the European Commission will require companies that are quoted on a European
stock market, such as Euronext Amsterdam N.V. (&#147;Euronext Amsterdam&#148;), to publish financial
statements in accordance with International Financial Reporting Standards (&#147;IFRS&#148;). While we intend
to continue publishing U.S. GAAP financial statements, we also will comply with IFRS from January
1, 2005 onwards.


<P align="left" style="font-size: 10pt">Our financial condition and results of operations reported in accordance with IFRS may differ from
our financial condition and results of operations reported in accordance with U.S. GAAP, which
could adversely affect the market price of our ordinary shares.



<P align="left" style="font-size: 10pt">See Item&nbsp;5.A. &#147;Operating Results, Principal Differences Between IFRS and U.S. GAAP.&#148;


<P align="left" style="font-size: 10pt"><B>Compliance with Internal Controls Evaluations and Attestation Requirements</B>


<P align="left" style="font-size: 10pt">Pursuant to Section&nbsp;404 of the Sarbanes-Oxley Act of 2002, ASML will be required, as a foreign
private issuer, beginning in fiscal 2005, to perform an evaluation of its internal controls over financial reporting and have its
auditor publicly attest to such evaluation. We have prepared an internal plan of action for
compliance, which includes a timeline and scheduled activities, although as of the date of this
filing we have not yet finalized the evaluation. Compliance with these requirements is expected to
be expensive and time-consuming. If we fail to complete this evaluation in a timely manner, or if
our independent auditor cannot attest to our evaluation in a timely manner, we could be subject to
regulatory scrutiny and a loss of public confidence in our internal controls, with a corresponding
adverse effect on our share price.


<P align="left" style="font-size: 10pt"><B>Failure to Adequately Protect the Intellectual Property Rights upon Which We Depend Could Harm Our
Business</B>


<P align="left" style="font-size: 10pt">We rely on patents, copyrights, trade secrets and other measures to protect our proprietary
technology. However, there is no assurance that such measures will be adequate. We face risks that:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>competitors may be able to develop similar technology independently;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>our pending patent applications may not be granted as expected;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the steps we take to prevent misappropriation or infringement of our intellectual property may not be successful; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>intellectual property laws may not sufficiently protect our proprietary
rights or may adversely change in the future.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">In addition, litigation may be necessary in order to enforce our intellectual property rights, to
determine the validity and scope of the proprietary rights of others or to defend against claims of
infringement. Any such litigation may result in substantial costs and diversion of resources and,
if decided unfavorably to us, could have a material adverse effect on our business, financial
condition and results of operations.


<P align="left" style="font-size: 10pt"><B>Defending Against Intellectual Property Claims by Others Could Harm Our Business</B>


<P align="left" style="font-size: 10pt">We face a continuing risk that we will be subject to claims alleging the infringement of others&#146;
patents or intellectual property rights. If successful, these claims could limit or prohibit us
from developing our technology and producing our products, which could have a material adverse
effect on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt">In the course of our business, we are subject to claims by third parties alleging that our products
or processes infringe upon their intellectual property rights. In addition, our customers may be
subject to claims of infringement from third parties, alleging that our equipment used by such
customers in the manufacture of semiconductor products and/or the
methods relating to the use of our equipment infringe one or more patents issued to such parties.
If such claims were successful, we could be required to indemnify customers for some or all of any
losses incurred or damages assessed



<P align="center" style="font-size: 10pt">11
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<P align="left" style="font-size: 10pt">against them as a result of such infringement. We may also
incur substantial licensing or settlement costs where doing so would strengthen or expand our
intellectual property rights or limit our exposure to intellectual property claims by others. This
may adversely affect our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>We Are Subject to Risks in our International Operations</B>


<P align="left" style="font-size: 10pt">The majority of our business activity is conducted outside Europe, including in developing and
emerging markets in Asia. There are a number of risks inherent in doing business in those markets,
including the following:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>potentially adverse tax consequences;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>unfavorable political or economic environment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>unexpected legal or regulatory changes; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>inability to effectively protect intellectual property.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If we are unable to manage successfully the risks inherent in our international activities, our
business, financial condition and results of operations could be adversely affected.


<P align="left" style="font-size: 10pt"><B>Disruption in Taiwan&#146;s Political Environment Could Seriously Harm Our Business and the Market Price
of Our Shares</B>


<P align="left" style="font-size: 10pt">Approximately 27% of our 2004 revenues and approximately 12% of our 2003 revenues were derived from
customers in Taiwan. Taiwan has a unique international political status. The People&#146;s Republic of
China asserts sovereignty over Taiwan and does not recognize the legitimacy of the Taiwan
government. Relations between Taiwan and the People&#146;s Republic of China, changes in Taiwanese
government policies and other factors affecting Taiwan&#146;s political, economic or social environment
could affect our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>We Are Subject to Environmental Laws and Regulations</B>


<P align="left" style="font-size: 10pt">We are subject to Dutch and foreign environmental regulations in areas such as energy resource
management, use, storage, discharge and disposal of hazardous substances, recycling, clean air,
water protection and waste disposal. We believe that we have taken adequate measures to comply with
these regulations in the course of our ordinary business operations. Furthermore, we do not believe
that any environmental laws or regulations currently in effect will have an adverse effect on our
business, financial condition and results of operations.


 However, we cannot predict whether any pending or future legislation will be adopted or what the
effect of such legislation would be on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>We Are Dependent on the Continued Operation of a Limited Number of Manufacturing Facilities</B>


<P align="left" style="font-size: 10pt">All of our manufacturing activities, including subassembly, final assembly and system testing, take
place in one clean room facility located in Veldhoven, the Netherlands, and one clean room facility
in Wilton, Connecticut, U.S. These facilities are subject to disruption for a variety of reasons,
including work stoppages, fire, energy shortages, flooding or other natural disasters. We cannot
ensure that alternate production capacity would be available if a major disruption were to occur or
that, if it were available, it could be obtained on favorable terms. Such a disruption could have
an adverse effect on our business, financial condition and results of operations.


<P align="left" style="font-size: 10pt"><B>Because of Labor Laws and Practices, Any Workforce Reductions That We May Wish to Implement In
Order To Reduce Costs Company-Wide May Be Delayed or Suspended</B>


<P align="left" style="font-size: 10pt">The semiconductor market is highly cyclical and as a consequence we may need to implement workforce
reductions in case of a downturn in order to adapt to such market changes. In accordance with labor laws and
practices applicable in the jurisdictions in which we operate, a reduction of any significance may
be subject to certain formal procedures, which can delay or may result in the modification of, our
planned workforce reductions. For example, in the Netherlands, if our Works Council does not agree
with a proposed workforce reduction but we nonetheless determine to proceed, we
must temporarily suspend any action while the Works Council determines whether to appeal to the
Netherlands courts. This appeal process can cause a delay of several months and may require us to
address any procedural inadequacies identified by the court in the way we reached our decision.
Such delays could impair our ability to reduce costs company-wide to levels comparable to those of
our competitors. See Item&nbsp;6.D. &#147;Employees.&#148;


<P align="left" style="font-size: 10pt"><B>Fluctuations in Foreign Exchange Rates and Interest Rates Could Harm Our Results of Operations</B>


<P align="left" style="font-size: 10pt">We are exposed to currency risks and interest rate risks. We are particularly exposed to
fluctuations in the exchange rate between the U.S. Dollar and the euro, as we incur manufacturing
costs and price our systems predominantly in euro while a portion of our revenue and cost of sales
is denominated in U.S. dollars.


<P align="left" style="font-size: 10pt">In addition, a substantial portion of our assets, liabilities and operating results are
denominated in U.S. dollars, and a minor portion of our assets, liabilities and operating results
are denominated in currencies other than the euro and the U.S.



<P align="center" style="font-size: 10pt">12
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<P align="left" style="font-size: 10pt">dollar. Our consolidated financial
statements are expressed in euros. Accordingly, our results of operations are exposed to
fluctuations in various exchange rates.


<P align="left" style="font-size: 10pt">Furthermore, a strengthening of the euro, particularly against the U.S. Dollar and the
Japanese Yen could lead to intensified price-based competition in those markets that account for
the majority of our sales, resulting in lower prices and margins and an adverse impact on our
business, financial condition and results of operations.


<P align="left" style="font-size: 10pt">We are also exposed to fluctuations in interest rates. As of December&nbsp;31, 2004, ASML had a net cash
position. A decrease of the short-term interest rates could diminish the interest income on our
cash holdings, adversely affecting our financial results.


<P align="left" style="font-size: 10pt">Also see Item&nbsp;5.A. &#147;Operating Results, Foreign Exchange Management,&#148; Item&nbsp;5.F. &#147;Tabular Disclosure
of Contractual Obligations,&#148; Item&nbsp;11 &#147;Quantitative and Qualitative Disclosures About Market Risk&#148;
and Note 4 to our consolidated financial statements.



<P align="left" style="font-size: 10pt"><U>Risks Related to Our Ordinary Shares</U>


<P align="left" style="font-size: 10pt"><B>The Price of Our Ordinary Shares is Very Volatile</B>


<P align="left" style="font-size: 10pt">The current market price of our ordinary shares may not be indicative of prices that will prevail
in the future. In particular, the market price of our ordinary shares experiences significant
fluctuation, including fluctuation that is unrelated to our performance. We expect that this
fluctuation will continue in the future.


<P align="left" style="font-size: 10pt"><B>Restrictions on Shareholder Rights May Dilute Voting Power</B>


<P align="left" style="font-size: 10pt">Our Articles of Association provide that we are subject to the provisions of Netherlands law
applicable to large corporations, called &#147;structuurregime&#148;. These provisions have the effect of
concentrating control over certain corporate decisions and transactions in the hands of our
Supervisory Board. In addition, the provisions in our Articles of Association relating to our
Priority Shares have the effect of taking control over certain significant corporate decisions away
from holders of ordinary shares. As a result, holders of ordinary shares may have more difficulty
in protecting their interests in the face of actions by members of the Board of Management or
members of our Supervisory Board than if we were incorporated in the United States.


<P align="left" style="font-size: 10pt">We also have a class of protective cumulative preference shares (the &#147;Preference Shares&#148;) and have
granted to Stichting Preferente Aandelen ASML, a Netherlands foundation, an option to acquire from
us, at their nominal value of EUR 0.02 per share, a number of preference shares equal to the number
of ordinary shares outstanding at the time of option exercise. This effectively would dilute by
one-half the voting power of our outstanding ordinary shares, which may discourage or significantly
impede a third party from acquiring a majority of our voting shares.



<P align="left" style="font-size: 10pt">See further Item&nbsp;6.C. &#147;Board Practices&#148; and Item&nbsp;10.B. &#147;Memorandum and Articles of Association.&#148;


<DIV align="left">
<A name="109"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;4</U>

<DIV align="left">
<A name="109"></A>
</DIV>
<P align="left" style="font-size: 10pt"><U>Information on the Company</U>


<DIV align="left">
<A name="110"></A>
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<P align="left" style="font-size: 10pt"><B>A. History and Development of the Company</B>


<P align="left" style="font-size: 10pt">We commenced business operations in 1984. ASM Lithography Holding N.V. was incorporated in the
Netherlands on October&nbsp;3, 1994 to serve as the holding company for our worldwide operations, which
include operating subsidiaries in the Netherlands, the United States, Taiwan, Italy, France,
Germany, the United Kingdom, Ireland, the Republic of Korea, Singapore, Israel, China, Japan and
Malaysia. In 2001, we changed our name from ASM Lithography Holding N.V. to ASML Holding N.V. Our
registered office is located at De Run 6501, 5504 DR Veldhoven, the Netherlands, telephone &#043;31 40
268 3000.


<P align="left" style="font-size: 10pt">In May&nbsp;2001, we merged with SVG (now part of ASML US, Inc.), a company that was active in the
Lithography, Track and Thermal businesses. In December&nbsp;2002, we announced the termination of our
manufacturing activities in the Track business and the divestiture of our Thermal business. In
October&nbsp;2003, we substantially completed the divestiture of our Thermal business.


<P align="left" style="font-size: 10pt"><B>Capital Expenditures</B>


<P align="left" style="font-size: 10pt">Our principal capital expenditures within continued operations over the past three years amounted
to EUR 111.3&nbsp;million for 2004, EUR 74.5&nbsp;million for 2003 and EUR 138.6&nbsp;million for 2002. The
related cash outflows amounted to EUR 75.5&nbsp;million for 2004, EUR
51.7&nbsp;million for 2003 and EUR 89.3&nbsp;million for 2002. See Consolidated Statements of Cash Flows in our consolidated financial statements. Our
capital expenditures consist of machinery and equipment (e.g. prototypes, demonstration systems and
training models), information technology investments, leasehold improvements to our facilities and
licenses of patents related to lithography equipment. Our Veldhoven headquarters is financed
through a special purpose vehicle that is a variable interest entity. See

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<P align="left" style="font-size: 10pt">Item&nbsp;5.E. &#147;Off-Balance Sheet Arrangements&#148; and Note 12 to
our consolidated financial statements. All other current capital expenditures are financed
internally.


<P align="left" style="font-size: 10pt">Divestitures within continued operations, principally comprising machinery and equipment (more
specifically, demonstration systems and training systems), amounted to EUR 36.2&nbsp;million for 2004,
EUR 48.8&nbsp;million for 2003 and EUR 58.7&nbsp;million for 2002. See Notes 8 and 9 to our consolidated
financial statements.

<DIV align="left">
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<P align="left" style="font-size: 10pt"><B>B. Business Overview</B>


<P align="left" style="font-size: 10pt">We are one of the world&#146;s leading providers of advanced technology systems for the semiconductor
industry, based on market share. We offer an integrated portfolio of lithography systems mainly for
manufacturing complex integrated circuits (&#147;semiconductors&#148; or &#147;ICs&#148;). We supply systems to
integrated circuit manufacturers throughout the United States, Asia and Europe, and also provide our
customers with a full range of support from advanced process and product applications knowledge to
complete round-the-clock service support.


<P align="left" style="font-size: 10pt"><B>Value of Ownership</B>


<P align="left" style="font-size: 10pt">Our business model is based on our Value of Ownership concept that consists of the following:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>offering ongoing improvements in productivity, imaging and overlay by
introducing advanced technology based on modular platforms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>providing customer services that ensure rapid, efficient installation
and superior on-site support and training to optimize manufacturing
processes and improve productivity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>maintaining appropriate levels of research and development to offer
the most advanced technology suitable for high-throughput, low-cost
volume production at the earliest possible date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>enhancing the capabilities of the installed base through ongoing field
upgrades of key value drivers (productivity, imaging and overlay)
based on further technology developments;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>reducing the cycle time between customer order of a system and the use
of that system in volume production on-site;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>expanding operational flexibility in research and manufacturing by
reinforcing strategic alliances with world-class partners;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>improving the reliability and uptime of our installed system base; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>providing re-marketing services that effectively increase residual
value by extending the life of equipment.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B>Market and Technology Overview</B>


<P align="left" style="font-size: 10pt">The worldwide electronics and computer industries have experienced significant growth since the
commercialization of ICs in the 1960s, largely due to the continual reduction in the cost per
function performed by ICs. Improvement in the design and manufacture of ICs with higher circuit or
&#147;packing&#148; densities has resulted in smaller, lower cost ICs capable of performing a greater number
of functions at higher speeds and with lower power consumption. We believe that these long-term
trends will continue for the foreseeable future and will be accompanied by a continuing demand,
subject to ongoing cyclical variations, for production equipment that can accurately produce
advanced ICs in high volumes at the lowest possible cost. Photolithography is used to imprint
complex circuit patterns onto the wafers that are the primary raw material for ICs, and is one of
the most critical and expensive steps in their fabrication. It is therefore a significant focus of
the IC industry&#146;s demand for cost-efficient enhancements to production technology.


<P align="left" style="font-size: 10pt">We primarily design, manufacture, market and service semiconductor processing equipment used in the
fabrication of integrated circuits. Our photolithography equipment includes Step &#038; Scan systems,
which combine stepper technology with a photoscanning method.


<P align="left" style="font-size: 10pt">Our TWINSCAN product platform was introduced in July&nbsp;2000 and leverages the production-proven
elements from our PAS 5500 product family to address the industry shift toward larger (300
millimeter) wafers. The TWINSCAN platform became in 2003 the vehicle to introduce improved
resolution products both for 300 millimeter and 200 millimeter wafer size factories. Our PAS 5500
product family, which supports a maximum wafer size of 200 millimeter in diameter, comprises
advanced wafer steppers and Step &#038; Scan systems suitable for i-line and deep UV (including 248
nanometer and 193 nanometer wavelength) processing of wafers.


<P align="left" style="font-size: 10pt">We are currently performing further research &#038; development on immersion lithography, which is the
most probable solution to lower the cost per wafer and increase resolution. During the second half
of 2004, we delivered two pre-production immersion systems to research institutes and one to a
commercial customer. We expect volume shipments of immersion lithography systems to commence in 2005.



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<P align="left" style="font-size: 10pt">We are also currently performing research &#038; development on maskless lithography. Maskless
lithography is one of the possible solutions to manage escalating mask cost, which is becoming a
dominant factor in bringing new semiconductor designs to market for advanced technology nodes.
Designs resulting in small quantities of wafers produced, designs
with many changes or designs that require a fast time-to-market will particularly benefit from this
technology. In December&nbsp;2004, Micronic Laser Systems AB (&#147;Micronic&#148;) and ASML agreed to a license
agreement relating to the development of optical maskless lithography technology for semiconductor
manufacturing.


<P align="left" style="font-size: 10pt">We are currently performing research &#038; development on Extreme Ultra-Violet Lithography (&#147;EUVL&#148;).
EUVL, combining a wavelength of 13.5 nanometer and an initial numerical aperture of 0.25, will
provide a large process window compared to today&#146;s applications and will be a multi-generation
lithography solution. ASML is currently building prototype systems which are expected to be
delivered to research institutes at the end of 2005 and early 2006.


<P align="left" style="font-size: 10pt">During 2004, we decided to suspend our research and development activities on 157 nanometer
technology as our customers decided, because of the expected benefits from immersion lithography,
not to adopt this technology yet.


<P align="left" style="font-size: 10pt"><B>Products</B>


<P align="left" style="font-size: 10pt">ASML develops lithography systems for the semiconductor industry and related technologies. Our
product development strategy focuses on the development of product families based on a modular,
upgradeable design.


<P align="left" style="font-size: 10pt">Our PAS 5500 product family comprises advanced wafer steppers and Step &#038; Scan systems suitable for
i-line and deep UV processing of wafers up to 200 millimeter in diameter. In mid-1997, we
introduced the PAS 5500 Step &#038; Scan systems with improved resolution and overlay. Since then, we
have further developed and expanded this Step &#038; Scan family. This modular upgradeable design
philosophy has been further refined and applied in the design of our most advanced product family,
the TWINSCAN platform, which is the basis for our current and next generation Step &#038; Scan systems,
producing wafers up to 300 millimeter in diameter and capable of extending shrink technology beyond
70 nanometers.


<P align="left" style="font-size: 10pt">Our older PAS 2500 and PAS 5000 families are suitable for g-line and i-line processing of wafers up
to 150 millimeter in diameter and are employed in manufacturing environments and in special
applications for which design resolutions no more precise than 0.5 microns are required.


<P align="left" style="font-size: 10pt">For processing of 200 millimeter wafers using step-and-scan technology, PAS 5500 series is the
preferred product range. ASML offers PAS 5500 systems based on i-line technology (using light with
a 365 nanometer wavelength), KrF (with 248 nanometer wavelength) and ArF (using 193 nanometer wavelength).


<P align="left" style="font-size: 10pt">For processing of 300 millimeter wafers, ASML is offering TWINSCAN systems based on i-line, KrF and
ArF technology. In 2003, ASML introduced the second generation of TWINSCAN systems based on the XT
body with a reduced footprint and a 50% reduction in specified installation facility requirements.


<P align="left" style="font-size: 10pt">In April&nbsp;2004, ASML introduced the TWINSCAN XT:1400 for dry and wet lithography. The system is a
0.93 NA, 193 nanometer scanner that images at the 65 nanometer node in volume production
environments. The XT:1400 can also be used for pre-production testing and development at the 45
nanometer node. The first shipments are expected in the first half of 2005. The XT:1400 has a
unique architecture found only in ASML systems. The design provides customers with the option of
transitioning the system from &#147;dry&#148; to immersion lithography through an &#145;immersion conversion&#146; kit.
The XT:1400 gives customers the flexibility to include immersion into their technology roadmaps
while protecting their investments in dry 193 nanometer technology. This significantly lowers risks
with wavelength transitions.


<P align="left" style="font-size: 10pt">During the second half of 2004, we shipped ASML&#146;s first lithography systems based on immersion
technology. These shipments mark delivery of the industry&#146;s first high productivity immersion
scanners for production applications. We have a unique
competitive advantage in immersion techniques due, in part, to the dual-stage design of the
TWINSCAN system. Wafer measurement &#150; including focus and overlay &#150; is completed on the dry stage
while the imaging process, using immersion fluid applied between the wafer and the lens, is
completed on the other, wet stage. The dual-stage advantage of TWINSCAN systems enables our
customers to gain the process enhancements of immersion and to continue with familiar and proven
metrology technology.


<P align="left" style="font-size: 10pt">We also continually develop and sell a range of product options and enhancements designed to
increase productivity and to optimize value of ownership over the entire life of our systems.



<P align="center" style="font-size: 10pt">15
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<P align="left" style="font-size: 10pt"><B>Current ASML Lithography product portfolio of Steppers and Step &#038; Scan Systems</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="3" nowrap align="left"><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Feature Size</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Wavelength of Light</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="3" nowrap align="left"><HR size="1" noshade></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Feature size =</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wavelength = length of light going through projection lens;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Resolution =</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The shorter the wavelength, the smaller the line width</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Size of line</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and the finer the pattern on the IC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">width in Nanometer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="3" nowrap align="left"><HR size="1" noshade></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>365 nm (i-line)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>248 nm (KrF)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>193 nm (ArF)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">700
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/22</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">350
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/125</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">300
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/250</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">280
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/400</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and AT:400</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="7" nowrap align="left"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">150</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/350</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">130
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/750 and AT:750</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">120
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/800</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">110
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/850 and AT:850</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="7" nowrap align="left"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">100
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/1100 and AT:1100</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">90
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAS 5500/1150 and AT:1150</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">80
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AT:1200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">70
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">XT:1250 and XT:1250i</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">65
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">XT:1400 and XT:1400i</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 8pt">Notes:<BR>
1000 nanometer = 1 micron (&#181;) = 0.001mm = one millionth of a meter<BR>
PAS 5500/22/125/250/350 = Stepper system with wafer size of 200mm<BR>
PAS 5500/400 and up = Step &#038; Scan system with wafer size of 200mm<BR>
AT and XT = TWINSCAN systems with wafer sizes of 200 and 300mm<BR>
This table does not include the older products sold on the PAS 2500 and PAS 5000 platforms.

<P align="left" style="font-size: 10pt"><B>Sales and Customer Support</B>


<P align="left" style="font-size: 10pt">We market and sell our products principally through our direct sales staff. In Asia, we sell our
products primarily through our own direct sales staff, in certain jurisdictions supported by
independent sales agents.


<P align="left" style="font-size: 10pt">We support our customers with applications, service and technical support. Our field engineers and
applications, service and technical support specialists are based throughout the United States,
Europe and Asia.


<P align="left" style="font-size: 10pt">During 2004, we continued sharpening our customer focus through the work of multiple
cross-functional process improvement teams. These process improvement teams are striving to
streamline and integrate our main business processes such as new product introduction, acquisition
of orders from customers, fulfillment of orders, and post-delivery support and services.


<P align="left" style="font-size: 10pt"><B>Customers and Geographic Markets</B>


<P align="left" style="font-size: 10pt">In 2004, sales to one customer accounted for EUR 434&nbsp;million, or 18&nbsp;percent of net sales, compared
to EUR 314&nbsp;million, or 20&nbsp;percent of net sales, in 2003. We expect that sales to relatively few
customers will continue to account for a high percentage of our net sales in any particular year
for the foreseeable future. See Note 17 to our consolidated financial statements for a breakdown of our sales by geographic segment.


<P align="left" style="font-size: 10pt"><B>Manufacturing, Logistics and Suppliers</B>


<P align="left" style="font-size: 10pt">Our business model is based on outsourcing a significant part of the components and modules that
comprise our lithography systems, working in partnership with suppliers from all over the world.
Our manufacturing activities comprise the assembly and testing of a finished system from components
and subassemblies that are manufactured to our specifications by third parties and by us and the
testing of those components, subassemblies and finished systems. All of our manufacturing
activities (subassembly, final assembly and system testing) are performed in one clean room
facility located in Veldhoven, the Netherlands, and one clean room facility in Wilton, Connecticut.
We procure stepper and Step &#038; Scan system components and subassemblies from a single supplier or a
limited group of suppliers in order to ensure overall quality and timeliness of delivery. We
jointly operate a formal strategy with suppliers known as Value Sourcing that is based on
competitive performance in quality, logistics, technology and total cost. The essence of Value
Sourcing is to maintain a supply base that is world class, globally competitive and globally
present.


<P align="left" style="font-size: 10pt">Our Value Sourcing strategy is based on the following strategic principles:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>maintaining long-term relationships with our suppliers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>sharing risks and rewards with our suppliers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>each supplier being less than 25% dependent on ASML;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">16
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>dual sourcing of knowledge, globally, together with our suppliers; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>single, dual or multiple sourcing of products, where possible.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Value sourcing aligns the actual supplier performance to our requirements on quality, logistics,
technology and total costs.


<P align="left" style="font-size: 10pt">Zeiss is our sole external supplier of lenses and other critical optical components, which account
for between 20&nbsp;percent and 50&nbsp;percent of our cost of goods sold, varying by product type, and which
collectively accounted for approximately 30&nbsp;percent of our aggregate cost of goods sold in 2004.


<P align="left" style="font-size: 10pt">From time to time, the number of systems we have been able to produce has been limited by the
capacity of Zeiss to provide us with lenses and optical components. Zeiss currently is capable of
manufacturing a limited number of lenses and optical components for our wafer steppers and Step &#038;
Scan systems and is highly dependent on Zeiss&#146; manufacturing and testing facilities in Oberkochen
and Wetzlar, Germany. During 2004, we were in some cases constrained by the number of lenses that Zeiss could produce.


<P align="left" style="font-size: 10pt">If Zeiss is unable to maintain and increase production levels to respond to
an increase in our customer demand in an industry upturn, we would be unable to fulfill orders for
our systems, which could damage relationships with current and prospective customers and have an
adverse effect on our business, financial condition and results of operations. See Item&nbsp;3.D. &#147;Risk
Factors, The Number of Systems We Can Produce is Limited by our Dependence on a Limited Number of
Suppliers of Key Components.&#148;

<P align="left" style="font-size: 10pt">Our relationship with Zeiss is structured as an exclusive strategic alliance pursuant to several
agreements concluded in 1997, 2000 and 2003 that set forth a framework for cooperation in the areas
of product research, design, planning and manufacturing and pricing, as well as customer support
and warranty service. Pursuant to these agreements, ASML and Zeiss will continue their strategic alliance on an exclusive
basis until either party provides at least three years&#146; notice of its intent to terminate. Although
we believe such an outcome is unlikely, if Zeiss were to terminate its relationship with us, or if
Zeiss were unable to maintain production over a prolonged period (such as because of a catastrophe
affecting Zeiss&#146; Oberkochen or Wetzlar facilities), we would effectively cease to be able to conduct our business.


<P align="left" style="font-size: 10pt">In connection with a settlement of worldwide patent litigation between Nikon, ASML and Zeiss, ASML
entered into a patent cross-license agreement with Nikon on December&nbsp;10, 2004 (effective November
12, 2004), pursuant to which ASML granted Nikon a non-exclusive license to manufacture and sell
lithography equipment under patents owned or otherwise sublicensable by ASML and Nikon granted ASML
a non-exclusive license to manufacture and sell lithography equipment (other than optical
components) under patents owned or otherwise sublicensable by Nikon. Also in connection with the
settlement, ASML entered into a sublicense with Zeiss on December&nbsp;10, 2004 (effective November&nbsp;12,
2004), pursuant to which Zeiss sublicensed to us all of its rights to exploit optical components
from Nikon under the Nikon-Zeiss Patent Cross-License Agreement. See Item&nbsp;10.C. &#147;Material
Contracts&#148; for a summary of the ASML-Nikon Patent Cross License Agreement and the ASML/Zeiss
Sublicense Agreement. ASML entered into the cross-license agreement with Nikon and the sublicense
agreement with Zeiss because it believed that, notwithstanding the strength of its claims and
defenses, doing so would be more cost effective than continuing to engage in expensive and
protracted litigation and administrative proceedings with Nikon, the outcome of which was
inherently uncertain.


<P align="left" style="font-size: 10pt"><B>Research and Development</B>


<P align="left" style="font-size: 10pt">The semiconductor manufacturing industry is subject to rapid technological changes and new product
introductions and enhancements. We believe that continued and timely development and introduction
of new and enhanced systems are essential for us to maintain our competitive position. To meet this
ongoing requirement, we have established sophisticated development centers in the Netherlands and the United States and, in
addition, work jointly with independent research centers in nano-electronics and nano-technology.
Those research centers focus on the next generations of chips and systems.


<P align="left" style="font-size: 10pt">We have historically devoted a significant portion of our financial resources to research and
development programs and we expect to continue to allocate significant resources to these efforts.
We also apply for subsidy payments in connection with specific development projects under programs
sponsored by the Netherlands government, the European Union and the U.S. government (Defense
Advanced Research Projects Agency, or &#147;DARPA&#148;). Amounts received under these programs generally are
not required to be repaid. See our discussions of research and development in Item&nbsp;5 &#147;Operating and
Financial Review and Prospects&#148;, and Notes 1 and 15 to our consolidated financial statements.



<P align="center" style="font-size: 10pt">17
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">We invested EUR 353&nbsp;million on research and development in continuing operations in 2004 (including
a charge of EUR 49&nbsp;million with respect to a cross-license agreement entered into between ASML and
Nikon), compared to EUR 306&nbsp;million in 2003 and EUR 324&nbsp;million in 2002. We are also involved in
joint research and development programs with both public and private partnerships and consortiums,
involving independent research centers, leading chip manufacturers and governmental programs. We aim to own or license our jointly
developed technology and designs of critical components.


<P align="left" style="font-size: 10pt">In 2004, our research and development efforts propelled further development of the TWINSCAN
platform along with several leading edge technologies, including 248 nanometer, 193 nanometer,
immersion and EUVL. Our research and development activities in 2004 also led to productivity and
performance enhancements for our other existing product families. Moreover we continued our
research into the feasibility of maskless technology.


<P align="left" style="font-size: 10pt"><B>Intellectual Property</B>


<P align="left" style="font-size: 10pt">We rely on intellectual property rights such as copyrights, patents, and trade secrets to protect
our proprietary technology. We aim to obtain ownership rights on technology developed by us or,
alternatively, to have appropriate licensing in place with respect to such technology. However, we
face the risk that such measures will be inadequate. Competitors may be able to develop and protect
similar technology independently. Also, our patent applications may not be approved as intended,
and intellectual property laws may not sufficiently support our proprietary rights. Litigation may
be necessary in order to enforce our intellectual property rights, to determine the validity and
scope of the proprietary rights of others or to defend against claims of infringement. Any such litigation may result in substantial costs and diversion of
resources, and, if decided unfavorably to us, could have a material adverse effect on our business,
financial condition or results of operations. We also may incur substantial licensing or settlement
costs where doing so would strengthen or expand our intellectual property rights or limit our
exposure to intellectual property claims of third parties.


<P align="left" style="font-size: 10pt"><B>Patent litigation with Nikon</B>


<P align="left" style="font-size: 10pt">From 2001 through late 2004, we were a party to a series of civil litigations and administrative
proceedings in which Nikon alleged ASML&#146;s infringement of Nikon patents relating to
photolithography. ASML in turn filed claims against Nikon.


<P align="left" style="font-size: 10pt">Pursuant to agreements executed on December&nbsp;10, 2004 (effective November&nbsp;12, 2004), ASML, Zeiss and
Nikon agreed to settle all pending worldwide patent litigation between the companies. The
settlement included an agreement to dismiss all pending patent litigation between the companies, an
exchange of releases, a cross-license of patents related to lithography equipment used to
manufacture semiconductor devices and payments to Nikon by ASML and Zeiss. In connection with the
settlement, ASML made an initial payment to Nikon of US$60&nbsp;million (approximately EUR 49&nbsp;million)
in 2004, and is obligated to make additional payments to Nikon of US$9&nbsp;million
(approximately EUR 7&nbsp;million) each in 2005, 2006 and 2007. Zeiss made an initial payment to Nikon
of US$40&nbsp;million (approximately EUR 32&nbsp;million) in 2004, and is required to make additional
payments to Nikon of US$6&nbsp;million (approximately EUR 4&nbsp;million) in 2005, 2006 and 2007. See Item
10.C. &#147;Material Contracts&#148;.


<P align="left" style="font-size: 10pt"><B>Patent litigation with Ultratech Stepper, Inc</B>


<P align="left" style="font-size: 10pt">In May&nbsp;2000, Ultratech Stepper, Inc. (&#147;Ultratech&#148;) filed a lawsuit against ASML that is proceeding
in the United States District Court for the Northern District of California. Ultratech alleges that
ASML is infringing Ultratech&#146;s rights under a United States patent in connection with its
manufacture and commercialization in the U.S. of advanced photolithography equipment embodying
technology that, in particular, is used in Step &#038; Scan equipment. Ultratech&#146;s complaint seeks
injunctive relief prohibiting future sales and damages for past sales of this equipment. Ultratech
may also seek prejudgment interest. Ultratech&#146;s complaint also seeks enhanced damages based on
alleged willful infringement. If the jury finds that ASML willfully infringed the patent, the court
has the discretion to award three times the damages.
In August&nbsp;2002, the Court granted ASML&#146;s motion for summary judgment of non-infringement, following
which Ultratech appealed this judgment to the United
States Court of Appeals for the Federal Circuit. On March&nbsp;30, 2004, the Federal Circuit reversed
the District Court&#146;s grant of summary judgment and remanded the case to the District Court for
determination of infringement under the Federal Circuit&#146;s new construction of one of the terms of
the asserted patent.


<P align="left" style="font-size: 10pt">As a result of the Federal Circuit&#146;s new construction, ASML is seeking additional discovery from
Ultratech, with trial scheduled for May&nbsp;2005. ASML believes it has meritorious defenses to
Ultratech&#146;s claims, including that ASML does not infringe Ultratech&#146;s patent, and that the patent
is invalid, and will vigorously defend itself against these claims. In the event a final
non-appealable decision were to be rendered that was adverse to ASML, it could result in a damages
award and substantially restrict or prohibit ASML&#146;s sales in the United States, which in turn could
have a material adverse effect on the Company&#146;s financial position and results of operations.



<P align="center" style="font-size: 10pt">18
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>Competition</B>


<P align="left" style="font-size: 10pt">The semiconductor equipment industry is highly competitive. The principal elements of competition
in our markets are the technical performance characteristics of a photolithography system and the
value of ownership of that system based on its purchase price, maintenance costs, productivity and
customer service and support. In addition, we believe that an
increasingly important factor affecting our ability to compete is the strength and breadth of our
portfolio of patent and other intellectual property rights relative to those of our competitors. We
believe that the market for photolithography systems and the investments required to be a
significant competitor in this market have resulted in increased competition for market share
through the aggressive prosecution of patents to prevent competitors from using and developing
their technology. Our competitiveness will increasingly depend upon our ability to protect and
defend our patents, as well as our ability to develop new and enhanced semiconductor equipment that
is competitively priced and introduced on a timely basis. See Item&nbsp;3.D. &#147;Risk Factors, We Face
Intense Competition.&#148;


<P align="left" style="font-size: 10pt"><B>Government Regulation</B>


<P align="left" style="font-size: 10pt">Our business is subject to direct and indirect regulation in each of the countries in which our
customers or we do business. As a result, changes in various types of regulation could affect our
business adversely. The implementation of new technological or legal requirements could impact our
products, or our manufacturing or distribution processes, and could affect the timing of product
introductions, the cost of our production or product as well as their commercial success. Moreover,
environmental and other regulations that adversely affect the
pricing of our products could affect our net sales and operating profit. The impact of these
changes in regulation could adversely affect our business even where the specific regulations do
not directly apply to us or to our products.

<DIV align="left">
<A name="112"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>C. Organizational Structure</B>


<P align="left" style="font-size: 10pt">ASML Holding N.V. is a holding company that operates through its subsidiaries. Our major operating
subsidiaries, each of which is a direct wholly-owned subsidiary, are as follows:



<P align="center" style="font-size: 10pt"><IMG src="u48286u4828600.gif" alt="(ORGANIZATIONAL CHART)">


<P align="left" style="font-size: 10pt">See Exhibit&nbsp;8.1 for a list of our material subsidiaries.

<DIV align="left">
<A name="113"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>D. Property, Plants and Equipment</B>


<P align="left" style="font-size: 10pt">We own several facilities, including office facilities, in the Netherlands, the United States and
Japan. The book value of the buildings used in our continuing operations and owned by ASML amounted
to EUR 81&nbsp;million as of December&nbsp;31, 2004. We lease our headquarters, applications laboratory and
research and development facilities, manufacturing (assembly and testing) premises and some of our
office facilities in Veldhoven, the Netherlands. The operating leases for several of our
facilities are long-term and contain purchase options. See Item&nbsp;5.E. &#147;Off-Balance Sheet Arrangements&#148; and Note 12 to our consolidated
financial statements. Some of our office facilities at our
headquarters in Veldhoven are financed through a special purpose vehicle that is a variable
interest entity. We also own and have regional sales and service offices and manufacturing
facilities located worldwide near our customers&#146; premises.


<P align="left" style="font-size: 10pt">We expect capital expenditures in 2005 to range between EUR 75&nbsp;million and EUR 85&nbsp;million, of which
the majority will be allocated to machinery and tooling equipment and to IT hardware. See Item&nbsp;4.A.
&#147;History and Development of the Company, Capital Expenditures.&#148; See also Item&nbsp;5.B. &#147;Liquidity and
Capital Resources&#148; and Note 9 to our consolidated financial statements.


<P align="left" style="font-size: 10pt">While we anticipate continuing capital expenditures for the purpose of upgrading and, where
appropriate, incrementally expanding our facilities, we believe that our existing facilities are
sufficient to accommodate the likely range of production volumes that we currently expect in the
market for semiconductor manufacturing equipment for the next 2&nbsp;years.


<P align="center" style="font-size: 10pt">19
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="114"></A>
</DIV>
<P align="left" style="font-size: 10pt"><U>Item&nbsp;5</U>


<P align="left" style="font-size: 10pt"><U>Operating and Financial Review and Prospects </U>

<P align="left" style="font-size: 10pt"><B>Executive Summary</B>


<P align="left" style="font-size: 10pt">ASML is the world&#146;s leading provider of lithography systems for the semiconductor industry,
manufacturing complex machines that are critical to the production of integrated circuits or chips.
Headquartered in Veldhoven, the Netherlands, ASML operates globally, with activities in Europe, the
United States and Asia.


<P align="left" style="font-size: 10pt"><B>Semiconductor Equipment Industry</B>


<P align="left" style="font-size: 10pt">Historically, the semiconductor industry has been highly cyclical. The number of lithography
equipment units that we and our competitors shipped for the 5&nbsp;years ended December&nbsp;31, 2003 is set
forth in the following table:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2003</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total lithography equipment units shipped</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>731</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,182</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>789</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>413</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>456</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="18%" align="left" color="#000000">
<DIV align="left" style="font-size: 10pt">(Source: Gartner
Dataquest)</DIV>


<P align="left" style="font-size: 10pt">The years 2001, 2002 and 2003 were an unprecedented period of downturn in the global
semiconductor industry and, consequently, the semiconductor equipment industry. During the last
quarter of 2003 and the first three quarters of 2004, however, our systems order intake showed
considerable strength. This recovery resulted in 2004 in a significant improvement in net sales,
gross profit on sales and net income. We have accumulated
a significant backlog for deliveries in the first half of 2005. However, we remain cautious in our
forecast as customer order push-outs are always possible, if overall semiconductor demand were not
to materialize as expected. The order backlog as of December&nbsp;31, 2004 comprises 131 lithography
systems. ASML plans to ship 60 systems in the first quarter of 2005. The company has limited
visibility for the second half of 2005.


<P align="left" style="font-size: 10pt"><B>Summary of operations</B>


<P align="left" style="font-size: 10pt">Our sales consist of product sales and service sales. Product sales generated approximately 91% of
total net sales in 2004. During 2004, we shipped 282 systems to our customers, compared to 169 in
2003. During 2004, the average selling price of our systems (&#147;ASP&#148;) was EUR 7.7&nbsp;million. During
2004, the ASP of our systems amounted in the first, second, third and fourth quarter of the year,
respectively, to EUR 6.7&nbsp;million, 7.6&nbsp;million, 7.5&nbsp;million and EUR 8.8&nbsp;million. Based upon our
backlog as of December&nbsp;31, 2004, we estimate the ASP of systems we expect to ship in the first
quarter of 2005 to be EUR 10.7&nbsp;million. This increase in ASP reflects the industry&#146;s shift from 200
millimeter towards 300 millimeter systems, as well as a shift from 365 nanometer towards 248 and 193
nanometer systems.


<P align="left" style="font-size: 10pt">Cost of sales reflects primarily the costs of components and subassemblies that comprise our
lithography systems, labor used in the manufacture of our systems and directly related overhead. We procure system components
and subassemblies from a single supplier or a limited group of suppliers in order to ensure overall
quality and timeliness of delivery. During 2004, we continued our efforts to reduce our cost base
by focusing on cost of goods reduction programs. These programs are effected in close cooperation
with our supply chain in order to reduce the costs of manufacturing the components and modules for
our systems, resulting in lower cost of goods. In addition, ASML made some redesigns to its current
product portfolio. The impact of these programs is reflected in our gross margin. See Item&nbsp;5.A.
&#147;Operating Results &#151; Results of Operations&#148;.


<P align="left" style="font-size: 10pt">The semiconductor manufacturing industry is subject to rapid technological change and frequent new
product introductions and enhancements. The cost to develop new systems is increasingly high. Our
level of research and development expenditures reflects our continuing effort to introduce several
leading edge lithography products for 193 nanometer applications and the newest versions of the
TWINSCAN platform, combined with continued investments in 248 nanometer high numerical aperture
(NA)&nbsp;program, immersion and EUV. During 2004, ASML shipped the world&#146;s first immersion tool.


<P align="left" style="font-size: 10pt">Our break-even level is the minimum number of new systems that need to be sold in a year in order
to achieve net profit in that year. We have reduced our break-even level to approximately 130 new
systems as of the end of 2004 from a break-even level of 160 new systems as of the beginning of
2004, depending upon our product mix by:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>adjusting our labor capacity over the past 2&nbsp;years;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>controlling our cost basis by focusing on cost of goods reduction programs;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>increasing the value of ownership of our systems resulting in higher ASPs for our
systems; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>increasing our operating flexibility.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">20
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Japanese Market</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Nikon and Canon are the dominant suppliers in the Japanese market, which accounts for a significant
portion of worldwide semiconductor production. This market historically has been difficult for
non-Japanese companies to penetrate and ASML has sold only a limited number of systems to Japanese
customers. During 2004, ASML announced plans to increase its service, sales and marketing
operations in Japan to serve its growing regional customer base. In July&nbsp;2004, ASML received an
order for its TWINSCAN lithography system for 300 millimeter production from a large Japanese
electronics and electrical-equipment manufacturer. We now have four customers in Japan.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Settlement of Patent Litigation</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Pursuant to agreements executed in the fourth quarter of 2004, ASML, Zeiss and Nikon agreed to
settle all pending worldwide patent litigation between the companies. The settlement included an
agreement to dismiss all pending patent litigation between the companies, an exchange of releases, a
cross-license of patents related to lithography equipment used to manufacture semiconductor devices
and payments to Nikon by ASML and Zeiss. In connection with the settlement, ASML made an initial
payment to Nikon of US$ 60&nbsp;million (approximately EUR 49&nbsp;million) in 2004, and is obligated to make
additional payments to Nikon of US$ 9&nbsp;million (approximately EUR 7&nbsp;million) in each of 2005, 2006 and
2007. An amount of EUR 49&nbsp;million pertains to past conduct and is expensed as research and
development expenses in ASML&#146;s statement of operations for the year ended December&nbsp;31, 2004. The
remaining value, in an amount of EUR 21&nbsp;million, has been capitalized under intangible assets and
will be amortized over a period of 5&nbsp;years under cost of sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Restructuring Charges</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In July&nbsp;2003, ASML announced further workforce reductions of approximately 550 positions worldwide
due to the continuing downturn in the semiconductor equipment industry. During 2003, ASML recorded
a provision of EUR 15.3&nbsp;million as an ongoing benefit arrangement. The amount of the provision was
based upon severance arrangements agreed with our Works Council in the Netherlands for previous
workforce reductions announced in December&nbsp;2002. ASML&#146;s Board of Management and ASML&#146;s Dutch Works
Council then commenced a joint study on implementing these workforce reductions in the Netherlands
which delayed the workforce reductions until the beginning of 2004. Thereafter, in response to a sharp
improvement in market conditions during 2004, we decreased the reductions to approximately 300 positions worldwide, of which 150 were contract employees
with limited rights upon termination. As a result, we recorded a restructuring credit of EUR 12.1
million, EUR 3.8&nbsp;million of which was recorded in cost of sales and EUR 8.3&nbsp;million of which was
recorded under restructuring expenses. Our payments associated with these workforce reductions were
EUR 2.5&nbsp;million in 2004.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Dutch Corporate Income Tax Rate Reduction</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A corporate income tax rate reduction in the Netherlands was enacted in the fourth quarter of
2004. As a consequence, we had to re-measure the valuation of our tax assets and liabilities
accordingly. The re-measurement led to a one-time tax charge of approximately EUR 15&nbsp;million.
Income taxes represented 35.1&nbsp;percent of income before taxes in 2004 (31.1&nbsp;percent excluding
one-time tax charge of approximately EUR 15&nbsp;million), compared to 32.4&nbsp;percent in 2003.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The enactment of the Dutch Corporate income tax rate reduction will lead to a decrease of the
consolidated effective tax rate of approximately 3&nbsp;percentage points to an expected tax rate of
approximately 28&nbsp;percent.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Key Performance Indicators</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML uses key performance indicators in managing its business. The major key performance indicators
for the three years ended December&nbsp;31, 2004 are set forth in the following table.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Growth</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total Net sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,959</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,543</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,465</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog of total systems (units)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">110</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">124</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>131</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Value of Backlog of total systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,089</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">993</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,691</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP new systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9.3</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP backlog (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>12.9</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Profitability</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross profit on sales (percentage)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>36.7</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income (loss) (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(208</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(160</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>235</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Liquidity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in cash and cash equivalents (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(242</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">359</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>200</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">669</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,028</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,228</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In managing our business, we continuously seek to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>increase the value of ownership (see Item&nbsp;4.B. &#147;Business Overview&#148;) to our customers
resulting in higher ASPs for our systems;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>control our cost base by focusing on reducing cost of goods sold and controlling
research and development costs and selling, general and administrative expenses, resulting
in improved operating margins; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>improve our working capital. Our working capital improvement program includes inventory
control, early collection of our receivables and effective management of payments.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We measure ourselves against the above-mentioned key performance indicators and our Board of
Management and senior management continuously monitor and discuss these in monthly operational
review meetings and quarterly financial planning meetings.<BR>
&nbsp;<BR>
Our key performance indicators showed considerable strength during 2004 compared to 2003
and 2002 mainly due to the recovery of the semiconductor equipment market, after a period of
downturn, the results of our cost of goods reduction programs and our continuous focus on working
capital improvement programs.

<DIV align="left">
<A name="115"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>A. Operating Results</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Critical accounting policies using significant estimates</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our discussion and analysis of our financial condition and results of operations are based upon our
consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The
preparation of our financial statements requires us to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those
related to revenue recognition, long-term service contracts, warranty and installation obligations,
tangible assets, intangible assets, inventories, bad debt provisions, restructuring provisions,
contingencies and litigation and income taxes. We base our estimates on historical experience and
on various other assumptions that we believe to be reasonable under the circumstances. While we
regularly evaluate our estimates and assumptions, actual results may differ from these estimates
under different assumptions or conditions. To the extent there are material differences between
actual results and these estimates, our future results of operations could be adversely affected.
We believe that the accounting policies below require us to make significant judgments and
estimates in the preparation of our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Revenue recognition</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In general, we recognize the revenue from the sale of a system upon shipment and the revenue from
the installation of a system upon completion of that installation at the customer site. Each system
undergoes, prior to shipment, a &#147;Factory Acceptance Test&#148; in our clean room facilities, effectively
replicating the operating conditions that will be present on the customer&#146;s site, in order to
verify whether the system will meet its standard specifications and any additional technical and
performance criteria agreed with the customer. A system is shipped, and revenue recognized, only
after all specifications are met and customer sign-off is received or waived. Although each
system&#146;s performance is re-tested upon installation at the customer&#146;s site, we have never failed to
successfully complete installation of a system at a customer premises.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our systems are based largely on two product platforms that permit incremental, modular upgrades.
Historically, we have introduced a new product platform on average once
every decade and have done so on one occasion since the beginning of 2000. This introduction results in a complex integration of mechanical and optical
subsystems. Consequently, at the end of 2000, we departed from our standard revenue recognition
policy in connection with the introduction of our TWINSCAN family of lithography systems. Although
each TWINSCAN system successfully completed a Factory Acceptance Test prior to shipment, we
considered the TWINSCAN to constitute &#147;new&#148; technology for which we did not have sufficient
evidence to conclude that (i)&nbsp;installation at the customer site would occur consistently within a
pre-determined time period comparable to our other systems; and (ii)&nbsp;upon installation, the system
would perform within the specifications for which customer sign-off had been obtained in the
pre-shipment Factory Acceptance Test. Consequently, we initially deferred all revenue with respect
to each TWINSCAN system until installation and acceptance of the system at the customer&#146;s premises
had been completed. At December&nbsp;31, 2000, this resulted in the deferral of revenue totaling EUR 9
million in respect of one TWINSCAN system that had been shipped but not completely installed. At
December&nbsp;31, 2001, this resulted in the deferral of revenue totaling EUR 138&nbsp;million in respect of
13 TWINSCAN systems that had been shipped but for which installation had not yet been completed.
All of this revenue was recognized during the succeeding year. By the end of 2002, however, we had
successfully shipped and installed a total of 70 TWINSCAN systems, which provided us with
sufficient evidence to conclude that installation of TWINSCAN systems would occur consistently
within a predetermined time period and that the performance of these systems would not reasonably
be different from that exhibited in the pre-shipment Factory Acceptance


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Test. As a result, at the end of 2002, we commenced recognizing revenues from TWINSCAN systems upon
shipment. Therefore, no revenue was deferred pending installation of a TWINSCAN system (or any
other ASML system) during 2003 or 2004.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In our annual report on Form 20-F for the year ended December&nbsp;31, 2003, we disclosed that whether
we would consider immersion as new technology or proven technology would depend on our progress in
immersion lithography technology during 2004. During 2004 the engineering and design obstacles
associated with immersion technology were overcome in rapid fashion through the development of
&#147;add-on&#148; modules to existing models within ASML&#146;s TWINSCAN family of systems. After the development
of the immersion tool was completed, ASML determined that the addition of immersion features to its
existing TWINSCAN systems did not constitute &#147;new&#148; technology, since it is a fairly simple
enhancement to existing technology. At December&nbsp;31, 2004, one immersion lithography system has been
recognized in revenue that was under installation at a customer site. This system was tested and
accepted in a Factory Acceptance Test prior to shipment.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML anticipates that, in connection with future introductions of new technology, it will initially
defer revenue recognition until completion of installation and acceptance of the new technology at
customer premises. This deferral would continue until ASML could conclude that installation of the
technology in question would occur consistently within a predetermined time period and that the
performance of the new technology would not reasonably be different from that exhibited in the
pre-shipment Factory Acceptance Test. Any such deferral of revenues, however, could have a material
effect on ASML&#146;s results of operations for the fiscal period in which the deferral occurred and on
the succeeding fiscal period.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The fair value of installation services provided to our customers is initially deferred and is
recognized when the installation is completed. The unearned revenue balance from installation
services amounted to approximately EUR 9.4&nbsp;million at December&nbsp;31, 2004. Sales from service
contracts are recognized when performed. Revenue from prepaid service contracts is recognized over
the term of the contract. As of December&nbsp;31, 2004, the unearned revenue balance on prepaid service
contracts (including training) amounted to approximately EUR 72.5&nbsp;million.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Warranty</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We provide standard warranty coverage on our systems for twelve months, providing labor and parts
necessary to repair systems during the warranty period. The estimated warranty costs are accounted
for by accruing these costs for each system upon recognition of the system sale. The estimated
warranty cost is based on historical product performance and field expenses. Based upon historical
service records, we calculate the charge of average service hours and parts per system to determine
the estimated warranty charge. We update these estimated charges periodically. The actual product
performance and/or field expense profiles may differ, and in those cases we adjust our warranty
reserves accordingly. Future warranty expenses may exceed our estimates, which could lead to an
increase in our cost of sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Evaluation of long-lived assets for impairment and costs associated with exit or disposal
activities</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We evaluate our long-lived assets, including intellectual property, for impairment whenever events
or changes in circumstances indicate that the carrying amount of those assets may not be
recoverable. If an impairment test is warranted, we assess whether the undiscounted cash flows
expected to be generated by our long-lived assets exceed their carrying value. If this assessment
indicates that the long-lived assets are impaired, the assets are written down to their fair value.
These assessments are based on our judgment, which includes the estimate of future cash flows from
long-lived assets and the estimate of the fair value of an asset if it is impaired. In determining
impairments of long-lived assets, we must make judgments and estimates to determine whether the
cash flows generated by those assets are less than their carrying value. These estimates are based
on our financial plans, updated with the latest available
semiconductor market projections, our sales expectations and our
costs evaluations. These are consistent with the plans and estimates
that we use to manage our business. It is possible, however, that
actual outcome, may differ from these plans and estimates, and that future
adverse changes in market conditions may require impairment of
certain long-lived assets. During 2004, we recorded impairment
charges in the amount of EUR&nbsp;2.9&nbsp;million relating to
machinery and equipment as, the carrying amounts of these assets were not recoverable.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">See Notes 2, 3 and 9 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Inventories</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Inventories are stated at the lower of cost (first-in, first-out method) or market value. Cost
includes net prices paid for materials purchased, charges for freight and customs duties,
production labor cost and factory overhead. Inventory provisions are made for slow moving, obsolete
or unsaleable inventory and are reviewed on a quarterly


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">basis. Our methodology involves matching our on-hand and on-order inventory with our manufacturing
forecast. In determining inventory provisions we evaluate inventory in excess of our forecasted
needs on both technological and economical criteria and take appropriate provisions to reflect the
risk of obsolescence. This methodology is significantly affected by our forecasted needs for
inventory. If actual demand or usage were to be lower than estimated, additional inventory
provisions for excess or obsolete inventory may be required, which could have a material adverse
effect on our financial condition and results of operations. See Note 6 to our consolidated
financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Trade Receivables</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A majority of ASML&#146;s trade receivables are derived from sales to large multinational semiconductor
manufacturers throughout the world. In order to monitor potential credit losses, ASML performs
ongoing credit evaluations of its customers&#146; financial condition. An allowance for doubtful
accounts is maintained for potential credit losses based upon management&#146;s assessment of the
expected collectibility of all accounts receivable. The allowance for doubtful accounts is reviewed
periodically to assess the adequacy of the allowance. We take into consideration (i)&nbsp;any
circumstances of which we are aware regarding a customer&#146;s inability to meet its financial
obligations; and (ii)&nbsp;our judgments as to prevailing economic conditions in the industry and their
impact on the Company&#146;s customers. Where we deem it prudent to do so, we may require some form of
credit enhancement, such as a letter of credit or bank guarantee, before shipping systems to a
customer that presents a credit risk. ASML has not incurred any material accounts receivable credit
losses during the past 3&nbsp;years. However, we sell a substantial number of systems to a limited
number of customers. ASML&#146;s three largest customers accounted
for 38% of accounts receivable at
December&nbsp;31, 2004, compared to 44% at December&nbsp;31, 2003. An unanticipated business failure of one
of ASML&#146;s main customers could result in a substantial credit loss in respect to amounts owed to
the Company by that customer, which could adversely affect ASML&#146;s results of operations and
financial condition. See Note 20 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Restructuring</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML applies the criteria defined in SFAS No.&nbsp;146, &#147;Accounting for Costs Associated with Exit or
Disposal Activities&#148; and SFAS No.&nbsp;112, &#147;Employers&#146; Accounting for Postemployment Benefits,&#148; in
order to determine when a liability for restructuring or exit costs should be recognized.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">With respect to employee termination costs, we apply SFAS No.&nbsp;146 (effective since January&nbsp;1, 2003)
in the case of benefit arrangements that, in substance, do not constitute an ongoing benefit
arrangement. ASML applies SFAS No.&nbsp;112 when termination benefits are provided under an ongoing
benefit arrangement. SFAS No.&nbsp;146 provides that a liability for a cost associated with an exit or
disposal activity that does not constitute an ongoing benefit arrangement shall be recognized and
measured initially at its fair value in the period in which the liability is incurred; that is when
a detailed exit or disposal plan exists, has been committed to by management and has been
communicated to the employees. SFAS No.&nbsp;112 provides that a liability for termination benefits
provided under an ongoing benefit arrangement covered by SFAS No.&nbsp;112 shall be recognized when the
likelihood of future settlement is probable and can be reasonably estimated. As a result, whether
an employee termination plan constitutes an ongoing benefit arrangement or not, and accordingly,
whether SFAS No.&nbsp;146 or SFAS No.&nbsp;112 is applied, will affect the timing of recognition of employee
termination costs, as well as the amounts recognized. In 2003, ASML announced further workforce
reductions of approximately 550 positions worldwide due to the continuing downturn in the
semiconductor equipment industry. During 2003, ASML recorded a provision of EUR 15.3&nbsp;million as an
ongoing benefit arrangement. The amount of the provision was based upon severance arrangements
agreed with our Works Council in the Netherlands for the previous workforce reductions announced in
December&nbsp;2002. ASML&#146;s Board of Management and ASML&#146;s Dutch Works Council then commenced a joint
study on implementing these workforce reductions in the Netherlands, which delayed the workforce
reductions until the beginning of 2004. Thereafter, in response to a sharp improvement in market
conditions during 2004, we decreased the reductions to
approximately 300 positions worldwide, of which 150 were contract employees with limited rights
upon termination. As a result, we recorded a restructuring credit of EUR 12.1&nbsp;million, EUR 3.8
million of which was recorded in cost of sales and EUR 8.3&nbsp;million of which was recorded under
restructuring expenses.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Other exit costs include purchase and other commitments to be settled or fulfilled. These costs are
estimated based on expected settlement fees and committed payments, taking into account future
potential benefits, if any, from those commitments. ASML applies the criteria defined in SFAS No.&nbsp;146, &#147;Accounting for Costs Associated with Exit or
Disposal Activities&#148; and SFAS No.&nbsp;112, &#147;Employers&#146; Accounting for Postemployment Benefits,&#148; in
order to determine when a liability for restructuring or exit costs should be recognized.


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Contingencies and litigation</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">As of December&nbsp;31, 2004 and 2003, ASML was party to various legal proceedings generally incidental
to its business, as disclosed in Note 14 to the consolidated
financial statements. In connection with these
proceedings and claims, ASML&#146;s management evaluated, based on the relevant facts and legal
principles, the likelihood of an unfavorable outcome and whether the amount of the loss could be
reasonably estimated. In each case, management determined that either a loss was not probable or
was not reasonably estimable. As a result, no estimated losses were recorded as a charge to its
statement of operations. Significant subjective judgments were required in these evaluations,
including judgments regarding the validity of asserted claims and the likely outcome of legal and
administrative proceedings. The outcome of these proceedings, however, is subject to a number of
factors beyond ASML&#146;s control, most notably the uncertainty associated with predicting decisions by
courts and administrative agencies. In addition, estimates of the potential costs associated with
legal and administrative proceedings frequently cannot be subjected to any sensitivity analysis, as
damage estimates or settlement offers by claimants may bear little or no relation to the eventual
outcome. Finally, in any particular proceeding, ASML may agree to settle or to terminate a claim or
proceeding in which it believes it would ultimately prevail where it believes that doing so, when
taken together with other relevant commercial considerations, is more cost-effective than engaging
in an expensive and protracted litigation, the outcome of which is uncertain. Such a decision
occurred when ASML determined to enter into a cross-license agreement as an alternative to
continuing its intellectual property dispute with Nikon. See Item&nbsp;10.C. &#147;Material Contracts&#148;.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Income tax</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We operate in various tax jurisdictions in the U.S., Europe and Asia and must comply with the tax
laws of each of these jurisdictions.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We use the asset and liability method in accounting for income taxes. Under this method, deferred
tax assets and liabilities are recognized for the tax effect of incurred net operating losses and
for tax consequences attributable to differences between the balance sheet carrying amounts of
existing assets and liabilities and their respective tax bases. If it is more likely than not that
the carrying amounts of deferred tax assets will not be realized, a valuation allowance will be
recorded to reduce the carrying amounts of those assets.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2004, we assessed our ability to realize our deferred tax assets resulting from net operating
loss carry-forwards. The total amount of loss carry forwards as of December&nbsp;31, 2004 is EUR 577
million. Based on this analysis, management believes that it is more likely than not that all losses
will be offset by future taxable income before the Company&#146;s ability to utilize those losses
expires. This analysis takes into account the Company&#146;s projected future taxable income from
operations, possible tax planning alternatives available to the Company, and a realignment of group
assets that the Company effected during the period 2001 through 2003 and that included the transfer
of certain tangible and intangible assets of ASML US Inc. to ASML Netherlands BV. The value of the
assets transferred results in additional income to ASML US, Inc., which the Company&#146;s management
believes will, more likely than not, be sufficient to absorb the net operating losses that ASML US
Inc. has incurred prior to the expiry of those losses. In order to determine with certainty the tax
consequences and value of this asset transfer, in 2002 ASML requested a bilateral advance pricing
agreement (&#147;APA&#148;) from the US and Netherlands tax authorities. Since December&nbsp;2002, ASML&#146;s
management has held numerous meetings with representatives of those authorities. In December&nbsp;2004,
the U.S. and Netherlands tax authorities formally met to review ASML&#146;s APA submission. Based on
these meetings, and feedback from both these authorities, ASML is confident that ASML&#146;s APA request
will be successful. Although we remain optimistic that the APA will be completed in the course of
calendar year 2005, the specific timing remains in the control of those tax authorities. See Note
16 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Business strategy</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our business strategy is to provide superior value of ownership for our customers while ASML
achieves top financial performance. We implement this strategy through customer focus, technology
leadership and operational excellence.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Customer focus</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We satisfy different types of chipmakers by customizing our products to provide premium value for
all market segments. This includes satisfying demand for high volume systems necessary for
production of memory chips, as well as demand for systems that can perform fast and frequent
changeovers required by foundries or made-to-order chip contractors. We perform to the unique
specifications set by integrated device manufacturers to fit their chipmaking environment.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Of the top 20 chipmakers worldwide, in terms of semiconductor capital expenditure, 16 are customers
of ASML. We plan to solidify our position in this segment through


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">superior execution. At the same time, we have a significant market share of customers below the top
20, and we plan to grow our share in this segment by expanding our geographic reach.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Japan has historically been dominated by our competitors. In 2004, we undertook a long term market
development strategy, and we now have four customers in Japan. We plan to further increase our
sales staff and marketing efforts, add customer support and open new offices.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We will continue to offer solutions for related lithography application markets, including Thin
Film Head and micro-electro mechanical systems (MEMs), among others.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Technology leadership</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Technological developments and the level of capital investments increasingly influence the
equipment choices of chipmakers.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The Company&#146;s product range for steppers and advanced Step &#038; Scan systems spans all the industry&#146;s
current wavelengths for both 200- and 300-millimeter wafers.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Since 2000, we offer the industry&#146;s only dual-stage wafer imaging platform &#150; called TWINSCAN &#150; that
allows exposure of one wafer while simultaneously measuring another wafer. Customers have been
embracing our technology platform, and in 2004, we installed our 200th TWINSCAN system.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2003, we announced the introduction of our new immersion lithography system, a product that
replaces the air over the wafer with fluid to enhance focus and shrink circuit line width, based on
our TWINSCAN platform. In 2004, we delivered the industry&#146;s first immersion lithography systems.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2004, we reconfirmed TWINSCAN as the semiconductor industry&#146;s leader in productivity
performance, while transitioning to the next technology node. We shipped a total of 18 systems of
next generation TWINSCAN AT:1250 and TWINSCAN XT:1250. These systems extend imaging to the
65-namometer line width on both 200- and 300-millimeter wafers using 193-nanometer wavelength. This
marks a fast ramp-up for a product of such complexity.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We also form and maintain strategic alliances with other semiconductor equipment suppliers to offer
customers more complete solutions. For example, we have joint development programs with leading
makers of track equipment in the so-called litho cluster, where wafer coating and exposure can be
combined to better meet demands of chipmakers.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For the next generation of optical lithography, ASML is committed to EUV technology that will allow
production of integrated circuits down to the 32-nanometer line width and smaller.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For a market and technology overview and further information about ASML products, see Item&nbsp;4.B.
&#147;Business Overview.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Operational excellence</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We strive to transform our market and technology success into a sustainable business success
through operational excellence.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The Company&#146;s human resources strategy embraces our unique culture of both individual and team
commitment within an innovative environment. We will continue to develop a motivated team of
successful people and create opportunities for professional growth.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML&#146;s strategy includes outsourcing the majority of components and subassemblies that make up our
lithography products. We work in partnership with suppliers, jointly operating a strategy known as
value sourcing, based on quality, logistics, technology and total cost. We strive to attain
flexibility and cost savings. Value sourcing exemplifies mutual commitment, alongside shared risk
and reward. It also allows the necessary flexibility to adapt to sudden swings in market demand.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We strive to continuously improve efficiency in fixed and variable costs, and to strengthen our
capability to generate cash. This means continuously reducing cost of goods, increasing
manufacturing efficiency and developing supplier flexibility.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Continuous reduction in total cycle time is a strategic benefit of operational excellence. This is
the time it takes from the date of ordering bulk materials to volume production by our lithography
system at customer facilities. For example, we have shortened the Company&#146;s total cycle time of
TWINSCAN by more than 50&nbsp;percent as of the end of 2004, compared with its introduction in 2001.


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our continuous focus on execution excellence has contributed to lowering our break-even level for
the number of systems that we manufacture. This is critical due to the cyclicality of the world
market for semiconductor lithography systems.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Financial criteria for ASML</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML&#146;s objective is to provide to our shareholders an attractive return on invested capital. In
seeking to achieve this objective, we measure ourselves on financial key performance criteria
based on liquidity, profitability and growth (see &#147;Executive
Summary, Key Performance Indicators&#148;).


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Results of Operations</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The following discussion and analysis of results of operations should be viewed in the context of
the risks affecting our business strategy, described in Item&nbsp;3.D. &#147;Risk Factors.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our decision in December&nbsp;2002 to sell our Thermal business and to terminate our Track equipment
business has resulted in separate disclosure for continuing and discontinued operations for the
three years ended December&nbsp;31, 2004.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Set forth below are our consolidated statements of operations from continuing operations data for
the three years ended December&nbsp;31, 2004, expressed as a percentage of total net sales:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100.0</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100.0</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>100.0</B></TD>
    <TD nowrap valign="top"><B>%</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">76.1</TD>
    <TD nowrap valign="top"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">76.1</TD>
    <TD nowrap valign="top"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>63.3</B></TD>
    <TD nowrap valign="top"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross profit on sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>36.7</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Research and development costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>14.3</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Research and development credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1.3</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1.2</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(0.9</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>8.2</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Restructuring and merger and acquisition related charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N/A</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(0.2</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating income (loss)&nbsp;from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(4.8</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(10.0</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>15.4</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Interest expense, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.7</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Income (loss)&nbsp;from continuing operations before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(6.7</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(11.9</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>14.7</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">(Provision for) Benefit from income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(2.2</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(3.9</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>5.2</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)&nbsp;from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(4.5</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(8.1</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9.6</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="18%" align="left" color="#000000">
<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1 </SUP>Includes restructuring charges of EUR 73&nbsp;million and EUR 5&nbsp;million for the years
ended December&nbsp;31, 2002 and 2003, respectively.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2
</SUP>Includes reversal of restructuring charges of EUR
3&nbsp;million.</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Results of operations from continuing operations 2004 compared with 2003</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Consolidated sales and gross profit</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The following table shows a summary of sales (revenue and units sold), gross profit on sales and
ASP data on an annual and semi-annual basis for the years ended December&nbsp;31, 2004 and 2003:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">First</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Second</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Full</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>First</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Second</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Full</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">half year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">half year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>half year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>half year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>year</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">647</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">896</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,543</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,070</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,395</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,465</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net product sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">553</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">804</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,357</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>964</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,287</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,251</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net service sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">94</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">92</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">186</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>106</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>108</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>214</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">74</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">95</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">169</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>130</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>152</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>282</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total new systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">71</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">126</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>99</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>117</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>216</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total used systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>31</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>35</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>66</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross profit on sales (% of sales)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>34.2</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>38.7</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>36.7</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for new systems (EUR thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8,736</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10,034</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9,464</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>8,711</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9,764</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9,282</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for used systems (EUR thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,816</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,162</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,018</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,266</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,853</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,577</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Consolidated net sales increased by approximately 59.8&nbsp;percent from 2003 to 2004 with product sales
(systems and options) increasing by approximately 65.9&nbsp;percent over that period, primarily due to
an increased number of systems recognized.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The
number of new systems recognized in net sales increased from 126 units in 2003 to 216 units in 2004 due to
an increase in equipment demand by the semiconductor industry in 2004 after 3 consecutive years of
downturn in the global semiconductor industry. The year-on-year increase in the number of new
systems recognized mainly relates to an increase in sales of our 193nm ArF and 248nm KrF systems for
300 millimeter wafer processing and 365nm i-line for 200 millimeter wafer processing.


<P align="center" style="font-size: 10pt">27
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The
ASP for new systems decreased by approximately 1.9&nbsp;percent, reflecting an increased share of
i-line lithography systems for 200 millimeter wafer processing with lower ASPs, which was
partially offset by an increased share of KrF lithography systems for 300 millimeter wafer
processing with higher ASPs. Furthermore, we experienced higher second half 2004 and 2003 ASPs as a
consequence of the sales mix during those periods reflecting more sales of our more advanced
systems.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">At December&nbsp;31, 2004 ASML had no deferred revenue from new technology. During 2004, no revenue from
new technology was recorded that had been previously deferred.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">From time to time, ASML repurchases systems that it has manufactured and sold and, following
factory-rebuild or refurbishment, resells those systems to other customers. This repurchase
decision is driven by market demand expressed by other customers and not by explicit or implicit
contractual arrangements relating to the initial sale. The number of used systems sold increased
from 43 units in 2003 to 66 in 2004. This increase was driven by high utilization of the
lithography equipment, which drove our customers to seek opportunities to expand production
capacity in their existing production facilities. The experience of customers was also related to a
change in product mix, which was driven by specific demand in application areas that required less
critical resolution capabilities. The ASP for used systems increased by approximately 27.7&nbsp;percent,
reflecting a further shift from our older PAS 2500 towards our newer PAS 5500 family, including
scanner systems.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Service sales showed a 15.1&nbsp;percent increase from EUR 186&nbsp;million in 2003 to EUR 214&nbsp;million in
2004. This increase was mainly due to new contract sales with major customers and relocation of
systems in the United States, partially offset by a decline in the exchange rate of the USD versus
the euro during 2004.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Of the top 20 chipmakers worldwide, in terms of semiconductor capital expenditure, 16 are customers
of ASML. In 2004, sales to one customer accounted for EUR 434&nbsp;million, or 18&nbsp;percent of net sales.
In 2003, sales to one customer accounted for EUR 314&nbsp;million, or 20&nbsp;percent of net sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Gross profit as a percentage of net sales in 2004 increased to 36.7&nbsp;percent from 23.9&nbsp;percent in
2003. The gross profit on new systems increased from 21.7&nbsp;percent to 36.2&nbsp;percent mainly due to
lower costs of sales reflecting the results from our cost of goods reduction programs
(approximately 6.0&nbsp;percent positive impact on our gross profit) and improved ASPs (approximately
0.8&nbsp;percent positive impact on our gross profit). This increase in gross profit was offset by the
2004 product mix (approximately 1.2&nbsp;percent negative impact on our gross profit). Furthermore,
improved utilization of our production facilities caused by higher
sales positively impacted our gross margin by 6.5&nbsp;percent. Finally, lower costs for obsolete inventory (1.2&nbsp;percent) and
positive currency results (1.2&nbsp;percent) resulted in higher gross margins.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Lithography order backlog</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We started 2004 with an order backlog of 124 systems (103 new and 21 used), and received orders for
delivery of 318 systems during the year. In 2004, we recorded 282 system sales and 29 order
cancellations or push-outs beyond twelve months, resulting in an order backlog of 131 systems (119
new and 12 used) as of December&nbsp;31, 2004. The total value of the backlog as of December&nbsp;31, 2004
amounts to EUR 1.7&nbsp;billion, compared with a backlog of approximately EUR 993&nbsp;million as of December
31, 2003. See also Item&nbsp;5.D. &#147;Trend Information&#148;.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Research and development</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Research and development costs increased from EUR 306&nbsp;million in 2003 to EUR 353&nbsp;million in 2004
primarily due to a charge of EUR 49&nbsp;million with respect to a
cross-license agreement entered into
between ASML and Nikon (see &#147;Executive Summary, Settlement of
Patent Litigation&#148; and Note 8 to our
consolidated financial statements).


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The level of research and development expenditures reflected our continuing effort to introduce
several leading edge lithography products for 193 nanometer applications and the newest versions of
the TWINSCAN platform, combined with continued investments in 248 nanometer high numerical aperture
(NA)&nbsp;program, immersion and EUV.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Research and development credits increased from EUR 19&nbsp;million in 2003 to EUR 22&nbsp;million in 2004
due to an increased volume of research and development projects that qualified for credits.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Selling, general and administrative costs</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Selling, general and administrative costs decreased by 5.2&nbsp;percent from EUR 213&nbsp;million in 2003 to
EUR 202&nbsp;million in 2004, mainly due to a continuing increased focus on reducing costs and decreased
legal fees associated with patent infringement cases, partially offset by increased IT costs and
consultancy fees with respect to implementing provisions of Section&nbsp;404 of the U.S. Sarbanes-Oxley
Act of 2002. Selling, general and administrative costs as a percentage of net sales decreased from


<P align="center" style="font-size: 10pt">28
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">13.8&nbsp;percent in 2003 to 8.2&nbsp;percent in 2004, primarily due to an increase in net sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Restructuring costs</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In response to the semiconductor industry&#146;s continuing downturn and a corresponding decrease in
demand for ASML&#146;s products and services, on December&nbsp;18, 2002, we announced measures to contain
costs for our lithography business, including customer support, and thereby lower our break-even
point. These measures resulted in the recognition of restructuring charges of EUR 78.5&nbsp;million,
recorded during 2002 as cost of sales, for slow-moving and obsolete lithography inventory and
impairments of tangible fixed assets. We also announced workforce reductions of approximately 700
positions worldwide. The related lay-off costs were largely recorded in 2003 since the final
details of the plan had not been finally determined by December&nbsp;31, 2002. With respect to these
reductions, we recorded in 2003 restructuring charges totaling EUR 6.9&nbsp;million, of which EUR 4.1
million was reflected in cost of sales and EUR 2.8&nbsp;million was reflected in restructuring costs. By
adjusting labor capacity, we expected to achieve annual cost savings of EUR 49&nbsp;million. As of
December&nbsp;31, 2003, this plan had been fully effectuated and cash payments equivalent to the full
EUR 6.9&nbsp;million in accrued expenses had been made.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The worldwide slowdown in the semiconductor industry continued into 2003 and, on July&nbsp;16, 2003,
ASML announced further workforce reductions of approximately 550 positions worldwide, of which the
majority were planned for the Netherlands. During 2003, ASML recorded a provision of EUR 15.3
million as an ongoing benefit arrangement, of which EUR 3.9&nbsp;million was included in cost of sales
and EUR 11.4&nbsp;million was included in restructuring costs. The amount of the provision was based
upon the severance arrangements as agreed with our Works Council in the Netherlands for the
previous workforce reductions announced in December&nbsp;2002. The estimated initial annual cost savings
were EUR 47&nbsp;million. ASML&#146;s Board of Management and ASML&#146;s Dutch Works Council then commenced a
joint study on implementing these workforce reductions in the Netherlands which delayed the
reductions until the beginning of 2004. Thereafter, in response to a sharp improvement in market
conditions during 2004, we decreased the reductions to approximately 300 positions worldwide, of
which 150 were contract employees with limited rights upon termination. As a result, we recorded a
restructuring credit of EUR 12.1&nbsp;million, EUR 3.8&nbsp;million of which was recorded in cost of sales
and EUR 8.3&nbsp;million of which was recorded under restructuring expenses. Our payments associated
with these workforce reductions were EUR 2.5&nbsp;million in 2004 and our initially anticipated cost
savings were reduced to approximately EUR 24&nbsp;million.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Also during 2003, we recorded restructuring costs of approximately EUR 7&nbsp;million relating to the
consolidation of our office and warehouse facilities at our headquarters in Veldhoven as we ceased
using certain of our facilities. The facility exit charges included estimated future obligations
for non-cancelable lease payments and the impairment of property and equipment (primarily leasehold
improvements) for which there were insufficient cash flows to support the carrying cost. During
2004, we recorded adjustments to the related restructuring provision due to postponed commencement
dates of sublease agreements and higher exit costs than originally estimated. This resulted in an
additional charge of EUR 3.5&nbsp;million, EUR 1.1&nbsp;million of which was recorded in cost of sales and
EUR 2.5&nbsp;million of which was recorded under restructuring expenses.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Net interest expense</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Net interest expense decreased from EUR 29&nbsp;million in 2003 to EUR 16&nbsp;million in 2004 due to an
increase in interest income and a decrease in interest expense. Our interest income related
primarily to interest earned on our cash and cash equivalents. Interest income increased compared
with 2003, primarily due to higher cash and cash equivalent balances throughout the year as a
result of an increase in cash flows from operations. Our interest expense relates primarily to our
convertible notes. Our interest expense decreased in 2004 compared with 2003, primarily due to
repurchases and the redemption of our US$ 520&nbsp;million 4.25&nbsp;percent Convertible Subordinated Notes
during the second half of 2003, partially offset by the issuance in May&nbsp;2003 of EUR 380&nbsp;million
5.50% Convertible Subordinated Notes due 2010.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Income taxes</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A corporate income tax rate reduction in the Netherlands was enacted in the fourth quarter of 2004.
As a consequence, ASML had to re-measure the valuation of its tax assets and liabilities
accordingly. This re-measurement led to a one-time tax charge of approximately EUR 15&nbsp;million.
Income taxes represented 35.1&nbsp;percent of income before taxes in 2004, compared to 32.4&nbsp;percent in
2003. We believe that this tax rate reduction will lead to a decrease of our consolidated effective
tax rate of approximately 3&nbsp;percentage points for future years to an expected tax rate of
approximately 28&nbsp;percent. See Note 16 to our consolidated financial statements.


<P align="center" style="font-size: 10pt">29
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Discontinued operations</B>

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Results from discontinued operations comprised the results of our Thermal business, which we
substantially divested in October&nbsp;2003, and our Track equipment business which we terminated in
December&nbsp;2002.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,514</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38,198</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40,712</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Loss from discontinued operations, net of taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1,456</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1,944</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(21,906</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(10,404</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(35,710</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In October&nbsp;2003, we completed the sale of our Thermal business to a privately held company formed
by VantagePoint Venture Partners. In June&nbsp;2003, ASML sold certain of its fixed assets and
inventories related to its Track business to Rite Track. The exit costs of EUR 2&nbsp;million, net of
tax, were recorded in 2003 for impairment charges on a building previously used in our Track
operations. As of December&nbsp;31, 2004, we continue to hold this building for sale with a book value of approximately
EUR 3&nbsp;million and liabilities for loss contingencies amounting to approximately EUR 5&nbsp;million
related to our former Thermal and Track business.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Results of operations from continuing operations 2003 compared with 2002</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">During the year 2003 we faced a significant downturn in the semiconductor industry, which started
in 2001.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Consolidated sales and gross profit</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The following table shows a summary of sales (revenue and units sold), gross profit on sales and
average sales price data on an annual and semi-annual basis for the years ended December&nbsp;31, 2003
and 2002:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">First</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Second</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Full</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>First</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Second</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Full</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">half year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">half year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>half year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>half year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>year</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">788</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,171</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,959</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>647</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>896</B></TD>

    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,543</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net product sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">674</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,067</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,741</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>553</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>804</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,357</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net service sales (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">114</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">104</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">218</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>94</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>92</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>186</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">78</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">127</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">205</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>74</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>95</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>169</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total new systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">110</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">183</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>55</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>71</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>126</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total used systems recognized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>19</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>24</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>43</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross profit on sales (% of sales)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20.0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>19.4</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>27.2</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>23.9</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for new systems (EUR thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8,581</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9,141</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8,917</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>8,736</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>10,034</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9,464</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for used systems (EUR thousands)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,162</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">763</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">854</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,816</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,162</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,018</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Consolidated net sales decreased from 2002 to 2003 by approximately 21&nbsp;percent. Product sales
(systems and options) declined by approximately 22&nbsp;percent from 2002 to 2003, primarily due to a
decreasing number of new systems recognized, partially offset by an increase in ASP. The ASP for
new systems increased by approximately 6% reflecting a shift in our product portfolio towards an
increased share of our latest technology equipment (TWINSCAN systems), which accounted for 38
percent of total shipment volume of new systems in 2003 compared to approximately 33&nbsp;percent in
2002. The number of new systems recognized decreased from 183 units in 2002 to 126 units in 2003 due to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>a further decline in equipment demand by semiconductor manufacturers
in 2003 after a modest recovery shown in the first half of 2002 for
delivery in the second half of 2002; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the effect of the accounting treatment for &#147;new technology systems&#148;
 (see &#147;Critical Accounting Policies Using Significant Estimates&#148;)
resulting in recognition of an additional EUR 138&nbsp;million of revenues
for 13 systems in 2002 that were initially deferred in 2001.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">At December&nbsp;31, 2003 ASML had no deferred revenue from new technology. During 2003, no revenue was
recorded that had been previously deferred as the Company had no new technology during 2003 nor, at
December&nbsp;31, 2002, did it have deferred revenue associated with new technology that became proven
technology during 2003.


<P align="center" style="font-size: 10pt">30
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The number of used systems sold increased from 22 units in 2002 to 43 in 2003. This increase
reflected the uncertain market conditions in which our customers sought opportunities to quickly
expand production capacity in their existing production facilities without significant capital
expenditures to secure long-term growth. These systems are used in less critical resolution
capabilities. The ASP for used systems increased by approximately 136&nbsp;percent reflecting a shift
from our older PAS 2500 towards our newer PAS 5500 family, including scanner systems.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Service sales showed a 15&nbsp;percent decrease from EUR 218&nbsp;million in 2002 to EUR 186&nbsp;million in 2003.
This decrease was mainly due to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the decline in exchange rate of the US dollar versus the euro during
2003 which resulted in lower revenues from US dollar denominated
service contracts, which accounted for approximately 50&nbsp;percent of our
service revenues;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the decline in service sales on our former activities in the Track
 business as a result of the expiration of our service obligations. In
December&nbsp;2002, we decided to terminate our manufacturing activities in
the Track business; however, we continued to service our existing
customers for whom we had warranty or other service obligations.
Consequently, customer support related to the Track business is
included in continuing operations; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>an increase in the number of customers that opted for in-house
servicing instead of external servicing.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2003, sales to one customer accounted for EUR 314&nbsp;million, or 20&nbsp;percent of net sales. In 2002,
sales to one customer accounted for EUR 377&nbsp;million, or 19&nbsp;percent of net sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Gross profit as a percentage of net sales in 2003 was the same as in 2002 (23.9&nbsp;percent). The gross
profit on new systems decreased from 24.3&nbsp;percent to 21.7&nbsp;percent due to severe price competition
(2.2&nbsp;percent negative impact on our gross profit), relatively more sales of newer technology
systems having lower gross profit (4.4&nbsp;percent negative impact on our gross profit) and
under-utilization of our production facilities due to a decrease in sales (2.5&nbsp;percent negative
impact on our gross profit). This decrease in gross profit was offset by lower repayments of
technical development credits as this program was fully repaid during 2003 (1.5&nbsp;percent positive
impact on our gross profit), lower costs of sales due to the replacement of independent sales
agents with our own employees for the purpose of servicing our Asian customers (1.0&nbsp;percent
positive impact on our gross profit) and a decrease in charges to provisions for obsolete inventory
(4.0&nbsp;percent positive impact on our gross profit).


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The gross profit on service sales increased to 21.7&nbsp;percent in 2003 from 7.3&nbsp;percent in 2002. This
increase was primarily due to provisions in 2002 for obsolete service parts of EUR 10&nbsp;million and
training system write-downs of EUR 18&nbsp;million, due to the unprecedented global semiconductor
industry downturn and by a shift in customer demand away from ASML&#146;s older product lines to which
those service parts and training systems related. The impairment charges on training equipment
arose because there were insufficient cash flows to support the carrying cost of these systems as a
consequence of their reduced marketability. The charges were determined on the basis of the
difference between the assets&#146; estimated fair value and their carrying value. The inventory
write-down arose because the Company had service parts inventory in excess of its forecasted needs,
also as a consequence of the continuing industry downturn. In addition, ASML experienced a shift in
customer demand away from Step &#038; Repeat lithography systems and towards newer Step &#038; Scan
lithography systems. This resulted in excess inventory for Step &#038; Repeat service parts. This
inventory was substantially all scrapped in the course of 2003, which was reflected in the
utilization of the allowance for obsolete inventory for that year. We received no proceeds or only
nominal proceeds from the disposals of this scrap, and therefore these disposals had no effect on
our gross margin.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Lithography order backlog</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We started 2003 with an order backlog of 110 systems (103 new and 7 used), and received orders for
delivery of 239 systems during the year. In 2003, we recorded 169 system sales and 56 order
cancellations or push-outs beyond twelve months, resulting in an order backlog of 124 systems (103
new and 21 used) as of December&nbsp;31, 2003. The total value of the backlog as of December&nbsp;31, 2003
amounted to EUR 993&nbsp;million, compared with a total backlog value of approximately EUR 1,089&nbsp;million
as of December&nbsp;31, 2002.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Research and development</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Research and development costs decreased from EUR 324&nbsp;million in 2002 to EUR 306&nbsp;million in 2003 as
a result of increased cost-efficiency in our research and development programs and workforce
reductions. The level of research and development expenditures reflected our continuing effort to
introduce several leading edge lithography products for 193 nanometer applications and the newest
versions of the TWINSCAN platform, combined with continued investments in 248 nanometer high
numerical


<P align="center" style="font-size: 10pt">31
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">aperture (NA)&nbsp;program, immersion, next generation 157 nanometer lithography solutions and EUV.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Research and development credits decreased from EUR 26&nbsp;million in 2002 to EUR 19&nbsp;million in 2003
due to a decreased volume for research and development expenditures that qualified for credits.
Included in 2002 credits is a postponed credit (EUR 3.5&nbsp;million) on 2001 expenditures that was
subject to certain criteria that were only achieved in 2002.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Selling, general and administrative costs</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Selling, general and administrative costs decreased by 19.0&nbsp;percent from EUR 263&nbsp;million in 2002 to
EUR 213&nbsp;million in 2003, mainly as a result of workforce reductions and decreased legal fees
associated with patent infringement cases. Selling, general and administrative costs as a
percentage of net sales increased from 13.4&nbsp;percent in 2002 to 13.8&nbsp;percent in 2003, as a result of
the decline in net sales.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Restructuring costs</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">See &#147;Results of Operations from continuing operations 2004 compared with 2003, Restructuring
Costs&#148;.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Net interest expense</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Net interest expense decreased from EUR 37&nbsp;million in 2002 to EUR 29&nbsp;million in 2003 due to an
increase in interest income, which was partially offset by an increase in interest expense. Our
interest income related primarily to interest earned on our cash and cash equivalents. Interest
income increased compared with 2002, primarily due to higher cash and cash equivalent balances
throughout the year as a result of our improved working capital and issuance in May&nbsp;2003 of EUR 380
million 5.50% Convertible Subordinated Notes due 2010. This was partially offset by a decrease in
short-term market interest rates. Our interest expense relates primarily to our convertible notes.
Our interest expense increased in 2003 compared with 2002, primarily due to the issuance of the
above-mentioned convertible notes, partially offset by the repurchases and redemption of our US$
520&nbsp;million 4.25&nbsp;percent Convertible Subordinated Notes during the second half of 2003.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Income taxes</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Income taxes represented 32.7 and 32.4&nbsp;percent of income before taxes in 2002 and 2003,
respectively. This decrease resulted from a change in distribution of pre-tax losses between
geographical areas. See Note 16 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Discontinued operations</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Results from discontinued operations comprised the results of our Thermal business, which we
substantially divested in October&nbsp;2003, and our Track business which we terminated in December
2002.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7,236</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,514</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">105,929</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>38,198</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">113,165</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>40,712</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Loss from discontinued operations, net of taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(27,991</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(1,456</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(30,626</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(1,944</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(61,161</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(21,906</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(10,404</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(119,778</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(35,710</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2003, we reviewed the long-lived assets used in the Thermal business for impairment as we
entered into negotiations with several potential buyers and, as a result, recorded impairment
charges of EUR 16&nbsp;million. In October&nbsp;2003, we completed the sale of our Thermal business to a
privately held company formed by VantagePoint Venture Partners. No further gain or loss was
realized on the sale. Our Thermal business incurred a net loss of EUR 32&nbsp;million in 2003 compared
to a net loss of EUR 61&nbsp;million in 2002.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The termination of the Track business resulted in an exit plan that included workforce reduction,
fixed asset impairments and inventory write-offs due to discontinued
product lines.<BR><BR>

The exit plan included the disposal of remaining assets related to the Track business. In 2002,
ASML decided to continue to service existing customers of its Track business for whom ASML had
warranty or other service obligations. Consequently, customer


<P align="center" style="font-size: 10pt">32
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">support related to the Track business was not included in discontinued operations for 2002. In June
2003, ASML sold certain of its fixed assets and inventories related to its Track business to Rite
Track. No gain or loss was realized on the sale. Our Track business incurred a net loss of EUR 3
million in 2003 compared to a net loss of EUR 59&nbsp;million for 2002. The net loss for 2002 included
total pre-tax estimated exit costs of EUR 47&nbsp;million. These exit costs included asset impairments,
inventory write downs, purchase and other commitment settlements and employee termination costs.
The net loss in 2003 relates mainly to impairment charges recorded on a building in the United
States, previously used by our Track business.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Estimated exit costs related to our Track business comprised the following for the two&nbsp;years ended
December&nbsp;31, 2003 (EUR millions):

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventory write downs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>-</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Fixed asset impairments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Severance payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>-</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operational lease buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>-</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>-</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross estimated exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(16</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(1</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Estimated exit costs, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our exit from the Track business was substantially completed by the end of 2003 with limited
changes from prior year exit cost estimates.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Foreign Exchange Management</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We use the euro as our reporting currency in our consolidated financial statements. However, we are
involved in transactions and have net investments in foreign entities in currencies that differ
from our reporting currency. As a result, we have foreign currency transaction and translation
exposures. We actively manage our exposure to foreign exchange risks. Further details on our
foreign exchange management are disclosed in Note 4 to our consolidated financial statements. See
also Item&nbsp;3.D. &#147;Risk Factors, Fluctuations in Foreign Exchange Rates and Interest Rates Could Harm
our Results of Operations&#148; and Item&nbsp;11 &#147;Quantitative and Qualitative Disclosures About Market
Risk.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Principal Differences between IFRS and U.S. GAAP</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Beginning in 2005, the European Commission will require companies that are quoted on a European
stock exchange market to publish their financial statements in accordance with IFRS. While we
intend to continue publishing U.S. GAAP financial statements, we also will comply with IFRS from
January&nbsp;1, 2005 onwards.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We have investigated the impact of differences identified between IFRS and U.S. GAAP. The current
differences identified that affect our net profit or loss, as well as our shareholders&#146; equity,
relate to the treatment of development costs, stock option plans and cash settlement features in
our convertible notes.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Treatment of development costs: IFRS requires capitalization of development costs
provided if, and only if, an entity can demonstrate all of the
following:<br><BR>

(a)&nbsp;the technical feasibility of completing the intangible asset so that it will be
available for use or sale;<br><BR>

(b)&nbsp;its intention to complete the intangible asset and use or
sell it;<br><BR>

(c)&nbsp;its ability to use or sell the intangible asset;<br><BR>

(d)&nbsp;how the intangible asset will generate probable future economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the
intangible asset or the intangible asset itself or, if it is to be used internally, the
usefulness of the intangible asset;<br><BR>

(e)&nbsp;the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and<br><BR>

(f)&nbsp;its ability to measure reliably the expenditure attributable to the intangible asset during its
development.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>ASML&#146;s IFRS opening balance sheet as of January&nbsp;1, 2004 and balance sheet as of December
31, 2004 do not include any capitalization of development costs due to the fact that
ASML&#146;s administrative system was not implemented in such a manner that the above-mentioned
criteria could be met. During the second half of 2004, ASML made changes to its
administrative systems in order to comply with IFRS, and will include capitalization of
development costs that meet the criteria described above from January&nbsp;1, 2005 onwards.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Stock option plans: IFRS requires expensing of stock option plans. ASML applies IFRS 2
&#147;Share-Based Payments&#148; with respect to stock options it has granted after November&nbsp;7,
2002. ASML&#146;s IFRS opening balance sheet as of January&nbsp;1, 2004</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">33
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>includes a reclassification within shareholder&#146;s equity between net result carried forward
and additional-paid-in capital of EUR 4.2&nbsp;million before income taxes. ASML&#146;s statement of
operations was negatively affected by EUR 8.8&nbsp;million before income taxes for the year
ended December&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Cash settlement features in our convertible notes: ASML has decided to adopt
International Accounting Standard (&#147;IAS&#148;) 32, &#147;Financial Instruments: Disclosure and
Presentation&#148; and IAS&nbsp;39, &#147;Financial Instruments:
Recognition and Measurement&#148;, as of
January&nbsp;1, 2005. The cash settlement features in our convertible
notes are considered to be embedded derivatives
under IAS 32 and therefore are measured at initial recognition at fair value
determined in accordance with IAS 39. Subsequent measurement of the embedded derivative
asset continue to be at fair value, with changes in fair value reported in the
statement of operations. The remainder of the fair value of the note instrument after
deducting the fair value of the cash settlement features is measured at amortized cost in
accordance with IAS 39.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>New U.S. GAAP Accounting Pronouncements</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In December&nbsp;2004, the Financial Accounting Standards Board (&#147;FASB&#148;) issued a revision of FASB
statement No.&nbsp;123, Accounting for Stock-Based Compensation (&#147;SFAS No.&nbsp;123(R)&#148;). This statement
supersedes Accounting Principles Board (&#147;APB&#148;) Opinion No.&nbsp;25, Accounting for Stock Issued to
Employees, and its related implementation guidance. SFAS No.&nbsp;123(R) addresses the accounting for
share-based payment transactions in which a company receives employee services in exchange for
either equity instruments of the company or liabilities that are based on the fair value of the
company&#146;s equity instruments or that may be settled by the issuance of such equity instruments.
SFAS No.&nbsp;123(R) eliminates the ability to account for share-based compensation transactions using
the intrinsic method that we currently use and generally requires that such transactions be
accounted for using a &#147;fair-value&#148;-based method and recognized as expense in our consolidated
statement of operations. SFAS No.&nbsp;123(R) is effective as of the beginning of the first interim or
annual reporting period that begins after June&nbsp;15, 2005. SFAS No.&nbsp;123(R) will have a significant
impact on our consolidated statement of operations for 2005 and future years as we will be required
to expense the &#147;fair value&#148; of our stock option grants under ASML&#146;s stock option plans. See also
Notes 1 and 13 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In March&nbsp;2004, the Emerging Issues Task Force (&#147;EITF&#148;) reached a consensus on recognition and
measurement guidance previously discussed under EITF Issue No.&nbsp;03-01, &#147;The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments (&#147;EITF 03-01&#148;).&#148; The
consensus clarifies the meaning of other-than-temporary impairment and its application to
investments in debt and equity securities, in particular investments within the scope of FASB
Statement No.&nbsp;115, &#147;Accounting for Certain Investments in Debt and Equity Securities,&#148; and
investments accounted for under the cost method. We do not believe that this consensus will have a
material impact on our consolidated results of operations.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In
November&nbsp;2004, the EITF reached a consensus on EITF Issue No.&nbsp;O3-13 &#147;Applying the conditions in
paragraph 42 of SFAS No.&nbsp;144&#148;, Accounting for the Impairment or Disposal of Long-Lived Assets, in
determining whether to report discontinued operations.&#148; The consensus clarifies the approach for
evaluating whether the criteria in paragraph 42 of SFAS No.&nbsp;144 have been met for purposes of
classifying the results of operations of a component of an entity that either has been disposed of
or is classified as held for sale as discontinued operations. The task force also reached a
consensus that the guidance would be applied to a component of an enterprise that is either
disposed of or classified as held for sale in fiscal periods beginning after December&nbsp;15, 2004. We
do not believe that this consensus will have a material impact on our consolidated results of
operations.

<DIV align="left">
<A name="116"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>B. Liquidity and Capital Resources</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The following discussion and analysis of financial condition should also be viewed in the context
of the risks affecting our business strategy, described in Item&nbsp;3.D. &#147;Risk Factors.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Subsequent to the issuance of
the Company&#146;s 2003 financial statements, the Company&#146;s
management concluded that the presentation under cash flows from
investing activities of the capitalization and sale of equipment that
is used for demonstration and training purposes for a certain period
of time, before it is sold to customers, is inconsistent with the
actual initial cash outflow relating to the construction of the
equipment, and the ultimate cash inflow relating to the sale of the
equipment. The Company&#146;s management believes that these cash
flows should be considered cash flows from operating activities,
since the sale of this equipment is not substantially different from
the sale of the Company&#146;s other products. As a result, the statement of
cash flows for the years ended December&nbsp;31, 2002 and 2003 have
been restated to classify these cash flows, for all periods presented
as cash flows from operating activities. These reclassifications have
no impact on the total of ASML&#146;s cash flows from operating
and investing activities, or on net income (loss) or shareholders&#146; equity as
of and for the years ended December&nbsp;31, 2002 and 2003.


<P align="center" style="font-size: 10pt">34
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML&#146;s balance of cash and cash equivalents amounted to EUR 1,028&nbsp;million and EUR 1,228&nbsp;million as
of December&nbsp;31, 2003 and 2004, respectively. Net cash flows provided by operating activities were
EUR 533&nbsp;million and EUR 257&nbsp;million in 2003 and 2004, respectively. Cash provided by operating
activities in 2004 was primarily derived from ASML&#146;s net income for the year partially offset by an
increase in accounts receivable and inventories. As ASML has deferred tax assets resulting from net
operating losses carried forward, the tax charge of EUR 127&nbsp;million as included in the profit of
the year only resulted in a cash outflow of EUR 7&nbsp;million for corporate income taxes, leaving a
cash inflow from the profit of the year of approximately EUR 355&nbsp;million. Net cash flows provided
by operating activities includes EUR 93&nbsp;million of depreciation and amortization charges and impairment charges and EUR 34
million for addition to ASML&#146;s obsolescence allowance, which do not impact the cash flow. Net
accounts receivable increased from EUR 314&nbsp;million to EUR 503&nbsp;million due to the high volume of
shipments at the end of 2004 compared to 2003. ASML used EUR 149&nbsp;million of cash to increase
inventories in 2004, primarily due to higher anticipated sales in the first quarter of 2005
compared to anticipated sales in the first quarter of 2004 at the end of 2003, which is mainly
financed by an increase in accounts payable of EUR 122&nbsp;million.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Net cash used in investing activities was EUR 49&nbsp;million in 2003 and EUR 60&nbsp;million in 2004. The
2004 and 2003 figures mainly related to expenditures in information technology investments and
machinery and equipment. The increase in 2004 compared to 2003 results mainly from investments in
information technology hardware and software.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Net
cash provided by financing activities was EUR 19&nbsp;million in 2004 compared to EUR 68&nbsp;million
used in financing activities in 2003. In 2004, proceeds from financing activities mainly reflect
EUR 20&nbsp;million in proceeds from the exercise of stock options and EUR 1&nbsp;million repayment of long
term debts. The 2003 amount primarily reflected the redemption and
repurchase of all of US$ 520
million of 4.25&nbsp;percent Convertible Subordinated Notes due 2004, partially offset by the issuance
of EUR 380&nbsp;million of 5.5&nbsp;percent Convertible Subordinated Notes due 2010.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our principal sources of liquidity consist of EUR 1,228&nbsp;million of cash and cash equivalents, and
EUR 400&nbsp;million of available credit facilities as of December&nbsp;31, 2004, and cash flows from
operations. For further details regarding our credit facilities, see Note 11 to our consolidated
financial statements. In addition to cash and available credit facilities, we may from time to time
raise additional capital in debt and equity markets. Our liquidity needs are affected by many
factors, some of which are based on the normal ongoing operations of the business, and others of
which relate to the uncertainties of global economies and the semiconductor and the semiconductor
equipment industries. Although our cash requirements will fluctuate based on the timing and extent
of these factors, we believe that cash generated from operations, together with the liquidity
provided by existing cash balances, will be sufficient to satisfy our liquidity requirements for
the next twelve months. We expect capital expenditures in 2005 to range between EUR 75&nbsp;million and
EUR 85&nbsp;million. In addition, for the next twelve months we have operating lease commitments of
approximately EUR 37&nbsp;million and certain open inventory purchase commitments of approximately EUR
602&nbsp;million with our suppliers to ensure a smooth and continuous supply chain for key components.
Pursuant to agreements executed on December&nbsp;10, 2004 (effective November&nbsp;12, 2004), ASML, Zeiss and
Nikon agreed to settle all pending worldwide patent litigation between the companies. The
settlement included a cross-license of patents related to lithography equipment used to manufacture
semiconductor devices and payments to Nikon by ASML and Zeiss. In connection with the settlement,
ASML is obligated to make additional payments to Nikon of US $9&nbsp;million (approximately EUR 7
million) each in 2005, 2006 and 2007.<BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Pursuant to a license agreement between Micronic and ASML, ASML will pay to Micronic in the first
quarter of 2005 an amount of EUR 20&nbsp;million.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2006, we have repayment obligations, amounting to US$ 575&nbsp;million, on our 5.75&nbsp;percent
Convertible Subordinated Notes due 2006 issued in October&nbsp;2001, assuming no conversions occur.
These notes are convertible into 30,814,576 ordinary shares at a conversion price of US$ 18.66 (EUR
13.68) per share, subject to adjustment, at any time prior to maturity. At any time on or after
October&nbsp;22, 2004, the Notes are redeemable at the option of ASML, in whole or in part, at 100
percent of their principal amount, together with accrued interest, provided that our shares close
above 130&nbsp;percent of the conversion price for twenty trading days out of a thirty-day period. None
of the notes were converted into ordinary shares during 2004. We have additional repayment
obligations in 2010, amounting to EUR 380&nbsp;million, on our 5.50&nbsp;percent Convertible Subordinated
Notes due 2010 issued in May&nbsp;2003, assuming no conversions occur. These notes are convertible into
an aggregate of 26,573,426 ordinary shares at a conversion price of EUR 14.30 per share, subject to
adjustment, at any time prior to maturity. We currently intend to fund our future repayment
obligations with primarily cash on hand and cash generated through operations. A description of our
long-term debt, lines of credit and borrowing arrangements is provided in Note 11 to our
consolidated financial statements. See also Item&nbsp;3.D. &#147;Risk Factors.&#148;


<P align="center" style="font-size: 10pt">35
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our contractual obligations and commercial commitments are disclosed in further detail in Item&nbsp;5.F.
&#147;Tabular Disclosure of Contractual Obligations&#148; and Note 12 to our consolidated financial
statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A discussion of our funding, treasury policies and currencies in which cash and cash equivalents
are held and long-term debt and borrowing arrangements are incorporated by reference to herein
Notes 4 and 11 to our consolidated financial statements.

<DIV align="left">
<A name="117"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>C. Research and Development, Patents and Licenses</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Research and Development</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">See Item&nbsp;4.B. &#147;Business Overview, Research and Development&#148; and Item&nbsp;5.A. &#147;Operating Results.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Intellectual Property Matters</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">See Item&nbsp;3.D. &#147;Risk Factors, Defending Against Intellectual Property Claims by Others Could Harm
Our Business&#148; and Item&nbsp;4.B. &#147;Business Overview, Intellectual Property.&#148;

<DIV align="left">
<A name="118"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>D. Trend Information</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The year 2004 showed significant growth in sales compared to 2003, due to a recovery in the
semiconductor industry.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We have accumulated a significant backlog for deliveries in the first half of 2005: our unit
backlog is larger than that of December&nbsp;2003, and the ASP is
significantly higher, as a result of a
richer 300 millimeter product mix. However, we remain cautious in our forecast as customer order
push-outs are always possible, if overall semiconductor demand were not to materialize as expected.
The order backlog as of December&nbsp;31, 2004 comprises 131
lithography systems with an ASP of EUR 12.9&nbsp;million. ASML plans to ship 60 systems in the first quarter of 2005 with an
expected ASP of approximately EUR 10.7&nbsp;million.
The company has limited visibility for the second half of 2005.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The following table sets forth our backlog of systems as of December&nbsp;31, 2003 and 2004.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog sales of new systems (units)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">103</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>119</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog sales of used systems (units)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>12</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Backlog sales of total systems (units)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">124</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>131</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Value of backlog new systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">946</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,664</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Value of backlog used systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>27</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Value of backlog of total systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">993</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,691</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for new systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>14.0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">ASP for used systems (EUR million)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2.2</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our backlog includes only system orders for which written authorizations have been accepted and
shipment dates within 12&nbsp;months have been assigned. Historically, orders have been subject to
cancellation or delay by the customer. Due to possible customer changes in delivery schedules and
to cancellation of orders, our backlog at any particular date is not necessarily indicative of
actual sales for any succeeding period.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Based upon our backlog as of December&nbsp;31, 2004, we expect our gross margin in the first half of
2005 will remain in the 38-40&nbsp;percent range.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For 2005, we anticipate research and development costs to range between EUR 70-75&nbsp;million for the
first quarter of 2005 as the company prepares to launch, within one year, its third and fourth
generation immersion tools, including systems with hyper-numerical aperture lenses.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A
corporate income tax rate reduction in the Netherlands was enacted in the fourth quarter of
2004. This enactment will lead to a decrease of the consolidated effective tax rate to an expected
tax rate of approximately 28&nbsp;percent.

<DIV align="left">
<A name="119"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>E. Off-Balance Sheet Arrangements</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We have various contractual obligations, some of which are required to be recorded as liabilities
in our consolidated financial statements, including long- and short-term debt. Other contractual
arrangements, namely operating lease commitments and purchase obligations, are not generally
required to be recognized as liabilities on our balance sheet but are required to be disclosed.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Variable Interest Entities</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In December&nbsp;2003, the FASB issued FIN 46R, &#147;Consolidation of Variable Interest Entities.&#148; Under FIN
46R an enterprise must consolidate a variable interest entity if


<P align="center" style="font-size: 10pt">36
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">that enterprise has a variable interest (or combination of variable interests) that will absorb a
majority of the entity&#146;s expected losses if they occur, receive a majority of the entity&#146;s expected
residual returns if they occur, or both.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2003, ASML moved to its current Veldhoven headquarters. The Company is leasing these
headquarters for a period of 15&nbsp;years from an entity (the &#147;lessor&#148;) that was incorporated by a
syndicate of 3 banks (&#147;shareholders&#148;) solely for the purpose of leasing this building. The lessor&#146;s
shareholders equity amounts to EUR 1.9&nbsp;million. Furthermore the shareholders each granted a loan of
EUR 11.6&nbsp;million and a fourth bank granted a loan of EUR 12.3&nbsp;million. ASML provided the lessor
with a subordinated loan of EUR 5.4&nbsp;million and has a purchase option that is exercisable either at
the end of the lease in 2018, at a pre-determined price of EUR 24.5&nbsp;million, or during the lease at
the book value of the assets. The total assets of the lessor entity amounted to approximately EUR
54&nbsp;million at inception of the lease.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML believes that it holds a variable interest in this entity and that the entity is a variable
interest entity (&#147;VIE&#148;) because it is subject to consolidation in accordance with the provisions of
paragraph 5 of FIN 46(R). The total equity investment at risk is approximately 3.6&nbsp;percent of the
lessor&#146;s total assets and is not considered and cannot be demonstrated, qualitatively or
quantitatively, to be sufficient to permit the lessor to finance its activities without additional
subordinated financial support provided by any parties, including the shareholders.<BR>
ASML determined that it is not appropriate to consolidate the VIE as it is not the primary
beneficiary. To make this determination, the expected losses and expected residual returns of the
lessor were allocated to each variable interest holder based on their contractual right to absorb
expected losses and residual returns. The analysis of expected losses and expected residual returns
involved determining the expected negative and positive variability in the fair value of the
lessor&#146;s net assets exclusive of variable interests through various cash flow scenarios based upon
the expected market value of the lessor&#146;s net assets. Based on this analysis, ASML determined that
other shareholders will absorb the majority of the lessor&#146;s expected losses, and as a result, ASML
is not the primary beneficiary.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML&#146;s maximum exposure to the lessor&#146;s expected losses is estimated to be approximately EUR 5.4
million.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Purchase Obligations</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We enter into purchase commitments with vendors in the ordinary course of business to ensure a
smooth and continuous supply chain for key components. Purchase obligations include medium to
long-term purchase agreements. These contracts differ and may include certain restrictive clauses.
Any identified losses that would result from purchase commitments that are expected to be forfeited
are provided for in our financial statements. As of December&nbsp;31, 2004, we had purchase commitments
for a total amount of approximately EUR 639&nbsp;million, reflecting our backlog level at the end of
2004. In our negotiations with suppliers we continuously seek to align our purchase commitments
with our business objectives. See also Item&nbsp;5.F. &#147;Tabular Disclosure of Contractual Obligations.&#148;


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Other Off-Balance Sheet Arrangements</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We have certain additional commitments and contingencies that are not recorded on our balance sheet
but may result in future cash requirements. In addition to operating lease commitments and purchase
obligations, these off-balance sheet arrangements consist of product warranties and guarantees of
our subsidiaries&#146; debt to third parties.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We provide guarantees to third parties in connection with transactions entered into by our
subsidiaries in the ordinary course of business. These include bank loans reflected in Note 11 of
our consolidated financial statements. Pursuant to a license agreement between Micronic and ASML,
ASML will pay to Micronic in the first quarter of 2005 an amount of EUR&nbsp;20 million. In connection with this payment, a letter of credit for the corresponding amount
has been issued.

<DIV align="left">
<A name="120"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>F.
Tabular Disclosure of Contractual
Obligations</B><SUP style="font-size: 85%; vertical-align: text-top">&nbsp;</SUP><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our contractual obligations as of December&nbsp;31, 2004 can be summarized as follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1-2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>3-5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>After 5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1 year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Long Term Debt, including interest expense<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">992,004</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46,758</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">500,865</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42,871</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">401,510</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating Lease Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">234,042</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36,596</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49,841</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39,766</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">107,839</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchase Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">638,947</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">602,204</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36,743</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other deferred Liabilities<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19,790</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,596</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,194</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total Contractual obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,884,783</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">692,154</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">600,643</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">82,637</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">509,349</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">37
</DIV>

<HR noshade size="1" width="18%" align="left" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1 </SUP>
We refer to Note 11 to our consolidated financial statements for the amounts excluding interest expense.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2 </SUP>Other deferred liabilities relate to the additional payments to Nikon due in
2005, 2006 and 2007 with respect to a cross-license of patents related to lithography equipment.
See Item&nbsp;10.C. &#147;Material Contracts.&#148; </DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Several operating leases for our buildings contain purchase options, exercisable at the
option of the Company at the end of the lease, and in some cases, during the term of the lease. The
amounts to be paid if ASML should exercise these purchase options at the end of the lease can be
summarized as of December&nbsp;31, 2004 as follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1-2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>3-5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>After 5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1 year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchase options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69,077</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7,714</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,627</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55,736</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<A name="121"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>G. Safe Harbor</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">See &#147;Special Note regarding Forward-Looking Statements.&#148;

<DIV align="left">
<A name="122"></A>
</DIV>


<P align="left" style="font-size: 10pt"><U>Item&nbsp;6</U>

<DIV align="left">
<A name="122"></A>
</DIV>



<P align="left" style="font-size: 10pt"><U>Directors, Senior Management and Employees</U>


<DIV align="left">
<A name="123"></A>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>A. Directors and Senior Management</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The members of our Supervisory Board and our Board of Management are as follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Date of Birth</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>Term Expires</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Henk Bodt<SUP style="font-size: 85%; vertical-align: text-top">1,2,3</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;30, 1938
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2007</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan A. Dekker<SUP style="font-size: 85%; vertical-align: text-top">1,3</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;10, 1939
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2006</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter H. Grassmann
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;21, 1939
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2006</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jos W.B. Westerburgen<SUP style="font-size: 85%; vertical-align: text-top">2, 3</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;24, 1942
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael J. Attardo<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;12, 1941
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fritz W. Fr&#246;hlich<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;19, 1942
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Arthur P.M. van der Poel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Member of the Supervisory Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;1, 1948
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eric Meurice
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer and
Chairman of the Board of Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">July&nbsp;30, 1956
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stuart K. McIntosh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President Operations
and Member of the Board of Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;31, 1944
</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">N/A<SUP style="font-size: 85%; vertical-align: text-top">4</SUP>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter T.F.M. Wennink
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President, Chief Financial
Officer and Member of the Board of
Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;30, 1957
</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">N/A<SUP style="font-size: 85%; vertical-align: text-top">4</SUP>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Martin A. van den Brink
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President Marketing
&#038; Technology and Member of the Board
of Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;21, 1957
</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">N/A<SUP style="font-size: 85%; vertical-align: text-top">4</SUP>
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David P. Chavoustie
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President Sales and
Member of the Board of Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;7, 1943
</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">N/A<SUP style="font-size: 85%; vertical-align: text-top">4</SUP>
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<HR noshade size="1" width="18%" align="left" color="#000000">
<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
Member of the Audit Committee </DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
Member of the Remuneration Committee</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
Member of the Selection and Nomination Committee</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP> There are no specified terms for members of the Board of Management
appointed prior to March&nbsp;2004.</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Effective March&nbsp;18, 2004, Mr.&nbsp;Bergsma resigned from the Supervisory Board. On that same date,
Mr.&nbsp;Fr&#246;hlich and Mr. van der Poel were appointed as new members of our Supervisory Board. Effective
October&nbsp;1, 2004, Mr.&nbsp;Dunn retired as President, Chief Executive Officer and Chairman of our Board
of Management and has been succeeded by Mr.&nbsp;Meurice.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Attardo and Mr.&nbsp;Westerburgen will be retiring by rotation on March&nbsp;24, 2005. Mr.&nbsp;Westerburgen
has informed the Supervisory Board that he is available for reappointment on March&nbsp;24,
2005. Mr.&nbsp;Attardo has informed the Supervisory Board that he is not available for reappointment.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Dekker shall resign as member of the Selection and Nomination Committee effective March&nbsp;2005;
Mr.&nbsp;Dekker will be succeeded in this position by Mr. van der Poel.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;McIntosh
retired from his position on the Board of Management effective
January 3, 2005. See Item&nbsp;10.C. &#150; &#147;Material Contracts.&#148;


<P align="center" style="font-size: 10pt">38
</DIV>

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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Director and Officer Biographies</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Henk Bodt</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Bodt was appointed as Chairman of our Supervisory Board in 1995. Mr.&nbsp;Bodt is a former Executive
Vice President of Royal Philips Electronics. In addition to other positions, including Chairman and
Chief Executive Officer of the Consumer Electronics Division, he also served on the Board of
Management of Philips and on the Group Management Committee of Philips. He currently serves on the
Supervisory Boards of DSM N.V., Delft Instruments N.V. and Neo-Post SA.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Jan A. Dekker</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Dekker has served on our Supervisory Board since 1997. Mr.&nbsp;Dekker is a former Chief Executive
Officer of TNO from which he retired in November&nbsp;2003. He currently serves on the Supervisory
Boards of Gamma Holding N.V. and Koninklijke BAM N.V. and he is also President of the Royal
Institute of Engineers (KIVI NIRIA) and President of EARTO.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Peter H. Grassmann</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Grassmann has served on our Supervisory Board since 1996. Mr.&nbsp;Grassmann is a former President
and Chief Executive Officer of Zeiss from which positions he retired in 2000. He currently serves
on the Supervisory Boards of Gambro B.V., Aradex AG, Febit AG, IONITY AG, and on the Senate of the
Max-Planck-Society. He is a member of the Advisory Board of EQT private equity funds GmbH.



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Jos W.B. Westerburgen</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Westerburgen was appointed to our Supervisory Board in March&nbsp;2002. Mr.&nbsp;Westerburgen has
extensive experience in the field of corporate law and tax. Mr.&nbsp;Westerburgen is former Company
Secretary and Head of Tax of Unilever, and a former member of the Peters Committee on Corporate
Governance in the Netherlands. Mr.&nbsp;Westerburgen currently serves as a member of the Supervisory
Board of Unilever Nederland B.V., and is also Vice-Chairman of the Board of the Association Aegon.
Furthermore he has been an advisor to Rodamco Europe N.V. and serves on the Supervisory Board of
Rodamco effective January&nbsp;1, 2005.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Michael J. Attardo</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Attardo was appointed to our Supervisory Board during 2001. He is the former President and CEO
of IBM Microelectronics, from which position he retired in 1999, and a former non-executive
director of Silicon Valley Group, Inc.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Fritz W. Fr&#246;hlich</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Fr&#246;hlich was appointed to our Supervisory Board in March&nbsp;2004. He is the former Deputy Chairman
and Chief Financial Officer of Akzo Nobel N.V. Mr.&nbsp;Fr&#246;hlich is the Chairman of the Supervisory
Board of Randstad Holding N.V. and serves as a member of the Supervisory Board of the following
companies: Allianz Nederland N.V.; Draka Holding N.V.; Equant N.V.; Gamma Holding N.V. and Kempen
N.V.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Arthur P.M. van der Poel</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Van der Poel was appointed to our Supervisory Board in March&nbsp;2004. Until 2001 he was the Chief
Executive Officer of Philips Semiconductors. Mr.&nbsp;Van der Poel is a former member of the Board of
Management (until April&nbsp;2003) and a former member of the Group Management Committee of Royal
Philips Electronics. Mr.&nbsp;Van der Poel is the chairman of the Board of MEDEA&#043;, a member of the Board
of Directors of Axalto Holding N.V. and serves as a member of the Supervisory Boards of PSV N.V.
and DHV Holding B.V.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Eric Meurice</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Meurice was appointed as our President, Chief Executive Officer and Chairman of the Board of
Management effective October&nbsp;1, 2004. He is the former Executive Vice President in charge of
Thomson TV Division (between 2001 and 2004) and between 1995 and 2001 Mr.&nbsp;Meurice held various
management positions at Dell Computer Corporation. Between 1989 and 1995 Mr.&nbsp;Meurice was the
Marketing and Sales Director of ITT Semiconductors and from 1984 until 1989 he worked at Intel
Corporation as World Wide Automotive Marketing Manager.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Stuart K. McIntosh</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;McIntosh was appointed as Executive Vice President Operations and President Lithography
Division during 2000 and was appointed as a member of our Board of Management effective April&nbsp;1,
2001. Prior to that he served as the Executive Vice President and Chief Operating Officer of
Philips Semiconductors. He also serves on the Advisory Board of SEMI North America.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Peter T.F.M. Wennink</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Wennink was appointed as Executive Vice President and Chief Financial Officer of ASML in 1999.
Mr.&nbsp;Wennink has an extensive background in finance and accounting. Prior to his employment with
ASML, Mr.&nbsp;Wennink worked as a partner at Deloitte Accountants, specializing in the high technology
industry with an emphasis on the semiconductor equipment industry. Mr.&nbsp;Wennink is a member of the
Netherlands Institute of Registered


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Accountants. Mr.&nbsp;Wennink is currently on the Supervisory Board of Bank Insinger de Beaufort N.V.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Martin A. van den Brink</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Van den Brink was appointed as Executive Vice President Marketing &#038; Technology in 1999. Before
then, he served as Vice President Technology since 1995. Mr.&nbsp;Van den Brink was appointed as a
member of our Board of Management in July&nbsp;1999.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>David P. Chavoustie</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Chavoustie has served as Executive Vice President Sales since 1998. He was appointed as a
member of our Board of Management in April&nbsp;2000. Before then, he served as Vice President Worldwide
Sales of Vantis Corporation and as Vice President/General Manager of the Embedded Processes
Division of Advanced Micro Devices. Mr.&nbsp;Chavoustie currently also serves on the Board of Directors
of Three-Five Systems, Inc. and Brillian Corporation.

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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>B. Compensation</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For details on compensation paid to or accrued for members of the Board of Management and members
of the Supervisory Board, see Note 18 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For details on options granted to, and pension benefits of, the members of the Board of Management,
see Note 18 to our consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Bonus and Profit-sharing plans</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For details on our bonus and profit sharing plans for our employees, see Note 13 to our
consolidated financial statements.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Pension plans</B><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For details on our pension plans for our employees, see Note 13 to our consolidated financial
statements.

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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>C. Board Practices</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Board Practices</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>General</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We endorse the importance of good corporate governance, in which independent oversight,
accountability and transparency are the most significant elements. Within the framework of
corporate governance, it is important that a relationship of trust exists between the Board of
Management, the Supervisory Board, ASML&#146;s employees and the shareholders.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In addition to the exchange of ideas at the General Meeting of Shareholders, other important forms
of communication include the publication of our annual and quarterly financial results as well as
press releases and publications posted on our website. In addition, we pursue a policy of active communication with our shareholders. Our corporate
governance structure is intended to:


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>provide shareholders with regular, reliable and relevant transparent information regarding our activities, structure,
financial condition, performance and other information, including information on our social, ethical and environmental
records and policies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>apply high quality standards for disclosure, accounting and auditing; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>apply stringent rules with regard to insider securities trading.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Two-tier structure</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML is incorporated under Netherlands law and has a two-tier board structure. Responsibility for
the management of ASML lies with the Board of Management. Independent, non-executive members serve
on the Supervisory Board, which supervises and advises the members of the Board of Management in
performing their management tasks. The Board of Management has the duty to keep the Supervisory
Board informed, consult with the Supervisory Board on important matters and submit certain
important decisions to the Supervisory Board for its prior approval. The supervision of the Board
of Management by the Supervisory Board includes (i)&nbsp;achievement of the Company&#146;s objectives, (ii)
corporate strategy and management of risks inherent to the business activities, (iii)&nbsp;the structure
and operation of the internal risk management and control systems, (iv)&nbsp;the financial reporting
process and (v)&nbsp;compliance with the legislation and regulations.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Supervisory Board members are prohibited from serving as officers or employees of ASML, and members
of the Board of Management cannot serve on the Supervisory Board.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>New legislation</U><BR>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Effective October&nbsp;1, 2004, new legislation came into force with regard to the Large Company Regime
(also known as the new &#147;structuurregime&#148;, hereinafter referred to as: the &#147;New Act&#148;). This new
legislation provides for broader powers to the shareholders and provides a statutory basis for the
Netherlands Corporate Governance Code.







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<P align="left" style="font-size: 10pt"><U>Board of
Management</U><BR><BR>
The Board of Management consists of at least two members or any larger number of members as
determined by the meeting of holders of priority shares in consultation with the Supervisory Board.
Members of the Board of Management are appointed by the Supervisory Board. The Supervisory Board
must inform the General Meeting of Shareholders of the intended appointment of a member of the
Board of Management. As a result of our compliance with the Netherlands Corporate Governance Code,
members of the Board of Management that are appointed in 2004 or later shall be appointed for a
maximum period of four years, but may be re-appointed. Members of the Board of Management serve
until voluntary retirement, or suspension or dismissal by the Supervisory Board. In the case of
dismissal, the Supervisory Board must first inform the General Meeting of Shareholders of the
intended removal.


<P align="left" style="font-size: 10pt">The Supervisory Board determines the remuneration of the individual members of the Board of
Management, in line with the remuneration policy adopted by the General Meeting of Shareholders,
upon a proposal of the Supervisory Board. The remuneration policy is posted on ASML&#146;s website.


<P align="left" style="font-size: 10pt"><U>Supervisory Board</U><BR><BR>
The Supervisory Board consists of at least three members or any larger number as determined by the
Supervisory Board. The Supervisory Board prepares a profile in relation to its size and
composition; ASML&#146;s Supervisory Board profile is posted on our website.


<P align="left" style="font-size: 10pt">Prior to effectiveness of the New Act, appointments to the Supervisory Board were made by the
Supervisory Board itself, subject to certain rights of recommendation of the General Meeting of
Shareholders, the Works Council and the Board of Management, and certain rights of objection
retained by the General Meeting of Shareholders and the Works Council.


<P align="left" style="font-size: 10pt">Pursuant to the New Act, members of the Supervisory Board are appointed by the General Meeting of
Shareholders from nominations of the Supervisory Board. Nominations must be reasoned and must be
made available to the General Meeting of Shareholders and the Works Council simultaneously. Before
the Supervisory Board presents its nominations, both the General Meeting of Shareholders and the
Works Council may make recommendations (which the Supervisory Board may reject). In addition, the
Works Council has a strengthened right to make recommendations for at least one-third of the
members of the Supervisory Board, which recommendation may only be rejected by the Supervisory
Board: (i)&nbsp;if the relevant person is unsuitable or (ii)&nbsp;if the Supervisory Board
would not be duly composed when the recommended person will be appointed as Supervisory Board
member. If no agreement can be reached between the Supervisory Board and the Works Council on these
recommendations, the Supervisory Board may request the Enterprise Chamber of the Amsterdam Court to
declare its objection legitimate. Any decision of the Enterprise Chamber on this matter is not
appealable.


<P align="left" style="font-size: 10pt">Nominations of the Supervisory Board may be overruled by the General Meeting of Shareholders by an
absolute majority of the votes representing at least one/third of the total outstanding capital.


<P align="left" style="font-size: 10pt">Members of the Supervisory Board serve for a maximum term of four years from the date of their
appointment, or a shorter period as set forth in the rotation schedule as adopted by the
Supervisory Board, and may be re-appointed, provided that their entire term of office does not
exceed twelve years. The General Meeting of Shareholders may, by an absolute majority of the votes
representing at least one-third of the total outstanding capital, dismiss the Supervisory Board in
its entirety for reasons of lack of confidence.


<P align="left" style="font-size: 10pt">Upon the proposal of the Supervisory Board, the General Meeting of Shareholders determines the
remuneration of the members of the Supervisory Board. A member of the Supervisory Board shall not
be granted any shares or option rights by way of remuneration.


<P align="left" style="font-size: 10pt"><U>Approval Board of Management decisions</U><BR><BR>
Pursuant to the New Act, the Board of Management requires prior approval of the General Meeting of
Shareholders for resolutions concerning an important change in the identity or character of ASML or
its business, including in any case:



<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(i)&nbsp;&nbsp;</TD>
    <TD>a transfer of all or substantially all of the business of ASML to a third party;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(ii)&nbsp;&nbsp;</TD>
    <TD>entering into or the termination of a long-term joint venture between ASML and a third party,
if this joint venture is material to ASML; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(iii)&nbsp;&nbsp;</TD>
    <TD>an acquisition or divestment by ASML of an interest in the capital of a company with a value
of at least one third of ASML&#146;s assets (determined by reference to ASML&#146;s most recently
adopted annual accounts).</TD>
</TR>

</TABLE>

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<P align="left" style="font-size: 10pt"><U>Rules of Procedure</U>

<P align="left" style="font-size: 10pt">
The Board of Management and the Supervisory Board have adopted Rules of Procedure for each of the
Board of Management, Supervisory Board and the three Committees of the Supervisory Board. These
Rules of Procedure are posted on ASML&#146;s website.


<P align="left" style="font-size: 10pt"><U>Directors and Officers Insurance and Indemnification</U>

<P align="left" style="font-size: 10pt">
Members of the Board of Management and Supervisory Board, as well as certain senior management
members, are insured under the ASML&#146;s Directors and Officers Insurance Policy. Although the
insurance policy provides for a wide coverage, our directors and officers may incur uninsured
liabilities. ASML has agreed to indemnify its Board of Management and Supervisory Board against any claims
arising in connection with their position as director and officer of the Company, provided that
such claim is not attributable to willful misconduct or intentional recklessness of such officer or
director.


<P align="left" style="font-size: 10pt"><B>Corporate Governance Developments</B>

<P align="left" style="font-size: 10pt">
ASML continuously monitors and assesses applicable corporate governance rules, including
recommendations and initiatives regarding principles of corporate governance. These include those
that have been developed in the United States both by the NASDAQ National Market (&#147;Nasdaq&#148;) and by
the SEC pursuant to the Sarbanes-Oxley Act of 2002, some of which already are applicable and some
of which will be applicable to ASML during 2005.


<P align="left" style="font-size: 10pt">On March&nbsp;10, 2003, the Netherlands government commissioned a committee known as the Tabaksblat
Committee to conduct a review of corporate governance in the Netherlands.
The Tabaksblat Committee issued its final report &#147;The Netherlands Corporate Governance Code&#148; (the
&#147;Code&#148;) on December&nbsp;9, 2003, which came into effect on January&nbsp;1, 2004. A full report on compliance
with the Code is required to be included in the statutory annual report for the financial year
2004. Netherlands listed companies are required to either comply with the best practice provisions
of the Code, or to explain on which points and why they deviate from these best practice
provisions.
Pursuant to the Code&#146;s recommendations, ASML has included a separate chapter on corporate
governance in its annual report for 2004. The Code contains recommendations with regard to
corporate governance, including the following topics:



<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>strengthening the role of the Supervisory Board and its committees and to increase its
independence, quality and expertise;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>strengthening the role of the shareholders with respect to control on the functioning
of the Board of Management and the Supervisory Board, as well as with respect to
nomination and remuneration of members of the Board of Management and the Supervisory
Board;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>facilitating and stimulating shareholders to use their voting power and to actively
participate in the General Meeting of Shareholders; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>defining the role of the external auditor vis-&#224;-vis the Supervisory Board as its
principal contact.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Company is currently implementing applicable provisions of the Code and the Sarbanes-Oxley Act
of 2002, and subsequent SEC and Nasdaq rules that have been issued pursuant thereto.


<P align="left" style="font-size: 10pt"><B>Committees of ASML&#146;s Supervisory Board</B>

<P align="left" style="font-size: 10pt">
The Supervisory Board has an Audit Committee, a Remuneration Committee and a Selection and
Nomination Committee. Members of these committees are appointed from among the Supervisory Board
members.


<P align="left" style="font-size: 10pt"><U>Audit Committee</U>

<P align="left" style="font-size: 10pt">
ASML&#146;s Audit Committee is composed of three members of the Supervisory Board. Our external auditor,
our Chief Executive Officer, our Chief Financial Officer and our Corporate Controller may also
attend the meetings of the Audit Committee.
The Audit Committee assists the Supervisory Board in:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>overseeing the integrity of our financial statements and related non-financial
disclosure;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>overseeing the qualifications, independence and performance of the external auditor;
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>overseeing the integrity of our systems of disclosure controls and procedures and the
system of internal controls regarding finance and accounting.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">During the year 2004, the Audit Committee met to review our quarterly earnings announcements and
our audited annual consolidated financial statements, to discuss the system of internal controls
over financial reporting and related audit findings, to approve the external audit plan and related
audit fees and to pre-approve any audit and non-audit services to be rendered by our external
auditor. The current members of our Audit Committee are Fritz Fr&#246;hlich (chairman), Henk Bodt and
Jan Dekker. The members of the Audit Committee are all independent, non-executive members of the
Supervisory Board. The Supervisory Board has determined that Fritz
Fr&#246;hlich qualifies
as the Audit Committee financial expert pursuant to Section&nbsp;407 of the Sarbanes-Oxley Act and the
rules promulgated thereunder.



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<P align="left" style="font-size: 10pt"><U>Remuneration Committee</U>

<P align="left" style="font-size: 10pt">
ASML&#146;s Remuneration Committee is composed of three members of the Supervisory Board. The current
members of our Remuneration Committee are Jos Westerburgen (chairman), Henk Bodt and Michael
Attardo. The Remuneration Committee has prepared a remuneration policy for the Board of Management,
which has been presented to and adopted by the 2004 General Meeting of Shareholders.


<P align="left" style="font-size: 10pt">The Remuneration Committee prepares and the Supervisory Board establishes ASML&#146;s general
compensation philosophy for members of the Board of Management, and oversees the development and
implementation of compensation programs for members of the Board of Management. The Remuneration
Committee reviews and proposes to the Supervisory Board corporate goals and objectives relevant to
the compensation of members of the Board of Management, including the Chief Executive Officer. The
Committee further evaluates the performance of members of the Board of Management in view of those
goals and objectives, and makes recommendations to the Supervisory Board on the compensation levels
of the members of the Board of Management based on this evaluation.


<P align="left" style="font-size: 10pt">In proposing to the Supervisory Board the actual remuneration elements and levels applicable to the
members of the Board of Management, the Remuneration Committee considers, among other factors, the
remuneration policy, the desired levels of ASML&#146;s short
and long-term performance and its current compensation and benefits structures and levels
benchmarked against those of relevant peers. External compensation survey data and, where necessary,
external consultants, are used to benchmark ASML&#146;s remuneration levels and structures.


<P align="left" style="font-size: 10pt"><U>Selection and Nomination Committee</U>

<P align="left" style="font-size: 10pt">
ASML&#146;s Selection and Nomination Committee is composed of at least three members of the Supervisory
Board.


<P align="left" style="font-size: 10pt">The Selection and Nomination Committee assists the Supervisory Board in:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>preparing the selection criteria and
appointment procedures for members of
the Company&#146;s Supervisory Board and
Board of Management;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>periodically evaluating the scope and
composition of the Board of
Management and the Supervisory Board
and proposing the profile of the
Supervisory Board in relation
thereto;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>periodically evaluating the
functioning of individual members of
the Board of Management and the
Supervisory Board and reporting the
results thereof to the Supervisory
Board; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>proposing (re-)appointments of
members of the Board of Management
and the Supervisory Board and
supervising the policy of the Board
of Management in relation to the
selection and appointment criteria
for senior management.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Selection and Nomination Committee was established in March&nbsp;2004 and has had one meeting since
its inception. In addition, during 2004, the members of the Selection and Nomination Committee
consulted together several times on an ad hoc basis to review recruitment of the new Chief
Executive Officer. The current members of our Selection and Nomination Committee are Jos
Westerburgen (chairman), Henk Bodt and Jan Dekker. Mr.&nbsp;Dekker shall resign as member of the
Selection and Nomination Committee as of March&nbsp;2005; Mr.&nbsp;Dekker will be succeeded in this position
by Arthur van der Poel.


<P align="left" style="font-size: 10pt"><B>Disclosure Committee</B>

<P align="left" style="font-size: 10pt">
ASML has a Disclosure Committee to ensure compliance with applicable disclosure requirements
arising under United States and Netherlands law. The Disclosure Committee reports to and assists
our Chief Executive Officer and Chief Financial Officer in the maintenance and evaluation of
disclosure controls and procedures. The Audit Committee is kept informed about the outcome of the
Disclosure Committee meetings. The Disclosure Committee gathers all relevant financial and
non-financial information and assesses materiality, timeliness and necessity for disclosure of such
information. The Disclosure Committee comprises various members of senior management. Furthermore,
members of the Disclosure Committee are in close contact with our external legal counsel and our
external auditor.


<P align="left" style="font-size: 10pt">During the year 2004, the Disclosure Committee met to review our quarterly earnings announcements,
our audited annual consolidated financial statements and other public announcements containing
financial information. In addition, specific meetings were held to assess disclosure controls and
procedures and internal control over financial reporting. In order to assist the disclosure
committee in preparing its advice to our CEO and CFO in their assessment of ASML&#146;s
disclosure controls and procedures and internal control over financial reporting, we have an
Internal Control Committee, comprising three members of the Disclosure Committee.


<P align="left" style="font-size: 10pt"><B>Exemptions from Certain Nasdaq Corporate Governance Rules</B>

<P align="left" style="font-size: 10pt">
Nasdaq rules provide that Nasdaq may provide exemptions from the Nasdaq corporate governance
standards to a foreign private issuer when those standards are contrary to

<P align="center" style="font-size: 10pt">43
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">a law, rule or
regulation of any public authority exercising jurisdiction over such issuer or contrary to
generally accepted business practices in the issuer&#146;s country of domicile, except to the extent
that such exemptions would be contrary to US federal securities laws. ASML has received from Nasdaq
exemptions from certain Nasdaq corporate governance standards that are contrary to the laws, rules,
regulations or generally accepted business practices of The Netherlands. These exemptions and the
practices followed by ASML in lieu of Nasdaq rules, are described below:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>ASML is exempt from Nasdaq&#146;s quorum requirements applicable to meetings of ordinary
shareholders. In accordance with Netherlands law and Netherlands generally accepted business
practice, ASML&#146;s Articles of Association provide that there are no quorum requirements
generally applicable to General Meetings of Shareholders.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>ASML is exempt from Nasdaq&#146;s requirements regarding the solicitation of proxies and provision
of proxy statements for General Meetings of Shareholders. ASML does not solicit proxies or
prepare proxy statements for General Meetings of Shareholders. Netherlands law does not have a
regulatory regime for the solicitation of proxies and the solicitation of proxies is not a
generally accepted business practice in The Netherlands.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>ASML is exempt from Nasdaq&#146;s requirements that the establishment of, or material amendments to,
stock option or purchase plans and other equity compensation arrangements pursuant to which options
or stock may be acquired by directors, officers or employees be approved by shareholders. ASML&#146;s
Articles of Association provide that the Company&#146;s Board of Management may issue shares, including
share options, only if it has been granted the general authority to do so by the General Meeting of
Shareholders. Once this grant of authority has been obtained, each issuance of shares must then be
approved by ASML&#146;s Supervisory Board and by the Meeting of the Priority Shareholders.</TD>
</TR>

</TABLE>
<DIV align="left">
<A name="126"></A>
</DIV>
<P align="left" style="font-size: 10pt"><B>D. Employees</B>

<P align="left" style="font-size: 10pt">
As of December&nbsp;31, 2004, we had 5,071 employees in our continuing operations employed primarily in manufacturing and product development
activities at our headquarters in Veldhoven. As of December&nbsp;31, 2002, and December&nbsp;31, 2003, the
total number of employees in continued operations was 5,971 and 5,059, respectively. For a more
detailed description of employee information, see Notes 13 and 19 to our consolidated financial
statements, which are incorporated herein by reference. We rely on our ability to vary the number
of temporary employees to respond to fluctuating market demand for our products.


<P align="left" style="font-size: 10pt">Our future success will depend on our ability to attract, train, retain and motivate highly
qualified employees, who are in great demand. We are particularly reliant for our continued success
on the services of several key employees, including a number of systems development specialists
with advanced university qualifications in engineering, optics and computing.


<P align="left" style="font-size: 10pt">ASML Netherlands B.V., our operating subsidiary in the Netherlands, has a Works Council, as
required by Netherlands law. A Works Council is a representative body of the employees of a
Netherlands company elected by the employees. The Board of Management of any Netherlands company
that runs an enterprise with a Works Council must seek the non-binding advice of the Works Council
before taking certain decisions with respect to the company, such as those related to a major
restructuring, a change of control, or the appointment or dismissal of a member of the Board of
Management. Other decisions directly involving employment matters that apply either to all
employees, or certain groups of employees, such as those affecting employee compensation, or
pension or profit sharing plans, may only be taken with the Works Council&#146;s approval. Such a
decision may be taken without the prior approval of the Works Council only with the approval of the
District Court.


<P align="left" style="font-size: 10pt">On July&nbsp;16, 2003, ASML announced workforce reductions of approximately 550 positions worldwide,
with the majority in the Netherlands. ASML&#146;s Board of Management and ASML&#146;s Dutch Works Council
then commenced a joint study on implementing these workforce reductions in the Netherlands, which
delayed the reductions until the beginning of 2004. Thereafter, in response to a sharp improvement in
market conditions during 2004, we decreased the reductions to approximately 300 positions
worldwide, of which 150 were contract employees with limited rights upon termination.


<P align="left" style="font-size: 10pt">See Note 19 to our consolidated financial statements for a breakdown of our employees by segment
and function.

<DIV align="left">
<A name="127"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>E. Share Ownership</B>

<P align="left" style="font-size: 10pt">
Information with respect to share ownership of members of our Supervisory Board and Board of
Management is included in Item&nbsp;7 &#147;Major Shareholders and Related Party Transactions&#148; and Note 18 to
our consolidated financial statements, which are incorporated herein by reference. Information with
respect to the grant of shares and
share options to employees is included in Note 13 to our consolidated financial Statements which is
incorporated herein by reference.



<P align="center" style="font-size: 10pt">44
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="128"></A>
</DIV>

<p align="left" style="font-size: 10pt"><U>Item&nbsp;7 </U>


<P align="left" style="font-size: 10pt"><U>Major Shareholders and Related Party Transactions</U>

<DIV align="left">
<A name="129"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>A. Major Shareholders</B>

<P align="left" style="font-size: 10pt">
The following table sets forth the total number of ordinary shares owned by each shareholder whose
beneficial ownership of ordinary shares exceeds 5&nbsp;percent of the ordinary shares issued and
outstanding, as well as the ordinary shares (including options) owned by the members of the
Supervisory Board and members of the Board of Management (which includes those persons specified in
Item&nbsp;6 &#147;Directors, Senior Management and Employees&#148;) as a group, as of December&nbsp;31, 2004:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Identity of Person or Group</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount Owned</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3"><B>Percent of Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Capital Group International, Inc <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,722,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">FMR Corp.<SUP style="font-size: 85%; vertical-align: text-top"> 2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,189,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Capital Research and Management Company <SUP style="font-size: 85%; vertical-align: text-top">3</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,571,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Members of ASML&#146;s Supervisory Board and
<BR>
Board of Management, as a group (8 persons) <SUP style="font-size: 85%; vertical-align: text-top">4</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,979,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="18%" align="left">

<DIV align="left" style="font-size: 8pt">* Less than 1&nbsp;percent.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1 </SUP> Based solely on the Schedule&nbsp;13-G/A jointly filed by Capital Group
International, Inc. with the Commission on September&nbsp;17,
2004.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2 </SUP>Based solely on the Schedule&nbsp;13-G/A filed by FMR Corp. with the Commission
on February&nbsp;16, 2004.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3 </SUP>Based solely on the Schedule&nbsp;13-G filed by Capital Research and Management
Company with the Commission on December&nbsp;10, 2004.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">4 </SUP> Five members of our Board of Management and one former member who
retired in the course of 2004 own a total of 1,907,660 options to purchase ASML shares. See Note 18
to our consolidated financial statements for information on options held by members of our Board of
Management on an individual basis. One member and one former member of our Board of Management
together own 49,680 of our outstanding shares. Two members of the Supervisory Board together hold
22,290 of our outstanding shares or options on shares. None of the other members of the Supervisory
Board hold any of our outstanding shares or options on shares. Certain members of our Board of
Management have deposited their stock options with an independent fund manager who has authority to
exercise these options and dispose of the underlying shares without instructions from, or
consultation with, the respective member of the Board of
Management.</DIV>


<P align="left" style="font-size: 10pt">According to SEC filings, (i)&nbsp;Capital Group International, Inc. increased its shareholding
(including as a holder of convertible notes) from 28,455,070 shares as of November&nbsp;2003 to
37,722,430 shares as of September&nbsp;2004, (ii)&nbsp;Capital Research and Management Company increased its
shareholding (including as a holder of convertible notes) from 26,807,920 shares as of February
2004 to 50,571,680 as of December&nbsp;2004 and (iii)&nbsp;FMR Corp. reduced its shareholding (including as a
holder of convertible notes) from 58,304,695 shares as of February&nbsp;2003 to 46,189,190 shares as of
February&nbsp;2004.


<P align="left" style="font-size: 10pt">Our major shareholders do not
have voting rights different from other shareholders. We do not issue share certificates, except for registered New York Shares. For more information see
Item&nbsp;10.B. &#147;Memorandum and Articles of Association.&#148;


<P align="left" style="font-size: 10pt">As of January&nbsp;18, 2005, our ordinary shares were held by 632 registered holders with a registered
address in the United States. Since certain of our ordinary shares were held by brokers and
nominees, the number of record holders in the United States may not be representative of the number
of beneficial holders or of where the beneficial holders are resident.


<P align="left" style="font-size: 10pt"><B>Obligations of Shareholders to Disclose Holdings under Netherlands Law</B>

<P align="left" style="font-size: 10pt">
Holders of our shares may be subject to reporting obligations under the Netherlands 1996 Act on
Disclosure of Holdings in Listed Companies (the &#147;Major Holdings Act&#148;) and the Netherlands 1995 Act
on the Supervision of the Securities Trade (the &#147;Securities Trade Act&#148;).


<P align="left" style="font-size: 10pt">The Major Holdings Act applies to any person or entity that, directly or indirectly, acquires or
disposes of an interest in the voting rights and/or the capital of a public limited company
incorporated under the laws of the Netherlands that is officially listed on a stock exchange within
the European Union (the &#147;EU&#148;). Disclosure is required when, as a result of an acquisition or
disposal, the percentage of voting rights or capital interest acquired or disposed of by a person
or an entity reaches, exceeds or falls below 5, 10, 25, 50 or 66-2/3&nbsp;percent. With respect to ASML,
the Major Holdings Act would require any person or entity whose interest in the voting rights
and/or capital of ASML reached, exceeded or fell below those percentage interests to notify in
writing both ASML and the Netherlands Authority for the Financial Markets (Autoriteit Financi&#235;le
Markten, the &#147;AFM&#148;) immediately after the acquisition or disposal of the triggering interest in
ASML&#146;s share capital.


<P align="left" style="font-size: 10pt">On July&nbsp;3, 2003, a draft bill to amend the Major Holding Act was submitted to the Second Chamber of
the Netherlands Parliament. According to the Explanatory Notes to
the proposed bill, it is anticipated that the existing percentages will be replaced by the
following percentage ranges which require disclosure if as a result of acquisition or disposal the
percentage of voting rights and capital interest reaches, exceeds or falls below 5, 10, 15, 20 and
25&nbsp;percent or more. Under the proposed bill, above 25

<P align="center" style="font-size: 10pt">45
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<P align="left" style="font-size: 10pt"> percent, all direct or indirect transactions
in our share capital or voting rights must be reported.


<P align="left" style="font-size: 10pt">In addition, the Major Holding Act might be subject to changes following from EU legislation on
transparency.


<P align="left" style="font-size: 10pt">For the purpose of calculating the percentage of capital interest or voting rights, the following
interests must be taken into account: shares (i)&nbsp;directly held (or acquired or disposed of) by any
person, (ii)&nbsp;held (or acquired or disposed of) by such person&#146;s subsidiaries or by a third party
for such person&#146;s account or by a third party with whom such person has concluded an oral or
written voting agreement, and (iii)&nbsp;which such person, or any subsidiary or third party referred to
above, may acquire pursuant to any option or other right held by such person (including, but not
limited to, upon conversion of convertible bonds). Special rules apply to the attribution of shares
which are part of the property of a partnership or other community of property. A holder of a
pledge or right of usufruct in respect of shares can also be subject to these reporting
obligations, if such person has, or can acquire, the right to vote on the shares or, in case of
depositary receipts, the underlying shares. If a pledgee or usufructarian acquires such
(conditional)&nbsp;voting rights, this may trigger reporting obligations for the holder of the shares.


<P align="left" style="font-size: 10pt">In addition, pursuant to the Securities Trade Act and a decree based thereon, a shareholder who
directly or indirectly holds a capital interest of more than 25&nbsp;percent in our capital must, by
means of a standard form, within ten days after the month in which the transaction occurs, notify
the AFM of such transaction in our ordinary shares or securities the value of which is dependent on
the value of our ordinary shares (including, without limitation, an acquisition or disposal of our
shares or convertible bonds). If that shareholder is a legal entity and not an individual, the
obligations under the Securities Trade Act also apply to members of its management and supervisory
boards. In addition, these obligations apply to the following persons related to such 25&nbsp;percent
shareholder (if the 25&nbsp;percent shareholder is a natural person): (i)&nbsp;spouses, (ii)&nbsp;relations by
blood or affinity to the first degree and other persons who share a household with these persons,
and (iii)&nbsp;relations by blood or affinity to the first degree who do not share a household with
these persons, in each case who hold at least 5&nbsp;percent of our shares in our capital or will obtain
this percentage through the transaction.


<P align="left" style="font-size: 10pt">The AFM keeps a public registry of and publishes all notifications made pursuant to the Major
Holdings Act and the Securities Trade Act.


<P align="left" style="font-size: 10pt">Non-compliance with the reporting obligations under the Major Holdings Act or the Securities Trade
Act could lead to criminal fines, administrative fines, imprisonment or other sanctions. In
addition, non-compliance with the reporting obligations under the Major Holdings Act may lead to
civil sanctions, including (i)&nbsp;suspension of the voting rights relating to the shares held by the
offender, for a period of not more than three years, (ii)&nbsp;nullification of any resolution of the
General Meeting of Shareholders of the company to the extent that such resolution would not have
been approved if the votes at the disposal of the person or entity in violation of a duty under the
Major Holdings Act or Securities Trade Act had not been exercised and (iii)&nbsp;a prohibition on the
acquisition by the offender of our shares or the voting on our ordinary shares for a period of not
more than five years.

<DIV align="left">
<A name="130"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>B. Related Party Transactions</B>

<P align="left" style="font-size: 10pt">
There have been no transactions during our most recent fiscal year, nor are there presently any
proposed material transactions, between ASML or any of its subsidiaries, and any significant
shareholder and any director or officer or any relative or spouse thereof. During our most recent
fiscal year, there has been no, and at present there is no, outstanding indebtedness to ASML owed
or owing by any director or officer of ASML or any associate thereof, other than the virtual
financing arrangement with respect to share options described under Note 13 to our consolidated
financial statements.

<DIV align="left">
<A name="131"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>C. Interests of Experts &#038; Counsel</B>

<P align="left" style="font-size: 10pt">
Not applicable.


<DIV align="left">
<A name="132"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;8 </U>


<DIV align="left">
<A name="132"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Financial Information</U>

<DIV align="left">
<A name="133"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>A. Consolidated Statements and Other Financial Information
Consolidated Statements</B>

<P align="left" style="font-size: 10pt">
See Item&nbsp;18 &#147;Financial Statements&#148;.


<P align="left" style="font-size: 10pt"><B>Legal Proceedings</B>

<P align="left" style="font-size: 10pt">
See Item&nbsp;4.B. &#147;Business Overview&#148; and Note 14 to our consolidated financial statements, which is
incorporated herein by reference.



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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>Dividend Policy</B>

<P align="left" style="font-size: 10pt">
ASML has no current intention to pay dividends on its ordinary shares. For more information see
Item&nbsp;10.B. &#147;Memorandum and Articles of Association&#148; and Item&nbsp;10.D. &#147;Exchange Controls.&#148;

<DIV align="left">
<A name="134"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>B. Significant Changes</B>
<P align="left" style="font-size: 10pt">No significant changes have occurred since the date of our consolidated financial statements.
See Item&nbsp;5.D. &#147;Trend Information.&#148;


<DIV align="left">
<A name="135"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;9</U>


<DIV align="left">
<A name="135"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>The Offer and Listing</U>

<DIV align="left">
<A name="136"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>A. Listing Details</B>

<P align="left" style="font-size: 10pt">
Our ordinary shares are listed for trading in the form of New York Shares on Nasdaq and in the form
of registered shares (&#147;Amsterdam Shares&#148;) on the Official Segment of the stock market of Euronext
Amsterdam. The principal trading market of our ordinary shares is Euronext Amsterdam. For more
information see Item&nbsp;10.B &#147;Memorandum and Articles of Association.&#148;


<P align="left" style="font-size: 10pt">Historical information relating to the ordinary shares has been adjusted to give retroactive effect
to the three-for-one stock split in April&nbsp;2000.


<P align="left" style="font-size: 10pt">The following table sets forth, for the periods indicated, the high and low closing prices of our
ordinary shares on Nasdaq, as well as on Euronext Amsterdam.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Nasdaq</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Euronext Amsterdam</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>US$</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">High</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Low</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">High</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Low</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Annual Information</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2000</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2001</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2002</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Quarterly Information</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">1st quarter 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2nd quarter 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">3rd quarter 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">4th quarter 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">1st quarter 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2nd quarter 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">3th quarter 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">4th quarter 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Monthly Information</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">January (through January&nbsp;26), 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.19</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>
<HR noshade size="1" width="18%" align="left">

<DIV align="left" style="font-size: 10pt">(Source: Bloomberg)</DIV>


<DIV align="left">
<A name="137"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>B. Plan of Distribution</B>

<P align="left" style="font-size: 10pt">
Not applicable.

<DIV align="left">
<A name="138"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>C. Markets</B>

<P align="left" style="font-size: 10pt">
See Item&nbsp;9.A. &#147;Listing Details.&#148;

<DIV align="left">
<A name="139"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>D. Selling Shareholder</B>

<P align="left" style="font-size: 10pt">
Not applicable.


<DIV align="left">
<A name="140"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>E. Dilution</B>

<P align="left" style="font-size: 10pt">
Not applicable.



<P align="center" style="font-size: 10pt">47
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="141"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>F. Expenses of the Issue</B>

<P align="left" style="font-size: 10pt">
Not applicable.


<DIV align="left">
<A name="142"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;10</U>


<DIV align="left">
<A name="142"></A>
</DIV>


<P align="left" style="font-size: 10pt"><U>Additional Information</U>


<DIV align="left">
<A name="143"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>A. Share Capital</B>

<P align="left" style="font-size: 10pt">
Not applicable.

<DIV align="left">
<A name="144"></A>
</DIV>



<P align="left" style="font-size: 10pt"><B>B. Memorandum and Articles of Association</B>

<P align="left" style="font-size: 10pt">
The information required by Item&nbsp;10.B. is incorporated by reference to ASML&#146;s Current Report on
Form 6-K, filed with the Commission on June&nbsp;10, 2004.


<P align="left" style="font-size: 10pt"><B>Current Authorizations to Issue and Repurchase Ordinary Shares</B>

<P align="left" style="font-size: 10pt">
Our Board of Management has the power to issue ordinary shares and preference shares if and to the
extent the Board of Management has been authorized to do so by the General Meeting of Shareholders
(whether by means of a resolution or by an amendment to our Articles of Association). However, the
Supervisory Board and the Meeting of Priority Shareholders must approve any issuance of ordinary
shares or preference shares.


<P align="left" style="font-size: 10pt">The Board of Management (subject to the approval of the Supervisory Board and the Meeting of the
Priority Shareholders) is currently authorized to issue ordinary shares and/or rights thereto
through September&nbsp;18, 2005, up to a maximum of 10&nbsp;percent of our issued share capital as of the
date of authorization (March&nbsp;18, 2004), plus an additional 10&nbsp;percent of our issued share capital
as of the date of authorization (March&nbsp;18, 2004) in connection with mergers and acquisitions. At
our annual General Meeting of Shareholders to be held on March&nbsp;24, 2005, our shareholders will be
asked to extend this authority through September&nbsp;24, 2006.


<P align="left" style="font-size: 10pt">Holders of our ordinary shares have a pro rata preemptive right of subscription to any issuance of
ordinary shares for cash, which right may be limited or eliminated. Ordinary shareholders have no
pro rata preemptive right of subscription to any ordinary shares issued for consideration other
than cash or ordinary shares issued to employees. If authorized for this purpose by the General
Meeting of Shareholders (whether by means of a resolution or by an amendment to our Articles of
Association), the Board of Management has the power, with the approval of the Supervisory Board and
the Meeting of Priority Shareholders, to limit or eliminate the preemptive rights of holders of
ordinary shares. The Board of Management is currently authorized, subject to these approvals, to
limit or eliminate preemptive rights of holders of ordinary shares through September&nbsp;18, 2005. A
further designation may be effective for up to five years and may be renewed. At our annual General
Meeting of Shareholders to be held on March&nbsp;24, 2005, our shareholders will be asked to extend this
authority through September&nbsp;24, 2006.


<P align="left" style="font-size: 10pt">We may repurchase ordinary shares at any time, subject to compliance with the requirements of
Netherlands law (and provided the aggregate nominal value of the ordinary shares held by ASML or a
subsidiary at any time amounts to no more than one-tenth of our issued share capital). Any such
purchases are subject to the approval of the Supervisory Board and the authorization (whether by
means of a resolution or by an amendment to our Articles of Association) of shareholders at our
General Meeting of Shareholders, which authorization may not be for more than 18&nbsp;months. The Board
of Management is currently authorized, subject to Supervisory Board approval, to repurchase through
September&nbsp;18, 2005 up to a maximum of 10&nbsp;percent of our issued share capital as of the date of
authorization (March&nbsp;18, 2004) at a price between the nominal value of the ordinary shares
purchased and 110&nbsp;percent of the market price of these securities on Euronext Amsterdam or Nasdaq.
At our annual General Meeting of Shareholders to be held on March&nbsp;24, 2005, our shareholders will
be asked to extend this authority through September&nbsp;24, 2006.


<P align="left" style="font-size: 10pt"><B>Shareholder Approval for Share and Share Option Arrangements for Board of Management</B>

<P align="left" style="font-size: 10pt">
In 2004, ASML submitted to the General Meeting of Shareholders for approval a proposal regarding
plans to issue shares or rights to acquire shares to members of the Board of Management, in
accordance with the Code. We have not in the past established and do not intend in the
future to establish stock option or purchase plans or other equity compensation arrangements for members of our
Supervisory Board.


<P align="left" style="font-size: 10pt">Nasdaq rules require shareholder approval of stock option plans available to officers, directors or
employees. However, Nasdaq has granted ASML an exemption from this requirement. Notwithstanding
this exception, ASML nevertheless submitted stock option plans available to employees to the
General Meeting of Shareholders in the annual
meeting of March&nbsp;18, 2004. In the event that material changes to
the stock option plans occur, we
shall also do so in 2005.



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<DIV align="left">
<A name="145"></A>
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<P align="left" style="font-size: 10pt"><B>C. Material Contracts<BR><BR>
Nikon-ASML Cross License Agreement</B>


<P align="left" style="font-size: 10pt"><U>Scope of License</U>

<P align="left" style="font-size: 10pt">
In connection with a settlement of worldwide patent litigation between Nikon, ASML and Zeiss, on
December&nbsp;10, 2004, ASML entered into a patent cross-license agreement with Nikon, effective
November&nbsp;12, 2004, pursuant to which (i)&nbsp;ASML granted Nikon a non-exclusive license to manufacture
and sell lithography equipment under patents owned or otherwise sublicensable by ASML and (ii)
Nikon granted ASML a non-exclusive license to manufacture and sell lithography equipment (other
than optical components) under patents owned or otherwise sublicensable by Nikon. These license
grants cover existing patents, as well as additional patents that issue worldwide before the end of
2009, and are retroactive to the effective application date of each licensed patent. The license
grants exclude patent claims for electron beam or other charged particle beam lithography,
lithography to manufacture flat panel displays or expose large-area substrates other than wafers,
maskless lithography, glass products and special mask technology. Certain Nikon patents related to
immersion lithography designated as &#147;excluded Nikon patents&#148; are also excluded from the
cross-license, but if Nikon sues ASML, Zeiss or any of their subsidiaries or customers in respect
of such patents, ASML has the right to terminate the license that it has granted to Nikon under the
cross-license agreement. In addition, Nikon and ASML agree not to sue each other based on
exploitation of lithography products under co-owned patents that are not licensable without the
consent of the co-owner.


<P align="left" style="font-size: 10pt"><U>Term of License</U>

<P align="left" style="font-size: 10pt">
The licenses under the agreement are perpetual for patents having an effective application date
before 2003 (&#147;Class&nbsp;A Patents&#148;) and for all other patents (&#147;Class&nbsp;B Patents&#148;) will terminate at the
end of 2009. At any time until June&nbsp;30, 2015, either party has a limited right to designate up to 5
Class&nbsp;B patents (or patents related to lithography issued from 2010 to 2015) of the other party as
Class&nbsp;A patents. Any patents acquired after the date of the agreement are deemed Class&nbsp;B Patents.


<P align="left" style="font-size: 10pt"><U>Immunity</U>

<P align="left" style="font-size: 10pt">
Under the terms of the settlement, ASML and Nikon have granted each other immunity from patent
suits by the other party from the end of 2009 until December&nbsp;31, 2014 under patents issuing before
2015. After 2015, either party may sue the other party for activities from 2010 to 2015 under
patents not subject to a license, provided that damages for that period are limited to a reasonable
royalty for that period. Each party also grants to the other party&#146;s resellers and customers
immunity from patent suits for use of lithography equipment purchased prior to 2015, provided that
the reseller or customer does not sue or threaten to sue the other party for lithography related
patent infringement. Each party also grants to the other party and its resellers and customers
limited immunity from patent suits for use of special masks and glass products sold before 2015.
Either party may bring suit after 2015 for special mask products sold from 2010 to 2015, provided
that damages are limited to reasonable royalties for that period.


<P align="left" style="font-size: 10pt"><U>Payments</U>

<P align="left" style="font-size: 10pt">
Pursuant to the cross license agreement, ASML made an initial payment of US$ 60&nbsp;million
(approximately EUR 49&nbsp;million) to Nikon in November&nbsp;2004 and is further obligated to pay three
annual payments of US$ 9&nbsp;million (approximately EUR 7&nbsp;million), commencing November&nbsp;12, 2005.


<P align="left" style="font-size: 10pt"><U>Termination; Assignment</U>

<P align="left" style="font-size: 10pt">
Nikon may terminate the cross-license agreement if either ASML or Zeiss default on their payment
obligations to Nikon, provided that ASML and Zeiss may cure each other&#146;s payment default. Either
party may assign its rights under the cross-license agreement in connection with a sale of all or
substantially all of the assets of the business of manufacturing the products covered by the
cross-license agreement.


<P align="left" style="font-size: 10pt"><B>ASML/Zeiss Sublicense Agreement</B>

<P align="left" style="font-size: 10pt">
Also in connection with a settlement of worldwide patent litigation between Nikon, ASML and Zeiss,
on December&nbsp;10, 2004, ASML entered into a sublicense agreement with Zeiss SMT AG, effective
November&nbsp;12, 2004, pursuant to which Zeiss granted ASML a non-exclusive license of all of the
rights it received from Nikon to exploit optical components under the Nikon-Zeiss Patent
Cross-License Agreement. Pursuant to the Nikon-Zeiss Patent Cross-License Agreement, Nikon granted
Zeiss a non-exclusive license to manufacture and sell optical components under patents owned or
otherwise sublicensable by Nikon. No royalties are payable by ASML for the license prior to the
termination of the 1997 Agreement between Carl Zeiss AG and ASML Netherlands B.V. The 1997
Agreement is terminable by either party (i)&nbsp;as of the end of a calender year,
upon 3&nbsp;years notice, or (ii)&nbsp;for cause (breach of the agreement by the other party). Upon that
termination, ASML is obligated to begin to pay Zeiss a royalty on sales of certain lithography
systems including optical components, unless that agreement has

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<P align="left" style="font-size: 10pt">been unilaterally terminated by
Zeiss without cause. If Nikon sells optical components to ASML but does not pay Zeiss a royalty as
provided in the Nikon-Zeiss Patent Cross-License Agreement, ASML will lose its right to sell
stand-alone optical components under the sublicense agreement.


<P align="left" style="font-size: 10pt">The sublicense agreement terminates upon termination of the Nikon-Zeiss Patent Cross-License
Agreement or if ASML does not pay royalties owing to Zeiss under the sublicense agreement. ASML may
assign its rights under the sublicense agreement in connection with a sale of all or substantially
all of the assets of its lithography business and Zeiss may transfer its rights under the
sublicense agreement in connection with a sale of all or substantially all of the assets of its
optical components business.


<P align="left" style="font-size: 10pt"><B>Employment Agreement with Eric Meurice</B>

<P align="left" style="font-size: 10pt">
On August&nbsp;2, 2004, the Company&#146;s chief executive officer Eric Meurice entered into an employment
agreement with the Company, terminable by the Company on not less than six months&#146; notice and by
Mr.&nbsp;Meurice on not less than three months&#146; notice. The employment agreement has a term of four
years, but can be extended with the consent of both parties. Mr.&nbsp;Meurice is entitled to receive a
payment equal to one year&#146;s base salary in the event he is terminated by the Company. The
employment agreement contains confidentiality and non-competition
provisions to which Mr.&nbsp;Meurice
is subject.


<P align="left" style="font-size: 10pt">The agreement entitles Mr.&nbsp;Meurice to a base salary of EUR 600,000 per year, plus an annual bonus
of up to 50% of base salary if certain performance targets are met.
Pursuant to the agreement, Mr.&nbsp;Meurice received 125,000 share options upon execution of the agreement and is entitled to receive
annually, if certain performance targets are met, (i)&nbsp;share options with a value equal to up to 25%
of base salary and (ii)&nbsp;shares with a value equal to up to 25%
of base salary. Mr.&nbsp;Meurice is also
entitled to pension benefits under a defined contribution plan. For
additional information on Mr.&nbsp;Meurice&#146;s remuneration, see Note 18 to our consolidated financial statements.


<P align="left" style="font-size: 10pt"><B>Retirement of Stuart&nbsp;McIntosh</B>

<P align="left" style="font-size: 10pt">
On October&nbsp;12, 2004, the Company entered into an agreement with
Stuart&nbsp;McIntosh in connection with his
retirement from the Board of Management. Pursuant to the agreement,
as amended, Mr.&nbsp;McIntosh
retired from the Board of Management effective January&nbsp;3, 2005, and from employment by ASML
effective April&nbsp;30, 2005. In accordance with the terms of the
agreement, Mr.&nbsp;McIntosh is entitled
to payments totalling EUR 589,845, which is equal to the amount he would have received
during the remaining term of his employment agreement.


<P align="left" style="font-size: 10pt"><B>Agreement between Zeiss and ASML Holding N.V.</B>

<P align="left" style="font-size: 10pt">
On October&nbsp;24, 2003, ASML Holding N.V. entered into an agreement with Carl Zeiss SMT AG. The
agreement builds upon the existing strategic alliance between the parties and modifies the pricing
and margin determinations detailed in their 1997 agreement. Furthermore, the agreement alters the
existing contractual framework between the parties by providing new warranty terms, intellectual
property rights, and exclusivity rights to current optical system products. The agreement also
includes pricing terms for future optical systems.

<DIV align="left">
<A name="146"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>D. Exchange Controls</B>

<P align="left" style="font-size: 10pt">
There are currently no limitations, either under the laws of the Netherlands or in the Articles of
Association of ASML, to the rights of non-residents to hold or vote ordinary shares. Cash
distributions, if any, payable in euro on ASML&#146;s Amsterdam
Shares may be officially transferred from the Netherlands and converted into any other currency
without being subject to any Netherlands legal restrictions. However, for statistical purposes,
such payments and transactions must be reported by ASML to the Netherlands Central Bank.
Furthermore, no payments, including dividend payments, may be made to jurisdictions subject to
certain sanctions, adopted by the government of the Netherlands, implementing resolutions of the
Security Council of the United Nations. Cash distributions, if any, on New York Shares shall be
paid in U.S. dollars, converted at the rate of exchange on Euronext Amsterdam at the close of
business on the date fixed for that purpose by the Board of Management in accordance with the
Articles of Association. ASML has no current intention to pay dividends on its ordinary shares. For
more information see Item&nbsp;10.B. &#147;Memorandum and Articles of Association.&#148;

<DIV align="left">
<A name="147"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>E. Taxation

<P align="left" style="font-size: 10pt">
Netherlands Taxation</B>

<P align="left" style="font-size: 10pt">
The statements below represent a summary of current Netherlands tax laws. The description is
limited to the material tax implications for a holder of ordinary shares who is not, or is not
deemed to be, a resident of the Netherlands for Netherlands tax purposes (a &#147;Non-resident Holder&#148;).
This description does not address special rules that may apply to special classes of holders of
ordinary shares and
should not be read as extending by implication to matters not specifically referred to herein. As
to individual tax consequences, each investor in ordinary shares should consult his or her tax
counsel.




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<P align="left" style="font-size: 10pt"><B>General</B>

<P align="left" style="font-size: 10pt">
The acquisition of ordinary shares by a non-resident of the Netherlands should not be treated as a
taxable event for Netherlands tax purposes. The income consequences in connection with owning and
disposing of our ordinary shares are discussed below.


<P align="left" style="font-size: 10pt"><B>Substantial Interest</B>

<P align="left" style="font-size: 10pt">
A person that, directly or indirectly, owns 5% or more of our share capital, or holds options to
purchase 5% or more of our share capital, is considered to have a substantial interest in our
shares or our options, as applicable. A deemed substantial interest is present if (part of) a
substantial interest has been disposed of, or is deemed to be disposed of, in a transaction where
no tax is recognized. Special attribution rules exist in determining the presence of a substantial
interest.


<P align="left" style="font-size: 10pt"><B>Income Tax Consequences for Non-Resident Holders on Owning and Disposing of the Ordinary Shares</B>

<P align="left" style="font-size: 10pt">
An individual who is a Non-resident Holder will not be subject to Netherlands income tax on
received income in respect of our ordinary shares or capital gains derived from the sale, exchange
or other disposition of our ordinary shares, provided that such holder:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>does not carry on and has not carried on a business in the Netherlands through a permanent
establishment or a permanent representative to which the ordinary shares are attributable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>does not hold and has not held a substantial interest in our share capital or, in the event
the Non-resident Holder holds or has held a substantial interest in our share capital, such
interest is or was a business asset in the hands of the holder;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>does not share and has not shared directly (either through the beneficial ownership of ordinary
shares or similar securities) in the profits of an enterprise managed and controlled in the
Netherlands which owned or was deemed to have owned ASML&#146;s ordinary shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>does not carry out and has not carried out any activities which generate taxable profit or
taxable wages to which the holding of ASML&#146;s ordinary shares was connected;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>does not carry out and has not carried out employment activities in the Netherlands, does not
serve and has not served as a director or board member of any entity resident in the
Netherlands, and does not serve and has not served as a civil servant of a Netherlands public
entity with which the holding of ASML&#146;s ordinary shares is or was connected; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>is not an individual that has opted to be taxed as a resident of the Netherlands.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Corporate income tax for corporate Non-resident Holders</B>


<P align="left" style="font-size: 10pt">Income derived from ordinary shares or capital gains derived from the sale, exchange or disposition
of ordinary shares by a corporate Non-resident Holder is taxable if:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the holder carries on a business in the Netherlands through a permanent establishment or a
permanent agent in the Netherlands (Netherlands enterprise) and the ordinary shares are
attributable to this permanent establishment or permanent agent, unless the participation
exemption (discussed below) applies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the holder has a substantial interest in ASML, which is not allocable to his enterprise; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>certain assets of the holder are deemed to be treated as a Netherlands enterprise under
Netherlands tax law and the ordinary shares are attributable to this Netherlands enterprise.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">To qualify for the Netherlands participation exemption, the Holder must generally hold at least 5%
of the nominal paid-in capital of ASML and meet some other requirements.


<P align="left" style="font-size: 10pt">Under most Netherlands tax treaties the right to tax capital gains realized by a Non-resident
Holder from the sale, exchange or other disposition of ordinary shares is allocated to the holder&#146;s
country of residence and not the Netherlands.


<P align="left" style="font-size: 10pt"><B>Dividend Withholding Tax</B>

<P align="left" style="font-size: 10pt">
In general, a dividend distributed by us in respect of our ordinary shares will be subject to a
withholding tax imposed by the Netherlands at a statutory rate of 25%.
Dividends include:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>dividends in cash or in kind;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>deemed and constructive dividends;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>consideration for the repurchase of ordinary shares (including a repurchase by a direct or
indirect subsidiary) in excess of the recognized average paid-in capital unless such
repurchase is for temporary investment or exempt;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>proceeds from the redemption of ordinary shares in excess of recognized paid-in capital;

</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>stock dividends equal to their nominal value (unless distributed out of recognized paid-in share
premium);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>repayment of paid-in capital not recognized as capital for Netherlands dividend withholding tax
purposes; and</TD>
</TR>



</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>liquidation proceeds in excess of average paid-in capital recognized as capital for
Netherlands dividend withholding tax purposes.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">A reduction of Netherlands dividend withholding tax can be obtained if:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the participation exemption applies and the ordinary shares are attributable to a business
carried out in the Netherlands;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the dividends are distributed to a qualifying EU corporate holder satisfying the conditions
of the EU Parent-Subsidiary Directive;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>the rate is reduced by treaty; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>surtax was due on the dividend distribution and the recipient is a resident of the
Netherlands Antilles or Aruba, a Member State of the EU or a country with which the
Netherlands has concluded a treaty for the avoidance of double taxation.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">A Non-resident Holder of ordinary shares can be eligible for a partial or complete exemption or
refund of all or a portion of the above withholding tax under a tax treaty that is in effect
between the Netherlands and the Non-resident Holder&#146;s country of residence. The Netherlands has
concluded such treaties with the United States, Canada, Switzerland, Japan, all European Union
member states, and other countries.


Under the Treaty between the United States of America and the Kingdom of the Netherlands for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income
(the &#147;Tax Treaty&#148;), dividends paid by us to a Non-resident Holder that is a resident of the United
States as defined in the Tax Treaty (other than an exempt organization or exempt pension trust, as
discussed below) are generally eligible for a reduction of the 25% Netherlands withholding tax to
15% or, in the case of certain U.S. corporate shareholders owning at least 10% of our voting power,
to 5%, provided that the shareholder does not have an enterprise or an interest in an enterprise
that is, in whole or in part, carried on through a permanent establishment or permanent
representative in the Netherlands to which the dividends are attributable. The Tax Treaty provides
for a complete exemption from tax on dividends received by exempt pension trusts and exempt
organizations, as defined therein. Except in the case of exempt organizations, the reduced dividend
withholding tax rate (or exemption from withholding) can be applied at the source upon payment of
the dividends, provided that the proper forms have been filed in advance of the payment. Exempt
organizations remain subject to the statutory withholding rate of 25% and are required to file for
a refund of such withholding.


<P align="left" style="font-size: 10pt">A Non-resident Holder may not claim the benefits of the Tax Treaty unless (i)&nbsp;it is a resident of
the United States as defined therein and (ii)&nbsp;its entitlement to those benefits is not limited by
the provisions of article 26 (limitation on benefits) of the Tax Treaty.


<P align="left" style="font-size: 10pt">In this respect it is noted that on March&nbsp;8, 2004 the United States and the Netherlands agreed on a
new protocol to the tax treaty concluded between parties. The new protocol introduces (among
others) a 0% dividend withholding tax rate on dividends, provided certain requirements are met. In
addition, above mentioned article 26 (limitation on benefits) is adjusted. Some requirements to the
various tests mentioned in article 26 will become more severe and others will be moderated. The
protocol enters into effect as of two months after ratification and official publication as far as
it concerns withholding taxes. For other taxes the protocol enters into effect on January&nbsp;1, 2005.


<P align="left" style="font-size: 10pt"><B>Dividend Stripping Rules</B>

<P align="left" style="font-size: 10pt">
Under Netherlands tax legislation regarding anti-dividend stripping, no exemption from, or refund
of, Netherlands dividend withholding tax is granted if the recipient of dividends paid by ASML is
not considered the beneficial owner of such dividends.


<P align="left" style="font-size: 10pt"><B>Surtax</B>

<P align="left" style="font-size: 10pt">
As a result of Netherlands tax reform effective from January&nbsp;1, 2001, ASML will be subject to a 20%
corporate income tax, or Surtax, on &#145;excessive&#146; (evaluated based on certain criteria, including
previous dividend distributions) dividends ASML distributes during the period from January&nbsp;1, 2001
through December&nbsp;31, 2005. It is proposed in the Netherlands parliament to terminate the surtax
regime as per December&nbsp;31, 2004.


<P align="left" style="font-size: 10pt"><B>Gift or Inheritance Taxes</B>

<P align="left" style="font-size: 10pt">
Netherlands gift or inheritance taxes will not be levied on the transfer of ordinary shares by way
of gift, or upon the death of a Non-resident Holder, unless:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)&nbsp;&nbsp;</TD>
    <TD>the transfer is construed as an inheritance or as a gift made by or on behalf of a person
who, at the time of the gift or death, is deemed to be, resident of the Netherlands; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)&nbsp;&nbsp;</TD>
    <TD>the ordinary shares are attributable to an enterprise or part thereof that is carried on
through a permanent establishment or a permanent representative in the Netherlands.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">For purposes of Netherlands gift and inheritance tax, an individual of Netherlands nationality is
deemed to be a resident of the Netherlands if he has been a resident

<P align="center" style="font-size: 10pt">52
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">thereof at any time during the
ten years preceeding the time of the gift or death. For purposes of Netherlands gift tax, a person
not possessing Netherlands nationality is deemed to be a resident of the Netherlands if he has
resided therein at any time in the twelve months preceeding the time of the gift.


<P align="left" style="font-size: 10pt"><B>Value Added Tax</B>

<P align="left" style="font-size: 10pt">
No Netherlands value added tax is imposed on dividends in respect of ASML&#146;s shares or on the
transfer of ASML&#146;s ordinary shares.


<P align="left" style="font-size: 10pt"><B>Residence</B>

<P align="left" style="font-size: 10pt">
A Non-resident Holder will not become resident, or be deemed to be resident, in the Netherlands
solely as a result of holding ASML&#146;s ordinary shares or of the execution, performance, delivery
and/or enforcement of rights in respect of ASML&#146;s ordinary shares.


<P align="left" style="font-size: 10pt"><B>United States Taxation</B>

<P align="left" style="font-size: 10pt">
The following is a discussion of the material U.S. federal income tax consequences relating to the
acquisition, ownership and disposition of ordinary shares by a U.S. Holder (as defined below). This
discussion deals only with ordinary shares held as capital assets and does not deal with the tax
consequences applicable to all categories of investors, some of which (such as tax-exempt entities,
passive foreign investment companies, banks, broker-dealers, investors owning directly, indirectly
or constructively 10% or more of our outstanding voting shares, investors who hold ordinary shares
as part of hedging or conversion transactions and investors whose functional currency is not the
U.S. dollar) may be subject to special rules. In addition, the discussion does not address any
alternative minimum tax or any state, local or non-United States tax consequences. The following
discussion is based on U.S. tax laws, and judicial and administrative interpretations thereof as in
effect on the date hereof, all of which are subject to change, potentially retroactively.


<P align="left" style="font-size: 10pt">This discussion is based on the Internal Revenue Code of 1986, as amended to the date hereof,
final, temporary and proposed Treasury Department regulations promulgated, and administrative and
judicial interpretations thereof, changes to any of which subsequent to the date hereof, possibly
with retroactive effect, may affect the tax consequences described herein. In addition, there can
be no assurance that the Internal Revenue Service will not challenge one or more of the tax
consequences described herein, and we have not obtained, nor do we intend to obtain, a ruling from
the Internal Revenue Service or an opinion of counsel with respect to the U.S. federal income tax
consequences of acquiring or holding shares. Prospective purchasers of ordinary shares are advised
to consult their tax advisers with respect to their particular circumstances and with respect to
the effects of U.S. federal, state, local or non-U.S. tax laws to which they may be subject.


<P align="left" style="font-size: 10pt">As used herein, the term &#147;U.S. Holder&#148; means a beneficial owner of ordinary shares that for U.S.
federal income tax purposes is:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>an individual citizen or resident of the United States,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>a corporation or other entity treated as a corporation for U.S. federal income tax
purposes created or organized in or under the laws of the United States or of any
political subdivision thereof,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>an estate of which the income is subject to U.S. federal income taxation regardless of
its source,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>a trust whose administration is subject to the primary supervision of a court within
the United States and which has one or more U.S. persons who have the authority to control
all of its substantial decisions.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">If an entity treated as a partnership for U.S. federal income tax purposes owns ordinary shares,
the U.S. federal income tax treatment of a partner in such partnership will generally depend upon
the status of the partner and the activities of the partnership. A partnership that owns ordinary
shares and the partners in such partnership should consult their tax advisors about the U.S.
federal income tax consequences of holding and disposing of the ordinary shares.


<P align="left" style="font-size: 10pt"><B>Taxation of Dividends</B>

<P align="left" style="font-size: 10pt">
U.S. Holders will include in gross income as foreign-source dividend income the gross amount of any
distribution (before reduction for Netherlands withholding taxes) ASML makes out of its current or
accumulated earnings and profits (as determined for United States federal income tax purposes) when
the distribution is actually or constructively received by the U.S. Holder. Distributions will not
be eligible for the dividends-received deduction generally allowed to United States corporations in
respect of dividends received from other United States corporations. The amount of the dividend
distribution includible in income of a U.S. Holder should be the U.S. dollar value of the foreign
currency (e.g. euro) paid, determined by the spot rate of exchange on the date of the distribution,
regardless of whether the payment is in fact
converted into U.S. dollars. Generally, any gain or loss resulting from currency exchange
fluctuations during the period from the date the dividend payment is

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<P align="left" style="font-size: 10pt">includible in income to the
date such payment is converted into U.S. dollars will be treated as ordinary income or loss. Such
gain or loss will generally be income from sources within the United States for U.S. foreign tax
credit purposes. Distributions in excess of current and accumulated earnings and profits, as
determined for United States federal income tax purposes, will be treated as a non-taxable return
of capital to the extent of the U.S. Holder&#146;s basis in the ordinary shares and thereafter as
taxable capital gain. ASML does not maintain calculations of its earnings and profits under United
States federal income tax principles.


<P align="left" style="font-size: 10pt">Subject to limitations provided in the U.S. Internal Revenue Code, a U.S. Holder may generally
deduct from its United States federal taxable income, or credit against its United States federal
income tax liability, the amount of any Netherlands withholding taxes. However, Netherlands
withholding tax may be deducted only if the U.S. Holder does not claim a credit for any Netherlands
or other non-U.S. taxes paid or accrued in that year. In addition, Netherlands dividend withholding
taxes will likely not be creditable against the U.S. Holder&#146;s United States tax liability to the
extent ASML is not required to pay over the amount withheld to the Netherlands Tax Administration.
Currently, a Netherlands corporation that receives dividends from qualifying non-Netherlands
subsidiaries may credit source country tax withheld from those dividends against Netherlands
withholding tax imposed on a dividend paid by a Netherlands corporation, up to a maximum of 3% of
the dividend paid by the Netherlands corporation. The credit reduces the amount of dividend
withholding that ASML is required to pay to the Netherlands Tax Administration but does not reduce
the amount of tax ASML is required to withhold from dividends.


<P align="left" style="font-size: 10pt">Recently enacted U.S. tax legislation (the &#147;2003 Tax Act&#148;) reduces to 15% the maximum tax rate for
certain dividends received by individuals through taxable years beginning on or before December&nbsp;31,
2008, so long as the stock has been held for more than 60&nbsp;days during the 120 period beginning 60
days before the ex-dividend date. Dividends received from &#147;qualified foreign corporations&#148;
generally qualify for the reduced rate. A non-U.S. corporation (other than a foreign personal
holding company, foreign investment company, or passive foreign investment company) generally will
be considered to be a qualified foreign corporation if (i)&nbsp;the shares of the non-U.S. corporation
are readily tradable on an established securities market in the United States or (ii)&nbsp;the non-U.S.
corporation is eligible with respect to substantially all of its income for the benefits of a
comprehensive income tax treaty with the United States which contains an exchange of information
program. The Tax Treaty has been identified as a qualifying treaty. Individual U.S. Holders should
consult their tax advisors regarding the impact of the provisions of the 2003 Tax Act on their
particular situations.


<P align="left" style="font-size: 10pt"><B>Taxation on Sale or Other Disposition of Ordinary Shares</B>

<P align="left" style="font-size: 10pt">
Upon a sale or other disposition of ordinary shares, a U.S. Holder will generally recognize capital
gain or loss for U.S. federal income tax purposes in an amount equal to the difference between the
amount realized, if paid in U.S. dollars, or the U.S. dollar value of the amount realized
(determined at the spot rate on the settlement date of the sale) if proceeds are paid in currency
other than the U.S. dollar, as the case may be, and the U.S. Holder&#146;s tax basis (determined in U.S.
dollars) in such ordinary shares. Generally, the capital gain or loss will be long-term capital
gain or loss if the holding period of the U.S. Holder in the ordinary shares exceeds one year at
the time of the sale or other disposition. The deductibility of capital losses is subject to
limitations for U.S. federal income tax purposes. Gain or loss from the sale or other disposition
of ordinary shares generally will be treated as U.S. source income or loss for U.S. foreign tax
credit purposes. Generally, any gain or loss resulting from currency fluctuations during the period
between the date of the sale of the ordinary shares and the date the sale proceeds are converted
into U.S. dollars will be treated as ordinary income or loss from sources within the United States.
Each U.S. Holder should consult its tax advisor with regard to the translation rules of its
adjusted basis and the amount realized upon a sale or other disposition of its ordinary shares if
purchased in, or sold or disposed of for, a currency other than U.S. dollar.


<P align="left" style="font-size: 10pt"><B>Information Reporting and Backup Withholding</B>

<P align="left" style="font-size: 10pt">
Information returns may be filed with the Internal Revenue Service (&#147;IRS&#148;) in connection with
payments on the ordinary shares or proceeds from a sale, redemption or other disposition of the
ordinary shares. A &#147;backup withholding&#148; tax may apply to these payments if the beneficial owner
fails to provide a correct taxpayer identification number to the paying agent and to comply with
certain certification procedures or otherwise establish an exemption from backup withholding. Any
amounts withheld under the backup withholding rules will be refunded (or credited against the
beneficial owner&#146;s U.S. federal income tax liability, if any) provided that the required
information is furnished to the IRS.


<P align="left" style="font-size: 10pt">The discussion set forth above is included for general information only and may not be applicable
depending upon a holder&#146;s particular situation. Holders should consult their tax advisors with
respect to the tax consequences to them of the purchase,

<P align="center" style="font-size: 10pt">54
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">ownership and disposition of shares
including the tax consequences under state, local and other tax laws and the possible effects of
changes in U.S. federal and other tax laws.

<DIV align="left">
<A name="148"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>F. Dividends and Paying Agents</B>

<P align="left" style="font-size: 10pt">
Not applicable.

<DIV align="left">
<A name="149"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>G. Statement by Experts</B>

<P align="left" style="font-size: 10pt">
Not applicable.

<DIV align="left">
<A name="150"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>H. Documents on Display</B>

<P align="left" style="font-size: 10pt">
We are subject to certain of the reporting requirements of the U.S. Securities Exchange Act of 1934
(the &#147;Exchange Act&#148;). As a &#147;foreign private issuer&#148;, we are exempt from the rules under the
Exchange Act prescribing certain disclosure and procedural requirements for proxy solicitations,
and our officers, directors and principal shareholders are exempt from the reporting and
&#147;short-swing&#148; profit recovery provisions contained in Section&nbsp;16 of the Exchange Act, with respect
to their purchases and sales of shares. In addition, we are not required to file reports and
financial statements with the Commission as frequently or as promptly as U.S. companies whose
securities are registered under the Exchange Act. However, we are required to file with the
Commission, within six months after the end of each fiscal year, an annual report on Form 20-F
containing financial statements audited by an independent accounting firm. We publish unaudited
interim financial information after the end of each quarter. We furnish this quarterly financial
information to the Commission under cover of a Form 6-K.


<P align="left" style="font-size: 10pt">You may read and copy any document we file with the Commission at its public reference facilities
at 450 Fifth Street, N.W., Washington, DC 20549, Woolworth Building, 233 Broadway, New York, New
York 10048 and Citicorp Center, 500 West Madison Street, Suite&nbsp;1400, Chicago, Illinois 60661-2511.
You may also obtain copies of the documents at prescribed rates by writing to the Public Reference
Section of the Commission at 450 Fifth Street, N.W., Washington DC 20549. The Commission also
maintains a website that contains reports and other information regarding registrants that are
required to file electronically with the Commission. The address of this website is
http://www.sec.gov. Please call the Commission at 1-800-SEC-0330 for further information on the
operation of the public reference facilities.

<DIV align="left">
<A name="151"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>I. Subsidiary Information</B>

<P align="left" style="font-size: 10pt">
See Item&nbsp;4.C. &#147;Organizational Structure&#148;.

<DIV align="left">
<A name="152"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;11</U>

<DIV align="left">
<A name="152"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Quantitative and Qualitative Disclosures About Market Risk</U>


<P align="left" style="font-size: 10pt">We are subject to market risk (i.e. the risk of a change in the value of a financial instrument,
derivative or non derivative) caused by fluctuations in currency exchange rates and interest rates.
Our treasury department manages market risk in accordance with established policies through
transactions in financial instruments. None of these transactions are entered into for trading
purposes. These instruments are generally available from numerous sources and we do not consider
them to be specialized or high risk. The terms of the financial instruments utilized are consistent
with the related underlying hedged exposure. Established controls including policies, guidelines
and a system of authorization and reporting, are in place covering all financial instruments. We
regularly evaluate the use of financial instruments, including swaps, options and forward
contracts, and believe that the risk of incurring losses as a result of default is remote.


<P align="left" style="font-size: 10pt">We are exposed to credit risk in connection with these financial instruments. All contracts have
been entered into with major creditworthy financial institutions, and the risk associated with
these transactions is the cost of replacing these agreements at the current market rates in the event of default by the counterparts. We do not have
significant concentration of risk with any single party in any of our financial instruments.


<P align="left" style="font-size: 10pt"><B>Foreign exchange risk</B>

<P align="left" style="font-size: 10pt">
We operate globally and are thus exposed to foreign exchange risk arising from volatility in
currency exchange rates.


<P align="left" style="font-size: 10pt">We price most of our product sales in euro, however a portion of our sales, cost of sales and
expenses are denominated in U.S. dollars, and we expect this will continue to be so for the
foreseeable future. According to our foreign exchange policy guidelines, we hedge material foreign
exchange transaction risk exposure, such as sales transactions, forecasted purchase cash flows,
accounts receivable and accounts
payable. This exposure is mainly hedged with financial instruments such as foreign exchange forward
contracts and foreign exchange options. We closely monitor the effectiveness of our outstanding
hedge
contracts throughout the life of the hedges.

<P align="center" style="font-size: 10pt">55
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">The majority of financial instruments that we
use to hedge foreign exchange risk have a duration of less than one year. As of December&nbsp;31, 2004,
we anticipate EUR 26.7&nbsp;million of other comprehensive income to represent the total anticipated
gain to be released to sales and EUR 2.8&nbsp;million to represent the total anticipated loss to be
charged to cost of sales over the next 12&nbsp;months as the forecasted sale and purchase transactions
occur.


<P align="left" style="font-size: 10pt">Since we have subsidiaries outside the euro-zone, the euro&#150;denominated value of our shareholder&#146;s
equity is also exposed to fluctuations in exchange rates. Equity changes caused by movements in
foreign exchange rates are shown as a translation difference in our consolidated financial
statements. We use, from time to time, foreign currency-denominated loans to hedge material
translation exposure arising from foreign net investments.


<P align="left" style="font-size: 10pt"><B>Interest rate risk</B>

<P align="left" style="font-size: 10pt">
Our exposure to the market risk of changes in interest rates relates primarily to our debt
obligations and our cash balance. Interest rate swaps that we use to hedge the fair value of fixed
loan coupons payable are designated as fair value hedges, with changes in fair value recorded under
interest income and expense in our statement of operations. The accumulated change in fair value is
intended to offset the change in the fair value of the underlying fixed loan coupons, which is
recorded accordingly. Interest rate swaps that we use to hedge changes in the variability of future
interest receipts are designated as cash flow hedges. The critical terms of the hedging instruments
are the same as those for the underlying assets. Accordingly, all changes in fair value of these
derivative instruments are recorded as other comprehensive income. The accumulated changes in fair
value of the derivatives are intended to offset changes in future interest cash flows on the
assets. The hedging relationship between interest rate swaps and hedged fixed loan coupons is
highly effective. See Notes 1, 4 and 11 to our consolidated financial statements, which are
incorporated herein by reference.


<P align="left" style="font-size: 10pt"><B>Credit risk</B>

<P align="left" style="font-size: 10pt">
Financial instruments contain an element of risk of the counterparties being unable to meet their
obligations. This financial credit risk is monitored and minimized per type of financial instrument
by limiting our counterparties to a sufficient number of major financial institutions and issuers
of commercial paper.


<P align="left" style="font-size: 10pt"><B>Sensitivity analysis derivative financial instruments</B>

<P align="left" style="font-size: 10pt">
The Company uses foreign exchange derivatives to manage its currency risk and interest rate swaps
to manage its interest rate risk.


<P align="left" style="font-size: 10pt">The following table summarizes the Company&#146;s derivative financial instruments, their market values
and their sensitivity to an instantaneous 10% decrease of the euro against other currencies and an
instantaneous 1% non-favorable increase in interest rates from their levels of December&nbsp;31, 2003
and 2004 respectively, with all other variables held constant.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Fair Value change</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1% non-</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>10% weakening of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>favorable increase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>euro against other</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Notional Amount </B><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>in interest rate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>currency</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>As of December&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forward contracts <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,398</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(173</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate swaps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,801</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="17">&nbsp;</TD>
</TR>



<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>As of December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forward contracts <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,441</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,696</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate swaps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">847,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,407</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>
<HR noshade size="1" width="18%" align="left">

<DIV align="left" style="font-size: 10pt">(Source: Bloomberg)</DIV>


<P align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Includes forward contracts on U.S. dollars, Hong Kong dollars, British
Pounds, Israeli Shekel, Japanese Yen, Singapore dollars and Swiss Francs.



<DIV  align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Net amount of forward and option contracts assigned as a hedge to sales and
purchase transactions, and to monetary assets and liabilities.


<P align="left" style="font-size: 10pt">The fair value of forward contracts (used for hedging purposes) is the estimated amount that
a bank would receive or pay to terminate the forward contracts at the
reporting date, taking into account current interest rates, current
exchange rates and the current
creditworthiness of the counterparties.
</DIV>



<P align="center" style="font-size: 10pt">56
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">The fair value of currency options (used for hedging purposes) is the estimated amount that a bank
would receive or pay to terminate the option agreements at the reporting date, taking into account
current interest rates, current exchange rates, volatility and the current creditworthiness of the
counterparties.


<P align="left" style="font-size: 10pt">The fair value of interest rate swaps (used for hedging purposes) is the estimated amount that a
bank would receive or pay to terminate the swap agreements at the reporting date, taking into
account current interest rates and the current creditworthiness of the counterparties.

<DIV align="left">
<A name="153"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;12</U>

<DIV align="left">
<A name="153"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Description of Securities Other Than Equity Securities</U>


<P align="left" style="font-size: 10pt">Not applicable.



<P align="center" style="font-size: 10pt">57
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="154"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B><I>Part II</I></B>

<DIV align="left">
<A name="155"></A>
</DIV>


<P align="left" style="font-size: 10pt"><U>Item&nbsp;13</U>

<DIV align="left">
<A name="155"></A>
</DIV>


<P align="left" style="font-size: 10pt"><U>Defaults, Dividend Arrearages and Delinquencies</U>



<P align="left" style="font-size: 10pt">None.


<DIV align="left">
<A name="156"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;14</U>


<DIV align="left">
<A name="156"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Material Modifications to the Rights of Security Holders and Use of Proceeds</U>



<P align="left" style="font-size: 10pt">None.


<DIV align="left">
<A name="157"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;15</U>


<DIV align="left">
<A name="157"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Controls and Procedures </U>


<P align="left" style="font-size: 10pt"><B>Evaluation of Disclosure controls and Procedures</B>

<P align="left" style="font-size: 10pt">
Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our
disclosure controls and procedures (as such term is defined in Rules&nbsp;13a-15(e) and 15d-15(e) under
the Exchange Act) as of December&nbsp;31, 2004 (the &#147;Evaluation Date&#148;). Based on such evaluation, those
officers have concluded that, as of the Evaluation Date, our disclosure controls and procedures are
effective in alerting them on a timely basis to material information relating to ASML (including
its consolidated subsidiaries) required to be included in our periodic filings under the Exchange
Act.


<P align="left" style="font-size: 10pt"><B>Changes in Internal Controls over Financial Reporting</B>

<P align="left" style="font-size: 10pt">
During the year ended December&nbsp;31, 2004 there have not been any changes in our internal controls
over financial reporting that have materially affected, or are reasonably likely to materially
affect, our internal controls over financial reporting.

<DIV align="left">
<A name="158"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;16</U>

<DIV align="left">
<A name="159"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>A. Audit Committee Financial Expert</B>

<P align="left" style="font-size: 10pt">
Our Supervisory Board has determined that effective March&nbsp;18, 2004, Mr.&nbsp;Fritz Fr&#246;hlich qualified as
the Audit Committee Financial Expert (replacing Mr.&nbsp;Syb Bergsma, who was previously determined to
be the Audit Committee Financial Expert).

<DIV align="left">
<A name="160"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>B. Code of Ethics

<P align="left" style="font-size: 10pt">
ASML&#146;s Code on Ethical Business Conduct</B>

<P align="left" style="font-size: 10pt">
In 2001, ASML adopted its Principles of Ethical Business Conduct, which contain ASML&#146;s ethical
principles in relation to various subjects. These Principles have been worked out into day-to-day
guidelines (called &#147;Internal Guidelines on Ethical Business Conduct&#148;) that were adopted in March
2003. The Internal Guidelines on Ethical Business Conduct apply to ASML employees worldwide,
including ASML&#146;s Chief Executive Officer and Chief Financial Officer. No amendments were made to,
and no waivers were granted in respect of, ASML&#146;s Principles of Ethical Business Conduct or
Internal Guidelines on Ethical Business Conduct in 2004.


<P align="left" style="font-size: 10pt">In January&nbsp;2005, ASML adopted an amended version of its Principles of Ethical Business Conduct and
Internal Guidelines on Ethical Business Conduct. In connection with these amendments, ASML also
amended the Complaint Procedure with regard to violations of the Internal Guidelines on Ethical
Business Conduct and adopted a Whistleblower&#146;s Procedure for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters and the confidential,
anonymous submission of complaints by employees regarding questionable accounting and auditing
matters. The main reasons for these amendments and adoption of the Whistleblower&#146;s Procedure were
the coming into force of the Code and developments in Nasdaq and SEC
rules. Our Internal Guidelines on Ethical Business Conduct are posted on our website.


<P align="left" style="font-size: 10pt">The Internal Guidelines on Ethical Business Conduct contain, among others, written standards that
are reasonably designed to deter wrongdoing and to promote:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>honest and ethical conduct, including the ethical handling of actual or apparent conflicts of
interest between personal and professional relationships;</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>full, fair, accurate, timely, and understandable disclosure in reports and documents
that ASML files with, or submits to, the SEC and in other public communications made by
ASML;</TD>
</TR>

</TABLE>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>compliance with applicable governmental laws, rules and regulations;</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt; margin-left: 25px">
<P align="center" style="font-size: 10pt">58
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD>&nbsp;prompt internal reporting of violations on the Internal Guidelines on Ethical Business
Conduct to an appropriate person or persons identified<BR>&nbsp;in these guidelines; and</TD>
</TR>


</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>accountability for adherence to the guidelines.</TD>
</TR>

</TABLE>

<DIV align="left">
<A name="161"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>C. Principal Accountant Fees and Services</B>

<P align="left" style="font-size: 10pt">
Deloitte Accountants has served as our independent public accountants for each of the years ended
in the three-year period ended December&nbsp;31, 2004. The following table sets forth the aggregate fees
for professional audit services and other services rendered by Deloitte Accountants in 2004 and
2003.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Audit Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,014</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Audit-related Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>125</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tax Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>738</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">All Other Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,877</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="18%" align="left" color="#000000">

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1
</SUP> All fee amounts exclude VAT.</DIV>


<P align="left" style="font-size: 10pt"><B>Audit fees</B>

<P align="left" style="font-size: 10pt">
Audit fees primarily relate to the audit of our annual financial statements set forth in our Annual
Report on Form 20-F, agreed upon procedures work on our quarterly financial results, services
related to statutory and regulatory filings of our subsidiaries and services in connection with
accounting consultations on both U.S. GAAP and IFRS.


<P align="left" style="font-size: 10pt"><B>Audit-related fees</B>

<P align="left" style="font-size: 10pt">
Audit-related fees mainly comprise services in connection with consultations on implementing the
requirements of Section&nbsp;404 of the Sarbanes-Oxley Act.


<P align="left" style="font-size: 10pt"><B>Tax fees</B>

<P align="left" style="font-size: 10pt">
Tax Fees can be detailed as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Corporate Income Tax compliance services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>287</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tax assistance for expatriate employees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>253</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other tax advisory and compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>198</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>738</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="18%" align="left" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1
</SUP> All fee amounts exclude VAT.</DIV>


<P align="left" style="font-size: 10pt"><B>Other fees</B>

<P align="left" style="font-size: 10pt">
Other fees reflect for the year 2003 expenditures for training and local compliance services
(non-tax-related).


<P align="left" style="font-size: 10pt">The Audit Committee has approved the external audit plan and related audit fees for the year 2004.
The Audit Committee has adopted a policy regarding audit and non-audit services, in consultation
with Deloitte Accountants. This policy ensures the independence of our auditors by expressly
setting forth all services that the auditors may not perform and reinforcing the principle of
independence regardless of the type of work performed. Certain non-audit services such as
tax-related services and acquisition advisory are permitted. The Audit Committee pre-approves all
audit and non-audit services not specifically prohibited under this policy and reviews the annual
external audit plan and any subsequent engagements.

<DIV align="left">
<A name="162"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>D. Exemptions from the Listing Standards for Audit Committees</B>

<P align="left" style="font-size: 10pt">
Not applicable.

<DIV align="left">
<A name="163"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers</B>

<P align="left" style="font-size: 10pt">
Not applicable.




<P align="center" style="font-size: 10pt">59
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<A name="164"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B><I>Part III</I></B>


<DIV align="left">
<A name="165"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;17</U>



<P align="left" style="font-size: 10pt"><U>Financial Statements</U>



<P align="left" style="font-size: 10pt">Not applicable.

<DIV align="left">
<A name="166"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;18</U>



<P align="left" style="font-size: 10pt"><U>Financial Statements</U>


<P align="left" style="font-size: 10pt">In response to this item, the Company incorporates herein by reference the consolidated financial
statements of the Company set forth on pages F-2 through F-35 hereto.


<DIV align="left">
<A name="167"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U>Item&nbsp;19</U>



<P align="left" style="font-size: 10pt"><U>Exhibits </U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Association of ASML Holding N.V. (English translation)
(Incorporated by reference to Amendment No.&nbsp;7 to the Registrant&#146;s Registration
Statement on Form&nbsp;8-A/A, filed with the Commission on June&nbsp;10, 2004 (File No.
0-25566))</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paying Agent, Conversion Agent and Registrar Agreement between ASML
Holding N.V. and the Bank of New York relating to the Registrant&#146;s 5.75&nbsp;percent
Convertible Subordinated Notes due 2006 (Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the year ended December&nbsp;31, 2001)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paying Agent, Conversion Agent and Registrar Agreement between ASML
Holding N.V. and the Bank of New York relating to the Registrant&#146;s 5.50&nbsp;percent
Convertible Subordinated Notes due 2010 (Incorporated by reference to the Registrant&#146;s Annual Report
on Form 20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement between ASML Lithography B.V. and Carl Zeiss, dated March&nbsp;17,
2000 (Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for
the year ended December&nbsp;31, 2000)#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement between ASML Holding N.V. and Carl Zeiss, dated October&nbsp;24,
2003 (Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for
the year ended December&nbsp;31, 2003)#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Indemnity Agreement between ASML Holding N.V. and members of its
Board of Management (Incorporated by reference to the Registrant&#146;s Annual Report on
Form&nbsp;20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Indemnity Agreement between ASML Holding N.V. and members of its
Supervisory Board (Incorporated by reference to the Registrant&#146;s Annual Report on
Form&nbsp;20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and Eric Meurice*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and Stuart K. McIntosh
(Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the
year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and David P. Chavoustie
(Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the
year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Employee Agreement for
members of the Board of Management (Incorporated by reference to the Registrant&#146;s Annual Report
on Form 20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML New Hires and Incentive Stock Option Plan For Management (Version
2003) (Incorporated by reference to the Registrant&#146;s Registration Statement on
Form&nbsp;S-8, filed with the Commission on September&nbsp;2, 2003 (File No.&nbsp;333-109154))</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nikon-ASML Patent Cross License Agreement, dated December&nbsp;10, 2004, between ASML Holding N.V. and
Nikon Corporation*#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML/Zeiss Sublicense Agreement, dated December&nbsp;10, 2004, between Carl Zeiss SMT AG and ASML
Holding N.V.*#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement, dated October&nbsp;12, 2004, between ASML Holding N.V. and Stuart
K. McIntosh*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML Incentive and New Hire Option Plan for Board of Management (Incorporated by reference to the Registrant&#146;s Registration Statement on
Form&nbsp;S-8, filed with the Commission on June&nbsp;9, 2004 (File No.&nbsp;333-116337))</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">List of Subsidiaries*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of CEO and CFO Pursuant to Rule&nbsp;13a-14(a) of the Securities
Exchange Act of 1934*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">13.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of CEO and CFO Pursuant to Rule&nbsp;13a-14(b) of the Securities
Exchange Act of 1934 and 18 U.S.C. Section&nbsp;1350 as Adopted Pursuant to Section&nbsp;906 of
the Sarbanes-Oxley Act of 2002*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">15.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Deloitte Accountants B.V.*</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">60
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 10pt">* Filed herewith</DIV>


<P align="left" style="font-size: 10pt"># Certain information omitted pursuant to a request for confidential treatment filed separately
with the Securities and Exchange Commission



<P align="center" style="font-size: 10pt">61
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="1687"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Signatures</B>


<P align="left" style="font-size: 10pt">ASML Holding N.V. hereby certifies that it meets all of the requirements for filing on Form 20-F
and that it has duly caused and authorized the undersigned to sign this annual report on its
behalf.



<P align="left" style="font-size: 10pt">ASML Holding N.V.<BR>
(Registrant)


<P align="left" style="font-size: 10pt">/s/ Eric Meurice<BR>
President, Chief Executive Officer and Chairman of the Board of Management<BR>
Dated: January&nbsp;28, 2005


<P align="left" style="font-size: 10pt">/s/ Peter T.F.M. Wennink<BR>
Principal Accounting and Chief Financial Officer<BR>
Dated: January&nbsp;28, 2005


<P align="center" style="font-size: 10pt">62
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Index to Financial Statements</B>


<P align="left" style="font-size: 10pt"><B>Financial Statements</B>

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#301">Consolidated statements of operations for the years ended December
31, 2002, 2003 and 2004</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#302">Consolidated statements of comprehensive income (loss)&nbsp;for the years
ended December&nbsp;31, 2002, 2003 and 2004</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#303">Consolidated balance
sheets as of December&nbsp;31, 2003 and 2004</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#304">Consolidated Statements of shareholders&#146; equity for the years ended
December&nbsp;31, 2002, 2003 and 2004</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#305">Consolidated statements of cash flows for the years ended December
31, 2002, 2003 and 2004</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#306">Notes to the
consolidated financial statements</A></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-35
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#307">Report of
Independent Registered Accounting Firm</A></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-1
<DIV align="left">
<!-- /TOC -->
</DIV>

</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="301"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Consolidated Statements of Operations </B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><I>(in thousands, except per share data)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>US$</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Net product sales</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,740,633</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,356,905</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,250,925</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,071,174</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Net service sales</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">218,039</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">185,832</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>214,452</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>292,599</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total net sales</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,958,672</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,542,737</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,465,377</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,363,773</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Cost of product sales</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,289,030</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,028,362</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,389,556</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,895,918</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Cost of service sales</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">202,038</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">145,593</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>170,182</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>232,197</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total cost of sales</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,491,068</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,173,955</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,559,738</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,128,115</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Gross profit on sales</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">467,604</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">368,782</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>905,639</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,235,658</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Research and development costs</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">324,419</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">305,839</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>352,920</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>481,526</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>15</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Research and development credits</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(26,015</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(19,119</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(21,961</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(29,964</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="right">Selling, general and administrative costs</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">263,243</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">212,609</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>201,629</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>275,104</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Restructuring charges (credits)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24,485</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(5,862</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(7,998</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="right"><B>Operating income (loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(94,043</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(155,032</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>378,913</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>516,990</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Interest income <SUP style="font-size: 85%; vertical-align: text-top"><B>3</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23,700</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,413</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>27,998</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>38,201</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Interest expense <SUP style="font-size: 85%; vertical-align: text-top"><B>3</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(60,481</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(54,562</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(44,071</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(60,131</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Income (loss) from
continuing operations before income taxes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(130,824</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(184,181</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>362,840</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>495,060</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">(Provision for) benefit from income taxes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42,779</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59,675</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(127,380</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>(173,798</B></TD>
    <TD nowrap valign="top"><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap valign="top" align="right"><B>Net income (loss) from continuing operations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(88,045</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(124,506</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>235,460</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>321,262</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Loss from
discontinued operations before income taxes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(183,624</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(59,026</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Benefit from income taxes</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63,846</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23,316</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Net loss from discontinued operations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(119,778</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(35,710</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Net income (loss)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(207,823</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(160,216</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>235,460</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>321,262</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Basic net income
(loss) from continuing operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.18</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.26</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.49</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.66</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Basic net income
(loss) from discontinued operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.26</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.07</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.00</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.00</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Basic net income (loss) per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.44</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.33</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.49</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.66</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Diluted net income
(loss) from continuing operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.18</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.26</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.49</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.66</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Diluted net income
(loss) from discontinued operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.26</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.07</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.00</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.00</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Diluted net income (loss) per ordinary share</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.44</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(0.33</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.49</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>0.66</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Number of ordinary shares used in computing</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">per share amounts (in thousands)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Basic</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">476,866</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">482,240</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>483,380</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>483,380</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Diluted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">476,866</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">482,240</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>484,661</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>484,661</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> See Note 2 &#147;Discontinued operations&#148; and Note 3 &#147;Restructuring&#148; to the
consolidated financial statements.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Solely for the convenience of the reader, certain euro amounts
presented as of and for the year ended December&nbsp;31, 2004, have been translated into U.S. dollars
using the exchange rate on December&nbsp;31, 2004, of US$ 1.00 = EUR
0.73292.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
Reflects netting of intercompany cashpooling activities.</DIV>


<DIV align="left">
<A name="302"></A>
</DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Consolidated Statements of Comprehensive Income</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands) </I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>US$</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,216</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>321,263</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign currency translation, net of taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,269</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(21,832</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(29,788</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gain (loss)&nbsp;on derivative instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,158</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,736</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,835</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Comprehensive income (loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(201,964</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(179,692</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>230,364</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>314,310</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="303"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B>Consolidated Balance Sheets</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><I>(in thousands, except share and per share data) </I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>US$</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Cash and cash equivalents</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,027,806</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,228,130</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,675,667</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>5</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Accounts receivable, net</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">314,495</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>503,153</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>686,505</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>6</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Inventories, net</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">595,017</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>717,688</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>979,217</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Deferred tax assets short term</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49,590</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>54,554</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>74,434</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>7</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Other current assets</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">157,912</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>175,792</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>239,852</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Assets from discontinued operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,007</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,695</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,677</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total current assets</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,149,827</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,682,012</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,659,352</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Deferred tax assets</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">325,271</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>201,100</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>274,382</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>7</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Other assets</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30,711</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>25,145</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>34,308</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>8</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Intangible assets, net</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14,590</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>31,818</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>43,413</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>9</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Property, plant and equipment, net</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">347,883</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>303,691</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>414,357</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total assets</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,868,282</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,243,766</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>4,425,812</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Liabilities and Shareholders&#146; Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Accounts payable</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">220,153</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>343,228</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>468,302</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>3,10</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Accrued liabilities and other</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">442,383</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>453,831</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>619,210</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Deferred tax liabilities short term</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,285</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,332</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,817</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Current tax liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8,247</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>10,037</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>13,695</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Liabilities from discontinued operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,451</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>4,713</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>6,430</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total current liabilities</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">686,519</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>813,141</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,109,454</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>16</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Deferred tax liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">169,641</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>200,717</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>273,859</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>12,13</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Other deferred liabilities</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10,850</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>20,973</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>28,616</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>11</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Convertible subordinated debt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">842,543</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>802,810</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,095,359</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>11</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Other long term debt</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17,522</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>14,523</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>19,815</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total liabilities</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,727,075</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,852,164</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>2,527,103</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>12,14</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Commitments and contingencies</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Cumulative Preference Shares, EUR 0.02 nominal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">value; 900,000,000 shares authorized;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">none outstanding as of December 31, 2003 and 2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom">0</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="bottom"><B>0</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Priority Shares, EUR 0.02 nominal value;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">23,100 shares authorized, issued and outstanding</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">as of December 31, 2003 and 2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Ordinary Shares, EUR 0.02 nominal value;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">900,000,000 shares authorized 482,513,502 shares</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">issued and outstanding as of December 31, 2003</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">and 483,676,483 as of December 31, 2004</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9,650</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>9,674</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>13,199</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Share premium</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">875,829</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>895,836</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,222,284</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Retained earnings</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">116,110</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>351,570</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>479,684</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right">Accumulated other comprehensive income</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">139,617</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>134,521</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>183,541</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>21</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total shareholders&#146; equity</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,141,207</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,391,602</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>1,898,709</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="right"><B>Total liabilities and shareholders&#146; equity</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2,868,282</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>3,243,766</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>4,425,812</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="304"></A>
</DIV>


<P align="left" style="font-size: 10pt"><B>Consolidated Statements of Shareholders&#146; Equity</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Retained</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Comprehensive</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Premium</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Earnings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Income</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at December&nbsp;31, 2001</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">579,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">484,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,226,287</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Components of comprehensive income:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(207,823</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign Currency Translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,269</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(9,269</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gain (loss)&nbsp;on derivative instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15,128</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Issuance of Ordinary Shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,889</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>291,193</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at December&nbsp;31, 2002</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,326</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,093</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,315,516</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Components of comprehensive income:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,216</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(160,216</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign Currency Translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(12,318</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gain (loss)&nbsp;on derivative instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,158</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(7,158</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Issuance of Ordinary Shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,383</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at December&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,141,207</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Components of comprehensive income:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign Currency Translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,832</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(21,832</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gain (loss)&nbsp;on derivative instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>16,736</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Issuance of Ordinary Shares</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,031</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="25" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>483,676</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9,675</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>895,836</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>351,570</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>134,521</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,391,602</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

 <DIV align="left">
<A name="305"></A>
</DIV>


<P align="center" style="font-size: 10pt">F-4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>Consolidated Statements of Cash Flows</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>US$</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">(as&nbsp;restated<BR>see Note&nbsp;1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">(as&nbsp;restated<BR>see Note&nbsp;1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows from Operating Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)&nbsp;from continued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(88,045</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(124,506</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>321,263</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net income to net cash
flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,035</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>90,215</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>123,090</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Impairment charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,929</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,996</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Allowance for doubtful debts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,085</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,209</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Allowance for obsolete inventory</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>34,336</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>46,848</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,361</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(79,577</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>114,701</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>156,499</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Changes in assets and liabilities that provided (used)&nbsp;cash:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57,183</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">211,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(192,819</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(263,083</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84,384</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(149,215</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(203,590</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,945</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,127</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,538</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,683</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,948</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,507</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(7,514</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71,927</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>121,998</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>166,455</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,759</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">164,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>837</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,142</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash provided by (used in) operating
activities from continuing operations </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">532,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>257,147</B></TD>
    <TD nowrap><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>350,853</B></TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows from Investing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchases of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(89,282</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(48,567</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(74,979</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(102,302</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Proceeds from sale of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15,137</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,653</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchase of intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,099</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(556</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(759</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash used in investing activities
from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,028</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(60,398</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(82,408</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows from Financing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Proceeds from issuance of convertible subordinated Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Payment of underwriting commission</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,550</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net proceeds from issuance of shares and
stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,031</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27,329</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Redemption and/or repayment of debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,203</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(445,966</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,160</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,581</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash provided by financing activities
from continuing operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(68,156</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>18,871</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,748</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash flows</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,576</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">415,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>215,620</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>294,193</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of changes in exchange rates on cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,869</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(69,165</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(9,416</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(12,847</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash flow (used)&nbsp;provided by discontinued
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127,473</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,880</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,023</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net increase (decrease)&nbsp;in cash and cash equivalents</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(241,918</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">359,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>200,324</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>273,323</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">910,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,027,806</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,402,344</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and cash equivalents at end of the year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">668,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,027,806</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,228,130</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,675,667</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Supplemental Disclosures of Cash Flow Information:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cash paid for:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>45,866</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>62,580</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,430</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10,138</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Supplemental non-cash investing and financing activities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Conversion of Bonds into 13,634,782, 536 and
0 ordinary shares respectively in 2002, 2003 and 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV
 style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="306"></A>
</DIV>

<P align="left" style="font-size: 10pt"><B><I>Notes to the Consolidated Financial Statements</I></B>



<P align="left" style="font-size: 10pt"><B>1. Summary of significant accounting policies</B>


<P align="left" style="font-size: 10pt">The accompanying consolidated financial statements include the Financial Statements of ASML Holding
N.V. Veldhoven, the Netherlands, and its consolidated subsidiaries (together referred to as &#147;ASML&#148;
or the &#147;Company&#148;). ASML is a worldwide operating company engaged in the development, production,
marketing, sale and servicing of advanced semiconductor equipment systems, mainly consisting of
lithography systems. ASML&#146;s principal operations are in the Netherlands, the United States and
Asia.


<P align="left" style="font-size: 10pt">ASML follows accounting principles generally accepted in the United States of America (&#147;U.S.
GAAP&#148;). ASML&#146;s reporting currency is the euro. The accompanying consolidated financial statements
are stated in thousands of euro (&#147;EUR&#148;) unless indicated otherwise except that, solely for the
convenience of the reader, certain euro amounts presented as of and for the year ended December&nbsp;31,
2004 have been translated into United States dollars (&#147;US$&#148;) using the exchange rate in effect on
December&nbsp;31, 2004 of US$ 1.00 = EUR 0.73292. These translations should not be construed as
representations that the euro
amounts could be converted into U.S. dollars at that rate.


<P align="left" style="font-size: 10pt">On December&nbsp;18, 2002 ASML announced the proposed divestiture of its Thermal business, including
related customer support activities, and the termination of its manufacturing activities in the
Track business. As a result of this decision, the presentation of the Company&#146;s financial
statements and the Notes thereto have been retroactively adjusted to reflect the effects of the
decision to discontinue these operations. See Note 2.


<P align="left" style="font-size: 10pt"><U>Restatement relating to
reclassification of 2002 and 2003 Consolidated Statements of Cash Flows.</U>

<P align="left" style="font-size: 10pt">Subsequent to the issuance of
the Company&#146;s 2003 financial statements, the Company&#146;s
management concluded that the presentation under cash flows from
investing activities of the capitalization and sale of equipment that
is used for demonstration and training purposes for a certain period
of time, before it is sold to customers, is inconsistent with the
actual initial cash outflow relating to the construction of the
equipment, and the ultimate cash inflow relating to the sale of the
equipment. The Company&#146;s management believes that these cash
flows should be considered cash flows from operating activities,
since the sale of this equipment is not substantially different from
the sale of the Company&#146;s other products. As a result, the statement of
cash flows for the years ended December&nbsp;31, 2002 and 2003 have
been restated to classify these cash flows, for all periods presented
as cash flows from operating activities. These reclassifications have
no impact on the total of ASML&#146;s cash flows from operating
and investing activities, or on net income (loss) or shareholders&#146; equity as
of and for the years ended December&nbsp;31, 2002 and 2003.

<P align="left" style="font-size: 10pt">A summary of the effect of
the restatement on the cash flows from operating and investing
activities for the years ended December&nbsp;31, 2002 and 2003 is as
follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="2">&nbsp;</TD>
    <TD colspan="6" nowrap align="right"><B>Year ended December&nbsp;31, 2002</B></TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="6"><B>Year ended
December&nbsp;31, 2003</B></TD>
<TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
        <TD colspan="2">&nbsp;</TD>
    <TD colspan="2" nowrap align="right"><B>As
previously<BR>reported</B></TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right"><B>As restated</B></TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right"><B>As
previously<BR>reported</B></TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right"><B>As restated</B></TD>
<TD>&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cash
flows from operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,151</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,127</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">509,333</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">532,659</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cash
flows from investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(79,852</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72,876</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(25,702</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(49,028</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(134,003</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(134,003</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">483,631</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">483,631</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><U>Principles of consolidation</U>


<P align="left" style="font-size: 10pt">The consolidated financial statements include the accounts of ASML Holding N.V. and all of its
majority-owned subsidiaries. All intercompany profits, balances and transactions have been
eliminated in the consolidation.


<P align="left" style="font-size: 10pt"><U>Use of estimates</U>


<P align="left" style="font-size: 10pt">The preparation of ASML&#146;s consolidated financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and
liabilities
and disclosure of contingent assets and liabilities on the balance sheet dates and the reported
amounts of revenue and expense during the reported periods. Actual results could differ from those
estimates.


<P align="left" style="font-size: 10pt"><U>Foreign currency translation</U>


<P align="left" style="font-size: 10pt">The financial information for subsidiaries outside the euro-zone is generally measured using local
currencies as the functional currency. The financial statements of those foreign subsidiaries are
translated into euro in the preparation of ASML&#146;s consolidated financial statements. Assets and
liabilities are translated into euro at the exchange rate in effect on the respective balance sheet
dates. Income and expenses are translated into euro based on the average exchange rate for the
corresponding period. The resulting translation adjustments are recorded directly in shareholders&#146;
equity. Currency differences on inter-company loans that have the nature of a long-term investment
are also accounted for directly in shareholders&#146; equity.


<P align="left" style="font-size: 10pt"><U>Derivative financial instruments</U>


<P align="left" style="font-size: 10pt">The Company principally uses derivative foreign currency hedging instruments for the management of
foreign currency risks. Applying Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;133
&#147;Accounting for Derivative Instruments and Hedging Activities&#148; and SFAS No.&nbsp;138 &#147;Accounting
for Certain Derivative Instruments and Certain Hedging Activities an amendment of SFAS No.&nbsp;133,&#148;
the Company measures all derivative foreign currency hedging instruments based on fair values
derived from market prices of the instruments. The Company adopts hedge accounting for all hedges





<P align="center" style="font-size: 10pt">F-6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">that are highly effective in offsetting the identified hedged risks as required by the SFAS No.&nbsp;133
effectiveness criteria.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash Flow Hedges</B>


<P align="left" style="font-size: 10pt">Forwards and options used to hedge the impact of the fluctuations in exchange rates on cash flows
from purchase activities and sales transactions in non-functional currencies are treated as cash
flow hedges. Until the moment of recognition in the statement of operations sales and purchase
transactions are not recorded in the accounts of the Company. Therefore the hedges related to these
transactions are recorded as cash flow hedges. The changes in fair value of the derivatives are
intended to offset changes in the expected cash flows from the underlying transactions. The change
in the fair value of cash flow hedges are deferred in other comprehensive income until the
underlying exposure is recognized in the statement of operations. The critical terms of the hedging
instruments are the same as those for the underlying transactions, and thus these hedging
relationships are perfectly effective.


<P align="left" style="font-size: 10pt">When the underlying hedged transaction is recognized, the related gain or loss on the cash flow
hedge accumulated in other comprehensive income is released to the statement of operations. Gains
and losses on hedges on sales transactions are recognized in revenue, while gains and losses on
hedges on forecasted purchase transactions are recognized in cost of sales. In the event that the
underlying hedged transaction does not occur, or it becomes probable that it will not occur, the
gain or loss on the related cash flow hedge is immediately released from accumulated other
comprehensive income and included in the statement of operations.


<P align="left" style="font-size: 10pt">Interest rate swaps that are being used to hedge changes in the variability of future interest
receipts are designated as cash flow hedges. The critical terms of the hedging instruments are the
same as those for the underlying assets. Accordingly, all changes in fair value of these derivative
instruments are recorded as other comprehensive income. The accumulated changes in fair value of
the derivatives are intended to offset changes in future interest cash flows on the assets.


<P align="left" style="font-size: 10pt">The maximum length of time of cash flow hedges is the time elapsed from the moment the exposure is
generated until the actual settlement.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Hedges</B>


<P align="left" style="font-size: 10pt">Forwards used to hedge accounts receivable, accounts payable and other monetary assets and
liabilities denominated in non-functional currencies are designated as fair value hedges. Both the
changes in the fair value of these hedges and their underlying exposure are recognized in the
statement of operations.


<P align="left" style="font-size: 10pt">Interest rate swaps that are being used to hedge the fair value of fixed loan coupons payable are
designated as fair value hedges. The change in fair value is intended to offset the change in the
fair value of the underlying fixed loan coupons, which is recorded accordingly.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness</B>


<P align="left" style="font-size: 10pt">The Company records any ineffective portion of foreign currency hedging instruments in sales or
cost of sales in the statement of operations. Ineffectiveness of hedging instruments had a positive
impact of EUR 0.3&nbsp;million, EUR 0&nbsp;million and EUR 0.8&nbsp;million in 2004, 2003 and 2002, respectively.


<P align="left" style="font-size: 10pt">The ineffective portion of interest rate swaps is recorded in interest income (expense). The
Company did not have benefits or costs due to ineffectiveness of interest rate swaps in 2004 and
2003.


<P align="left" style="font-size: 10pt"><U>Cash and cash equivalents</U>


<P align="left" style="font-size: 10pt">Cash and cash equivalents consist primarily of highly liquid investments,
such as bank deposits, commercial paper and money market funds, with insignificant interest rate
risk and remaining maturities of three months or less at the date of acquisition.

<P align="left" style="font-size: 10pt"><U>Inventories</U>


<P align="left" style="font-size: 10pt">Inventories are stated at the lower of cost (first-in, first-out method) or market value. Cost
includes net prices paid for materials purchased, charges for freight and customs duties,
production labor cost and factory overhead. Allowances are made for slow moving, obsolete or
unsaleable inventory.


<P align="left" style="font-size: 10pt"><U>Intangible assets</U>


<P align="left" style="font-size: 10pt">Intangible assets include acquired intellectual property rights that are valued at cost or
estimated fair value and are amortized on a straight-line basis over the term of the rights ranging
from 3 to 10&nbsp;years.


<P align="left" style="font-size: 10pt"><U>Property, plant and equipment</U>


<P align="left" style="font-size: 10pt">Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is
calculated using the straight-line method based on the estimated useful lives of the related
assets. In the case of leasehold improvements, the estimated




<P align="center" style="font-size: 10pt">F-7
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">useful lives of the related assets do
not exceed the remaining term of the corresponding lease. The following table presents the assigned
economic lives of ASML&#146;s property, plant and equipment:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right"><B>Assigned economic life</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="4" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Buildings and constructions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">5&nbsp;&nbsp;&#150;&nbsp;&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40 years</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Machinery and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">2&nbsp;&nbsp;&#150;&nbsp;&nbsp;</TD>
    <TD align="right" valign="bottom">5 years</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Furniture, fixtures and other equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">3&nbsp;&nbsp;&#150;&nbsp;&nbsp;</TD>
    <TD align="right" valign="bottom">5 years</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leasehold improvements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">5&nbsp;&nbsp;&#150;&nbsp;&nbsp;</TD>
    <TD align="right" valign="bottom">10 years</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Certain internal and external costs associated with the purchase and/or development of internally
used software are capitalized when both the preliminary project stage is completed and management
has authorized further funding for the project, which it has deemed probable to be completed and to
be usable for the intended function. These costs are amortized on a straight-line basis over the
period of related benefit, which ranges primarily from two to five years.


<P align="left" style="font-size: 10pt"><U>Evaluation of long-lived assets for impairment</U>


<P align="left" style="font-size: 10pt">The Company evaluates its long-lived assets, which include property, plant and equipment and
intangible assets, for impairment whenever events or changes in circumstances indicate that the
carrying amount of those assets may not be recoverable. Recoverability of these assets is measured
by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected
to be generated by the asset. If those assets are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceeds the fair
value of the asset. Assets held for sale are reported
at the lower of the carrying amount or fair value less the cost to sell.


<P align="left" style="font-size: 10pt"><U>Revenue recognition</U>


<P align="left" style="font-size: 10pt">ASML recognizes revenue when all four revenue recognition criteria are met: persuasive evidence of
an arrangement exists; delivery has occurred or services have been
rendered; the seller&#146;s price to
the buyer is fixed or determinable; and collectibility is reasonably assured. At ASML, this policy
generally results in revenue recognition from the sale of a system upon shipment and the revenue
from the installation of a system upon completion of that installation at the customer site. Each
system undergoes, prior to shipment, a &#147;Factory Acceptance Test&#148; in ASML&#146;s clean room facilities,
effectively replicating the operating conditions that will be present on the customer&#146;s site, in
order to verify whether the system will meet its standard specifications and any additional
technical and performance criteria agreed with the customer. A system is shipped, and revenue
recognized, only after all specifications are met and customer sign-off is received or waived.
Although each system&#146;s performance is re-tested upon installation at the customer&#146;s site, ASML has
never failed to successfully complete installation of a system at a customer&#146;s premises.


<P align="left" style="font-size: 10pt">Commencing at the end of 2000, ASML departed from its standard revenue
recognition policy in connection with the introduction of its TWINSCAN family of lithography
systems. Although each TWINSCAN system successfully completed a Factory Acceptance Test prior to
shipment, management considered the TWINSCAN to constitute &#147;new&#148; technology for which it did not
have sufficient evidence to conclude that (i)&nbsp;installation at the customer site would occur
consistently within a pre-determined time period comparable to ASML&#146;s other systems; and (ii)&nbsp;upon
installation, the system would perform within the specifications for which customer sign-off had
been obtained in the pre-shipment Factory Acceptance Test. Consequently, ASML initially deferred
all revenue with respect to each TWINSCAN system until installation and acceptance of the system at
the customer&#146;s premises had been completed. By the end of 2002, however, ASML had successfully
shipped and installed a total of 70 TWINSCAN systems, which provided management with sufficient
evidence to conclude that installation of TWINSCAN systems would occur consistently within a
predetermined time period and that the performance of these systems would not reasonably be
different from that exhibited in the pre-shipment Factory Acceptance Test. As a result, at the end
of 2002, ASML commenced recognizing revenues from TWINSCAN systems upon shipment. Therefore, no
revenue was deferred pending installation of a
TWINSCAN system (or any other ASML system) during 2003 or 2004.


<P align="left" style="font-size: 10pt">As ASML&#146;s systems are based largely on two product platforms that permit incremental, modular
upgrades, the introduction of genuinely &#147;new&#148; technology occurs infrequently and has occurred on
only one occasion since December&nbsp;1999.


<P align="left" style="font-size: 10pt">ASML anticipates that, in connection with future introductions of new technology, it will initially
defer revenue recognition until completion of installation and acceptance of the new technology at
customer premises. This deferral would continue until ASML could conclude that installation of the
technology in question would occur consistently within a predetermined time period and that the
performance of the new




<P align="center" style="font-size: 10pt">F-8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">technology would not reasonably be different from that exhibited in the
pre-shipment Factory Acceptance Test. Any such deferral of revenues, however, could have a material
effect on ASML&#146;s results of operations for the fiscal period in which the deferral occurred and on
the succeeding fiscal period.


<P align="left" style="font-size: 10pt">ASML has no repurchase commitments in its sales terms and conditions. From time to time, however,
the Company repurchases systems that it has manufactured and sold and, following refurbishment,
resells those systems to other customers. This
repurchase decision is driven by market demand expressed by other customers and not by explicit or
implicit contractual arrangements relating to the initial sale. The Company considers reasonable
offers from any vendor, including customers, to repurchase used systems so that it can refurbish,
resell and install these systems as part of its normal business operations. Once repurchased, the
repurchase price of the used system is recorded in work-in-process inventory during the period it
is being refurbished, following which the refurbished system is reflected in finished products
inventory until it is sold to the customer.


<P align="left" style="font-size: 10pt">The fair value of installation services provided to customers is initially deferred and is
recognized when the installation is completed. The fair value is determined by vendor specific
objective evidence (&#147;VSOE&#148;) and/or third party evidence. VSOE is determined based upon the prices
that ASML charges for installation and comparable services (such as relocating a system to another
customer site) on a stand-alone basis, which are subject to normal price negotiations. Prices that
ASML charges on a stand-alone basis are also in line with prices charged by other vendors, although
the number of third party installers is decreasing.


<P align="left" style="font-size: 10pt">Sales from service contracts are recognized when performed. Revenue from
prepaid service contracts is recognized over the life of the contract.


<P align="left" style="font-size: 10pt">ASML offers customers discounts in the normal course of sales negotiations. These discounts are
directly deducted from the gross sales price at the moment of revenue recognition. These discounts
do not relate to future purchases or trade-ins with the exception of volume discounts. From time to
time, ASML offers volume discounts to a limited number of customers. These discounts depend on the
number of systems shipped per calendar year. The related amount is recorded as a reduction in
revenue at time of shipment. Generally, there are no other credits or adjustments recognized at
shipment.


<P align="left" style="font-size: 10pt"><U>Accounting for Shipping and Handling Fees and Costs</U>


<P align="left" style="font-size: 10pt">ASML bills the customer for, and recognizes as revenue, any charges for shipping and handling
costs. The related costs are recognized as cost of sales.


<P align="left" style="font-size: 10pt"><U>Cost of sales</U>


<P align="left" style="font-size: 10pt">Costs of product sales comprise direct product costs such as materials, labor, cost of warranty,
depreciation, shipping and handling costs and related overhead costs. Repayments of certain
technical development credits, which are calculated as a percentage of sales, are also charged to
cost of product sales (see &#147;Research and development costs and credits,&#148; below). ASML accrues for
the estimated
cost of the warranty on its systems, which includes the cost of labor and parts necessary to repair
systems during the warranty period. The amounts recorded in the warranty accrual are estimated
based on actual historical expenses incurred and on estimated probable future expenses related to
current sales. Actual warranty costs are charged against the accrued warranty reserve. Costs of
service sales comprise direct service costs such as materials, labor, depreciation and overhead
costs.


<P align="left" style="font-size: 10pt"><U>Restructuring</U>


<P align="left" style="font-size: 10pt">ASML applies the criteria defined in SFAS No.&nbsp;146, &#147;Accounting for Costs Associated with Exit or
Disposal Activities&#148; and SFAS No.&nbsp;112, &#147;Employers&#146; Accounting for Postemployment Benefits&#148;, in order
to determine when a liability for restructuring or exit costs should be recognized. With respect to
employee termination costs, the Company applies SFAS No.146 (effective since January&nbsp;1, 2003) in
the case of benefit arrangements that, in substance, do not constitute an ongoing benefit
arrangement. SFAS No.&nbsp;112 is applied when termination benefits are provided under an ongoing
benefit arrangement. SFAS No.&nbsp;146 establishes that a liability for a cost associated with an exit
or disposal activity shall be recognized and measured initially at its fair value in the period in
which the liability is incurred; that is, when a detailed plan exists, has been committed
to by management and communicated to employees. SFAS No.&nbsp;112 establishes that a liability for
termination benefits provided under an ongoing benefit arrangement covered by SFAS No.&nbsp;112 is
recognized when the likelihood of future settlement is probable and can be reasonably estimated.


<P align="left" style="font-size: 10pt">Other exit costs include purchase and other commitments to be settled or fulfilled. Related costs
are estimated based on expected settlement fees and committed payments, taking into account future
potential benefits, if any, from those commitments.


<P align="left" style="font-size: 10pt">The allocation of restructuring expenses to either cost of sales or restructuring expenses is
determined by reference to the workforce to which the restructuring



<P align="center" style="font-size: 10pt">F-9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">expenses relate. Restructuring
expenses relating to the Company&#146;s manufacturing and service workforce are allocated to cost of
sales, while restructuring expenses relating to research and development and selling, general and
administrative activities are presented as restructuring charges.
Restructuring credits are recorded in the same
line of the statement of operations as used when the original expenses were initially recognized.


<P align="left" style="font-size: 10pt"><U>Research and development costs and credits</U>


<P align="left" style="font-size: 10pt">Costs relating to research and development are charged to operating expense as
incurred. ASML receives subsidies and other credits only from governmental institutes. These
subsidies and other governmental credits that cover research and development costs relating to
approved projects are recorded as research and development credits in the period when such costs
occur. Technical development credits received from the Dutch government to offset the cost of
certain research and development projects are contingently repayable to the extent sales of the
equipment developed in such projects occur. Such repayments are calculated as a percentage of sales
and are charged to cost of sales. No such repayments are required if such sales do not occur. As
disclosed in note 14, ASML did not have any remaining repayment
obligations to the Dutch Ministry of Economic Affairs at December&nbsp;31, 2004, as ASML had fully
repaid the outstanding amount.


<P align="left" style="font-size: 10pt"><U>Income taxes</U>


<P align="left" style="font-size: 10pt">The asset and liability method is used in accounting for income taxes. Under this method, deferred
tax assets and liabilities are recognized for the tax effect of incurred net operating losses and
for tax consequences attributable to differences between the balance sheet carrying amounts of
existing assets and liabilities and their respective tax bases. If it is more likely than not that
the carrying amounts of deferred tax assets will not be realized, a valuation
allowance will be recorded to reduce the carrying amounts of those assets.


<P align="left" style="font-size: 10pt">Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in the results of operations in the period that includes the enactment date.


<P align="left" style="font-size: 10pt"><U>Contingencies and
litigation</U>


<P align="left" style="font-size: 10pt">As of December&nbsp;31, 2004 and 2003, ASML was party to various legal proceedings generally incidental
to its business, as disclosed in Note 14 to the consolidated statements. In connection with these
proceedings and claims, ASML&#146;s management evaluated, based on the relevant facts and legal
principles, the likelihood of an unfavorable outcome and whether the amount of the loss could be
reasonably estimated. In each case, management determined that either a loss was not probable or
was not reasonably estimable. As a result, no estimated losses were recorded as a charge to its
statement of operations. Significant subjective judgments were required in these evaluations,
including judgments regarding the validity of asserted claims and the likely outcome of legal and
administrative proceedings. The outcome of these proceedings, however, is subject to a number of
factors beyond
ASML&#146;s control, most notably the uncertainty associated with predicting decisions by courts and
administrative agencies. In addition, estimates of the potential costs associated with legal and
administrative proceedings frequently cannot be subjected to any sensitivity analysis, as damage
estimates or settlement offers by claimants may bear little or no relation to the eventual outcome.
Finally, in any particular proceeding, ASML may agree to settle or to terminate a claim or
proceeding in which it believes it would ultimately prevail where it believes that doing so, when
taken together with other relevant commercial considerations, is more cost-effective than engaging
in an expensive and protracted litigation, the outcome of which is uncertain.


<P align="left" style="font-size: 10pt"><U>Stock options</U>


<P align="left" style="font-size: 10pt">ASML applies Accounting Principles Board Opinion (&#147;APB&#148;) 25, Accounting for Stock Issued to
Employees, and related interpretations in accounting for its stock option plans. SFAS No.&nbsp;123,
&#147;Accounting for Stock-Based Compensation,&#148; amended by SFAS No.&nbsp;148, &#147;Accounting for Stock-Based
Compensation &#150; Transition and Disclosure&#148; allows companies to elect to recognize the fair value of
the stock options granted to
employees as an expense, or to account for stock option plans using the intrinsic value method
under APB 25 and provide pro forma disclosure of the impact of the fair value method on net income
and earnings per share.


<P align="left" style="font-size: 10pt">Under the provisions of APB 25, no significant compensation expense was recorded for ASML&#146;s
stock-based compensation plans for the years ended December&nbsp;31, 2004, 2003 and 2002. Had
compensation cost been determined based upon the fair value at the grant date for awards under the
plan consistent with the methodology prescribed under SFAS No.&nbsp;148, ASML&#146;s net income (loss)&nbsp;and
calculation for net income (loss)&nbsp;per ordinary share would have been as follows (net of related tax
effects):




<P align="center" style="font-size: 10pt">F-10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands, except per share data</I>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Net income (loss)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">As reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(207,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(160,216</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>235,460</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Compensation expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(76,177</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,696</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(12,437</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pro forma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(284,000</TD>
    <TD nowrap>)<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(177,912</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>223,023</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Basic net income (loss)&nbsp;per ordinary share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">As reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pro forma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.60</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.46</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Diluted net income (loss)&nbsp;per ordinary share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">As reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pro forma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.60</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0.46</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&nbsp;Contains compensation expense for extension of stock option plans that
consequently created a new measurement date.</DIV>


<P align="left" style="font-size: 10pt">The estimated weighted
average fair value of options granted during 2002, 2003 and 2004, was
EUR 11.55, EUR 6.66 and EUR 7.35, respectively, on the date of grant using the Black-Scholes
option-pricing model, with the following assumptions in 2002, 2003 and 2004, respectively: no
dividend yield, volatility of 87.4&nbsp;percent, 85.2
percent and 68.3&nbsp;percent, respectively, risk-free interest rate of 3.18, 3.60
and 3.65&nbsp;percent, respectively, no assumed
forfeiture rate and an expected life of two years after the vesting period.


<P align="left" style="font-size: 10pt"><U>Net income (loss)&nbsp;per ordinary share</U>


<P align="left" style="font-size: 10pt">Basic net income (loss)&nbsp;per share is computed by dividing net income (loss)&nbsp;by the weighted average
ordinary shares outstanding for that period. Diluted net income (loss)&nbsp;per share reflects the
potential dilution that could occur if options issued under ASML&#146;s stock compensation plan were
exercised, and if ASML&#146;s convertible notes were converted, unless the exercise of the stock options
or conversion of the notes would have an anti-dilutive effect. The dilutive effect is calculated
using the if-converted method. Following this method, our convertible bonds are considered
anti-dilutive in 2004. As a result of the losses incurred by the Company in 2002 and 2003, there is
no difference between basic and diluted earnings in 2002 and 2003 because the assumed conversion of
ASML&#146;s convertible notes and exercise of stock options would have been anti-dilutive.


<P align="left" style="font-size: 10pt">A summary of the basic and diluted weighted average number of shares is as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Basic weighted average shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>483,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Diluted weighted average shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">476,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>484,661</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Excluded from the diluted weighted average share outstanding calculation are cumulative preference
shares contingently issuable to the preference share foundation, since they represent a different
class of stock than the ordinary shares. See further discussion in Note 21.


<P align="left" style="font-size: 10pt"><U>Comprehensive income</U>


<P align="left" style="font-size: 10pt">Comprehensive income consists of net income (loss)&nbsp;and other comprehensive income (loss). Other
comprehensive income (loss)&nbsp;refers to revenues, expenses, gains and losses that are not included in
net income, but recorded directly in shareholders&#146; equity. For the years ended December&nbsp;31, 2004,
2003 and 2002, comprehensive income consists of net income (loss), unrealized gains and losses on
derivative financial instruments and foreign currency translation adjustments.


<P align="left" style="font-size: 10pt"><U>Segment disclosure</U>


<P align="left" style="font-size: 10pt">Prior to 2002, ASML reported in two business segments, Lithography and Track &#038; Thermal. As ASML
decided in 2002 to terminate the manufacturing activities of its Track business and to divest its
Thermal business, they are presented as discontinued operations and no longer disclosed as a
separate segment. ASML operates in three general geographic areas. See Note 17.


<P align="left" style="font-size: 10pt"><U>Newly adopted accounting pronouncements</U>


<P align="left" style="font-size: 10pt">In December&nbsp;2004, the FASB issued a revision of FASB statement No.&nbsp;123,
Accounting for Stock-Based Compensation (&#147;SFAS No.&nbsp;123(R)&#148;). This statement supersedes APB Opinion
No.&nbsp;25, Accounting for Stock Issued to Employees, and its related implementation guidance. SFAS No.
123(R) addresses the accounting for share-based payment transactions in which a company receives
employee services in exchange for either equity instruments of the company or liabilities that are
based on the fair value of the company&#146;s equity instruments or that may be settled by the issuance
of such equity instruments. SFAS No.&nbsp;123(R) eliminates the ability to account for share-based
compensation transactions using the intrinsic method that we currently use and



<P align="center" style="font-size: 10pt">F-11
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">generally requires
that such transactions be accounted for using a &#147;fair-value&#148;-based method and recognized as expense
in our consolidated statement of operations. SFAS No.&nbsp;123(R) is effective as of the beginning of
the first interim or annual reporting period that begins after June&nbsp;15, 2005. SFAS N. 123(R) will
have a significant impact
on our consolidated statement of operations as we will be required to expense the &#147;fair value&#148; of
our stock option grants under ASML&#146;s stock option plans. See also Note 13 and the paragraph on
stock options as described above.


<P align="left" style="font-size: 10pt">In March&nbsp;2004, the Emerging Issues Task Force (&#147;EITF&#148;) reached a consensus on recognition and
measurement guidance previously discussed under EITF Issue No.

03-01, &#147;The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments&#148;
(&#147;EITF 03-01&#148;). The consensus clarifies the meaning of other-than-temporary impairment and its
application to investments in debt and equity securities, in particular investments within the
scope of FASB Statement No.&nbsp;115, &#147;Accounting for Certain Investments in Debt and Equity
Securities,&#148; and investments accounted for under the cost method. ASML does not believe that this
consensus will have a material impact on its consolidated results of operations.


<P align="left" style="font-size: 10pt">In November&nbsp;2004, the
EITF reached a consensus on EITF Issue No.&nbsp;O3-13 &#147;Applying the conditions in
paragraph 42 of SFAS No.&nbsp;144, Accounting for the Impairment or Disposal of Long-Lived Assets, in
determining whether to report discontinued operations.&#148; The consensus clarifies the approach for
evaluating whether the criteria in paragraph 42 of SFAS No.&nbsp;144 have been met for purposes of
classifying the results of operations of a component of an entity that either has been disposed of
or is classified as held for sale as discontinued operations. The task force also reached a
consensus that the guidance would be applied to a component of an enterprise that is either
disposed of or classified as held for sale in fiscal periods beginning after December&nbsp;15, 2004.
ASML does not believe that this
consensus will have a material impact on its consolidated results of operations.


<P align="left" style="font-size: 10pt"><B>2. Discontinued operations</B>


<P align="left" style="font-size: 10pt">On December&nbsp;18, 2002 ASML announced the proposed sale of its Thermal business and the termination
of its manufacturing activities in the Track business. Both discontinued businesses met the
criteria of SFAS No.&nbsp;144 and have been classified accordingly.


<P align="left" style="font-size: 10pt">In December&nbsp;2002 the Company reviewed its long-lived assets used in the Thermal business for
potential impairment and recorded no impairment charges. During 2003, ASML&#146;s management again
reviewed its long-lived assets for impairment as the Company entered into negotiations with several
potential buyers and accordingly recorded pre-tax impairment charges of EUR 16.0&nbsp;million. In
October&nbsp;2003, the Company completed the sale of its Thermal business to a privately held company
formed by VantagePoint Venture Partners. At the time of the sale, no further gain or loss was
realized. The net loss of the Thermal business amounted to EUR 32.3&nbsp;million in 2003 compared to EUR
61.2&nbsp;million in 2002.


<P align="left" style="font-size: 10pt">The termination of the Track business resulted in an exit plan that included workforce reductions,
fixed asset impairments and inventory write-offs due to discontinued product lines. The exit plan
included the disposal of remaining assets related to the Track business. In 2002, ASML decided to
continue to service
its existing customers for whom ASML has warranty or other service obligations. Consequently,
customer support related to the Track business was not included in discontinued operations for
2002. In June&nbsp;2003, ASML sold certain of its fixed assets and inventories related to its Track
business to Rite Track. No gain or loss was realized on the sale. The net loss of the Track
business amounted to EUR 3.4&nbsp;million in 2003 compared to EUR 58.6&nbsp;million for 2002. The net loss
from operations for 2002 included total pre-tax estimated exit costs of EUR 47.0&nbsp;million. These
exit costs included asset impairments, inventory write downs, purchase and other commitment
settlements and employee termination costs. The net loss in 2003 relates mainly to impairment
charges recorded on a building in the United States, previously used by the Company&#146;s Track
business. This impairment was determined on the difference between the building&#146;s estimated fair
value and its carrying value.


<P align="left" style="font-size: 10pt">The tax effects arising from asset impairment costs, employee termination costs, inventory
write-off and losses from discontinued operations mostly reside and will remain with ASML U.S.
group companies. These losses can be offset against future profits from continuing operations of
these U.S. group companies.


<P align="left" style="font-size: 10pt">As of December&nbsp;31, 2004, ASML has substantially completed the
discontinuation of the Track business and the divesture of the Thermal business. ASML continues to
hold a related building for sale with a book value of approximately EUR 3&nbsp;million and liabilities for loss
contingencies amounting to approximately EUR 5&nbsp;million.






<P align="center" style="font-size: 10pt">F-12
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Summarized results of operations for discontinued operations are as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Revenues</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total </B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Loss from discontinued operations,
net of taxes</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,991</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,456</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Track exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,626</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,944</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(61,161</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,906</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thermal exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,404</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(119,778</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,710</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Estimated exit costs related to our Track business comprised the following for the 2&nbsp;years ended
December&nbsp;31, 2003 (EUR millions):


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in millions)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventory write downs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Fixed asset impairments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Severance payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operational lease buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross estimated exit costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tax benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Estimated exit costs, net of tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt">Our exit from the Track business was substantially completed by the end of 2003 with limited
changes from prior year estimates.



<P align="left" style="font-size: 10pt">Summarized assets and liabilities from discontinued operations are as follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Assets</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Intangible assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tangible fixed assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,695</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,695</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Liabilities</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,713</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Installation and warranty</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total Liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,713</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">ASML organizes its financing activity at the corporate level and does not allocate funding to
individual net assets identified as assets from discontinued operations. The following table
represents cash flows directly attributable to ASML&#146;s discontinued operations.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in)
operating activities of discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(121,039</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,880</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash used in investing activities of
discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,434</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) discontinued
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(127,473</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,880</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">F-13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>3. Restructuring</B>


<P align="left" style="font-size: 10pt"><U>Restructuring Plan 2001</U>


<P align="left" style="font-size: 10pt">On October&nbsp;16, 2001, as a consequence of the downturn in the semiconductor industry, ASML announced
cost reductions and a restructuring plan (&#147;Restructuring plan 2001&#148;) which resulted in the
consolidation of manufacturing facilities and discontinuance of certain product lines related to
SVG that overlapped with products of ASML. As a result of this restructuring plan, the Company
recorded restructuring charges in 2001 for an amount of EUR 402.7&nbsp;million mainly relating to
inventory write-offs, purchase
commitments, fixed asset write-offs and severance payments. This restructuring provision was mainly
used in 2001, 2002 and 2003. Adjustments to the Restructuring plan 2001, amounting to EUR 5.9
million and EUR 1.4&nbsp;million, have been recognized in 2002 and 2003, respectively, and are
classified as cost of sales (the same line as where the initial charges were recorded). These
adjustments relate mainly to more favorable settlement agreements with vendors of purchase
commitments than the Company had estimated.


<P align="left" style="font-size: 10pt"><U>Restructuring Plan 2002</U>


<P align="left" style="font-size: 10pt">In response to the semiconductor industry&#146;s continuing downturn and a corresponding decrease in
demand for ASML&#146;s products and services, on December&nbsp;18, 2002, ASML announced measures to contain
costs for our lithography business, including customer support, and thereby lower our break-even
point (&#147;Restructuring plan 2002&#148;). The Restructuring plan 2002 did not impact any processes or
products.


<P align="left" style="font-size: 10pt">These measures resulted in the recognition of restructuring charges of EUR 78.5&nbsp;million, recorded
during 2002 as cost of sales, for slow-moving and obsolete lithography inventory and impairments of
tangible fixed assets. The impaired fixed assets related to lithography systems held for use. Fixed asset impairments were recorded as a consequence of insufficient cash
flows to support the carrying cost of these assets as a consequence of their reduced
marketability, due to the global semiconductor industry downturn. The impairment charges were
determined on the basis of the difference between the assets&#146; estimated fair value and their
carrying value. The fair value was determined based upon data gained in the Company&#146;s ongoing
resale of used systems.


<P align="left" style="font-size: 10pt">The Company also announced workforce reductions of approximately 700 positions worldwide. The
related lay-off costs were recorded in 2003 since the final details on the plan had not been
finally determined by December&nbsp;31, 2002. With respect to these reductions, ASML recorded in 2003
restructuring charges totaling EUR 6.9&nbsp;million, of which EUR 4.1&nbsp;million was reflected in cost of
sales and EUR 2.8&nbsp;million was reflected in restructuring charges. By adjusting labor capacity, the
Company expected to achieve annual cost savings of EUR 49&nbsp;million. As of December&nbsp;31, 2003, this
plan had been fully effectuated.


<P align="left" style="font-size: 10pt"><U>Restructuring Plan 2003</U>


<P align="left" style="font-size: 10pt">The worldwide slowdown in the semiconductor industry continued into 2003 and, on July&nbsp;16, 2003,
ASML announced further workforce reductions of approximately 550 positions worldwide, of which the
majority was planned for the Netherlands (&#147;Restructuring plan 2003&#148;). During 2003, ASML recorded a
provision of
EUR 15.3&nbsp;million as an ongoing benefit arrangement, of which EUR 3.9&nbsp;million was included in cost
of sales and EUR 11.4&nbsp;million was included in restructuring costs. The amount of the provision was
based upon the severance arrangements as agreed with our Works Council in the Netherlands for the
workforce reductions included in ASML&#146;s Restructuring Plan 2002. The estimated initial annual cost
savings were EUR 47&nbsp;million. ASML&#146;s Board of Management and ASML&#146;s Dutch Works Council then
commenced a joint study on implementing these workforce reductions in
the Netherlands, which delayed
the reductions until the beginning of 2004. Thereafter, in response to a sharp improvement in market
conditions during 2004, the Company decreased the reductions to approximately 300 positions
worldwide, of which 150 were contract employees with limited rights upon termination. As a result,
ASML recorded a restructuring credit of EUR 12.1&nbsp;million, EUR 3.8&nbsp;million of which was recorded in
cost of sales and EUR 8.3&nbsp;million of which was recorded under restructuring expenses. The Company&#146;s
payments associated with these workforce reductions were EUR 2.5&nbsp;million in 2004 and ASML&#146;s
initially anticipated cost savings were reduced to approximately EUR 24&nbsp;million.


<P align="left" style="font-size: 10pt">Also during 2003, ASML recorded restructuring costs of approximately EUR 6.8&nbsp;million relating to
the consolidation of its office and warehouse facilities at
the headquarters in Veldhoven as the Company ceased using certain of its facilities. The facility
exit charges included estimated future obligations for non-cancelable lease payments and the
impairment of property and equipment (primarily leasehold improvements) for which there are
insufficient cash flows to support the carrying cost. During 2004, ASML recorded adjustments to the
related restructuring provision due to postponed commencement dates of sublease agreements and
higher exit costs than originally estimated. This resulted in an additional charge of EUR 3.5
million, EUR 1.1&nbsp;million of which was recorded in cost of sales and EUR 2.5&nbsp;million of which was
recorded under restructuring charges.


<P align="left" style="font-size: 10pt">The Restructuring plan 2003 did not impact any processes or products.




<P align="center" style="font-size: 10pt">F-14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><U>Tabular Disclosures of Restructuring </U>


<P align="left" style="font-size: 10pt">The restructuring charges and adjustments recorded during 2002, 2003 and 2004, totaling EUR 73
million, EUR 29&nbsp;million and EUR (9)&nbsp;million, respectively, consist of the amounts set forth in
detail in the following table:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventory and other asset write-offs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Fixed Asset impairments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><I>Subtotal </I><SUP style="font-size: 85%; vertical-align: text-top"><I>1</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>78,500</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>1,810</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><I>0</I></B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Building Closure cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Severance Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><I>Subtotal </I><SUP style="font-size: 85%; vertical-align: text-top"><I>2</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>0</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>29,015</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B><I>0</I></B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><I>Adjustments to prior year plans </I><SUP style="font-size: 85%; vertical-align: text-top"><I>2</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(5,907</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(1,673</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B><I>(8,556</I></B></TD>
    <TD nowrap><B><I>)</I></B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total restructuring charges</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>72,593</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,152</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,556</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> These restructuring charges are directly posted to the related
assets.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
These restructuring charges correspond to additions and adjustments in ASML&#146;s
restructuring provision.</DIV>


<P align="left" style="font-size: 10pt">All of the foregoing restructuring charges are recorded in ASML&#146;s statements of operations either
in cost of sales or in restructuring charges, as summarized in the following table for the years
ended December&nbsp;31, 2002, 2003 and 2004:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,694</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Restructuring Charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,862</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>72,593</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,152</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,556</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The following table summarizes, per restructuring plan, the movement in the restructuring provision
for the three years ended December&nbsp;31, 2004:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Restructuring plan announced in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2001</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2001</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,750</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(35,750</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,907</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,907</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,517</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(9,517</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2002</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11,826</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,015</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,086</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,906</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,100</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(15,092</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,440</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(233</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,673</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,506</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,511</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,565</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,323</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,774</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(10,097</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,556</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,556</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>114</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance
as of December 31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>585</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,441</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,026</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The following table summarizes, per category, the movement in the restructuring provision for the
three years ended December&nbsp;31, 2004:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Purchase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Building</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Severance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>commitments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>closure costs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>payments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2001</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>63,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,126</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,044</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,580</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(35,750</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,337</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,686</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(5,907</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,272</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(330</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(915</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(9,517</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2002</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11,826</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,015</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,711</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,475</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,906</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(15,092</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,326</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,673</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,111</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(395</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,511</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2003</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,565</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Purchase</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Building</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Severance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>commitments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>closure costs</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>payments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization
for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(914</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,705</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,478</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(10,097</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,102</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,556</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of foreign currency translation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>114</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance as of December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,335</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>691</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,026</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">ASML&#146;s net cash outflows in 2002, 2003 and 2004 for exit plans were EUR 35.8&nbsp;million, EUR 15.1
million and EUR 10.1&nbsp;million, respectively. At the end of 2003, we anticipated that the entire
restructuring provision, amounting to EUR 22.6&nbsp;million, would be expanded in cash. The amount of
cost savings expected in periods following implementation of the above-mentioned restructuring
plans relate primarily to reduction in workforce and was estimated in the aggregate at EUR 156
million on an annual basis in continuing operations.


<P align="left" style="font-size: 10pt">Substantially all restructuring plans have been executed at year end 2004.


<P align="left" style="font-size: 10pt"><B>4. Market risk and derivatives</B><BR>


<P align="left" style="font-size: 10pt">Market risk represents the risk of a change in the value of a financial instrument, derivative or
non derivative, caused by fluctuations in currency exchange rates and interest rates. The Company
addresses market risk in accordance with established policies and thereby enters into various
derivative transactions. No such transactions are entered into for trading purposes.


<P align="left" style="font-size: 10pt"><U>Foreign currency management</U>


<P align="left" style="font-size: 10pt">The Company uses the euro as its invoicing currency in order to limit the exposure to foreign
currency movements. Exceptions may occur on a customer by customer basis. To the extent that
invoicing is done in a currency other than the euro, the Company is exposed to foreign currency
risk.


<P align="left" style="font-size: 10pt">It is the Company&#146;s policy to hedge material transaction exposures, such as sales transactions,
forecasted cash flows from purchases and accounts receivable/accounts payable. The Company hedges
these exposures through the use of foreign exchange options and forward contracts. The use of a mix
of foreign exchange options and forwards is aimed at reflecting the likelihood of the transactions
occurring. The effectiveness of all outstanding hedge contracts is monitored closely throughout the
life of the hedges.


<P align="left" style="font-size: 10pt">During the twelve months ended December&nbsp;31, 2004, a EUR 0.3&nbsp;million gain was recognized in cost of
sales relating to hedges of forecasted transactions that did not occur. As of December&nbsp;31, 2004,
EUR 26.7&nbsp;million of other comprehensive income represents the total anticipated gain to be released
to sales, and EUR 2.8&nbsp;million is the total anticipated loss to be charged to cost of sales over the
next twelve months as the forecasted revenue and purchase transactions occur.


<P align="left" style="font-size: 10pt">It is the Company&#146;s policy to hedge material remeasurement exposures. These net exposures from
certain monetary assets and liabilities in non-functional currencies are hedged with forward
contracts.


<P align="left" style="font-size: 10pt">It is the Company&#146;s policy to manage material translation exposures resulting predominantly from
ASML&#146;s U.S. dollar net investments. Throughout 2004 a proportion
of ASML&#146;s US$ 575&nbsp;million 5.75
percent Convertible Subordinated Notes due 2006 was assigned to certain of the Company&#146;s U.S.
dollar net investments. As a result, fluctuations in the Company&#146;s balance sheet ratios resulting
from changes in exchange rates are reduced.


<P align="left" style="font-size: 10pt"><U>Interest rate management</U>


<P align="left" style="font-size: 10pt">The Company has both assets and liabilities that bear interest, which expose the Company to
fluctuations in the prevailing market rate of interest. The Company uses interest rate swaps to
align the interest typical terms of interest bearing assets with the interest typical terms of
interest bearing liabilities. The Company still retains residual financial statement exposure risk
to the extent that the asset and liability positions do not fully offset. It is the Company&#146;s
policy to enter into interest rate swaps to hedge this residual exposure. For this purpose, the
Company uses interest rate swaps, both to hedge changes in market value of fixed loan coupons
payable due to changes in
interest rates as well as to hedge the variability of future interest receipts as a result of
changes in market interest rates.


<P align="left" style="font-size: 10pt"><U>Financial instruments as of December&nbsp;31, 2004</U>


<P align="left" style="font-size: 10pt">The Company uses foreign exchange derivatives to manage its currency risk and interest rate swaps
to manage its interest rate risk. The following table summarizes the estimated fair values of the
Company&#146;s financial instruments:




<P align="center" style="font-size: 10pt">F-16
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount </B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount </B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Forward contracts<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82,722</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,547</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Currency options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(217</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,803</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Interest rate swaps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">847,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,978</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">

<DIV align="left" style="font-size: 10pt">(Source: Bloomberg)</DIV>


<P align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP>&nbsp;Includes forward contracts on U.S. dollars, Hong Kong dollars, British
Pounds, Israeli Shekel, Japanese Yen, Singapore dollars and Swiss Francs.


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>&nbsp;Net amount of forward and option contracts assigned as a hedge to sales and
purchase transactions, and to monetary assets and liabilities.</DIV>


<P align="left" style="font-size: 10pt">The fair value of forward contracts (used for hedging purposes) is the estimated amount that
a bank would receive or pay to terminate the forward contracts at the reporting date, taking into
account current interest rates, current exchange rates and the current creditworthiness of the
counterparties.


<P align="left" style="font-size: 10pt">The fair value of currency options (used for hedging purposes) is the estimated amount that a bank
would receive or pay to terminate the option agreements at the reporting date, taking into account
current interest rates, current exchange rates, volatility and the current creditworthiness of the
counterparties.


<P align="left" style="font-size: 10pt">The fair value of interest rate swaps (used for hedging purposes) is the estimated amount that a
bank would receive or pay to terminate the swap agreements at the reporting date, taking into
account current interest rates and the current creditworthiness of the counterparties.


<P align="left" style="font-size: 10pt"><U>Credit risk</U>


<P align="left" style="font-size: 10pt">Financial instruments contain an element of risk of the counterparties being unable to meet their
obligations. This financial credit risk is monitored and minimized per type of financial instrument
by limiting ASML&#146;s counterparties to a sufficient number of major financial institutions and
issuers of commercial paper. ASML does not expect the counterparties to default given their high
credit quality.


<P align="left" style="font-size: 10pt"><B>5. Accounts receivable</B>


<P align="left" style="font-size: 10pt">Accounts receivable consist of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Gross accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">320,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>507,970</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Allowance for doubtful debts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,196</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(4,817</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Net accounts receivable </I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">314,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>503,153</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">A summary of activity in the allowance for doubtful debt:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,754</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(324</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(6,196</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization of the provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,464</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Addition
for the year <SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,113</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(3,085</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance
at end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(324</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(6,196</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>(4,817</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
Addition for the year is recorded in cost of sales.</DIV>


<P align="left" style="font-size: 10pt"><B>6. Inventories</B>

<P align="left" style="font-size: 10pt">Inventories consist of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Raw materials</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>180,936</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Work-in-process</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">319,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>416,480</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Finished products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259,690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>283,338</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total inventories, gross</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">808,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>880,754</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Allowance for obsolescence and/or
lower market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(213,622</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(163,066</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total
inventories, net</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">595,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>717,688</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>







<P align="center" style="font-size: 10pt">F-17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">A summary of activity in the allowance for obsolescence is as follows:
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(500,491</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(285,264</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(213,622</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Addition of the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,164</TD>
    <TD nowrap>)<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,431</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(34,336</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,280</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Utilization of the provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>79,612</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance at end of year</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(285,264</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(213,622</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(163,066</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1
</SUP> Refer to Note 3, &#147;Restructuring&#148;.</DIV>


<P align="left" style="font-size: 10pt">The years 2001-2003 saw an unprecedented downturn in the global semiconductor industry. This
in turn led to a reduced demand for a number of ASML&#146;s products and services, and imposed a
corresponding requirement to impair the value of the Company&#146;s inventories. The additions to the
provision set forth in the foregoing table include inventory write-offs with respect to the
Company&#146;s restructuring plan announced in December&nbsp;2002 and July&nbsp;2003 of EUR 34.0
million and EUR 1.8&nbsp;million, respectively. ASML&#146;s addition to its obsolescence allowance excluding
these restructuring charges amounted to EUR 78&nbsp;million, EUR 30&nbsp;million and EUR 34&nbsp;million,
respectively, for the three years ended December&nbsp;31, 2004. The decrease in the addition to the
allowance from 2002 to 2003, excluding the above-mentioned restructuring charges,
reflects ASML&#146;s program of improved supply chain and inventory control management, initiated in
2002.


<P align="left" style="font-size: 10pt"><B>7. Other assets</B>


<P align="left" style="font-size: 10pt">Other non-current assets consist of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Compensation plan assets<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,672</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,028</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Subordinated loan granted to lessor
in respect of Veldhoven headquarters<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,445</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total other long-term assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,145</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1
</SUP> For further details on compensation plan refer to Note
13.</DIV>
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
For further details on loan granted to lessor in respect of Veldhoven
headquarters refer to Note 12.</DIV>



<P align="left" style="font-size: 10pt">Other current assets consist of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"> <I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Advance payments to Zeiss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>72,375</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">VAT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>38,464</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Loan to Micronic AB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,242</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,703</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,061</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>42,250</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total other current assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>175,792</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Zeiss is the Company&#146;s sole supplier of lenses and, from time to time, receives non-interest
advance payments from the Company that assist in financing Zeiss&#146; work in progress and thereby
secure lens deliveries to the Company. Amounts owed under these advance payments are repaid through
lens deliveries. The Company does not maintain a loss allowance against these advances, but
periodically monitors Zeiss&#146; financial condition to confirm that no provision is necessary.


<P align="left" style="font-size: 10pt">Micronic is a Swedish company specialized in software solutions for the Lithography
industry. In June&nbsp;2001, ASML granted Micronic a convertible loan in the principal amount of 320
million Swedish kronor or approximately EUR 35&nbsp;million to support Micronic&#146;s research in the field
of maskless technology. The loan was repayable on July&nbsp;31, 2004 or could be converted into 1
million shares of Micronic upon the request of ASML. In July&nbsp;2004, Micronic fully repaid the
outstanding loan.


<P align="left" style="font-size: 10pt"><B>8. Intangible assets</B>


<P align="left" style="font-size: 10pt">In 1999, ASML obtained, through its purchase of the business of MaskTools, the intellectual
property rights relating to Optical Proximity Correction technology. This technology enhances
leading edge lithography systems to accurately and reliably print line widths below 0.2 micron.
These rights have been valued at cost and are amortized on a straight-line basis over their
estimated useful life of 10&nbsp;years.




<P align="center" style="font-size: 10pt">F-18
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">In 2003, ASML acquired a patent portfolio, relating to dual stage technology. This patent
portfolio has been valued at cost and is amortized on a straight-line basis over its estimated
useful life of 3&nbsp;years.


<P align="left" style="font-size: 10pt">Pursuant to agreements executed on December&nbsp;10, 2004 (effective November&nbsp;12, 2004), ASML, Zeiss and
Nikon agreed to settle all pending worldwide patent litigation between the companies. The
settlement included a cross-license of patents related to lithography equipment used to manufacture
semiconductor devices and payments to Nikon by ASML and Zeiss. In connection with the settlement,
ASML made an initial payment to Nikon of US$ 60&nbsp;million (approximately EUR 49&nbsp;million) in 2004 and
is obligated to make additional payments to Nikon of US$9&nbsp;million (approximately EUR 7&nbsp;million)
each in 2005, 2006 and 2007. An amount of EUR 49&nbsp;million was reflected as a research and development expense in ASML&#146;s statement of operations for the year ended December&nbsp;31,
2004. The remaining value, in an amount of
EUR&nbsp;21&nbsp;million, has been capitalized under intangible
assets and will be amortized over a period of 5&nbsp;years under cost of sales.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Cost</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23,574</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,143</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>45,717</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Accumulated amortization</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,984</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Amortization</DIV></TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,915</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13,899</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Net book value, December 31</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31,818</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Estimated amortization expenses relating to intangible assets for the next five years are as
follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2005:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2006:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,708</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2007:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,483</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2008:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,260</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2009:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Thereafter:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><B>9. Property, plant and equipment</B>


<P align="left" style="font-size: 10pt">Property, plant and equipment consist of the following:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Buildings</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Machinery</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Furniture,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Leasehold</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>fixtures and other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>constructions</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>equipment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>improvements</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>equipment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Cost</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">477,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>894,950</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,405</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>89,206</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Disposals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,472</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,619</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,434</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,561</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(90,086</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,627</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,801</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(328</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,284</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(18,040</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance,
December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">446,699</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">182,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>876,030</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Accumulated depreciation</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">311,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>547,067</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Depreciation<SUP>1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>90,833</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Disposals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(111</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,564</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(826</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,381</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(53,882</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,784</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,493</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(204</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,198</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(11,679</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance,
December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">323,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,814</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>572,339</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Net Book Value </I></B><SUP style="font-size: 85%; vertical-align: text-top"><B><I>2</I></B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>347,883</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,288</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>303,691</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
Includes impairment charges for machinery and equipment of EUR
2,929.</DIV>
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Includes as of December&nbsp;31, 2004 and 2003 assets under construction, respectively,
for buildings and constructions of EUR 1,336 and EUR 591, machinery &#038; equipment of EUR 2,592 and
EUR 2,310, leasehold improvements of EUR 5,914 and EUR 38 and furniture, fixtures and other
equipment of EUR 18,653 and EUR 8,383.</DIV>


<P align="left" style="font-size: 10pt">The majority of the Company&#146;s disposals relate to machinery and equipment, primarily
consisting of demonstration systems and training systems. These systems are similar to the ones
ASML sells in its ordinary course of business. These are capitalized
under fixed assets because they
are held and, at the time they are placed in service, expected to be used for a period longer than
one year. These systems are recorded at cost and depreciated over their useful life. From the
moment these assets are no longer held for use but intended for sale,
they are reclassified from
fixed assets to inventory at the lower of their carrying value or fair market value. The cost of
sales for these systems includes this value and the additional costs of refurbishing (materials and
labor). When sold, the proceeds and cost of these systems are recorded as revenue and cost of
sales, respectively, identical to the treatment of other sales transactions.


<P align="left" style="font-size: 10pt">During 2004 and 2003, the
Company recorded impairment charges of EUR 2.9&nbsp;million and EUR 12.1
million, respectively, in cost of sales on machinery and equipment, for which there are
insufficient cash flows to support the carrying cost. The impairment charges were determined based
on the difference between the assets&#146; estimated fair value and their carrying value.



<P align="left" style="font-size: 10pt"><B>10. Accrued liabilities and other</B>


<P align="left" style="font-size: 10pt">Accrued liabilities and other consist of the following:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>87,107</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Warranty</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,660</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Materials and costs to be paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>86,820</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Advances from customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>141,516</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Personnel related items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>83,296</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Investment credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,450</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Restructuring</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,026</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29,956</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total accrued liabilities and other</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">442,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>453,831</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Advances from customers consist of down payments made by customers prior to shipment for systems
included in ASML&#146;s current product portfolio or systems currently under development.


<P align="left" style="font-size: 10pt">The Company provides standard warranty coverage on its systems for twelve months, providing labor
and parts necessary to repair systems during the warranty period. The estimated warranty costs are
accounted for by accruing these costs for each system upon recognition of the system sale. The
estimated warranty cost is based on historical product performance, expected results from
improvement programs and field expenses. Based upon historical service records, the Company
calculates the charge of average service hours and parts per system to determine the estimated
warranty charge and updates these estimated charges periodically. Changes in product warranty
liabilities for the years 2003 and 2004 are as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Balance, January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,292</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15,496</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Additions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27,357</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Usage</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23,084</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(20,508</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,802</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,685</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Balance, December 31</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,496</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,660</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><B>11. Long-term debt and borrowing arrangements</B>


<P align="left" style="font-size: 10pt">The Company&#146;s obligations to make principal repayments under long-term debt and borrowing
arrangements as of December&nbsp;31, 2004, for the next five years and thereafter, assuming no
conversions of the Company&#146;s convertible notes occur and excluding the fair value of interest rate
swaps used to hedge the fair value and excluding interest expense, are as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">432,278</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,056</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">509</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">509</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Thereafter</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,602</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Total</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">817,081</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><U>Convertible debt securities</U>


<P align="left" style="font-size: 10pt">The following table summarizes the Company&#146;s outstanding Convertible Subordinated Notes as of
December&nbsp;31, 2004 and 2003, including fair value of interest rate swaps used to hedge the fair
value of the underlying fixed loan coupon:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">5.75&nbsp;percent convertible notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Notional amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>421,431</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Fair value interest rate swaps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>421,431</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">5.50&nbsp;percent convertible notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Notional amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380,000</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Fair value interest rate swaps</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,153</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,379</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">378,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>381,379</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total convertible debt</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">842,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>802,810</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">In July and August&nbsp;2003, ASML repurchased US$ 139.6&nbsp;million of its US$ 520&nbsp;million principal amount
of its 4.25&nbsp;percent Convertible Subordinated Notes due November&nbsp;30, 2004. In December&nbsp;2003, ASML
redeemed all of the 4.25&nbsp;percent notes that remained outstanding, at a redemption price of 100.85
percent of their principal amount plus accrued interest. Prior to redemption, bondholders converted
bonds for a total of US$ 120 thousand into 3,218 ordinary shares (on a post-share split basis), of which US$ 20 thousand were
converted into 536 shares in 2003. On December&nbsp;5, 2003, the Company redeemed the remaining US$
380.3&nbsp;million of convertible notes.

<P align="left" style="font-size: 10pt">In October&nbsp;2001, ASML completed an offering of US$ 575&nbsp;million principal amount of its 5.75&nbsp;percent
Convertible Subordinated Notes due October&nbsp;15, 2006, with interest payable semi-annually on April
15 and October&nbsp;15 of each year, commencing on April&nbsp;15, 2002. The notes are convertible into
30,814,576 ordinary shares at US$ 18.66 (EUR 13.68) per share, subject to adjustment, at any time
prior to maturity. ASML may pay cash (based on the trading prices of ASML&#146;s shares) in lieu of
delivering shares upon conversion. At any time on or after October&nbsp;22, 2004, the notes are
redeemable at the option of ASML, in whole or in part, at 100&nbsp;percent of its principal amount,
together with accrued interest, provided that the Company&#146;s shares close above 130&nbsp;percent of the
conversion price for twenty trading days out of a thirty-day period. During 2004 none of the notes
were converted into ordinary shares.

<P align="left" style="font-size: 10pt">In May&nbsp;2003, ASML completed an offering of EUR 380&nbsp;million principal amount of its 5.50&nbsp;percent
Convertible Subordinated Notes due 2010, with interest payable annually on May&nbsp;15 of each year,
commencing on May&nbsp;15, 2004. The notes are convertible into an aggregate of 26,573,426 ordinary
shares at a conversion price of EUR 14.30 per share, subject to adjustment, at any time prior to
maturity. ASML may pay cash (based on the trading prices of ASML&#146;s shares) in lieu of delivering
shares upon conversion. Unless previously converted, the notes are redeemable at 100% of its
principal amount on May&nbsp;15, 2010. The notes are redeemable at the option of ASML, in whole or in
part, at any time on or after May&nbsp;27, 2006, provided that ASML&#146;s shares close above 150% of the
conversion price for twenty trading days out of a thirty-day period.


<P align="left" style="font-size: 10pt">The Company uses interest rate swaps to hedge the risk from interest rate fluctuations. As of
December&nbsp;31, 2004 and 2003, deferred interest rate swap proceeds amounting to, respectively, EUR
1.4&nbsp;million and EUR 7.3&nbsp;million have been recorded in the balance sheet as an addition to the
Company&#146;s outstanding Convertible Subordinated Notes.


<P align="left" style="font-size: 10pt">The following table summarizes the estimated fair values of ASML&#146;s Convertible Subordinated Notes:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Notional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">5.75&nbsp;percent convertible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">596,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>421,431</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>517,040</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">5.50&nbsp;percent convertible</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">380,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">541,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>380,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>465,245</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 10pt">(Source: Bloomberg)</DIV>



<P align="center" style="font-size: 10pt">F-21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">The fair value of the Company&#146;s long-term debt is estimated based on the quoted market prices
as of December&nbsp;31, 2003 and December&nbsp;31, 2004, respectively.


<P align="left" style="font-size: 10pt"><U>Other long-term debt</U>


<P align="left" style="font-size: 10pt">In February&nbsp;1997, the Company received a US$ 6.5&nbsp;million (EUR 4.8&nbsp;million) loan from the
Connecticut Development Authority. The loan has a ten-year term, bears interest at 8.25&nbsp;percent,
and is secured by the Company&#146;s U.S. facility in Wilton, Connecticut. At December&nbsp;31, 2004, the
Company&#146;s outstanding debt with respect to this loan amounted to US$ 1.9&nbsp;million (EUR 1.4&nbsp;million).


<P align="left" style="font-size: 10pt">In 1999, the Company assumed three yen-denominated loans in connection with its merger with SVG.
Approximately EUR 3.1&nbsp;million (JPY 432&nbsp;million) is outstanding at December&nbsp;31, 2004, which is
secured by land and buildings in Japan, is payable in monthly installments through the year 2011,
bearing interest at 2.5&nbsp;percent. Approximately EUR 9.7&nbsp;million (JPY 1,350&nbsp;million) and EUR 1.4
million (JPY 200&nbsp;million) was outstanding at December&nbsp;31, 2004. These loans are unsecured,
repayable in 2006 and 2007, and bear interest at a rate of 3.1&nbsp;percent and 2.2&nbsp;percent,
respectively, payable semi-annually.


<P align="left" style="font-size: 10pt">These loans do not contain any operating covenants.


<P align="left" style="font-size: 10pt"><U>Lines of credit</U>


<P align="left" style="font-size: 10pt">During 2004, the Company renewed its available credit facilities. At December&nbsp;31, 2004, the Company
had available credit facilities for a total of EUR 400&nbsp;million (2003, EUR 288&nbsp;million), all of
which expire in November&nbsp;2009.


<P align="left" style="font-size: 10pt">The credit facilities, available at December&nbsp;31, 2004, bear interest at the European Interbank
Offered Rate (EURIBOR)&nbsp;or the London Interbank Offered Rate (LIBOR)&nbsp;plus a margin that is dependent
on the Company&#146;s liquidity position.


<P align="left" style="font-size: 10pt">No amounts were outstanding under these credit facilities at the end of 2004 and 2003. The credit
facilities contain certain restrictive covenants, including a requirement that the Company
maintains a minimum financial condition ratio, calculated in accordance with a contractually agreed
formula. ASML was in compliance with these covenants at December&nbsp;31, 2003 and 2004. ASML does not
currently anticipate any difficulty in continuing to meet these covenant requirements.


<P align="left" style="font-size: 10pt"><B>12. Commitments, contingencies and guarantees</B>


<P align="left" style="font-size: 10pt">The Company has various contractual obligations, some of which are required to be recorded as
liabilities in the Company&#146;s consolidated financial statements, including long- and short-term
debt. Others, namely operating lease commitments and purchase obligations, are generally not
required to be recognized as liabilities on the Company&#146;s balance sheet but are required to be
disclosed.


<P align="left" style="font-size: 10pt"><U>Lease Commitments and Variable Interests</U>


<P align="left" style="font-size: 10pt">The Company leases equipment and buildings under various operating leases. Operating leases are
charged to expense on a straight-line basis. See Tabular Disclosure of Contractual Obligations
below.


<P align="left" style="font-size: 10pt">In December&nbsp;2003, the FASB issued FIN 46R, &#147;Consolidation of Variable Interest Entities&#148;. Under FIN
46R an enterprise must consolidate a variable interest entity if that enterprise has a variable
interest (or combination of variable interests) that will absorb a majority of the entity&#146;s
expected losses if they occur, receive a majority of the entity&#146;s expected residual returns if they
occur, or both.


<P align="left" style="font-size: 10pt">In 2003, ASML moved to its Veldhoven headquarters. The Company is leasing these headquarters for a
period of 15&nbsp;years from an entity (&#147;lessor&#148;) that was incorporated by a syndicate of 3 banks
(&#147;shareholders&#148;) solely for the purpose of leasing this building. The lessor&#146;s shareholders equity
amounts to EUR 1.9&nbsp;million. Furthermore the shareholders each granted a loan of EUR 11.6&nbsp;million
and a fourth bank granted a loan of EUR 12.3&nbsp;million. ASML provided the lessor with a subordinated
loan of EUR 5.4&nbsp;million and has a purchase option that is exercisable either at the end of the
lease in 2018, at a pre-determined price of EUR 24.5&nbsp;million, or during the lease at the book value
of the assets. The total assets of the lessor entity amounted to approximately EUR 54&nbsp;million at
inception of the lease. ASML believes that it holds a variable interest in this entity and that the
entity is a variable interest entity (&#147;VIE&#148;) because it is subject to consolidation in accordance
with the provisions of paragraph 5 of FIN 46(R). The total equity investment at risk is
approximately 3.6&nbsp;percent of the lessor&#146;s total assets and is not considered and cannot be
demonstrated, qualitatively or quantitatively, to be sufficient to permit the lessor to finance its
activities without additional subordinated financial support provided by any parties, including the
shareholders. ASML determined that it is not appropriate to consolidate the VIE as it is not the
primary beneficiary. To make this determination, the expected losses and expected residual returns
of the lessor were allocated to each variable interest holder based on their contractual right to
absorb expected losses and residual returns. The analysis of expected losses and expected residual
returns



<P align="center" style="font-size: 10pt">F-22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">involved determining the expected negative and positive variability in the fair value of the
lessor&#146;s net assets exclusive of variable interests through various cash flow scenarios based upon
the expected market value of the lessor&#146;s net assets. Based on this analysis, ASML determined that
other shareholders will absorb the majority of the lessor&#146;s expected losses, and as a result, ASML
is not the primary beneficiary.
ASML&#146;s maximum exposure to the lessor&#146;s expected losses is estimated to be approximately EUR 5.4
million.


<P align="left" style="font-size: 10pt"><U>Purchase Obligations</U>


<P align="left" style="font-size: 10pt">The Company enters into purchase commitments with vendors in the ordinary course of business to
ensure a smooth and continuous supply chain for key components. Purchase obligations include medium
to long-term purchase agreements. These contracts differ and may include certain restrictive
clauses. Any identified losses that would result from purchase commitments that are expected to be
forfeited are provided for in the Company&#146;s financial statements. As of December&nbsp;31, 2004, the
Company had purchase commitments for a total amount of approximately EUR 639&nbsp;million, reflecting
its backlog level as of that date. In its negotiations with supplier, the Company continuously
seeks to align its purchase commitments with its business objectives.


<P align="left" style="font-size: 10pt">See Tabular Disclosure of Contractual Obligations below.


<P align="left" style="font-size: 10pt"><U>Other Off-Balance Sheet Arrangements</U>


<P align="left" style="font-size: 10pt">The Company has certain additional commitments and contingencies that are not recorded on its
balance sheet but may result in future cash requirements. In addition to the operating lease
commitments and the purchase obligations, these off-balance sheet arrangements consist of product
warranties and guarantees of subsidiaries debt to third parties.


<P align="left" style="font-size: 10pt">The Company provides guarantees to third parties in connection with transactions entered into by
its subsidiaries in the ordinary course of business, including bank loans reflected in Note 11.
Pursuant to a license agreement between Micronic and ASML, ASML will pay to Micronic in the first
quarter of 2005 an amount of EUR 20&nbsp;million. In connection with this
payment, a letter of credit for the corresponding amount has been issued.


<P align="left" style="font-size: 10pt"><U>Tabular Disclosure of Contractual Obligations</U>


<P align="left" style="font-size: 10pt">The Company&#146;s off-balance sheet arrangements with respect to operating lease obligations and
purchase obligations as of December&nbsp;31, 2004 can be summarized as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1-2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>3-5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>After 5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1 year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating Lease Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">234,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,839</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchase Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">638,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other deferred Liabilities<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total Contractual obligations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">892,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,839</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Other deferred liabilities related to the additional payments to Nikon due in
2005, 2006 and 2007 with respect to a cross-license of patents
related to lithography equipment.</DIV>


<DIV align="left" style="font-size: 8pt">Operating lease obligations include leases of equipment and facilities. Rental expense was
EUR 56&nbsp;million, EUR 53&nbsp;million and EUR 48&nbsp;million for the years ended December&nbsp;31, 2002, 2003 and
2004, respectively.</DIV>


<P align="left" style="font-size: 10pt">Several operating leases for our buildings contain purchase options, exercisable at the option of
the Company at the end of the lease, and in some cases, during the term of the lease. The amounts
to be paid if ASML should exercise these purchase options at the end of the lease can be summarized
as of December&nbsp;31, 2004 as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Less than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1-2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>3-5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>After 5</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>1 year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>years</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Purchase options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,736</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><B>13. Employee benefits</B>


<P align="left" style="font-size: 10pt">In February&nbsp;1997, SVG adopted a non-qualified deferred compensation plan that allowed a select
group of management and highly compensated employees and directors to defer a portion of their
salary, bonus and commissions. The plan allowed SVG to credit additional amounts to participants&#146;
account balances, depending on the amount of the employee&#146;s contribution, up to a maximum of 5
percent of an employee&#146;s annual salary and bonus. In addition, interest is credited to the
participants&#146; account balances at 120&nbsp;percent of the average Moody&#146;s corporate bond rate. For
calendar years 2002, 2003 and 2004, participants&#146; accounts were credited at 8.89&nbsp;percent, 8.50
percent and 7.57



<P align="center" style="font-size: 10pt">F-23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">percent, respectively. SVG&#146;s contributions and related interest became 100&nbsp;percent vested in May
2001 with the merger of SVG and ASML. During fiscal years 2002, 2003 and 2004, the expense incurred
under this plan was EUR 1&nbsp;million, EUR 0.9&nbsp;million and EUR 0.4&nbsp;million, respectively. As of
December&nbsp;31, 2003 and 2004, the Company&#146;s liability under the deferred compensation plan was EUR 9
million and EUR 5&nbsp;million, respectively.


<P align="left" style="font-size: 10pt">In July&nbsp;2002, ASML adopted a non-qualified deferred compensation plan for its U.S. employees that
allows a select group of management or highly compensated employees to defer a portion of their
salary, bonus, and other benefits. The plan allows ASML to credit additional amounts to the
participants&#146; account balances. The participants invest their funds between the investments
available in the plan. Participants elect to receive their funds in future periods after the
earlier of their employment termination or their withdrawal election, at least 5&nbsp;years after
deferral. There were minor plan expenses in 2004. On December&nbsp;31, 2003 and 2004, the Company&#146;s
liability under the deferred compensation plan was EUR 2&nbsp;million and EUR 3&nbsp;million, respectively.


<P align="left" style="font-size: 10pt"><U>Pension plans</U>


<P align="left" style="font-size: 10pt">ASML maintains various pension plans covering substantially all of its employees. The Company&#146;s
approximately 2,600 employees in the Netherlands participate in a multi-employer union plan
determined in accordance with the collective bargaining agreements effective for the industry in
which ASML operates. This multi-employer plan spans approximately 1,400 companies and 145,000
workers. The plan monitors its risks on a global basis, not by company or employee, and is subject
to regulation by Dutch governmental authorities. By law (the Dutch Pensions and Savings Act), a
multi-employer union plan must be monitored against specific criteria, including the coverage ratio
of the plan&#146;s assets to its obligations. This coverage ratio must exceed 100% for the total plan.
Every company participating in a Dutch multi-employer union plan contributes a premium calculated
as a percentage of its total pensionable salaries, with each company subject to the same percentage
contribution rate. The pension rights of each employee are based upon the employee&#146;s average salary
during employment. ASML&#146;s net periodic pension cost for this multi-employer plan for any fiscal
period is the amount of the required contribution for that period. ASML also participates in
several defined contribution pension plans, with ASML&#146;s expenses for these plans equaling the
contributions made in the relevant fiscal period.


<P align="left" style="font-size: 10pt">The Company&#146;s pension costs for all employees for the three years ended December&nbsp;31, 2004 were:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pension plan based on multi-employer union plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,747</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pension plans based on defined contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,636</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,103</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,850</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><U>Bonus plan</U>


<P align="left" style="font-size: 10pt">ASML has a performance-related bonus plan for senior management, who are not members of the Board
of Management. Under this plan, the bonus amount is dependant on the actual performance on
corporate, departmental and personal targets. The bonus for senior management can range between 0
percent and 60&nbsp;percent of their annual salary.
The Company&#146;s bonus expenses for all participants under this plan were:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Bonus expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,481</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The 2004 bonus is accrued for in the statement of operations for the year ended December&nbsp;31, 2004
and expected to be paid in the first quarter of 2005.


<P align="left" style="font-size: 10pt"><U>Profit-sharing plan</U>


<P align="left" style="font-size: 10pt">ASML has a profit-sharing plan covering all employees, who are not members of the Board of
Management or senior management. Under the plan, eligible employees receive an annual
profit-sharing bonus, based on a percentage of net income relative to sales ranging from 0 to 20
percent of annual salary. The profit-sharing percentage for the years 2002, 2003 and 2004 was 0
percent, 0&nbsp;percent and 5&nbsp;percent, respectively. This profit-sharing bonus is accrued for in the
statement of operations for the year ended December&nbsp;31, 2004 for an amount of EUR 13.0&nbsp;million,
expected to be paid in the first quarter of 2005.


<P align="left" style="font-size: 10pt"><U>Stock options</U>


<P align="left" style="font-size: 10pt">The Company has adopted various stock option plans for its employees. Each year, the Board of
Management determines, by category of ASML personnel, the total available



<P align="center" style="font-size: 10pt">F-24
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">number of stock options that can be granted in that year. The determination is subject to the
approval of the Supervisory Board and the holders of priority shares of the Company. Options
granted under ASML&#146;s stock option plans have fixed exercise prices equal to the closing price of
the Company&#146;s ordinary shares on Euronext on the applicable grant dates. Granted stock options
generally vest over a three-year period with any unexercised stock options expiring ten years after
the grant date.


<P align="left" style="font-size: 10pt">The following tables have not been restated for discontinued operations:


<P align="left" style="font-size: 10pt">Stock option transactions are summarized as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Weighted average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>exercise price per share (EUR)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2001</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,199,270</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,483,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,539,132</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(266,760</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2002</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,876,448</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,516,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(335,977</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,486,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,571,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,485,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(875,530</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(561,282</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Outstanding, December&nbsp;31, 2004</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,619,994</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23.19</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercisable, December&nbsp;31, 2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,568,177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercisable, December&nbsp;31, 2003</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,494,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Exercisable, December&nbsp;31, 2002</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,551,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.77</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Information with respect to stock options outstanding at December&nbsp;31, 2004 is as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>remaining</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>exercise price</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Range of exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>contractual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>of outstanding</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>prices (EUR)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>December 31, 2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>December 31, 2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>life (years)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>options (EUR)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">2.35 - 9.29</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">731,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">9.30 - 12.79</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,978,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,745,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">12.80 - 31.79</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,840,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,462,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">31.80 - 47.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,069,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,069,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,619,994</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19,568,177</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4.51</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23.19</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Option Extension Plans</B>


<P align="left" style="font-size: 10pt">In 2002, employees were offered an extension of the option period for options granted in 1997 up to
and including 2000. For the years 1997 up to and including 1999, this extension is either until
October&nbsp;21, 2008, or October&nbsp;21, 2005. For 2000, the option period is extended until 2012.
Employees who accepted the extension became subject to additional exercise periods in respect of
their options. At the modification date, there was no intrinsic value of the modified award because
the exercise price under each plan still exceeded ASML&#146;s stock price on the modification date. As a
result, these stock option extensions did not result in recognition of any compensation expense in
accordance with APB Opinion No.&nbsp;25 and related interpretations.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing of stock option plans</B>


<P align="left" style="font-size: 10pt">Stock option plans that were issued before 2001 were constructed with a virtual financing
arrangement whereby ASML loaned the tax value of the options granted to employees subject to the
Netherlands tax-regime. The loans issued under this arrangement are repayable to ASML on the
exercise date of the respective option, provided that the option was actually exercised. If the
options expire unexercised, the loans are forgiven.


<P align="left" style="font-size: 10pt"><B>14. Contingencies</B>


<P align="left" style="font-size: 10pt"><U>Legal Contingencies</U>


<P align="left" style="font-size: 10pt">ASML is party to various legal proceedings generally incidental to its business. Since late 2001,
ASML was a party to a series of litigation and administrative proceedings in which Nikon alleges
ASML&#146;s infringement of Nikon patents relating to photolithography. Pursuant to agreements executed
on December&nbsp;10, 2004 (effective



<P align="center" style="font-size: 10pt">F-25
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">November&nbsp;12, 2004), ASML and Nikon settled these claims as discussed below. ASML also faces
exposure from other actual or potential claims and legal proceedings. In addition, ASML customers may be subject to claims of infringement from third parties alleging
that the ASML equipment used by those customers in the manufacture of semiconductor products,
and/or the methods relating to use of the ASML equipment, infringes one or more patents issued to
those third parties. If these claims were successful, ASML could be required to indemnify such
customers for some or all of any losses incurred or damages assessed against them as a result of
that infringement.


<P align="left" style="font-size: 10pt">The Company accrues for legal costs related to litigation in its statement of operations at the
time when the related legal services are actually provided to ASML.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patent litigation with Nikon</B>


<P align="left" style="font-size: 10pt">From 2001 through late 2004, ASML was a party to a series of civil litigations and administrative
proceedings in which Nikon alleged ASML&#146;s infringement of Nikon patents relating to
photolithography. ASML in turn filed claims against Nikon.


<P align="left" style="font-size: 10pt">Pursuant to agreements executed on December&nbsp;10, 2004 (effective November&nbsp;12, 2004), ASML, Zeiss and
Nikon agreed to settle all pending worldwide patent litigation between the companies. The
settlement included an agreement to dismiss all pending patent litigation between the companies, an
exchange of releases, a cross-license of patents related to lithography equipment used to
manufacture semiconductor devices and payments to Nikon by ASML and Zeiss. In connection with the
settlement, ASML made an initial payment to Nikon of US$ 60&nbsp;million (approximately EUR 49&nbsp;million)
in 2004, and is obligated to make additional payments to Nikon of US$ 9&nbsp;million in 2005, 2006 and
2007. Zeiss made an initial payment to Nikon of US$ 40&nbsp;million (approximately EUR 32&nbsp;million) in
2004, and is required to make additional payments to Nikon of US$ 6&nbsp;million in 2005, 2006 and 2007.


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ultratech case U.S.</B>


<P align="left" style="font-size: 10pt">In May&nbsp;2000, Ultratech Stepper, Inc. (&#147;Ultratech&#148;) filed a lawsuit against ASML that is proceeding
in the United States District Court for the Northern District of California. Ultratech alleges that
ASML is infringing Ultratech&#146;s rights under a United States patent in connection with its
manufacture and commercialization in the U.S. of advanced photolithography equipment embodying
technology that, in particular, is used in Step &#038; Scan equipment. Ultratech&#146;s complaint seeks
injunctive relief prohibiting future sales and damages for past sales of this equipment. Ultratech
may also seek prejudgment interest. Ultratech&#146;s complaint also seeks enhanced damages based on
alleged willful infringement. If the jury finds that ASML willfully infringed the patent, the court
has the discretion to award three times the damages.
In August&nbsp;2002, the Court granted ASML&#146;s motion for summary judgment of non-infringement, following
which Ultratech appealed this judgment to the United States Court of Appeals for the Federal
Circuit. On March&nbsp;30, 2004, the Federal Circuit reversed the District Court&#146;s grant of summary
judgment and remanded the case to the District Court for determination of infringement under the
Federal Circuit&#146;s new construction of one of the terms of the asserted patent.


<P align="left" style="font-size: 10pt">As a result of the Federal Circuit&#146;s new construction, ASML is seeking additional discovery from
Ultratech, with trial scheduled for May&nbsp;2005. ASML believes it has meritorious defenses to
Ultratech&#146;s claims, including that ASML does not infringe Ultratech&#146;s patent, and that the patent
is invalid, and will vigorously defend itself against these claims. In the event a final
non-appealable decision were to be rendered that was adverse to ASML, it could result in a damages
award and substantially restrict or prohibit ASML&#146;s sales in the United States, which in turn could
have a material adverse effect on the Company&#146;s financial position and results of operations.


<P align="left" style="font-size: 10pt"><U>Other Contingencies</U>


<P align="left" style="font-size: 10pt">ASML has research and development agreements with the government of the Netherlands, Ministry of
Economic Affairs. In previous years, credits were received for research and development projects
relating to new generations of semiconductor lithography systems. The agreements required that the
majority of the amounts received were to be repaid, with interest, to the extent that product sales
occurred that related to the research. The amount of the repayment due was based on a percentage of
the selling price of the product and was charged to cost of sales when such a sale was recorded.
As of December&nbsp;31, 2004, ASML had no contingent obligations to repay such credits received in
previous years.


<P align="left" style="font-size: 10pt"><B>15. Research and development credits</B>


<P align="left" style="font-size: 10pt">ASML receives subsidies and credits for research and development from various sources as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Netherlands government technology subsidy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,532</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">European community and other subsidies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>400</B></TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Non-European subsidies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,029</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total subsidies and credits received</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>21,961</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">F-26
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>16. Income taxes</B>


<P align="left" style="font-size: 10pt">Income tax expense (benefit)&nbsp;from continuing and discontinued operations is set forth below:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" BORDER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)&nbsp;from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42,779</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(59,675</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>127,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Income tax expense (benefit)&nbsp;from discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(63,846</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23,316</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:30px; text-indent:-15px"><B>Total income tax expense (benefit)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106,625</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(82,991</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>127,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The amounts below include tax effects that arose from the Company&#146;s discontinued operations but
that reside and will remain with ASML group companies on a continuing basis.


<P align="left" style="font-size: 10pt">The components of income before income taxes are as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" BORDER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">

    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Domestic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(206,001</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(288,370</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>216,790</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108,447</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>146,050</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(314,448</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(243,207</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>362,840</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The Netherlands domestic statutory tax rate is 34.5&nbsp;percent. At the end of 2004, the Netherlands
Government has enacted a tax rate reduction. As a result of this law change the Netherlands
statutory tax rate will be reduced in steps to 30% through 2007. This led to a remeasurement of the
Company&#146;s deferred tax assets and liabilities, resulting in a one time increase in the tax charge
of EUR 15&nbsp;million in 2004. The reconciliation between the provision for income taxes shown in the
consolidated statement of operations, based on the effective tax rate, and expense based on the
domestic tax rate, is as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" BORDER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">

    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>E</B>UR</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Income tax expense based on domestic rate<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108,485</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(83,906</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>125,180</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Change in statutory tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,544</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Different tax rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,568</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(24,477</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other credits and non-taxable items <SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,502</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12,133</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Provision for income taxes shown
in the statement of operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106,625</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(82,991</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>127,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Income tax expense based on domestic rate reflects the tax expense that would have
been applicable if all of ASML&#146;s income were derived from the Company&#146;s Dutch operations. ASML&#146;s
results are not solely realized in the Netherlands but also in other countries where different tax
rates are applicable. &#147;Different tax rates&#148; reflects the adjustment necessary to give effect to the
differing tax rates applicable in these non-Dutch jurisdictions.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Other credits and non-taxable items reflect the impact on statutory rates of
permanently non-deductible and excludable tax items such as non-deductible taxes and dues,
non-deductible interest expense, and non-deductible meals and entertainment, as well as the impact
of various tax credits on the Company&#146;s provision for income
taxes.</DIV>


<P align="left" style="font-size: 10pt">ASML&#146;s provision for income taxes consists of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" BORDER="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Current</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Domestic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,318</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,094</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,375</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Deferred</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Domestic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46,020</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(99,426</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>96,053</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Foreign</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(66,299</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,966</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23,634</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(106,625</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(82,991</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>127,380</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">F-27
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Deferred tax assets (liabilities)&nbsp;consist of the following:
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Tax effect carry-forward losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">294,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>184,448</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22,830</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Temporary depreciation investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(152,745</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(133,262</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other temporary differences</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(20,411</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>53,605</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">The main components of the deferred tax asset related to inventories are tax on eliminated
intercompany profit in inventories (EUR 20.1&nbsp;million), temporary differences on timing of inventory
provisions (EUR 26.9&nbsp;million) and temporary differences on inventory valuation (EUR (24.2)
million).


<P align="left" style="font-size: 10pt">Temporary differences on timing of inventory provisions result from tax laws that defer deduction
for an inventory provision until the moment the related inventory is actually disposed of or
scrapped, rather than when the provision is recorded for accounting purposes. Temporary differences
on inventory valuation result from tax laws that allow the allocation of direct cost rather than
full cost to work-in-progress and finished product inventories, while these indirect costs are
currently tax deductible.


<P align="left" style="font-size: 10pt">Deferred tax assets (liabilities)&nbsp;are classified in the consolidated financial statements as
follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets &#150; current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,590</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>54,554</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets &#150; non-current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>201,100</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities &#150; current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,285</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,332</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities &#150; non-current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(169,641</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(200,717</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>53,605</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Deferred tax assets result predominantly from net operating loss carry-forwards incurred mainly in
the U.S. and the Netherlands. Net operating losses qualified as tax losses under Dutch tax laws
incurred by Netherlands group companies can in general be offset for an indefinite period against
future taxable profits. Net operating losses qualified as tax losses under U.S. federal tax laws
incurred by U.S. group companies can in general be offset against future profits realized in the 20
years following the year in which the losses are incurred. The Company&#146;s ability to carry forward
its U.S. federal tax losses in existence at December&nbsp;31, 2004 will expire in the period 2021
through 2023. Net operating losses qualified as tax losses under U.S. state tax laws incurred by
U.S. group companies can in general be offset against future profits realized in the 5 to 20&nbsp;years
following the year in which the losses are incurred. The period of net operating loss carry forward
for U.S. state tax purposes depends on the state in which the tax loss arose. The Company&#146;s ability
to carry forward U.S. state tax losses in existence at December&nbsp;31, 2004 will expire in the period
2006 through 2023. The total amount of losses carried forward as of December&nbsp;31, 2004 is EUR 577
million. Based on its analysis, management believes that it is more likely than not that all U.S.
qualified tax losses will be offset by future taxable income before the Company&#146;s ability to
utilize those losses expires. This analysis takes into account the Company&#146;s projected future
taxable income from operations, possible tax planning alternatives available to the Company, and a
realignment of group assets that the Company effected during the period 2001 through 2003 and that
included the transfer of certain tangible and intangible assets of ASML US Inc. to ASML Netherlands
BV. The value of the assets transferred resulted in an additional income stream to ASML US, Inc.,
which the Company&#146;s management believes will, more likely than not, be sufficient to absorb the net
operating losses that ASML US Inc. has incurred prior to the expiry of those losses. In order to
determine with certainty the tax consequences and value of this asset transfer, in 2002 ASML
requested a bilateral advance pricing agreement (&#147;APA&#148;) from the US and Netherlands tax
authorities. Since December&nbsp;2002, ASML&#146;s management has held numerous meetings with representatives
of those authorities. In December&nbsp;2004, the U.S. and Netherlands tax authorities formally met to
review ASML&#146;s APA submission. Based on these meetings, and feedback from both these authorities,
ASML is confident that ASML&#146;s APA request will be successful. Although the Company remains
optimistic that the APA will be completed in the course of calendar year 2005, the specific timing
remains in the control of those tax authorities.


<P align="left" style="font-size: 10pt">Pursuant to Netherlands tax laws, ASML has temporarily depreciated part of its investment in its
U.S. group companies. This depreciation has been deducted from the taxable base in The Netherlands.
The depreciation resulted in a temporary tax refund of EUR 152&nbsp;million. This temporary depreciation
must be added back on a straight-line basis to the taxable base in the period 2006 through 2010. As
of December&nbsp;31, 2004, the remaining net tax effect of this repayment obligation, amounted to EUR
133&nbsp;million, is recorded as a long-term deferred tax liability in the Company&#146;s financial
statements.



<P align="center" style="font-size: 10pt">F-28
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><B>17. Segment disclosure</B>


<P align="left" style="font-size: 10pt">Segment information has been prepared in accordance with SFAS No.&nbsp;131, &#147;Disclosures about Segments
of an Enterprise and Related Information.&#148;


<P align="left" style="font-size: 10pt">The Company has only one reporting segment in continuing operations: lithography. ASML markets and
sells its products in the United States, Europe and Asia principally through its direct sales
organization. ASML makes all its sales into the United States through its U.S. subsidiary and its
sales into Asia primarily through its Hong Kong subsidiary.


<P align="left" style="font-size: 10pt">The following table summarizes net sales, operating income and identifiable assets of ASML&#146;s
operations in Asia, Europe and the United States, the significant geographic areas in which ASML
operates.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Asia</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Europe</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>United States</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Eliminations</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Consolidated</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>2002</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales to
unaffiliated customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,066,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">702,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,958,672</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inter-company sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,580,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,608,761</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total
net sales</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,066,476 </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,770,986 </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">729,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,608,761</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,958,672</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84,460</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(45,544</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(94,043</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Identifiable assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">438,976</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,996,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">630,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(884,295</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,181,524</B></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->

<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>2003</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales to
unaffiliated customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">762,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">560,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,542,737</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inter-company sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,212,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,293,968</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total net sales</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">789,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,432,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">614,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,293,968</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,542,737</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(224,608</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,866</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(155,032</B></TD>
    <TD nowrap><B>)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Identifiable assets<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">611,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,596,866</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">526,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(885,965</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,848,685</B></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>2004</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Net sales to
unaffiliated customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,664,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,465,377</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Inter-company sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,893,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,237</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,059,303</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total net sales</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,681,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,197,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,059,303</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,465,377</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Operating income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,503</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,670</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>378,913</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Identifiable assets<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">697,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,883,129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">455,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(827,155</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,209,253</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 8pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Includes as of December&nbsp;31, 2003, identifiable long-lived assets of a total of EUR
703,865, with EUR 22,043 in Asia, EUR&nbsp;1,635,371 in Europe and EUR 380,488 in the United States and
taking into account eliminations of EUR&nbsp;1,334,037.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
Includes as of December&nbsp;31, 2004, identifiable long-lived assets
of a total of EUR&nbsp;532,631, with EUR&nbsp;22,575 in Asia, EUR&nbsp;697,754 in Europe and EUR&nbsp;275,402 in the United States and
taking into account eliminations of EUR&nbsp;463,100.</DIV>


<P align="left" style="font-size: 10pt">Assets, liabilities and capital expenditures by geographical area are not evaluated by
executive management and are not used for the purpose of making decisions about allocating
resources to the segment or assessing its performance.


<P align="left" style="font-size: 10pt">In 2004, sales to one customer accounted for EUR 434&nbsp;million or 18&nbsp;percent of net sales. In 2003,
sales to one customer accounted for EUR 314&nbsp;million, or 20&nbsp;percent of net sales. In 2002, sales to
one customer accounted for EUR 377&nbsp;million or 19&nbsp;percent of net sales. ASML&#146;s three largest
customers accounted for 38&nbsp;percent of accounts receivable at December&nbsp;31, 2004, compared to 44
percent at December&nbsp;31, 2003.


<P align="left" style="font-size: 10pt"><B>18. Board of Management and Supervisory Board remuneration</B>


<P align="left" style="font-size: 10pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board of Management</B>


<P align="left" style="font-size: 10pt">The remuneration of the members of the Board of Management is determined by the Supervisory Board
on the advice of the Remuneration Committee of the Supervisory Board. This remuneration policy has
been approved by the General Meeting of Shareholders of March&nbsp;18, 2004. The remuneration policy is
such that ASML will continue to attract, reward and retain qualified and seasoned industry
professionals in an international labor market. The remuneration structure and levels will be
determined by referencing to the appropriate local top executive pay market practices by
benchmarking positions on the basis of job responsibilities. The total remuneration consists of base salary, a
short-term performance cash bonus and performance stock options, long-term performance stock and
benefits. The members of the Board of Management employed by the Company at the time of adoption
of the new remuneration policy on March&nbsp;18, 2004 were given the opportunity to opt for either the
new package under the new policy or to retain their old package including the same base salary as
under the new policy. All members of the Board of Management employed with the Company at that
time,



<P align="center" style="font-size: 10pt">F-29
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">being Mr.&nbsp;Dunn,
Mr.&nbsp;Wennink, Mr.&nbsp;Van den Brink, Mr.&nbsp;McIntosh and Mr.&nbsp;Chavoustie, chose the
latter.


<P align="left" style="font-size: 10pt"><U>Base salary, short-term performance cash bonus</U>


<P align="left" style="font-size: 10pt">The remuneration in euros of the members of the Board of Management was as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Salaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,016,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,912,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,176,085</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Bonuses<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,052,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,305,651</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pension cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">263,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">212,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>486,045</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Other benefits<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>827,574</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B><I>Total</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,444,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,367,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,795,355</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> The statement of operations for the year ended December&nbsp;31, 2004, 2003 and 2002
include accruals for short-term performance cash bonuses of EUR
1,305,651, EUR 1,052,131 and EUR 0, respectively,
which is paid in the first quarter of the following year to the Board
of Management.</DIV>
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Other benefits include housing costs, company cars, social security costs and
disability insurance and expenses totaling EUR&nbsp;589,845 pursuant to an agreement with Mr.&nbsp;McIntosh in connection with his retirement from the Board of Management.</DIV>


<P align="left" style="font-size: 10pt">The 2004 remuneration in euros of the individual members of the Board of Management was as
follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="11">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Cash</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Bonus</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>benefits</B><SUP style="font-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">D.J. Dunn<SUP style="font-size: 85%; vertical-align: text-top"><B>3</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">631,300</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">378,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,052,170</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">E. Meurice<SUP style="font-size: 85%; vertical-align: text-top"><B>4</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>285,793</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">P.T.F.M. Wennink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">321,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>551,109</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">M.A. van den Brink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">401,250</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>682,122</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">S.K. McIntosh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">379,850</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">227,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD align="right">630,990</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>1,238,750</B></TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">D.P. Chavoustie<SUP style="font-size: 85%; vertical-align: text-top"><B>7</B></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>499,366</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 8pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> The statement of operations for the year ended December&nbsp;31, 2004 includes an
accrual for short-term performance cash bonus expected to be paid in the first quarter of 2005 to
the Board of Management.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Other benefits include housing costs, company cars, social security costs
and disability insurance.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
Salary figures relate to period January-December&nbsp;2004.</DIV>

<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP> Salary figures relate to period October-December&nbsp;2004. Mr.&nbsp;Meurice&#146;s salary
for a full year amounts to EUR 600,000.</DIV>



<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP>
Salary figures for 2004 increased by 7% compared to the salaries paid in
2003 and 2002.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP>
Figures include payments totaling EUR 589,845 pursuant to an agreement with
Mr.&nbsp;McIntosh in connection with his retirement from the Board of
Management.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">7</SUP> Salary figures are translated from USD into EUR using the exchange rate in
effect on December&nbsp;31, 2004 of USD 1.00 = EUR 0.73292.</DIV>


<P align="left" style="font-size: 10pt">On October&nbsp;12, 2004, the Company entered into an agreement with Mr.&nbsp;McIntosh in connection
with his retirement from the Board of Management. Pursuant to the agreement, as amended, Mr.
McIntosh retired from the Board of Management effective January&nbsp;3, 2005, and from employment by
ASML effective April&nbsp;30, 2005. In accordance with the terms of the agreement, Mr.&nbsp;McIntosh is
entitled to payments totalling EUR 589,845, which is equal to the
amount he would have
received during the remaining term of his employment agreement. These payments have been provided
for in ASML&#146;s statement of operations for the year ended December&nbsp;31, 2004.


<P align="left" style="font-size: 10pt">ASML has an annual short-term performance bonus plan for the Board of Management. Under this plan,
the annual performance bonus will range between 0% and 50% of base salary, under the new
remuneration policy as adapted by the AGM on March&nbsp;18, 2004. Under the old remuneration policy the
percentages range between 0% and 60%. Under these plans the ultimate bonus amount is dependent on
the actual achievement of corporate targets. These targets are market share and financial and
operation performance parameters relating to return on invested capital parameters.


<P align="left" style="font-size: 10pt">The 2004 vested pension benefit<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>(in euro) of individual members of the Board of
Management was as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">D.J. Dunn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,130</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">E. Meurice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,452</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">P.T.F.M. Wennink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,512</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">M.A. van den Brink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,938</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">S.K. McIntosh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,167</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">D.P. Chavoustie <SUP style="font-size: 85%; vertical-align: text-top">2, 3</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251,846</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><HR noshade size="1" align="left" width="12%" color="#000000">
<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Since the pension arrangement for members of the Board of Management is a
defined contribution plan, the Company does not have
further pension obligations beyond the annual premium
contribution.</DIV>


<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
Salary figures are translated from USD into EUR using the exchange rate in
effect on December&nbsp;31, 2004 of USD 1.00 = EUR 0.73292.</DIV>



<P align="center" style="font-size: 10pt">F-30
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP>
As it was observed that the pension rights accrued by Mr.
Chavoustie were not in line with those of his European colleagues, a
one-off corrective payment
amounting to USD 333,369 was made to close the gap.</DIV>



<P align="left" style="font-size: 10pt"><U>Performance Stock Options</U>


<P align="left" style="font-size: 10pt">Details of options held by members of the Board of Management to purchase ordinary shares of ASML
Holding N.V. are set forth below:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"> <B>Granted</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Exercised</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>price on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>during</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>during</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Dec. 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>Expiration</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right" colspan="4"><B>01-Jan-04</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="2"><B>date</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">D.J. Dunn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">01-04-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-01-2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-04-2013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">23-04-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">P.T.F.M. Wennink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">01-01-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD align="right">58.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-01-2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-07-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-04-2013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">23-04-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">M.A. van den Brink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-01-2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-07-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-04-2013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">23-04-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">D.P. Chavoustie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-10-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-10-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-10-2005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-01-2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-07-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-04-2013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">23-04-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">S.K. McIntosh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-01-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-07-2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">21-01-2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">22-04-2013</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">23-04-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="29" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">E. Meurice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">15-10-2014</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Certain members of ASML&#146;s Board of Management have deposited their stock options with an
independent fund manager who has authority to exercise these options and dispose of the underlying
shares without instructions from, or consultation with, the respective member of the Board of
Management.




<P align="center" style="font-size: 10pt">F-31
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt"><U>Performance Stock</U>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Mr.&nbsp;Meurice received a conditional award of performance stock with a maximum value equal to Euro
37,500. The maximum number of performance stock that will be awarded
to Mr.&nbsp;Meurice under the conditions set forth
in the remuneration policy is 6,049 shares.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Supervisory Board</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The annual remuneration for Supervisory Board members covers the period from one annual General
Meeting of Shareholders to the next one. This annual remuneration is paid out over the past period
after the annual General Meeting of Shareholders.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">At our annual General Meeting of Shareholders held on March&nbsp;25, 2003, our shareholders adopted a
new remuneration package for Supervisory Board members. The annual remuneration for individual
members is EUR 25,000 and for the Chairman EUR 40,000. Additionally, the membership of committees
of the Supervisory Board is compensated by an amount of EUR 10,000 per Committee.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">During 2003 and 2004, ASML paid out the following amounts to the individual members of the
Supervisory Board (in euros):

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">H. Bodt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>60,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">P.H. Grassmann</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">S. Bergsma<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>45,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">J.A. Dekker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">M.J. Attardo<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">J.W.B. Westerburgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>35,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
<HR noshade size="1" width="12%" align="left" color="#000000">
<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Membership ended March&nbsp;18, 2004.<BR>
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP> As of December&nbsp;31, 2004, Mr Attardo owns 19,290 options on shares of the
Company. During 2004, Mr Attardo exercised 15,432 options on shares
of the Company.</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In the first half of 2005, ASML expects to pay the following amounts to the individual
members of the Supervisory Board (in euro):

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">H. Bodt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">P.H. Grassmann</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">S. Bergsma<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">J.A. Dekker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">M.J. Attardo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">J.W.B. Westerburgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">F. Fr&#246;hlich<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right"><DIV style="margin-left:15px; text-indent:-15px">A. van der Poel<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>
<HR noshade size="1" width="12%" align="left" color="#000000">
<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> Membership ended March&nbsp;18, 2004.
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">2
</SUP>Membership started March&nbsp;18, 2004.</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Members of the Board of Management and Supervisory Board are free to acquire or dispose of
ASML shares or options for their own account, provided they comply with the ASML Insider Trading
Rules&nbsp;2002.

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>19. Selected operating expenses and additional information</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Personnel expenses for all employees were:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Year ended December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><I>(in thousands)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">EUR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>EUR</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Wages and salaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">371,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">326,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>345,026</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Social security expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>24,517</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Pension and retirement expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25,850</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">425,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>395,393</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The average number of employees from continuing operations during 2002, 2003 and 2004 was 5,640,
5,323 and 5,038, respectively (excluding non-payroll employees). The total number of personnel
employed per sector was:


<P align="center" style="font-size: 10pt">F-32
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>As of December 31</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Marketing &#038; Technology</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,401</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Goodsflow</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,207</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Customer Support</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,818</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">General</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>509</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>136</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,071</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">119</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>0</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Total number of employees
(including non-payroll employees)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,071</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>
<HR noshade size="1" width="12%" align="left" color="#000000">
<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 8pt"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP> As of January&nbsp;1, 2004, these employees were transferred to newly
incorporated companies of the buyer of ASML&#146;s Thermal business.
</DIV>

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 2002, 2003 and 2004, a total of 2,857, 2,649 and 2,584 employees in the Company&#146;s
continuing operations (excluding non-payroll employees), respectively, were employed in the
Netherlands.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>20. Vulnerability due to certain concentrations</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ASML relies on outside vendors to manufacture the components and subassemblies used in its systems,
each of which is obtained from a sole supplier or a limited number of suppliers. ASML&#146;s reliance on
a limited group of suppliers involves several risks, including a potential inability to obtain an
adequate supply of required components and reduced control over pricing and timely delivery of
these subassemblies and components. In particular, the number of systems ASML has been able to
produce has occasionally been limited by the production capacity of Zeiss. Zeiss is currently
ASML&#146;s sole external supplier of lenses and other critical optical components and is capable of
producing these lenses only in limited numbers and only through the use of its manufacturing and
testing facility in Oberkochen and Wetzlar, Germany. ASML sells a substantial number of lithography
systems to a limited number of customers.
In 2004, sales to one customer accounted for EUR 434&nbsp;million or 18&nbsp;percent of net sales. In 2003,
sales to one customer accounted for EUR 314&nbsp;million, or 20&nbsp;percent of net sales. As a result of the
limited number of customers, credit risk on receivables is concentrated. ASML&#146;s three largest
customers accounted for 38&nbsp;percent of accounts receivable at December&nbsp;31, 2004, compared to 44
percent at December&nbsp;31, 2003. Business failure of one of ASML&#146;s main customers may result in
adverse effects on its business, financial condition and results of operations.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>21. Capital stock</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Cumulative preference shares</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In 1998, the Company granted to the preference share foundation, &#147;Stichting Preferente Aandelen
ASML&#148; (the &#147;Foundation&#148;) an option to acquire cumulative preference shares in the capital of the
Company (the &#147;Preference Share Option&#148;). This option was amended and extended in 2003. The object
of the Foundation is to protect the interests of the Company and the enterprises maintained by it.
The cumulative preference shares have the same voting rights as ordinary shares but are entitled to
dividends on a preferential basis at a percentage based on EURIBOR plus 2&nbsp;percent.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The Preference Share Option gives the Foundation the right to acquire a number of cumulative
preference shares equal to the number of ordinary shares outstanding at the time of exercise of the
Preference Share Option for a subscription price equal to their EUR 0.02 nominal value. Only
one-fourth of this subscription price is payable at the time of initial issuance of the cumulative
preference shares. The cumulative preference shares may be cancelled and repaid by the Company upon
the authorization by the General Meeting of Shareholders of a proposal to do so by the Board of
Management approved by the Supervisory Board and the Meeting of Priority Shareholders. Exercise of
the Preference Share Option would effectively dilute the voting power of the ordinary shares then
outstanding by one-half. The practical effect of any such exercise could be to prevent attempts by
third parties to acquire control of the Company.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Declaration of Independence</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The Board of Directors of the Foundation and the Board of Management of the Company together
declare that the Foundation is independent of the Company as defined in article A. of &#147;Bijlage X
bij het Fondsenreglement van Euronext Amsterdam.&#148; The Board of the Foundation comprises three
voting members from the Netherlands business and academic communities, Mr.&nbsp;R.E. Selman, Mr.&nbsp;F.H.M.
Grapperhaus and Mr.&nbsp;M.W. den Boogert, and one non-voting member, the Chairman of the Company&#146;s
Supervisory Board, Mr.&nbsp;H. Bodt.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Priority shares</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The priority shares are held by the &#147;Stichting Prioriteitsaandelen ASML Holding N.V.&#148; (the
&#147;Priority Foundation&#148;), a foundation having a self-elected board that must consist solely of
members of the Company&#146;s Supervisory Board and Board of Management.


<P align="center" style="font-size: 10pt">F-33
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">As of December&nbsp;31, 2004, the board members of the Priority Foundation were:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Eric Meurice</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Henk Bodt</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Jos W.B. Westerburgen</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Jan A. Dekker</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&#149;&nbsp;&nbsp;</TD>
    <TD>Peter T.F.M. Wennink</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">An overview of the other positions held by above persons can be obtained at the Company&#146;s office.
In the joint opinion of the Company and the foregoing members of the board of the Priority
Foundation, the composition of the board conforms with Appendix&nbsp;X, Article&nbsp;C.10 of the Listing and
Issuing Rules of the Euronext Amsterdam. Article&nbsp;C10 states that the issuer shall ensure that not more than half of
the priority shares are being held by managing directors of the issuer or, where the priority
shares are held by a legal entity, that no more than half of the number of votes to be exercised in
meetings of the foundation in which decisions are made about the exercise of the voting rights of
the priority shares, can be exercised, directly or indirectly, by persons who are also managing
directors of the issuer. The priority shares are not entitled to dividends but have a preferred right over all other
outstanding preferred and ordinary shares on the return of their nominal value in the case of
winding up the Company. Holders of priority shares are required to approve certain significant
corporate decisions and transactions of the Company. These decisions and transactions encompass,
but are not limited to, amendment of the Articles of Association, winding up of the Company,
issuance of shares, limitation of pre-emptive rights and repurchase and cancellation of shares.


<P align="left" style="font-size: 10pt">Veldhoven, the Netherlands<BR><BR>
January&nbsp;28, 2005


<P align="left" style="font-size: 10pt">/s/ Eric Meurice,<BR>
Chief Executive Officer


<P align="left" style="font-size: 10pt">/s/Peter T.F.M. Wennink,<BR>
Chief Financial Officer


<P align="center" style="font-size: 10pt">F-34
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<A name="307"></A>
</DIV>


<P align="left" style="font-size: 10pt"><U><B>Report of Independent Registered Accounting Firm</B></U>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">To
the Supervisory Board and Board of Management of ASML Holding N.V.

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We have audited the accompanying consolidated balance sheets of ASML Holding N.V. and its
subsidiaries (collectively, the &#147;Company&#148;) as of December&nbsp;31, 2003 and 2004, and the related
consolidated statements of operations, comprehensive income, shareholders&#146; equity and cash flows
(as restated) for each of the three years in the period ended December&nbsp;31, 2004 (all expressed in euros). These
financial statements are the responsibility of the Company&#146;s management. Our responsibility is to
express an opinion on these financial statements based on our audits.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (PCAOB). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December&nbsp;31, 2003 and 2004, and the results of its
operations, comprehensive income and its cash flows (as restated) for each of the three years in the period ended
December&nbsp;31, 2004, in conformity with accounting principles generally accepted in the United States
of America.

<P align="left" style="font-size: 10pt"><IMG src="u48286u4828601.gif" alt="(DELOITTE ACCOUNTANTS B.V. SIG)">

<P align="left" style="font-size: 10pt">Eindhoven, The
Netherlands<BR>January&nbsp;28, 2005<BR>&nbsp;


<P align="center" style="font-size: 10pt">F-35
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="308"></A>
</DIV>

<P align="left" style="font-size: 10pt"><U><B>Exhibit&nbsp;Index</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="right"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Association of ASML Holding N.V. (English translation)
(Incorporated by reference to Amendment No.&nbsp;7 to the Registrant&#146;s Registration
Statement on Form&nbsp;8-A/A, filed with the Commission on June&nbsp;10, 2004 (File No.
0-25566))</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paying Agent, Conversion Agent and Registrar Agreement between ASML
Holding N.V. and the Bank of New York relating to the
Registrant&#146;s 5.75 percent Convertible
Subordinated Notes due 2006 (Incorporated by reference to the
Registrant&#146;s Annual Report on Form&nbsp;20-F for the year ended
December&nbsp;31, 2001)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paying Agent, Conversion Agent and Registrar Agreement between ASML
Holding N.V. and the Bank of New York relating to the Registrant&#146;s 5.50&nbsp;percent
Convertible Subordinated Notes due 2010 (Incorporated by reference to the
Registrant&#146;s Annual Report on Form&nbsp;20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement between ASML Lithography B.V. and Carl Zeiss, dated March&nbsp;17,
2000 (Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for
the year ended December&nbsp;31, 2000) #</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement between ASML Holding N.V. and Carl Zeiss, dated October&nbsp;24,
2003 (Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for
the year ended December&nbsp;31, 2003) #</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Indemnity Agreement between ASML Holding N.V. and members of its
Board of Management (Incorporated by reference to the Registrant&#146;s Annual Report on
Form&nbsp;20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Indemnity Agreement between ASML Holding N.V. and members of its
Supervisory Board (Incorporated by reference to the Registrant&#146;s Annual Report on
Form&nbsp;20-F for the year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and Eric Meurice*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and Stuart K. McIntosh
(Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the
year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Agreement between ASML Holding N.V. and David P. Chavoustie
(Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the
year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Employee Agreement for members of the Board of Management
(Incorporated by reference to the Registrant&#146;s Annual Report on Form&nbsp;20-F for the
year ended December&nbsp;31, 2003)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML New Hires and Incentive Stock Option Plan For Management (Version
2003) (Incorporated by reference to the Registrant&#146;s Statement on
Form&nbsp;S-8, filed with the Commission on September&nbsp;2, 2003
(File No.&nbsp;333-109154))</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nikon-ASML Patent Cross License
Agreement, dated December&nbsp;10, 2004, between ASML Holding N.V. and
Nikon Corporation*#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML/Zeiss Sublicense Agreement,
dated December&nbsp;10, 2004, between Carl Zeiss SMT AG and ASML
Holding N.V.*#</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement, dated October&nbsp;12,
2004, between ASML Holding N.V. and Stuart
K. McIntosh*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ASML Incentive and New Hire Option Plan for Board of Management (Incorporated by reference to the Registrant&#146;s Registration Statement on
Form&nbsp;S-8, filed with the Commission on June&nbsp;9, 2004 (File No.&nbsp;333-116337))</TD>
</TR>

<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">List of Subsidiaries*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of CEO and CFO Pursuant to Rule&nbsp;13a-14(a) of the Securities
Exchange Act of 1934*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">13.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of CEO and CFO Pursuant to Rule&nbsp;13a-14(b) of the Securities
Exchange Act of 1934 and 18 U.S.C. Section&nbsp;1350 as Adopted Pursuant to Section&nbsp;906 of
the Sarbanes-Oxley Act of 2002*</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">15.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Deloitte Accountants B.V.*</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">* Filed herewith


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"># Certain information omitted pursuant to a request for confidential treatment filed separately
with the Securities and Exchange Commission


<P align="right" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.5
<SEQUENCE>2
<FILENAME>u48286exv4w5.txt
<DESCRIPTION>EXHIBIT 4.5
<TEXT>
<PAGE>
                                                                     EXHIBIT 4.5

                              EMPLOYMENT AGREEMENT


                                     Between

                              1. ASML Holding N.V.

                                       and

                                  2 E. Meurice
<PAGE>
THE UNDERSIGNED:

1.    ASML Holding N.V., established and headquartered at Veldhoven, the
      Netherlands, represented by H. Bodt and J.W.B. Westerburgen, in their
      capacity of Chairman and member of the Supervisory Board respectively and
      acting on behalf of the Supervisory Board, hereinafter referred to as:
      "ASML";

and

2.    Eric Meurice, residing in Heatherbrook - Portnall Rise, GU25 4 JZ Virginia
      Water, United Kingdom, hereinafter referred to as: "the Executive";

WHEREAS:

The Supervisory Board and the Executive have agreed that the Executive shall
enter into an employment agreement with ASML on September 1, 2004;

Subject to the notification of the Special Meeting of Shareholders to be
convened for August 2004, the Supervisory Board has expressed its intention to
appoint the Executive as Chief Executive Officer ("CEO") and chairman of the
Board of Management for a period of four years counting from the first date of
employment, without prejudice to the rights of the parties to terminate the
appointment during the four years' period;

The parties desire to set forth the terms and conditions applying to the
Executive's employment.

DECLARE TO HAVE AGREED AS FOLLOWS:

1.    DATE OF COMMENCEMENT OF EMPLOYMENT AND POSITION

1.1   The Executive shall enter into an employment agreement with ASML in the
      position of chairman of the Board of Management of ASML and CEO, effective
      as of September 1, 2004.

1.2   The Executive's place of employment will be the office of ASML, in
      Veldhoven. ASML will be entitled to change the place of employment in good
      consultation with the Executive.

1.3   The Executive shall fulfill all obligations vested in him by law, laid
      down in the articles of association of ASML and in instructions determined
      or to be determined in a Board of Management regulation.

1.4   The Executive is obliged to do or to refrain from doing all that directors
      in similar positions should do or should refrain from doing. The Executive
      shall fully devote himself, his time and his energy to promoting the
      interest of the ASML group of companies.

1.5   If the Executive is a member of the board of another company within the
      ASML group of companies on the basis of his position as CEO of ASML
      (so-called "q.q. directorships"), or if the Executive is employed in any
      other position pursuant to his position as CEO of ASML (so-called
      "q.q.-positions"), he will not be paid any income therefrom.

1.6   The Executive shall adhere to the ASML Code of Ethical Business Conduct,
      the ASML Insider Trading Rules as well as other generally applicable ASML
      guidelines (f.e. ASML's security-/information-/travels policies), as
      amended from time to time.

2.    DURATION OF THE AGREEMENT AND NOTICE OF TERMINATION

2.1   This agreement is entered into for a definite period of four (4) years. No
      later than December 31, 2007 ASML and the Executive will discuss the
      possibilities and conditions of an extension of this employment
      relationship after September 1, 2008. If agreement on an extension is not
      reached before January 31, 2008 this agreement will terminate by operation
      of law, without notice being required, on September 1, 2008.


                                       2
<PAGE>
2.2   Without prejudice to paragraph 1 of this article, this agreement may be
      terminated by either party during its term with due observance of a notice
      period of six (6) months for ASML and a notice period of three (3) months
      for the Executive.

2.3   If ASML gives notice of termination of the employment agreement for
      reasons which are not exclusively or mainly found in acts or omissions on
      the side of the Executive, a severance amount equal to one year base
      salary, as referred to in article 3.1 of this agreement, will be made
      available to the Executive upon the effective date of termination. This
      severance payment will also be made available to the Executive in case the
      Executive gives notice of termination of the employment agreement in
      connection with a substantial difference of opinion between the Executive
      and the Supervisory Board regarding his employment agreement, his function
      or the Company's strategy.

2.4   The Executive shall also be entitled to the severance amount as referred
      to in article 2.3 in the event ASML or its legal successor gives notice of
      termination in connection with a Change of Control as referred to in
      article 16.1, or if the Executive gives notice of termination, which is
      directly related to such Change of Control and such notice is given within
      12 months from the date on which the Change of Control occurs.

2.5   At the termination of this agreement the Executive shall resign from the
      q.q. directorship(s) and/or q.q. position(s) held by him as referred to in
      article 1.5 of this agreement.

3.    SALARY AND BONUS

3.1   The Executive's base salary, including holiday allowance, shall amount to
      EUR 600,000 (sixhundredthousand Euro) gross per year based on full time
      employment, which base salary shall be paid in twelve equal instalments at
      the end of each month assuming a full year of employment.

3.2   The Supervisory Board shall review annually whether, at its discretion, an
      increase in the gross base salary is justified.

3.3   The Executive is entitled to a yearly bonus up to a maximum of 50% of the
      gross base salary paid in the relevant bonus year. The bonus will be
      determined in accordance with the ASML Holding NV Board of Management
      Remuneration Policy ("the ASML Remuneration Policy") as applicable from
      time to time. For 2004, the Executive shall be entitled to this bonus pro
      rata the number of months of his employment at ASML in 2004.

3.4   The bonus as referred to in article 3.3, if any, shall be paid by ASML, to
      the Executive within two months from the date on which the annual accounts
      pertaining to the relevant bonus year have been approved.

3.5   The Executive is not entitled to a bonus as referred to in article 3.3:

      (a)   that relates to a year during which the Executive was not able to
            perform duties due to illness for a consecutive period of four
            months or more, or

      (b)   that relates to a year in which he was suspended for any period of
            time, or

      (c)   that relates to a year in which the employment agreement terminated
            before the end of the relevant bonus year, provided that if this
            termination took place on the initiative of ASML, without an urgent
            cause for such termination, the Executive shall be entitled to a pro
            rata part of the bonus commensurate with the period of employment
            during the relevant bonus year.

4.    TAX

4.1   ASML and the Executive will jointly put forward a request to the Dutch tax
      authorities in order to apply for the so called 30% ruling as referred to
      in article 15a, sub k "Wet op de Loonbelasting"


                                       3
<PAGE>
5.    PERFORMANCE STOCK - PERFORMANCE STOCK OPTIONS, SIGN-ON OPTIONS

5.1   The Executive shall be eligible to participate in the Board of Management
      Performance Stock Options and Performance Stock programs as determined by
      the applicable ASML Remuneration Policy.

5.2   The Executive shall be entitled to 125,000 stock options in ASML upon
      signing of this agreement, subject to statutory Dutch tax withholdings and
      under such further conditions as set forth in the applicable ASML stock
      option plan.

6.    EXPENSES, COMPANY CAR AND TRAVEL

6.1   Any reasonable expenses properly incurred by the Executive in the
      performance of his duties, shall be reimbursed by ASML, in accordance with
      the standard procedure within the organisation of ASML. An account of such
      expenses, accompanied by supporting receipts and other appropriate
      evidence shall be rendered by the Executive to ASML prior to any
      reimbursement. The Chairman of the Supervisory Board has the right to
      examine the relevant administration from time to time.

6.2   ASML shall pay the Executive a monthly allowance of EUR 353 in addition to
      his salary for out-of-pocket expenses.

6.3   ASML shall provide the Executive with a company car with a maximum
      integral lease price of EUR 2,100 per month exclusive of VAT for the
      performance of his duties and on such further conditions as shall be
      determined by ASML, from time to time. In the event of sickness for a
      period exceeding four months, ASML will be entitled to reclaim the company
      car from the Executive, without the Executive being entitled to any
      compensation. The Executive shall comply with ASML's request to return the
      car.

6.4   ASML shall pay those costs of a private telephone and fax machine for the
      Executive, which are in excess of the amount that must be paid by the
      Executive in order to avoid tax-liability for ASML, to the extent that
      those costs are reasonable.

6.5   The Executive and his spouse shall be entitled to a reasonable number of
      return flights per year from Eindhoven or Amsterdam to London at the
      expense of ASML

6.6   ASML shall pay for the reasonable costs of moving to the Netherlands at
      the beginning of the employment agreement and the reasonable costs of
      relocation to the UK or another European country at the end of the
      employment agreement in accordance with prevailing practices within ASML
      on relocation.

6.7   The Executive shall be entitled to a monthly contribution in housing cost
      of EUR 2,000. Furthermore ASML shall pay the reasonable cost of furnishing
      an -unfurnished- accomodation up to a maximum of EUR 25,000.

6.8   ASML shall reimburse the cost for the Executive's yearly tax advice and
      tax return preparation, provided that the Executive uses the services of a
      reputable tax firm.

7.    HOLIDAYS

7.1   The Executive shall be entitled to 30 working days vacation per year. In
      taking vacation, the Executive shall duly observe the interests of ASML.

8.    INSURANCES

8.1   ASML shall contribute 50% of the annual gross premium of the ASML medical
      insurance taken out for the Executive, his spouse and children (as defined
      in the relevant policy).


                                       4
<PAGE>
8.2   ASML shall pay the annual premium of the ASML travel and accident
      insurance. This insurance shall, if and when the Executive is accepted,
      provide coverage to the Executive as mentioned in the relevant policy.

8.3   ASML shall pay the annual premium of the ASML Director and Officers
      Liability Insurance policy. This insurance shall provide coverage to the
      Executive as mentioned in the relevant policy.

8.4   ASML shall pay the annual premium of the supplemental disability
      insurance. This insurance shall, if and when the Executive is accepted,
      provide coverage to the Executive as mentioned in the relevant policy.

9.    SICKNESS

9.1   In the event of sickness as defined in the Civil Code, the Executive shall
      notify ASML as soon as possible, but nevertheless before 10:00 hours at
      the latest on the first day of sickness. The Executive shall observe
      ASML's policy pertaining to sickness, as determined by ASML from time to
      time.

9.2   In the event of sickness, ASML shall pay to the Executive from the first
      day of sickness 100% of his salary as defined in article 3.1 up to a
      maximum of 52 weeks as from the first day of sickness. If the sickness
      continues after the first 52 weeks, ASML shall for a subsequent period up
      to a maximum of again 52 weeks pay an amount of salary equalling the
      legally required minimum. The above applies, however, only if and to the
      extent that ASML is under the obligation to continue to pay the salary.

9.3   The Executive shall not be entitled to the salary payment referred to in
      paragraph 2 of this article, if and to the extent that in connection with
      his sickness, he can validly claim damages from a third party on account
      of loss of salary and if and to the extent that the payments by ASML set
      forth in paragraph 2 of this article exceed the minimum obligation under
      the Civil Code. In this event, ASML shall satisfy payment solely by means
      of an advanced payment on the compensation to be received from the third
      party and upon assignment by the Executive of his rights to damages
      vis-a-vis the third party concerned up to the total amount of advanced
      payments made. The advanced payments shall be set-off by ASML if the
      compensation is paid or, as the case may be, in proportion thereto.

10.   PENSION

10.1  The Executive declares himself to be familiar with the prevailing defined
      contribution pension scheme of ASML. The parties agree to fulfil the
      obligations arising from such pension scheme.

11.   CONFIDENTIALITY

11.1  The Executive shall throughout the duration of this agreement and after
      this agreement has been terminated for whatever reason, refrain from
      disclosing in any manner to any individual (including other personnel of
      ASML or of other companies affiliated with ASML unless such personnel must
      be informed in connection with their work activities for ASML) any
      information of a confidential nature concerning ASML or other companies
      affiliated with ASML, which has become known to the Executive as a result
      of his employment with ASML and of which the Executive knows or should
      have known to be of a confidential nature.

11.2  If the Executive breaches the obligations as expressed in paragraph 1 of
      this article, the Executive shall, without any notice of default being
      required, pay to ASML for each breach thereof, a penalty amounting to EUR
      50,000. Alternatively, ASML will be entitled to claim full damages.

12.   DOCUMENTS


                                       5
<PAGE>
12.1  The Executive shall not have nor keep in his possession any documents
      and/or correspondence and/or data carriers and/or copies thereof in any
      manner whatsoever, which belong to ASML or to other companies affiliated
      with ASML and which have been made available to the Executive as a result
      of his employment, except insofar as and for as long as necessary for the
      performance of his work for ASML. In any event the Executive will be
      obliged to return to ASML immediately, without necessitating the need for
      any request to be made in this regard, any and all such documents and/or
      correspondence and/or data carriers and/or copies thereof at termination
      of this agreement or on suspension of the Executive from active duty for
      whatever reason.

13.   NO ADDITIONAL OCCUPATION

13.1  The Executive shall refrain from accepting remunerated or time consuming
      non-remunerated work activities with or for third parties or from doing
      business for his own account without the prior written consent of the
      Chairman of the ASML Supervisory Board. ASML shall be entitled to any
      remuneration resulting from such work activities.

14.   NON-COMPETITION

14.1  The Executive shall throughout the duration of this agreement and for a
      period of one year after termination hereof, not be engaged or involved in
      any manner, directly or indirectly, whether for the account of the
      Executive or for the account of others, in any enterprise which conducts
      activities in a field similar to or otherwise competes with that of ASML
      or any of its subsidiaries or affiliated companies nor act as intermediary
      in whatever manner directly or indirectly. This obligation applies
      worldwide.

14.2  In the event the Executive breaches the obligations as expressed in
      paragraph 1 of this article, the Executive shall without notice of default
      being required, pay to ASML for each such breach a penalty equal to an
      amount of EUR 25,000, plus a penalty of EUR 2,500 for each day such breach
      occurs and continues. Alternatively, ASML will be entitled to claim full
      damages.

15.   INTELLECTUAL PROPERTY

15.1  The Executive shall be obliged to assign and transfer to ASML any right
      associated with patents, models, designs and/or any other intellectual
      property right related to and forthcoming from the Executive's employment
      with ASML, during this employment or in the period of twelve months after
      termination of such employment. The Executive is obliged to inform ASML,
      of the existence of aforementioned rights and assign and transfer these
      rights to ASML without undue delay. The Executive acknowledges that the
      salary received by him in relation to this agreement includes an allowance
      for the fact that intellectual property rights will not be assigned to the
      Executive and that, insofar as applicable, the Executive will assign and
      transfer these rights to ASML.

16.   AMENDMENTS TO THE TERMS AND CONDITIONS OF THE APPLICABLE ASML STOCK OPTION
      PLANS IN CASE OF A CHANGE OF CONTROL

16.1  In this article the following definitions shall apply:

      (a)   "CHANGE OF CONTROL" of ASML means (i) any merger or consolidation of
            ASML with or into any other individual, partnership, company or
            entity in the broadest sense (hereinafter referred to as "Third
            Party(ies)") or any stock purchase or sale, reorganization,
            recapitalization or other transaction, in each case, in one
            transaction or a series of related transactions, if, immediately
            after giving effect to such transaction(s), any Third Party(ies),
            not currently controlling ASML acquires Control of ASML or of its
            transferee(s) or surviving Third Party(ies) or (ii) any sale,
            transfer or other conveyance, whether direct or indirect, of all or
            substantially all of the assets of ASML, on a consolidated basis, in
            one transaction or a series of related transactions;

      (b)   "CONTROL" means, with respect to any Person, the power to control,
            directly or indirectly, greater than 50% of' the voting interest of
            such Person, or the ability to appoint or elect


                                       6
<PAGE>
            more than 50% of the Management Board or other equivalent governing
            board of such Person, whether such power is effected through
            ownership of shares or other securities, by contract, by proxy or
            otherwise;

      (c)   "PERSON" means any individual, partnership. limited liability
            company, firm, corporation, company, association, trust,
            unincorporated organization or other entity.

16.2  In the event notice of termination of this agreement is given by ASML or
      its legal successor in connection with a Change of Control, the rights of
      the Executive under any of the applicable ASML Performance Stock and
      Performance Stock Option plan(s) shall not be subject to the restrictions
      contained in the relevant articles related to termination of employment in
      the applicable ASML plans and the Executive shall remain entitled to
      exercise options during the full original Option Period as defined in the
      Performance Stock Option plans. In addition the Executive will not be
      subject to any stock option Embargo Period or any embargo to sell stock as
      defined in the applicable ASML plan(s) and consequently the Executive can
      exercise any option(s) or sell stock held by him without being restricted
      as per the relevant articles in the applicable ASML plans. This provision
      16.2 also applies if the Executive gives notice of termination, provided
      that this notice of termination is directly related to the Change of
      Control and such notice is given within 12 months from the date on which
      the Change of Control occurs.

16.3  The provisions of this article do not affect any other rights the parties
      have or may have under Dutch law in the event of a termination of this
      agreement.

17.   GIFTS

17.1  The Executive shall not in connection with the performance of his duties,
      directly or indirectly, accept or demand commission, contributions or
      reimbursement in any form whatsoever from third parties. This does not
      apply to customary promotional gifts of little value, also taking into
      consideration provision 1.6 of this agreement.

18.   AMENDMENTS

18.1  Amendments to this agreement may only be agreed upon in writing and with
      regard to ASML, solely when a decision to that effect has been taken by
      the competent body of ASML.

19.   MISCELLANEOUS

19.1  This agreement supersedes all previous agreements between the Executive
      and ASML, and between the Executive and any affiliated companies and takes
      their place. After this agreement has been signed, the Executive and ASML
      can no longer derive any rights from agreements, which have been
      superseded herewith.

20.   APPLICABLE LAW, NO COLLECTIVE LABOUR AGREEMENT

20.1  This agreement is governed by the laws of the Netherlands.

20.2  No Collective Labour Agreement is applicable to this agreement.


                                       7
<PAGE>
In witness whereof, this agreement has been signed and executed in duplicate
this 2nd day of August 2004.

  /s/ H. Bodt                                             /s/  E Meurice
- ---------------------------                               -------------------
H. Bodt                                                   E. Meurice
Chairman of the Supervisory Board of ASML Holding N.V.



  /s/ J.W.B. Westerburgen
- ---------------------------
J.W.B. Westerburgen

Member of the Supervisory Board of ASML Holding N.V.


                                       8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.10
<SEQUENCE>3
<FILENAME>u48286exv4w10.txt
<DESCRIPTION>EXHIBIT 4.10
<TEXT>
<PAGE>

                                                                    EXHIBIT 4.10

                    NIKON-ASML PATENT CROSS-LICENSE AGREEMENT

      THIS NIKON-ASML PATENT CROSS-LICENSE AGREEMENT (this "AGREEMENT") is made
and entered into as of November 12, 2004 (the "EFFECTIVE DATE") by and between
ASML Holding N.V., a corporation organized under the laws of the Netherlands
("ASML"), and Nikon Corporation, a corporation organized under the laws of Japan
("NIKON"). ASML and Nikon are hereinafter also referred to collectively as the
"PARTIES" and individually as a "PARTY."

                                    RECITALS

      WHEREAS, Nikon, ASML and Zeiss SMT entered into a Memorandum of
Understanding entered into as of September 27, 2004 ("MOU"), pursuant to which
they agreed, among other things, to settle certain litigation proceedings and
grant cross-licenses of certain patent rights; and

      WHEREAS, pursuant to the MOU, Nikon and ASML are entering into that
certain Nikon-ASML Settlement and Release Agreement of even date herewith (the
"NIKON-ASML SETTLEMENT AND RELEASE AGREEMENT");

      NOW, THEREFORE, the Parties agree as follows:

                                    AGREEMENT

1. DEFINITIONS; INTERPRETATION

      1.1 Terms Defined in this Agreement. The following terms when used in this
Agreement shall have the following definitions:

            1.1.1 "ACQUIRED PATENT" is defined in Section 1.2.7.

            1.1.2 "ACQUIRING PARTY" is defined in Section 1.2.7.

            1.1.3 "AFFILIATE" means, with respect to any Person, any other
Person that controls, is controlled by or is under common control with such
first Person, but only for such time as control exists. For this purpose control
of a Person means possession, directly or indirectly, of the power to direct or
cause the direction of management, business affairs or policies (whether through
ownership of securities or partnership or other ownership interests, by contract
or otherwise).

            1.1.4 "AGREEMENT TERM" means the period commencing on the Effective
Date and ending on December 31, 2014.

*** Indicates certain information omitted pursuant to a request for confidential
treatment filed separately with the Securities and Exchange Commission.

<PAGE>

            1.1.5 "ARBITRATION AGREEMENT" means the Arbitration Agreement dated
as of the Effective Date by and among Nikon, ASML, Zeiss SMT, and Carl Zeiss.

            1.1.6 "ASML LICENSED PATENTS" is defined in Section 1.2.5.

            1.1.7 "ASML LICENSED PRODUCTS" is defined in Section 1.3.1

            1.1.8 "ASSERTING PARTY" is defined in Section 4.2.1.

            1.1.9 "CARL ZEISS" means Carl Zeiss AG, a corporation organized
under the laws of Germany.

            1.1.10 "CLASS A PATENT" is defined in Section 1.2.7.

            1.1.11 "CLASS B PATENT" is defined in Section 1.2.8.

            1.1.12 "CLASS C PATENT" is defined in Section 1.2.9.

            1.1.13 "CO-OWNED" (and the correlative "CO-OWNER") is defined in
Section 1.2.11.

            1.1.14 "CONVERTIBLE PATENTS" is defined in Section 1.2.3.

            1.1.15 "COVERED ENTITIES" of a Party means, with respect to a
Licensed Product, the direct and indirect resellers, distributors, users and
other customers of such Licensed Product of such Party and/or its Subsidiaries,
and any Person acquiring such Licensed Product from any of the foregoing.

            1.1.16 "DESIGNATED NEUTRAL" means the Honorable Edward Infante, or
if he is unable or unwilling to perform the relevant function, a substitute of
comparable experience who is mutually agreeable to the Parties.

            1.1.17 "DESIGNATED NIKON PATENTS" means the three (3) Patent
applications listed on Schedule E hereto.

            1.1.18 "DIRECT OR INDIRECT SALE" means the sale, lease, or other
conveyance of a product by a Party or its Subsidiaries to a third Person, or the
sale, lease, or other conveyance of a product by a Party or its Subsidiaries to
another Person which in turn sells, leases, or otherwise conveys such product to
the third Person substantially in the form acquired from such Party or its
Subsidiaries.

            1.1.19 "E-BEAM LITHOGRAPHY" means electron beam lithography or other
charged particle beam lithography, including direct write electron beam
lithography.

                                       2

<PAGE>

            1.1.20 "EFFECTIVE APPLICATION DATE" of a Patent application means
the earliest of (a) the filing date of such application, and (b), in the event
that such application claims priority from the filing date of an earlier filed
application or applications (including provisional applications), the earliest
(i) filing date of any of such earlier filed application or applications, and
(ii) for all of such earlier filed applications that make further priority
claims to earlier dates, the Effective Application Dates of such earlier filed
applications.

            1.1.21 "ELIGIBLE NIKON PATENT FAMILY" is defined in Section 1.2.21

            1.1.22 "ELIGIBLE NIKON PATENT FAMILY MEMBER" is defined in Section
1.2.22.

            1.1.23 "EXCESS ASSERTION" is defined in Section 2.8.5(b).

            1.1.24 "EXCLUDED CLAIM" is defined in Section 1.2.15.

            1.1.25 "EXCLUDED CLAIM CRITERIA" is defined in Section 1.2.16.

            1.1.26 "EXCLUDED CLAIMS LIST" is defined in Section 2.3.1.

            1.1.27 "EXCLUDED GLASS METHODS" means all methods or processes for
making Excluded Glass Products described in subclauses (a) and (b) of Section
1.1.28.

            1.1.28 "EXCLUDED GLASS PRODUCTS" means (a) optical material,
including glass, silica glass, crystal, and calcium fluoride crystal, but not
including optical coatings, (b) optical blanks, and (c) unfinished lenses
purchased by a Party or its Subsidiaries from third parties other than Zeiss SMT
and its Subsidiaries.

            1.1.29 "EXCLUDED LITHOGRAPHY TECHNOLOGY" is defined in Section
1.2.1.

            1.1.30 "EXCLUDED NIKON PATENTS" is defined in Section 1.2.20.

            1.1.31 "FINALLY RESOLVED" (and the correlative, "FINAL RESOLUTION")
with respect to a Suit, means that such Suit is (a) settled and dismissed with
prejudice, (b) subject to a final judgment as to which no appeal is possible or
taken within the time permitted, or (c) is withdrawn completely by the Person
bringing such Suit.

            1.1.32 "FPD/LARGE AREA SUBSTRATE LITHOGRAPHY" means lithography to
manufacture flat panel displays or expose large area substrates other than
wafers (i.e., substrates other than wafers that are greater than 500mm along any
dimension).

            1.1.33 "FULL RIGHTS TERMINATION" is defined in Section 2.8.4.

            1.1.34 "GLASS SUPPLIER" is defined in Section 4.2.2.

            1.1.35 "GOVERNMENTAL AUTHORITY" means any: (a) nation, principality,
state, commonwealth, province, territory, county, municipality, district or
other jurisdiction of any

                                       3

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nature; (b) federal, state, local, municipal, foreign or other government; (c)
governmental or quasi governmental authority of any nature (including any
governmental division, subdivision, department, agency, bureau, branch, office,
commission, council, board, instrumentality, officer, official, representative,
organization, unit, body or entity and any court or other tribunal); or (d)
individual, entity or body exercising, or entitled to exercise, any executive,
legislative, judicial, administrative, regulatory, police, military or taxing
authority or power of any nature.

            1.1.36 "INDEPENDENT AUDITOR" shall have the meaning set forth in
Section 5.5.

            1.1.37 "LAW" means any law, statute, legislation, constitution,
principle of common law, resolution, ordinance, code, order, edict, decree,
proclamation, treaty, convention, rule, regulation, ruling, directive,
pronouncement, requirement (licensing or otherwise), determination, decision,
opinion or interpretation that is, has been or may in the future be issued,
enacted, adopted, passed, approved, promulgated, made, implemented or otherwise
put into effect by or under the authority of any Governmental Authority.

            1.1.38 "LICENSABLE CO-OWNED PATENT" is defined in Section 1.2.12.

            1.1.39 "LICENSE TERM" means the period commencing on the Effective
Date and ending on December 31, 2009.

            1.1.40 "LICENSED PATENTS" is defined in Section 1.2.6.

            1.1.41 "LICENSED PRODUCTS" is defined in Section 1.3.3.

            1.1.42 "LITHOGRAPHY" is defined in Section 1.3.4.

            1.1.43 "LITHOGRAPHY EQUIPMENT" is defined in Section 1.3.5.

            1.1.44 "LITHOGRAPHY PATENT" is defined in Section 1.2.2.

            1.1.45 "MASKLESS LITHOGRAPHY" means Lithography in which light is
patterned using individually-controllable elements and not a reflective or
transmissive mask.

            1.1.46 "MOU" shall have the meaning set forth in the recitals.

            1.1.47 "NET SELLING PRICE" means the gross revenues actually
received by a Party or its Subsidiaries from Direct or Indirect Sales of a
product, less (a) normal and customary rebates, and cash and trade discounts;
(b) sales, use and/or other excise taxes or duties; (c) insurance costs and
outbound transportation charges; (d) import and/or export duties; and (e)
amounts allowed or credited due to returns (not to exceed the original billing
or invoice amount).

            1.1.48 "NIKON-ASML SETTLEMENT AND RELEASE AGREEMENT" shall have the
meaning set forth in the recitals.

                                       4

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            1.1.49 "NIKON-ZEISS PATENT CROSS-LICENSE AGREEMENT" means that
certain Nikon-Zeiss Patent Cross-License Agreement by and between Nikon and
Zeiss SMT of even date herewith, as amended from time to time.

            1.1.50 "NIKON DEFENSIVE SUIT" is defined in Section 2.8.5(a).

            1.1.51 "NIKON LICENSED PATENTS" is defined in Section 1.2.4.

            1.1.52 "NIKON LICENSED PRODUCTS" is defined in Section 1.3.6.

            1.1.53 "OPTICAL COMPONENTS" means (a) optical elements, modules and
systems, including illumination optical systems, projection optical systems,
manipulation devices and mounting means, and (b) processes, materials and
devices for designing, manufacturing, assembling, adjusting, measuring and
qualifying such optical elements, modules and systems, in each case for
Lithography Equipment.

            1.1.54 "OWNED" (and the correlative "OWNERSHIP") is defined in
Section 1.2.10.

            1.1.55 "PATENTS" means all classes or types of patents (including
design patents) and utility models of all countries of the world, and
applications therefor, together with any divisionals, continuations,
continuations-in-part, reissues and results of re-examinations thereof.

            1.1.56 "PAYMENTS" shall have the meaning set forth in Section 5.1.

            1.1.57 "PERSON" means any person or entity, whether an individual,
corporation, partnership, limited partnership, limited liability company, trust,
foundation, unincorporated organization, business association, firm, joint
venture or other legal entity.

            1.1.58 "PRACTICALLY USABLE EMBODIMENTS" shall have the meaning set
forth in Section 1.2.16.

            1.1.59 "PURCHASING PARTY" shall have the meaning set forth in
Section 4.2.2(a).

            1.1.60 "RESTRICTED PATENT" is defined in Section 1.2.13.

            1.1.61 "RUNNING ROYALTY PAYMENTS" is defined in Section 4.2.2(b)(v).

            1.1.62 "SCHEDULE D OMITTED CLAIMS" is defined in Section 1.2.18.

            1.1.63 "SCHEDULE D PATENTS" is defined in Section 1.2.17.

            1.1.64 "SCHEDULE D PATENT FAMILY" is defined in Section 1.2.18.

            1.1.65 "SCHEDULE D PATENT FAMILY MEMBER" is defined in Section
1.2.19.

            1.1.66 "SCHEDULE D RESPONSE" is defined in Section 2.8.5(c).

                                       5

<PAGE>

            1.1.67 "SCHEDULE D SUIT" is defined in Section 2.8.5(c).

            1.1.68 "SPECIAL MASK TECHNOLOGY" means (i) a pattern on a mask
having a modified shape (as compared to the desired shape of the pattern to be
printed on the substrate), where such modification is made for the purpose of
forming a circuit pattern onto a substrate ("SPECIAL PATTERN"); (ii) a mask with
a Special Pattern, modified transmittance (as compared to a binary mask) or
modified phase (as compared to a binary mask), where such modification is made
for the purpose of forming a circuit pattern onto a substrate ("SPECIAL MASK");
(iii) a method of exposing a substrate using a Special Mask; (iv) a method of
manufacturing a semiconductor chip using a Special Mask; (v) a method of
manufacturing a Special Mask; or (vi) data processing hardware, software,
methods or processes used to analyze, simulate, predict, generate or modify
pattern data used on a Special Mask.

            1.1.69 "SPECIFICALLY DIRECTED TO" shall have the meaning set forth
in Section 1.2.16.

            1.1.70 "SPECIFIED ENTITY" shall mean the Person listed in Schedule
F.

            1.1.71 "SPECIFIED ENTITY SUIT" is defined in Section 2.8.5(a).

            1.1.72 "SUBLICENSABLE" is defined in Section 1.2.14.

            1.1.73 "SUBLICENSOR" is defined in Section 1.2.14.

            1.1.74 "SUBSIDIARY" of a Person means any other Person with respect
to which such first Person has beneficial ownership, directly or indirectly, of
securities representing more than fifty percent (50%) of the power to elect such
other Person's board of directors or other managing authority or, in the case of
a non-corporate Person, equivalent interests.

            1.1.75 "SUE" means (a) to threaten, bring, or participate in any
legal or equitable action, claim or demand in any court or before any tribunal
or any arbitration or compulsory and binding alternative dispute resolution
proceeding, either directly or indirectly, or (b) to instruct, request,
encourage, or assist any designee, agent, nominee or other third party to do the
same, unless legally compelled to do so by a valid subpoena or court order which
the recipient has opposed by all reasonable means. "Sue" shall not be construed
to include offers to license Patents in connection with cross-license or other
license negotiations.

            1.1.76 "SUIT" means any legal or equitable action, claim or demand
in any court or before any tribunal or any arbitration or compulsory and binding
alternative dispute resolution proceeding, or any threat thereof, but not
including offers to license Patents in connection with cross-license or other
license negotiations.

            1.1.77 "TRANSACTION AGREEMENTS" is defined in Section 10.6.

            1.1.78 "TRANSFER" shall have the meaning set forth in Section 9.3.

                                       6

<PAGE>

            1.1.79 "TRANSFEREE" shall have the meaning set forth in Section 9.3.

            1.1.80 "TRANSITION PERIOD" means the period beginning upon the end
of the License Term and ending at the end of the Agreement Term.

            1.1.81 "WITHHOLDINGS" shall have the meaning set forth in Section
5.2.

            1.1.82 "ZEISS SMT PAYMENTS" shall have the meaning set forth in
Section 8.2.2.

            1.1.83 "ZEISS SMT" means Carl Zeiss SMT AG, a corporation organized
under the laws of Germany.

      1.2 Additional Definitions Relating to Licensed Patents.

            1.2.1 "EXCLUDED LITHOGRAPHY TECHNOLOGY" means each of E-Beam
Lithography, FPD/Large Area Substrate Lithography, and Maskless Lithography.

            1.2.2 "LITHOGRAPHY PATENT" means any Patent (a) that either (i)
issues from an application having an Effective Application Date on or before
December 31, 2002, or (ii) issues on or before December 31, 2014 from an
application having an Effective Application Date after December 31, 2002, and
(b) has one or more claims, other than Excluded Claims, which read on
Lithography Equipment or the manufacture or use thereof. For purposes of Section
6.3 only, a Patent application shall not constitute a "Lithography Patent"
unless and until such Patent application is published.

            1.2.3 "CONVERTIBLE PATENTS" means, with respect to Patents of a
Party or its Subsidiaries, (i) Class B Patents that are Licensed Patents of such
Party, and (ii) any Class C Patents of such Party.

            1.2.4 "NIKON LICENSED PATENTS" means all Class A Patents and Class B
Patents Owned or Sublicensable by Nikon or its Subsidiaries, excluding any
Excluded Claims thereof and excluding, subject to Section 2.8.3, all Excluded
Nikon Patents.

            1.2.5 "ASML LICENSED PATENTS" means all Class A Patents and Class B
Patents Owned or Sublicensable by ASML or its Subsidiaries, excluding any
Excluded Claims thereof.

            1.2.6 "LICENSED PATENTS" means the ASML Licensed Patents or the
Nikon Licensed Patents, as applicable. For purposes of this Agreement, the
Licensed Patents "of" ASML and/or its Subsidiaries means the ASML Licensed
Patents and the Licensed Patents "of" Nikon and/or its Subsidiaries means the
Nikon Licensed Patents, and the Licensed Patents "of" a Party and/or its
Subsidiaries means the ASML Licensed Patents and/or the Nikon Licensed Patents,
as applicable.

            1.2.7 "CLASS A PATENT" means (a) a Patent that issues at any time
(whether before or after the end of the License Term) from an application having
an Effective Application

                                       7

<PAGE>

Date on or before December 31, 2002, and (b) a Convertible Patent that is
converted by a Party pursuant to and in accordance with Section 2.5.
Notwithstanding subsection (a) above, a Patent of a Party that is purchased or
otherwise acquired by such Party ("ACQUIRING PARTY") from a third party (other
than an Affiliate of such Party), whether by assignment, merger, acquisition of
assets or otherwise, after the Effective Date, and that otherwise qualifies as a
Licensed Patent ("ACQUIRED PATENT"), shall be deemed to be a Class B Patent and
not a Class A Patent, regardless of its Effective Application Date (unless such
Patent is converted to a Class A Patent by a Party in accordance with Section
2.5); provided, however, that this sentence shall not apply to any Schedule D
Patent Family Member or any Patent that the Specified Entity or any of its
Affiliates has or had an obligation to assign to ASML or any of its
Subsidiaries. Notwithstanding anything to the contrary in this Section 1.2.7, if
(i) the Acquired Patent issues with the Acquiring Party being identified on the
face of the Acquired Patent or by patent office records as the initial owner or
assignee of record of such issued Acquired Patent, and (ii) such Acquired Patent
qualifies as a Class A Patent by virtue of its Effective Application Date, then
such issued Acquired Patent shall be deemed a Class A Patent unless the
Acquiring Party provides express written notice to the other Party that such
Patent is an Acquired Patent within three (3) months of the issuance of such
Acquired Patent.

            1.2.8 "CLASS B PATENT" means (a) a Patent that issues on or before
the end of the License Term from an application having an Effective Application
Date after December 31, 2002, excluding (b) any such Patent that is converted to
a Class A Patent by a Party pursuant to and in accordance with Section 2.5.
Notwithstanding subsection (a) above, an Acquired Patent shall be deemed to be a
Class B Patent and not a Class A Patent, regardless of its Effective Application
Date (unless such Patent is converted to a Class A Patent by a Party in
accordance with Section 2.5); provided, however, that this sentence shall not
apply to any Schedule D Patent Family Member or any Patent that the Specified
Entity or any of its Affiliates has or had an obligation to assign to ASML or
any of its Subsidiaries. Notwithstanding anything to the contrary in this
Section 1.2.8, if (i) the Acquired Patent issues with the Acquiring Party being
identified on the face of the Acquired Patent or by patent office records as the
initial owner or assignee of record of such issued Acquired Patent, and (ii)
such Acquired Patent qualifies as a Class A Patent by virtue of its Effective
Application Date, then such issued Acquired Patent shall be deemed a Class A
Patent unless the Acquiring Party provides express written notice to the other
Party that such Patent is an Acquired Patent within three (3) months of the
issuance of such Acquired Patent.

            1.2.9 "CLASS C PATENT" means a Patent having an Effective
Application Date after December 31, 2002 and issuing during the Transition
Period that would be an ASML Licensed Patent or Nikon Licensed Patent, as
applicable, had such Patent issued on or before the end of the License Term.

            1.2.10 "OWNED" (and the correlative "OWNERSHIP") means, with respect
to a Patent of a Person, (a) a Patent that is solely assigned to and/or solely
owned by such Person (without regard to rights that employees may have in
inventions that they develop while employed by a Party, such as, for example,
the right to receive monetary compensation or assert

                                       8

<PAGE>

preemptive rights), or (b) a Licensable Co-Owned Patent. A Patent shall not be
deemed "Owned" by the applicable Party to the extent and as long as it is a
Restricted Patent.

            1.2.11 "CO-OWNED" (and the correlative "CO-OWNERS") means, with
respect to a Patent, a Patent that has been assigned to two or more Persons or
in which two or more Persons have an ownership interest.

            1.2.12 "LICENSABLE CO-OWNED PATENT" means (a) a Patent that is
Co-Owned by a Party or its Subsidiaries and all other Co-Owners of which are
Affiliates of such Party or its Subsidiaries, (b) a Patent that is Co-Owned by
ASML and/or its Subsidiaries and all other Co-Owners of which are Zeiss SMT
and/or its Subsidiaries, and (c) a Patent that is Co-Owned by a Party or its
Subsidiaries and where any other Co-Owner is a third party (other than an
Affiliate of such Party) as to which, and only to the extent and for such time
as, and subject to the conditions under which, such Party or its Subsidiaries
have the right to grant licenses, immunities, and additional commitments within
the scope of the licenses and immunities granted under this Agreement (i)
without such grant requiring consent of any such third party, or (ii), where
such grant requires consent of any such third party or parties, if and to the
extent such consent is or has been granted by all such third parties.

            1.2.13 "RESTRICTED PATENTS" means (a) any Patent that (i) is listed
on Schedule B-1 or Schedule C-1, as applicable (as initially attached hereto,
and not as such Schedules may be amended pursuant to Section 6.5 or otherwise),
or (ii) is published after the Effective Date and results from activities funded
by a Governmental Authority, in each case where the license of such Patent to
third parties is generally prohibited under applicable Law or the applicable
contract with such Governmental Authority in accordance with the standard
procedures of such Governmental Authority, but only as long as such prohibition
shall remain in force and effect, and (b) any Patent that is (i) Co-Owned by a
Party or its Subsidiaries and one or more third parties, and (ii) not a
Licensable Co-Owned Patent, but only as long as, and solely to the extent that,
it is not a Licensable Co-Owned Patent.

            1.2.14 "SUBLICENSABLE" means, with respect to a Patent licensed or
sublicensed to a Party or any of its Subsidiaries (as applicable, the
"SUBLICENSOR"), a Patent as to which, and only to the extent and for such time
as, and subject to the conditions under which, the Sublicensor has the right to
grant licenses or sublicenses, and extend immunities and additional commitments,
to the other Party and its Subsidiaries and their respective Covered Entities
within the scope of the licenses, immunities, and additional commitments granted
or made under this Agreement without such grant resulting in the payment of
royalties or other payments to third parties, except for payments (i) relating
to the prosecution or maintenance of Patents, (ii) to Affiliates of the
Sublicensor, or (iii) to Persons for inventions made by such Persons while
employees or contractors of the Sublicensor.

            1.2.15 "EXCLUDED CLAIM" means any Patent claim that:

                  (a) is contained on the Excluded Claims List, unless and until
such Patent claim ceases to meet the Excluded Claim Criteria as set forth in
Section 2.3.2; or

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<PAGE>

                  (b) is not contained on the Excluded Claims List, but meets
the Excluded Claim Criteria, but only for so long as such Patent claim meets the
Excluded Claim Criteria; or

                  (c) reads only on Excluded Glass Products or Excluded Glass
Methods (provided that Patent claims reading only on unfinished lenses shall
constitute Excluded Claims solely with respect to unfinished lenses purchased by
a Party or its Subsidiaries from third parties other than Zeiss SMT and its
Subsidiaries); or

                  (d) includes any Special Mask Technology as a required element
that is material to the patentability of such claim.

            1.2.16 "EXCLUDED CLAIM CRITERIA" with respect to a Patent claim
shall be deemed met if such Patent claim is Specifically Directed To equipment
or methods for an Excluded Lithography Technology. A Patent claim shall be
deemed to be "SPECIFICALLY DIRECTED TO" equipment or methods for an Excluded
Lithography Technology if, and only for so long as,

      (i) the embodiments of the Patent claim that are practically usable in a
commercial setting ("PRACTICALLY USABLE EMBODIMENTS") encompass only equipment
or methods for any one or more Excluded Lithography Technologies, and

      (ii) the Patent claim contains one or more limitations by reason of which
the Practically Usable Embodiments of the Patent claim encompass only equipment
or methods for the Excluded Lithography Technology and that are material to the
patentability of the Patent claim;

provided that:

      (A) actual use in a commercial setting is not required for an embodiment
of a Patent claim to qualify as a Practically Usable Embodiment,

      (B) an embodiment of a Patent claim is not a Practically Usable Embodiment
outside the Excluded Lithography Technology if it does not have practical
utility as an improvement upon, or alternative solution to, existing technology
other than the Excluded Lithography Technology,

      (C) no Patent claim that covers actual and bona fide commercial
Lithography Equipment or Lithography methods, anywhere in the world from any
source, other than equipment or methods for an Excluded Lithography Technology,
shall qualify as an Excluded Claim, and

      (D) if a dependent claim of a Patent depends from another claim of such
Patent that does not qualify as an Excluded Claim, such dependent claim shall
not qualify as an Excluded Claim simply by virtue of the fact that it recites an
Excluded Lithography Technology.

It is the Parties' intent to exclude only Patent claims in which the "heart of
the invention" of such Patent claim is practically usable only in equipment or
methods for an Excluded Lithography

                                      10

<PAGE>

Technology.

The Parties anticipate that, in preparing the Excluded Claims List, they may
develop ideas for clarifying the Excluded Claim Criteria for whether certain
types of Patent claims should qualify as Excluded Claims. Accordingly, upon
completion of the Excluded Claims List, the Parties will revisit and negotiate
clarifications to such Excluded Claim Criteria in good faith, and if the Parties
agree on any such clarifications (each in its sole discretion), they will amend
the Excluded Claim Criteria to implement such clarifications.

            1.2.17 "SCHEDULE D PATENTS" means the Patents listed on Schedule D
hereto.

            1.2.18 "SCHEDULE D PATENT FAMILY" means, with respect to a Schedule
D Patent, collectively, such Schedule D Patent and (i) any Patents claiming
priority from such Schedule D Patent, but excluding claims of such Patents that
are not entitled to claim priority from such Schedule D Patent, and (ii) any
Patents from which such Schedule D Patent claims priority, but excluding claims
of such Patents that are not supported by such Schedule D Patent. The excluded
claims described in subclauses (i) and (ii) hereof, together with any Excluded
Claims of any Schedule D Patent Family Member, are referred to as "SCHEDULE D
OMITTED CLAIMS". For the avoidance of doubt, it is understood that there shall,
subject to reduction pursuant to Section 2.8.3, be three Schedule D Patent
Families, one based on each of the three Schedule D Patents.

            1.2.19 "SCHEDULE D PATENT FAMILY MEMBER" means, with respect to any
Schedule D Patent Family, separately, each Patent in such Schedule D Patent
Family (excluding any Schedule D Omitted Claims thereof).

            1.2.20 "EXCLUDED NIKON PATENTS" means issued Eligible Nikon Patent
Family Members that are designated by Nikon as set forth in Section 2.8.1.

            1.2.21 "ELIGIBLE NIKON PATENT FAMILY" means, with respect to a
Designated Nikon Patent, collectively, such Designated Nikon Patent and (i) any
Patents claiming priority from such Designated Nikon Patent, but excluding
claims of such Patents that are not entitled to claim priority from such
Designated Nikon Patent, and (ii) any Patents from which such Designated Nikon
Patent claims priority, but excluding claims of such Patents that are not
supported by such Designated Nikon Patent. For the avoidance of doubt, it is
understood that there shall, subject to reduction pursuant to Section 2.8.3, be
three Eligible Nikon Patent Families, one based on each of the three Designated
Nikon Patents.

            1.2.22 "ELIGIBLE NIKON PATENT FAMILY MEMBER" means, with respect to
any Eligible Nikon Patent Family, separately, each Patent in such Eligible Nikon
Patent Family.

      1.3   Additional Definitions Relating to Licensed Products.

            1.3.1 "ASML LICENSED PRODUCTS" means Lithography Equipment and all
applications therefor, but excluding Optical Components until the occurrence of
a Licensed Product Expansion, at which time the term "ASML Licensed Products"
shall automatically be

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<PAGE>

deemed to mean "Lithography Equipment and all applications therefor, including
Optical Components" for all purposes hereunder, including the license grants in
Section 2.1, as more fully described in, and subject to the conditions set forth
in, Section 2.10. For purposes of clarity, "ASML Licensed Products" shall in all
events include ASML's products within the following product families, as and in
the form marketed by ASML as of the Effective Date: TwinScan, PAS, MicraScan and
Micralign series, including components thereof, as described in Section 1.3.5,
other than Optical Components as long as they are not ASML Licensed Products
pursuant to this Section 1.3.1.

            1.3.2 "LICENSED PRODUCT EXPANSION" shall have the meaning set forth
in Section 2.10.

            1.3.3 "LICENSED PRODUCTS" means the ASML Licensed Products or the
Nikon Licensed Products, as applicable.

            1.3.4 "LITHOGRAPHY" means exposing a resist using optical (photons)
projection means (including extreme ultraviolet) or particle (including electron
beam) projection means.

            1.3.5 "LITHOGRAPHY EQUIPMENT" means, individually and collectively,
any tool or machine for transferring a pattern onto a substrate by Lithography,
for use in the fabrication of integrated circuits, thin film heads, flat panel
displays, micromachines, and other applications with similar requirements
(including (i) separately installed components of such tool or machine, (ii) any
components integrated in such tool or machine, (iii) materials for use in, and
solely to the extent they are for use in, the operation of such tool or machine,
such as fluids and gases, and (iv) any software used to operate or control such
tool or machine), including where such tool or machine uses and/or incorporates
masks, or uses, incorporates and/or processes resists or substrates, including
wafers, provided that "Lithography Equipment" shall not include masks, resists,
or such substrates themselves.

            1.3.6 "NIKON LICENSED PRODUCTS" means Lithography Equipment and all
applications therefor, including Optical Components. For purposes of clarity,
"Nikon Licensed Products" shall in all events include Nikon's products within
the following product families, as and in the form marketed by Nikon as of the
Effective Date: NSR series and FX series.

      1.4   Interpretation.

            1.4.1 Certain Terms. The words "hereof," "herein," "herewith,"
"hereunder" and similar words refer to this Agreement as a whole and not to any
particular provision of this Agreement. The term "including" is not limited and
means "including without limitation."

            1.4.2 Section References; Titles and Subtitles. Unless otherwise
noted, all references to Sections and Schedules herein are to Sections and
Schedules of this Agreement. The titles, captions and headings of this Agreement
are inserted for convenience of reference only and are not intended to be a part
of or to affect the meaning or interpretation of this Agreement.

                                      12

<PAGE>

            1.4.3 Reference to Persons, Agreements, Statutes. Unless otherwise
expressly provided herein, (a) references to a Person include its successors and
permitted assigns, (b) references to agreements (including this Agreement) and
other contractual instruments shall be deemed to include all subsequent
amendments, restatements and other modifications thereto or supplements thereof
and (c) references to any statute or regulation are to be construed as including
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such statute or regulation.

            1.4.4 Further Negotiations. Any reference in this Agreement to
subsequent meetings, discussions, or negotiations between the Parties shall be
interpreted to include an obligation of the Parties to conduct such meetings,
discussions, or negotiations in good faith.

2.    LICENSE GRANTS

            2.1 Grant to ASML. Nikon on behalf of itself and its Subsidiaries,
hereby grants to ASML and its Subsidiaries, under the Nikon Licensed Patents,
retroactive to the Effective Application Date of each Nikon Licensed Patent, a
non-exclusive, non-sublicensable (provided that this restriction on sublicensing
shall not limit or otherwise affect the immunities and additional commitments
set forth in Sections 3 and 4), non-transferable (except as set forth in Section
9.1) license to (a) make, use (including use with patterns or masks for
processing substrates such as wafers), sell, offer to sell, import, export,
lease and otherwise convey ASML Licensed Products anywhere in the world, (b)
have ASML Licensed Products made by their suppliers anywhere in the world,
provided that such ASML Licensed Products (i) are made by such suppliers in
accordance with specifications provided by, or agreed upon with, ASML or any of
its Subsidiaries, and (ii) are not "off the shelf" products offered for sale,
lease, or other conveyance to Persons other than ASML or its Subsidiaries, (c)
practice any method or process anywhere in the world in connection with the
design, manufacture, installation, assembly, operation, adjustment, measurement,
qualification, maintenance, support, repair, or diagnosis of ASML Licensed
Products designed, made, used and/or sold under this Section 2.1, and (d) make,
have made, and use any tool, software, machine, or other apparatus anywhere in
the world in connection with the design, manufacture, installation, assembly,
operation, adjustment, measurement, qualification, maintenance, support, repair,
or diagnosis of ASML Licensed Products designed, made, used and/or sold under
this Section 2.1. Notwithstanding the foregoing, to the extent that the licenses
granted in this Section 2.1 include a sublicense under any third party rights,
such sublicense shall not exceed in scope the license granted to Nikon by the
applicable third party licensor or the rights that Nikon is otherwise authorized
to sublicense under any agreement with such third party licensor.

            2.2 Grant to Nikon. ASML, on behalf of itself and its Subsidiaries,
hereby grants to Nikon and its Subsidiaries, under the ASML Licensed Patents,
retroactive to the Effective Application Date of each ASML Licensed Patent, a
non-exclusive, non-sublicensable (provided that this restriction on sublicensing
shall not limit or otherwise affect the immunities and additional commitments
set forth in Sections 3 and 4), non-transferable (except as set forth in Section
9.1) license to (a) make, use (including use with patterns or masks for
processing

                                      13

<PAGE>

substrates such as wafers), sell, offer to sell, import, export, lease and
otherwise convey Nikon Licensed Products anywhere in the world, (b) have Nikon
Licensed Products made by their suppliers anywhere in the world, provided that
such Nikon Licensed Products (i) are made by such suppliers in accordance with
specifications provided by, or agreed upon with, Nikon or any of its
Subsidiaries, and (ii) are not "off the shelf" products offered for sale, lease,
or other conveyance to Persons other than Nikon and its Subsidiaries, (c)
practice any method or process anywhere in the world in connection with the
design, manufacture, installation, assembly, operation, adjustment, measurement,
qualification, maintenance, support, repair, or diagnosis of Nikon Licensed
Products designed, made, used, and/or sold under this Section 2.2, and (d) make,
have made, and use any tool, software, machine, or other apparatus anywhere in
the world in connection with the design, manufacture, installation, assembly,
operation, adjustment, measurement, qualification, maintenance, support, repair,
or diagnosis of Nikon Licensed Products designed, made, used and/or sold under
this Section 2.2. Notwithstanding the foregoing, to the extent that the licenses
granted in this Section 2.2 include a sublicense under any third party rights,
such sublicense shall not exceed in scope the license granted to ASML by the
applicable third party licensor or the rights that ASML is otherwise authorized
to sublicense under any agreement with such third party licensor.

      2.3   Excluded Claims List.

            2.3.1 Creation. Within sixty (60) days of the Effective Date, the
Parties will attempt to agree on a list of Patent claims for each Excluded
Lithography Technology that will be excluded from the Licensed Patents (as so
agreed or as finalized by the Designated Neutral, the "EXCLUDED CLAIMS LIST").
The Excluded Claims List will only include Patent claims that are contained in
Patents nominated by each Party as follows: for each Excluded Lithography
Technology, each Party may nominate claims from no more than five (5)
English-language Patents, provided that for the purposes of the foregoing, a
Patent and all of its counterparts and its continuation, divisional, and
continuation-in-part applications will be counted as a single Patent. If the
Parties are unable to agree on the Excluded Claims List within sixty (60) days
of the Effective Date, the Designated Neutral will have the authority to
finalize the Excluded Claims List by including on the list all Patent claims
nominated by the Parties for each Excluded Lithography Technology (as described
above) that qualify as Excluded Claims pursuant to Sections 1.2.15 and 1.2.16,
and omitting from the Excluded Claims List all such Patent claims that do not
qualify as Excluded Claims pursuant to Sections 1.2.15 and 1.2.16. The Excluded
Claims List, with the entries agreed to by the Parties, and, as applicable,
finalized by the Designated Neutral, shall be incorporated into this Agreement
as Schedule A.

            2.3.2 Significance of Inclusion. Inclusion of a Patent claim on the
Excluded Claims List will constitute a binding determination that such Patent
claim is an Excluded Claim, unless and until such Patent claim ceases to meet
the Excluded Claim Criteria because of changed circumstances (such as, for
example, the subsequent emergence or awareness of a practical use of an
embodiment of such Patent claim in a commercial setting other than for an
Excluded Lithography Technology).

                                      14

<PAGE>

            2.3.3 Significance of Non-Inclusion. For purposes of clarification:
(a) the Excluded Claims List will be deemed exemplary and will not constitute an
exhaustive list of the Excluded Claims for any Excluded Lithography Technology
nor will the failure to nominate a Patent claim for the list be deemed an
admission that the claim is not an Excluded Claim; and (b) a Patent claim that
does not appear on the Excluded Claims List will be an Excluded Claim if (and
for so long as) it qualifies as an Excluded Claim pursuant to Sections 1.2.15
and 1.2.16, whether or not such Patent claim was in existence at the time of the
creation of the Excluded Claims List.

            2.3.4 Process for Removing Claims from Excluded Claims List. If a
Party believes that a Patent claim, whether of such Party or of the other Party,
that is included in the Excluded Claims List has ceased to meet the Excluded
Claim Criteria because of changed circumstances as described in Section 2.3.2,
such Party shall notify the other Party in writing of such belief and, subject
to existing confidentiality obligations, the basis therefor. If the other Party
agrees in writing that such Patent claim should no longer be included within the
Excluded Patent Claims List, such Patent claim shall be deemed to be removed
from the Excluded Claims List for all purposes hereunder. If the other Party
does not so agree within thirty (30) days after its receipt of such notice, the
Parties shall, at the request of either Party, resolve the matter under the
Arbitration Agreement.

      2.4 Inquiries as to Patents. In the event that a third party Sues a Party
or its Subsidiary and alleges or asserts that such Party has infringed, or
invites such Party to license, any one or more issued Patents of such third
party, or if a Party is otherwise actively engaged in licensing negotiations
with a third party with respect to any one or more issued Patents (each a
"PATENT IN DISPUTE"), such Party may request that the other Party confirm
whether each such Patent in Dispute is included within the Licensed Patents
(whether as an Owned Patent, a Sublicensable Patent or a Licensable Co-Owned
Patent) of such other Party hereunder (a "LICENSE INQUIRY"). License Inquiries
shall be in writing and shall set forth the identity of the applicable third
party and each Patent in Dispute. With respect to each License Inquiry, the
responding Party will inform the inquiring Party (a) if the Patent in Dispute is
a Licensed Patent of such responding Party, and (b) if so, the scope of the
rights thereunder, if any, to grant and extend the licenses, immunities, and
additional commitments granted and extended hereunder. If, after responding to
any License Inquiry, the responding Party becomes aware of any inaccuracy in the
response to a License Inquiry provided to the other Party, the responding Party
will, as its sole obligation or liability for any such failure, promptly notify
the other Party and provide a corrected response.

      2.5   Conversion of Class B Patents To Class A Patents.

            2.5.1 At any time from the Effective Date until six (6) months after
the end of the Agreement Term, each Party shall have the right to designate up
to five (5) Convertible Patents of the other Party to be converted into Class A
Patents, in which case such designated Convertible Patents, together with all
Patents anywhere in the world that issue from or claim priority to either the
application that issued as the designated Convertible Patent or any

                                      15

<PAGE>

application or applications from which the designated Convertible Patent claims
priority, including all counterparts (including foreign counterpart Patents),
divisionals, continuations, continuations-in-part, reissues and results of
re-examinations thereof ("RELATED PATENTS"), shall be deemed Class A Patents
effective as of and retroactive to the Effective Application Date of such
Convertible Patent (or, if earlier, the earliest Effective Application Date
among the Related Patents thereof) for all purposes of this Agreement (including
the respective licenses and immunities). For the avoidance of doubt, such
retroactive effect shall also apply with respect to Related Patents that issue
after such conversion.

            2.5.2 Notwithstanding the period described in the first clause of
Section 2.5.1, in the event a Party designates a Convertible Patent of the other
Party to be converted into a Class A Patent (the "INITIALLY DESIGNATED PATENT")
and the other Party is of the opinion that such Initially Designated Patent
would, in whole or in part, not be a Licensed Patent of such other Party if it
were a Class A Patent (e.g., because such Patent is not Owned or Sublicensable
or to the extent it includes Excluded Claims), then such other Party shall
promptly notify such first Party thereof. If the Parties agree that such
Initially Designated Patent would not be a Licensed Patent of such other Party
if it were a Class A Patent, then such first Party shall have the right, within
six (6) months of such agreement, to designate another Convertible Patent (the
"SUBSEQUENTLY DESIGNATED PATENT") to be converted into a Class A Patent in lieu
of such Initially Designated Patent as to which Subsequently Designated Patent
the Parties agree that it would be a Licensed Patent of such other Party if it
were a Class A Patent. If the Parties do not so agree with respect to the
Initially Designated Patent or the Subsequently Designated Patent, they shall
resolve such dispute pursuant to the Arbitration Agreement. If it is determined
in such arbitration that such Initially Designated Patent or Subsequently
Designated Patent would not be a Licensed Patent of such other Party if it were
a Class A Patent, then such first Party shall provide in such arbitration
proceedings a list, in order of preference, of Convertible Patents to be
converted into a Class A Patent in lieu of such Initially Designated Patent or
Subsequently Designated Patent and the first of such Patents, if any, with
respect to which it is determined in such arbitration proceedings that it would
be a Licensed Patent of the other Party if it were a Class A Patent shall be
finally converted into a Class A Patent pursuant to Section 2.5.1 in lieu of
such Initially Designated Patent or Subsequently Designated Patent. If no
Convertible Patent on such list is determined to meet such requirements, such
Party may not convert any Convertible Patent into a Class A Patent in lieu of
such Initially Designated Patent or Subsequently Designated Patent.

      2.6 Pre-Issuance Damages. To the extent, if any, that under applicable law
a Party has or its Subsidiaries have a right to claim damages or seek other
remedies with respect to activities of the other Party, its Subsidiaries, or its
or their respective Covered Entities or third party suppliers making Licensed
Products for such other Party as permitted under Sections 2.1 or 2.2, as
applicable, occurring prior to the issuance of a Patent with respect to such
Patent, each Party hereby waives and agrees not to assert such rights under
Patents issuing after the License Term and having an Effective Application Date
after December 31, 2002 and that would have been Licensed Patents of such Party
had they issued prior to the end of the License Term, but only with respect to
activities occurring prior to the end of the License Term that would have

                                      16

<PAGE>

been licensed or immune from suit under this Agreement if such Patent were a
Licensed Patent, and only for the period ending upon the end of the License
Term.

      2.7   Restricted Patents.

            2.7.1 Covenant Not to Sue.

                  (a) Each Party covenants, to the extent not precluded by
contractual obligations that exist as of the Effective Date, that it shall not,
and shall cause its Subsidiaries not to, and shall not grant consent to, or
otherwise assist, encourage, or permit, any Co-Owner of any Restricted Patent to
Sue the other Party or its Subsidiaries, or their respective third party
suppliers making Licensed Products or Optical Components (but, in the case of
ASML being such other Party, only as long as ASML has a sublicense from Zeiss
SMT under the Nikon-Zeiss Patent Cross-License Agreement, unless Optical
Components are ASML Licensed Products following a Licensed Product Expansion)
for such Party as permitted under Sections 2.1 or 2.2, as applicable, for direct
or indirect infringement (including for inducement of infringement or
contributory infringement) of any Restricted Patent (excluding any Excluded
Claims thereof) based on activities that would be covered by such Party's
license under Sections 2.1 or 2.2 or sublicense pursuant to and in accordance
with the Nikon-Zeiss Patent Cross-License Agreement, as and if applicable, if
such Restricted Patent were a Licensed Patent of such covenanting Party. Such
covenant shall last perpetually (i) with respect to Class A Patents, and (ii)
under Restricted Patents that are Class B Patents and Restricted Patents that
would be Class C Patents if they were Owned by the covenanting Party, with
respect to activities of the other Party occurring prior to the end of the
License Term that would be covered by the other Party's license under Sections
2.1, 2.2, or 2.3, as applicable, if such Restricted Patents were Licensed
Patents of the covenanting Party.

                  (b) Each Party covenants, to the extent not precluded by
contractual obligations that exist as of the Effective Date, that Sections 3.1,
3.2, 3.3, 4.2, and 4.3 shall apply to Restricted Patents to the same extent and
in the same manner and the same time periods as if such Restricted Patents were
Owned by such covenanting Party.

            2.7.2 Consent to License. Subject to Section 2.7.3, each Party
hereby grants its consent to a license to the other Party of the full scope of
the licenses granted to such other Party under this Agreement under any
Restricted Patent of such Party, provided, however, that such grant does not
result in any payment obligations by such first Party to any Co-Owner of such
Restricted Patent, other than payments relating to prosecution or maintenance of
Patents.

            2.7.3 No Obligation to Seek Consent. Notwithstanding anything to the
contrary in this Agreement, neither Party shall have any obligation to seek or
obtain consent from any Co-Owner of any Restricted Patent with respect to a
grant of any license or immunity under such Restricted Patent.

            2.7.4 No Circumvention. Neither Party nor its respective
Subsidiaries shall make any sale, assignment, transfer, or other conveyance or
transaction (i) with respect to any

                                      17

<PAGE>

Lithography Patent that is a Licensed Patent Owned by such Party that would
result in such Licensed Patent becoming a Restricted Patent, and (ii), solely
during the Transition Period, with respect to any Lithography Patent that is a
Class B Patent or a Class C Patent Owned by such Party that would result in such
Lithography Patent becoming a Restricted Patent during the Transition Period..

      2.8   Excluded Nikon Patents.

            2.8.1 Designation. Nikon shall be entitled to designate, from time
to time and at any time, in a writing provided to ASML and Zeiss SMT, issued
Eligible Nikon Patent Family Members to be included in the Excluded Nikon
Patents, provided that (a) the total number of Excluded Nikon Patents shall not
exceed, at any time, the total number of issued Schedule D Patent Family
Members, and (b) the number of Excluded Nikon Patents issued in any one country
shall not exceed, at any time, the number of Schedule D Patent Family Members
issued in the same country, provided that, for purposes of the foregoing, the
European Community and all of its member states shall collectively be deemed to
constitute "one country." Nikon shall be entitled to designate issued Eligible
Nikon Patent Family Members to be included within the Excluded Nikon Patents in
accordance with the foregoing, but Nikon shall not be entitled to subsequently
change any such designation. For purposes of clarity, (i) no Eligible Nikon
Patent Family Member shall be deemed to be an Excluded Nikon Patent unless and
until such Patent is designated by Nikon as an Excluded Nikon Patent pursuant to
and in accordance with this Section 2.8.1, and (ii) Nikon may pre-designate a
Patent pursuant to the foregoing at any time, including, for example, Patent
applications, provided that a Patent application shall not constitute an
Excluded Nikon Patent unless and until a Patent or Patents issue from such
application, at which time each such pre-designated issued Patent shall, as
designated or, if not otherwise designated, in the order of issuance, and
subject to the limitations set forth in subclauses (a) and (b) of this Section
2.8.1, constitute an Excluded Nikon Patent.

            2.8.2 No License. Subject to Section 2.8.3, nothing in this
Agreement, nor the activities of the Parties under or in connection with this
Agreement, including, without limitation, the sale of any Licensed Product,
shall be construed to grant or otherwise convey or provide any right, license,
immunity, or other defense, whether directly, by implication, estoppel, or
otherwise, under any Excluded Nikon Patents to ASML or its Subsidiaries or any
third party acquiring Licensed Products or other products from ASML or its
Subsidiaries.

            2.8.3 Schedule D Patents.

                  (a) When and if, and as long as, at least all claims other
than Schedule D Omitted Claims of all Patents within any one Schedule D Patent
Family either (a) become Owned or Sublicensable by ASML or its Subsidiaries,
such that they are included within the ASML Licensed Patents, and/or (b) expire
or are invalidated or abandoned, such that they are permanently not enforceable,
then Nikon or ASML (as determined pursuant to Section 2.8.3(b) below) shall
select one Eligible Nikon Patent Family (including all Eligible Nikon Patent
Family Members therein), excluding any Excluded Claims of any such Patents,
which (i) shall be deemed to be included within the Nikon Licensed Patents,
retroactive to the Effective

                                      18

<PAGE>

Application Date of such Patents, for all purposes hereunder (including the
licenses, immunities and additional commitments granted or extended hereunder),
and (ii) shall not be deemed to be, or designable as, Excluded Nikon Patents as
long as at least all claims other than Schedule D Omitted Claims of all Patents
within the corresponding Schedule D Patent and Schedule D Patent Family Members
thereof remain (A) Owned or Sublicensable by ASML or its Subsidiaries or (B)
subject to all the licenses, immunities, and additional commitments granted and
extended by ASML and its Subsidiaries hereunder.

                  (b) On the first occasion that the condition set forth in
Section 2.8.3(a) above occurs with respect to any one Schedule D Patent Family,
Nikon shall be entitled to select, and shall select, the first Eligible Nikon
Patent Family to be included in the Nikon Licensed Patents as set forth in
Section 2.8.3(a). On the occasion that the condition set forth in Section
2.8.3(a) above occurs with respect to a second Schedule D Patent Family, ASML
shall be entitled to select, and shall select, the second Eligible Nikon Patent
Family to be included in the Nikon Licensed Patents as set forth in Section
2.8.3(a). Each Party shall make the selection described in this Section 2.8.3(b)
in a writing provided to the other Party and Zeiss SMT no later than thirty (30)
days following ASML's notification to Nikon and Zeiss SMT that the condition set
forth in Section 2.8.3(a) has occurred. On the occasion that the condition set
forth in Section 2.8.3(a) occurs with respect to the remaining Schedule D Patent
Family, the remaining Eligible Nikon Patent Family shall automatically be
included in the Nikon Licensed Patents as set forth in Section 2.8.3(a).

                  (c) During the life of the Eligible Nikon Patent Family
Members, except while such Patents are included in the Nikon Licensed Patents as
provided under this Section 2.8.3, in which case Section 9.3 shall apply, Nikon
shall, and shall ensure that its Subsidiaries shall, maintain all rights under
each of the Eligible Nikon Patent Family Members necessary in order to grant to
ASML and its Subsidiaries the full scope of the licenses and immunities granted
under Nikon Licensed Patents hereunder should such Eligible Nikon Patent Family
Members be included in the Nikon Licensed Patents.

            2.8.4 Consequences of Assertion. If Nikon or any of its Subsidiaries
Sues ASML, Zeiss SMT, their respective Subsidiaries, or any of their respective
vendors or Covered Entities, for direct or indirect infringement (including
inducement of infringement or contributory infringement) of any Excluded Nikon
Patent based on any activity that would be covered by a license or immunity
under this Agreement if such Excluded Nikon Patent were included within the
Nikon Licensed Patents, then ASML shall have the right to terminate (a) at any
time after the end of the Withdrawal Period (as defined below), if applicable,
or (b) if no Withdrawal Period is applicable, at any time thereafter, all of the
licenses, immunities, and other commitments granted and extended by ASML and its
Subsidiaries to Nikon and its Subsidiaries and their respective Covered
Entities, vendors, and Glass Suppliers under this Agreement (a "FULL RIGHTS
TERMINATION") upon written notice to Nikon, provided, however, that ASML shall
have no right to initiate or effect such Full Rights Termination (i) in the
cases expressly set forth in Section 2.8.5, or (ii) if Nikon or its Subsidiary
notifies ASML in writing of the existence of such Suit and together with such
notice provides to ASML copies of the initial court filing made

                                      19

<PAGE>

by Nikon or its Subsidiary in connection with such Suit within thirty (30) days
of the filing of any legal action, and Nikon or its Subsidiary takes, within two
(2) months after Nikon's or its Subsidiary's receipt of a written response by
ASML to such notice stating ASML's good faith belief that such Suit is within
the scope of this Section 2.8.4 and the reasons therefor (the "WITHDRAWAL
PERIOD"), all actions required on its part to withdraw such Suit completely.
Such Full Rights Termination shall have no effect on the licenses, immunities
and other commitments granted or extended to ASML, its Subsidiaries, Covered
Entities, vendors and Glass Suppliers by Nikon and its Subsidiaries as set forth
in this Agreement.

            2.8.5 Defensive Assertion.

                  (a) No Termination for Nikon Defensive Suits. In the event
that the Specified Entity or any of its Affiliates Sues Nikon or any of its
Subsidiaries under any Schedule D Patent Family Member (a "SPECIFIED ENTITY
SUIT"), then, subject to this Section 2.8.5, Nikon and its Subsidiaries shall be
permitted to Sue the Specified Entity or such Affiliate (a "NIKON DEFENSIVE
SUIT"). The Nikon Defensive Suit shall be under an aggregate number of Excluded
Nikon Patents that does not exceed the aggregate number of issued Schedule D
Patent Family Members that are asserted by the Specified Entity and its
Affiliates in the Specified Entity Suit. Section 2.8.4 shall not apply with
respect to such Nikon Defensive Suit, and ASML shall have no right to initiate
or effect a Full Rights Termination on account of such Nikon Defensive Suit.

                  (b) Excess Assertion By Nikon. If Nikon asserts against the
Specified Entity and/or its Affiliates in a Nikon Defensive Suit an aggregate
number of Excluded Nikon Patents greater than the aggregate number of issued
Schedule D Patent Family Members asserted by the Specified Entity and/or its
Affiliates against Nikon and/or its Subsidiaries in such action (an "EXCESS
ASSERTION"), then, if Nikon and/or its Subsidiaries fail to take all actions
required on their part to withdraw their claims completely under such number of
Excluded Nikon Patents as is required to eliminate the Excess Assertion within
thirty (30) days from such Excess Assertion, ASML may, at its sole discretion
upon written notice to Nikon and Zeiss SMT, designate any of the Excluded Nikon
Patents asserted in such Nikon Defensive Suit as Nikon Licensed Patents, up to a
number of Excluded Nikon Patents as required to eliminate the Excess Assertion,
and any Excluded Nikon Patents that are so designated shall be deemed ab initio
to be Nikon Licensed Patents for all purposes of this Agreement, including for
purposes of the immunities and other commitments granted or extended by Nikon
and its Subsidiaries under Sections 2.9, 3, and 4. In no event shall ASML be
entitled to initiate or effect a Full Rights Termination on account of any
Excess Assertion.

                  (c) Specified Entity Assertion of Schedule D Omitted Claims.
The Parties acknowledge that, because Schedule D Patent Family Members do not
include Schedule D Omitted Claims, a Suit by the Specified Entity or its
Affiliates in which only Schedule D Omitted Claims are asserted does not
constitute a Specified Entity Suit hereunder, and does not give rise to Nikon's
or its Subsidiaries' right to bring a Nikon Defensive Suit pursuant to Section
2.8.5(a). The Parties further acknowledge that it may be difficult to determine
whether a Patent claim asserted in a Suit by the Specified Entity and/or its
Affiliates is a Schedule D Omitted

                                      20

<PAGE>

Claim. Accordingly, if the Specified Entity and/or its Affiliates assert any
claim of any Schedule D Patent and/or any Patent claiming priority from a
Schedule D Patent and/or any Patent from which a Schedule D Patent claims
priority against Nikon and/or its Subsidiaries (a "SCHEDULE D SUIT"), and Nikon
and/or its Subsidiaries subsequently Sue the Specified Entity and/or its
Affiliates under Excluded Nikon Patents (a "SCHEDULE D RESPONSE"), such Schedule
D Response by Nikon and/or its Subsidiaries shall not be grounds for a Full
Rights Termination pursuant to Section 2.8.4. Instead, (A) if a Party believes
that the Schedule D Suit is partly or solely based on Schedule D Omitted Claims,
such Party shall notify the other Party of such belief, and if the Parties
disagree as to whether such Schedule D Suit is partly or solely based on
Schedule D Omitted Claims, the Parties shall resolve such dispute under the
Arbitration Agreement including, if applicable, which of the Patent claims
asserted in such Schedule D Suit are Schedule D Omitted Claims, and (B) if it is
determined in such arbitration procedure that all or some of the Patent claims
asserted in the Schedule D Suit are Schedule D Omitted Claims, the consequences
shall be as set forth in the following subclauses (i) and (ii) of this Section
2.8.5.

                  (i) If (A) it is determined in such arbitration that all
Patent claims asserted by the Specified Entity or its Affiliates in such
Schedule D Suit against Nikon or its Subsidiaries are Schedule D Omitted Claims,
and (B) Nikon and its Subsidiaries fail to withdraw completely all Suits which
assert any Excluded Nikon Patents against the Specified Entity and/or its
Affiliates within thirty (30) days after such determination, then all Nikon
Excluded Patents asserted by Nikon and/or its Subsidiaries in such Suit shall be
deemed ab initio to be Nikon Licensed Patents for all purposes of this
Agreement, including for purposes of the licenses granted to ASML and its
Subsidiaries under Section 2.1 and the immunities and other commitments granted
or extended by Nikon and its Subsidiaries under Sections 2.9, 3, and 4. In no
event shall ASML be entitled to initiate or effect a Full Rights Termination on
account of any such Suit and/or failure to withdraw.

                  (ii) If it is determined in such arbitration procedure that
some but not all Patent claims asserted by the Specified Entity and/or its
Affiliates in the Specified Entity Action are Schedule D Omitted Claims, then
Section 2.8.5(a) or 2.8.5(b), as applicable, shall apply, it being understood
that, if the Specified Entity and/or its Affiliates asserted any claim of a
Schedule D Patent Family Member other than a claim that has been determined in
an arbitration procedure pursuant to this Section 2.8.5(c), or agreed by the
Parties in writing, to be a Schedule D Omitted Claim, such Schedule D Patent
Family Member shall be counted as a Schedule D Patent Family Member asserted by
the Specified Entity and/or its Affiliates for purposes of determining the
number of Nikon Excluded Patents that may be asserted in any Nikon Defensive
Suit in accordance with Section 2.8.5(a).

      2.9 Transition Period Covenants and Limitation of Remedies.

            2.9.1 Covenant Not To Sue During Transition Period. Each Party
covenants that, during the Transition Period, it shall not, and shall cause its
Subsidiaries not to (such Party and its Subsidiaries being referred to as the
"NON-ASSERTING PARTY"), Sue the other Party or its Subsidiaries, or their
respective third party suppliers making Licensed Products or Optical

                                      21

<PAGE>

Components (but, in the case of ASML being such other Party, only as long as
ASML has a sublicense from Zeiss SMT under the Nikon-Zeiss Patent Cross-License
Agreement, unless Optical Components are ASML Licensed Products following a
Licensed Product Expansion) for such Party as permitted under Sections 2.1 or
2.2, as applicable (as applicable, the "DEFENDANT PARTY"), for direct or
indirect infringement (including for inducement of infringement or contributory
infringement) of any (i) Class B Patents that were Licensed Patents of the
Non-Asserting Party prior to the end of the License Term, (ii) Class C Patents
Owned or Sublicensable by the Non-Asserting Party, or (iii), to the extent not
precluded by contractual obligations that exist as of the Effective Date,
Restricted Patents of the Non-Asserting Party, excluding, in each case, any
Excluded Claims thereof and, in each case, based on (a) the Defendant Party's
activities that would be covered by the Defendant Party's license under Sections
2.1 or 2.2, as applicable, or sublicense pursuant to and in accordance with the
Nikon-Zeiss Patent Cross-License Agreement, if such Class B Patents, Class C
Patents, or Restricted Patents were Licensed Patents (collectively "LITHOGRAPHY
ACTIVITIES"), but solely with respect to Lithography Activities that occur
during the Transition Period, or (b) activities of Covered Entities of the
Defendant Party to the extent such activities are within the scope of the
immunities granted by the Non-Asserting Party under this Agreement.

            2.9.2 Limitation of Remedies As To Transition Period. Nothing in
Section 2.7 or in this Section 2.9 shall constitute any restriction or
limitation on the Non-Asserting Party's right and ability (a) to Sue the
Defendant Party at any time after the Transition Period, or (b) to seek, after
the Transition Period, any remedies with respect to any activities occurring
during the Transition Period (including, without limitation, Lithography
Activities), provided, however, that with respect to Lithography Activities
occurring during the Transition Period, and only to the extent such Lithography
Activities occur during the Transition Period, such remedies shall be limited to
damages in the form of a reasonable royalty not to exceed *** percent (***%) of
the Net Selling Price of the applicable Licensed Products or Optical Components.

            2.9.3 No Other Rights. Nothing in this Section 2.9 shall be
construed to grant or otherwise convey or provide any right or license under any
Patents, whether directly, by implication, estoppel, or otherwise. Nothing in
this Section 2.9, nor the Parties' or their Subsidiaries' conduct pursuant
hereto, shall give rise to any defense, claim, or counterclaim, including based
on laches or equitable estoppel, based on the failure of a Party or its
Subsidiaries to bring Suit or otherwise assert a claim during the Transition
Period where such Party or its Subsidiaries could not have brought such Suit or
assert such claim in accordance with this Section 2.9, and the Defendant Party
hereby expressly waives any such defense, claim, or counterclaim.

      2.10 Licensed Product Expansion. If Zeiss SMT or any third party files for
Zeiss SMT's insolvency and such insolvency proceedings are opened by a court of
competent jurisdiction or are not opened for lack of assets (Nichteroffnung des
Insolvenzverfahrens mangels Masse), or if Zeiss SMT is the subject of a
bankruptcy or is dissolved, liquidated or ceases to do business in the ordinary
course and, as a consequence of any of the foregoing, ASML loses (and does not
retain through a successor to Zeiss SMT or its rights, by operation of law, or
otherwise)

                                      22

<PAGE>

any rights under Nikon Licensed Patents that were sublicensed to ASML from Zeiss
SMT pursuant to the Nikon-Zeiss Patent Cross-License Agreement, then the term
"ASML Licensed Products" shall automatically be deemed to mean "Lithography
Equipment and all applications therefor, including Optical Components" for all
purposes hereunder, including the license grants in Section 2.1 and the
immunities and other commitments extended by Nikon and its Subsidiaries under
this Agreement (the "LICENSED PRODUCT EXPANSION"); provided, however, that (i)
as a condition of such modification to the term "ASML Licensed Products", ASML
shall assume responsibility to pay any of the Zeiss SMT Payments that Zeiss SMT
has not paid to Nikon at the time of such modification, which amount(s) ASML
shall pay within thirty (30) days following the later of the due date therefor
or Nikon's notice to ASML thereof, and (ii) the scope of ASML's rights under
this Agreement with respect to Optical Components shall not exceed the scope of
a permissible sublicense to ASML under the Nikon-Zeiss Patent-Cross License
Agreement, as it exists as of the Effective Date, as described therein.

3. CERTAIN IMMUNITIES

      3.1 Immunity for ASML Products.

            3.1.1 The rights granted to ASML and its Subsidiaries in Section 2.1
shall include immunity as set forth in this Section 3.1 under the Nikon Licensed
Patents and the Class C Patents Owned or Sublicensable by Nikon or its
Subsidiaries for the Covered Entities of ASML and its Subsidiaries for such
Covered Entities' use, importation, offer for sale, sale, lease, and other
distribution or conveyance of ASML Licensed Products or Optical Components (but
only as long as ASML has a sublicense from Zeiss SMT under the Nikon-Zeiss
Patent Cross-License Agreement, unless Optical Components are ASML Licensed
Products following a Licensed Product Expansion) made, had made, sold, offered
for sale, leased, imported or otherwise conveyed by or for ASML or its
Subsidiaries pursuant to the license granted in Section 2.1. Such immunity means
that Nikon shall not, and shall cause its Subsidiaries not to, Sue any Covered
Entity of ASML or its Subsidiaries for direct or indirect infringement
(including for inducement of infringement or contributory infringement) based on
such Covered Entities' use, importation, offer for sale, sale, lease, and other
distribution or conveyance of such ASML Licensed Product or Optical Components
(but only as long as ASML has a sublicense from Zeiss SMT under the Nikon-Zeiss
Patent Cross-License Agreement, unless Optical Components are ASML Licensed
Products following a Licensed Product Expansion) (a) at any time under any Class
A Patents that are Nikon Licensed Patents, regardless of when such ASML Licensed
Product or such Optical Component was first sold, leased, or otherwise
distributed or conveyed by ASML or its Subsidiaries, (b) at any time under Class
B Patents that are at any time Nikon Licensed Patents, with respect to ASML
Licensed Products or such Optical Components that were first sold, leased, or
otherwise distributed or conveyed by ASML or its Subsidiaries prior to or during
the License Term or the Transition Period, and (c) at any time under Class C
Patents enforceable by Nikon or its Subsidiaries, with respect to ASML Licensed
Products or such Optical Components that were first sold, leased, or otherwise
distributed or conveyed by ASML or its Subsidiaries prior to or during the
License Term or the Transition Period.

                                      23

<PAGE>

            3.1.2 Notwithstanding anything to the contrary in this Agreement,
the immunity described in subclauses (b) and (c) of Section 3.1.1 is expressly
conditioned upon the applicable Covered Entity not Suing Nikon or any of its
Subsidiaries for Patent infringement with respect to Lithography Equipment or
any activities relating thereto (including the manufacture, use, sale, offer for
sale, or import of Lithography Equipment and any other activities described in
Section 2.2 hereof), and upon any such Suit such immunity shall retroactively be
null and void and of no effect with respect to such Covered Entity, and Nikon
and its Subsidiaries shall be entitled to seek any remedies against such Covered
Entity available under applicable Law, including with respect to past
activities, but only if Nikon has notified ASML of the existence of such Suit
and the Covered Entity has not taken all actions required on its part to
withdraw such Suit completely within two (2) months after such notification. No
Suit by Nikon or its Subsidiaries against such Covered Entity prior to any such
withdrawal shall constitute a breach of this Section 3.1 by Nikon or its
Subsidiaries as long as Nikon or its Subsidiaries take all actions required on
their part to withdraw such Suit completely within two (2) months after the
Covered Entity has taken all actions required on its part to withdraw its Suit
completely.

      3.2 Immunity for Nikon Products.

            3.2.1 The rights granted to Nikon and its Subsidiaries in Section
2.2 shall include immunity as set forth herein under the ASML Licensed Patents
and the Class C Patents Owned or Sublicensable by ASML or its Subsidiaries for
the Covered Entities of Nikon and its Subsidiaries for such Covered Entities'
use, importation, offer for sale, sale, lease, and other distribution or
conveyance of Nikon Licensed Products made, had made, sold, offered for sale,
leased, imported or otherwise conveyed by or for Nikon or its Subsidiaries
pursuant to the license granted in Section 2.2. Such immunity means that ASML
shall not, and shall cause its Subsidiaries not to, Sue any Covered Entity of
Nikon or its Subsidiaries for direct or indirect infringement (including for
inducement of infringement or contributory infringement) based on such Covered
Entities' use, importation, offer for sale, sale, lease, and other distribution
or conveyance of such Nikon Licensed Product (a) at any time under any Class A
Patents that are ASML Licensed Patents, regardless of when such Nikon Licensed
Product was first sold, leased, or otherwise distributed or conveyed by Nikon or
its Subsidiaries, (b) at any time under Class B Patents that are at any time
ASML Licensed Patents with respect to Nikon Licensed Products that were first
sold, leased, or otherwise distributed or conveyed by Nikon or its Subsidiaries
prior to or during the License Term or the Transition Period, and (c) at any
time under Class C Patents enforceable by ASML or its Subsidiaries, with respect
to Nikon Licensed Products that were first sold, leased, or otherwise
distributed or conveyed by Nikon or its Subsidiaries prior to or during the
License Term or the Transition Period.

            3.2.2 Notwithstanding anything to the contrary in this Agreement,
the immunity described in subclauses (b) and (c) of Section 3.2.1 is expressly
conditioned upon the applicable Covered Entity not Suing ASML or any of its
Subsidiaries for Patent infringement with respect to Lithography Equipment or
any activities relating thereto (including the manufacture, use, sale, offer for
sale, or import of Lithography Equipment and any other activities described in
Section 2.1 hereof), and upon any such Suit such immunity shall retroactively be
null and void and of no

                                      24

<PAGE>

effect with respect to such Covered Entity, and ASML, and its Subsidiaries shall
be entitled to seek any remedies available against such Covered Entity under
applicable Law, including with respect to past activities, but only if ASML has
notified Nikon of the existence of such Suit and the Covered Entity has not
taken all actions required on its part to withdraw such Suit completely within
two (2) months after such notification. No Suit by ASML or its Subsidiaries
against such Covered Entity prior to any such withdrawal shall constitute a
breach of this Section 3.2 by ASML or its Subsidiaries as long as ASML or its
Subsidiaries take all actions required on their part to withdraw such Suit
completely within two (2) months after the Covered Entity has taken all actions
required on its part to withdraw its Suit completely.

      3.3 Excluded Glass Products Claims.

            3.3.1 Neither Party will Sue the other Party or its Subsidiaries, or
any of its or their respective Covered Entities, for direct or indirect
infringement (including for inducement of infringement or contributory
infringement) based on such Party's or its Subsidiaries', or any of their
respective Covered Entities' use, importation, offer for sale, sale, lease, and
other distribution or conveyance of Licensed Products of the other Party or any
Optical Components (but, if ASML is such other Party, only as long as ASML has a
sublicense from Zeiss SMT under Section 2.2 of the Nikon-Zeiss Patent
Cross-License Agreement, unless Optical Components are ASML Licensed Products
following a Licensed Product Expansion) sold as, installed in, or as replacement
or upgrade components for, such Licensed Products, (i) at any time under any
Excluded Claims described in Section 1.2.15(c) that would have constituted Class
A Patents and Licensed Patents of such first Party but for the application of
Section 1.2.15(c), regardless of when such Licensed Products or such Optical
Components were first sold, leased, or otherwise distributed or conveyed by the
other Party or its Subsidiaries, (ii) with respect to Licensed Products or such
Optical Components that were first sold, leased, or otherwise distributed or
conveyed by the other Party or its Subsidiaries prior to or during the License
Term or the Transition Period, at any time under any Excluded Claims described
in Section 1.2.15(c) that would have constituted Class B Patents and Licensed
Patents of such first Party but for the application of Section 1.2.15(c), and
(iii) with respect to Licensed Products or such Optical Components that were
first sold, leased, or otherwise distributed or conveyed by the other Party or
its Subsidiaries prior to or during the License Term or the Transition Period,
at any time under any claims of Patents having an Effective Application Date
after December 31, 2002 and issuing during the Transition Period that are
Excluded Claims described in Section 1.2.15(c) and that would have constituted
Licensed Patents of such Party but for the application of Section 1.2.15(c) had
such Patents issued during the License Term (the claims described in (ii) and
(iii) of the foregoing being "TRANSITION PERIOD CLAIMS"). For the avoidance of
doubt, the foregoing sentence shall not apply to Glass Suppliers of the other
Party or its Subsidiaries.

            3.3.2 Notwithstanding anything to the contrary in this Agreement,
the immunity pursuant to Section 3.3.1 under Transition Period Claims is
expressly conditioned upon the applicable Covered Entity not Suing the
applicable Party or any of its Subsidiaries for Patent infringement, and upon
any such Suit such immunity shall retroactively be null and void and of no
effect with respect to such Covered Entity and the applicable Party and its
Subsidiaries shall

                                      25

<PAGE>

be entitled to seek any remedies available, including with respect to past
activities, but only if such Party has notified the other Party of the existence
of such Suit and the Covered Entity has not taken all actions required on its
part to withdraw such Suit completely within two (2) months after such
notification. No Suit by such Party or its Subsidiaries of such Covered Entity
prior to any such withdrawal shall constitute a breach of this Section 3.3 by
such Party or its Subsidiaries as long as such Party or its Subsidiaries take
all actions required on their part to withdraw such Suit completely within two
(2) months after the Covered Entity has taken all actions required on its part
to withdraw its Suit completely.

4. ADDITIONAL COMMITMENTS

      4.1 Opposition Proceedings. Neither Party ("OPPOSING PARTY") nor its
Subsidiaries will present arguments, or request, encourage or assist any
designee, agent, or nominee or other strawman to present arguments, in any
opposition proceedings (which, for clarity, include reexaminations but do not
include interference proceedings) (i) directed against any claim of any Class A
Patent of the other Party or any of its Subsidiaries, to the extent that such
claim only covers subject matter that falls within the definition of the
Licensed Products of the Opposing Party, or (ii) to the extent that the other
Party covenants to the Opposing Party, in a form binding on the other Party and
its Subsidiaries and assigns, that it will never contend against the Opposing
Party or its Subsidiaries or their respective vendors, direct and indirect
resellers, distributors, users and other customers that such claim covers
subject matter that falls outside the definition of the Licensed Products of the
Opposing Party. Each Party shall have the right, but not the obligation, at any
time to provide the other Party with written notice identifying Subsidiaries of
such Party. If an Opposing Party presents arguments, or requests, encourages or
assists any designee, agent, or nominee or other strawman to present arguments,
in any opposition proceeding against a Subsidiary of the other Party that does
not do business under a name including the name of the other Party and has not
previously been identified in writing to the Opposing Party, or that the
Opposing Party does not actually know to be a Subsidiary of the other Party,
then such presentation, request, encouragement or assistance shall not be deemed
to be a breach of this Section 4.1, provided that, upon receipt of written
notice from the other Party of such Subsidiary relationship, such Opposing Party
shall promptly withdraw from such opposition proceeding.

      4.2 Glass Product Suppliers

            4.2.1 No Injunction. Subject to Section 4.2.4, a Party and its
Subsidiaries (collectively the "ASSERTING PARTY") will not seek or obtain an
injunction, restraint or other form of prohibitive order enjoining the supply of
Excluded Glass Products to the other Party or its Subsidiaries on the basis that
such Excluded Glass Products infringe, directly or indirectly, the Patents of
the Asserting Party. Subject to Section 4.2.4, the foregoing covenant and the
provisions of Section 4.2.2 shall last (i) perpetually under Class A Patents of
the Asserting Party, and (ii) until the end of the Agreement Term under Class B
Patents of the Asserting Party and under any patents that would have constituted
Class C Patents of the Asserting Party but for the

                                      26

<PAGE>

application of Section 1.2.15(c) (each such period, as applicable, the "GLASS
RESTRICTION PERIOD").

            4.2.2 Payment of Glass Excess Payment.

                  (a) If, during the applicable Glass Restriction Period the
Asserting Party asserts or seeks to assert any applicable Patents against a
third party with respect to the supply of Excluded Glass Products by such third
party (a "GLASS SUPPLIER") to the other Party (the "PURCHASING PARTY"), then,
with regard to all Covered Excluded Glass Products, the Asserting Party shall
pay any Glass Excess Payment to the Purchasing Party as set forth in Section
4.2.3.

                  (b) For purposes of this Section 4.2:

                        (i) "COVERED EXCLUDED GLASS PRODUCTS" means Excluded
Glass Products that are (A) covered by a license under the Asserting Party's
Patents, or (B) the subject of a damages award for infringement of the Asserting
Party's Patents.

                        (ii) "GLASS EXCESS PAYMENT" means the portion of
Attributable Glass Proceeds, if any, that exceeds an amount equal to *** percent
(***%) of the Purchasing Party's Glass Product Expenses in any calendar year. By
way of example, if the Attributable Glass Proceeds in any calendar year are $***
and the Glass Product Expenses for such calendar year are $***, then the Glass
Excess Payment payable by the Asserting Party to the other Party in respect of
such calendar year shall be such portion of $*** that exceeds ***% of $***
($***), i.e., $*** in total. In no event shall the Purchasing Party be required
to pay any amount to the Asserting Party under this Section 4.2, even if in any
calendar year the Attributable Glass Proceeds are less than *** percent (***%)
of the Purchasing Party's Glass Product Expenses.

                        (iii) "GLASS PRODUCT EXPENSES" means the aggregate
amount paid by the Purchasing Party and its Subsidiaries to the Glass Supplier
for Covered Excluded Glass Products purchased by the Purchasing Party from the
Glass Supplier in the applicable calendar year.

                        (iv) "ATTRIBUTABLE GLASS PROCEEDS" means the sum of the
following received with respect to any one calendar year: (A) Running Royalty
Payments based on sales of Covered Excluded Glass Products to the Purchasing
Party in such calendar year, (B) Allocable Amortized Lump-Sum Payments allocable
to such calendar year, and (C) Allocable Damages that are attributable to sales
of Covered Excluded Glass Products to the Purchasing Party in such calendar
year.

                        (v) "RUNNING ROYALTY PAYMENTS" means running royalty
payments made by the Glass Supplier to the Asserting Party under an applicable
license agreement the amounts of which are based on sales by the Glass Supplier
of Covered Excluded Glass Products in any calendar year. "Running Royalty
Payments" excludes any other payments, such as, for example, up-front license
fees, annual license fees, or other lump sum

                                      27

<PAGE>

payments or payments other than variable payments based on sales of Covered
Excluded Glass Products.

                        (vi) "LUMP-SUM PAYMENTS" means up-front or lump-sum
license fees paid by the Glass Supplier to the Asserting Party (e.g., annual
license fees, but excluding, in any event, Running Royalty Payments) in
consideration of, and to the extent reasonably attributable to, the grant of
license rights by the Asserting Party to the Glass Supplier, under the Asserting
Party's Patents covering Covered Excluded Glass Products, to make and sell
Covered Excluded Glass Products. For the avoidance of doubt, if, under the
applicable license agreement, the Asserting Party grants any rights, or provides
any consideration, other than only the right to manufacture and sell Covered
Excluded Glass Products, only such portion of any up-front or recurring lump-sum
license fees shall be taken into account, for purposes of calculating Lump-Sum
Payments, that is reasonably attributable to the grant of the right to
manufacture and sell Covered Excluded Glass Products (but not any portion of
such license fees that is reasonably attributable to other rights granted, or
other consideration provided, to the Glass Supplier under such license
agreement).

                        (vii) "ALLOCABLE DAMAGES" means the positive difference,
if any, between (A) such portion, if any, of damages finally assessed against
the Glass Supplier, and paid (including by way of setoff) to the Asserting
Party, for infringement of the Asserting Party's Patents based on the Glass
Supplier's sale of Covered Excluded Glass Products that is attributable to sales
of Covered Excluded Glass Products by the Glass Supplier to the Purchasing
Party; the ratio of such portion to the total damages finally assessed against
the Glass Supplier, and paid (including by way of setoff) to the Asserting
Party, for infringement of the Asserting Party's Patents based on the Glass
Supplier's sale of Covered Excluded Glass Products being referred to as the
"FRACTION", minus (B) the Fraction multiplied by the amount of damages, if any,
finally assessed against the Asserting Party in the same lawsuit, cause, or
action, or in a lawsuit pending at the same time, and paid (including by way of
setoff) to the Glass Supplier, for infringement of the Glass Supplier's Patents
based on the Asserting Party's sales of Excluded Glass Products.

                        (viii) "AMORTIZED LUMP-SUM PAYMENTS" means the
applicable portion of Lump-Sum Payments when such Lump-Sum Payments are
amortized on a straight line basis over the applicable Amortization Period.

                        (ix) "AMORTIZATION PERIOD" means, (A) with respect to
up-front license fees, the shorter of (I) a period of six (6) years from the
payment date of such up-front license fee, or (II) the initial term of the
applicable license agreement, and (B) with respect to any recurring lump-sum
license fees, the applicable period for which such recurring lump-sum license
fee is made under the applicable license agreement (e.g., one year in case of an
annual license fee).

                        (x) "ALLOCABLE AMORTIZED LUMP-SUM PAYMENTS" means such
portion of the Amortized Lump-Sum Payment, if any, that is attributable to sales
of

                                      28

<PAGE>

Covered Excluded Glass Products by the Glass Supplier to the Purchasing Party in
the applicable calendar year.

                  (c) For purposes of clarification, nothing in this Section 4.2
or any other provision of this Agreement shall constitute, or shall be deemed to
constitute, a restriction on the amount of any payments that may be sought by or
payable to the Asserting Party or any of its Subsidiaries from a Glass Supplier,
whether on account of Excluded Glass Products supplied to the Purchasing Party
or otherwise.

            4.2.3 Payments and Records. The payments, if any, owed to the
Purchasing Party pursuant to Section 4.2.2 by the Asserting Party shall be made
annually within ninety (90) days following the last day of each calendar year of
the Agreement Term. The Parties agree to keep full and accurate books and
records setting forth in reasonable detail the Attributable Glass Proceeds, the
Glass Product Expenses, and the calculation of the Glass Excess Payment. The
Purchasing Party shall report its Glass Product Expenses, if any, to the
Asserting Party no later than thirty (30) days following the last day of each
calendar year of the Agreement Term. In the event that the Asserting Party
receives in any one calendar year (the "CURRENT YEAR") any Attributable Glass
Proceeds based on sales in, or otherwise attributable or allocable to, any
previous calendar year(s) ( "PREVIOUS YEAR(S)"), the Asserting Party will notify
the Purchasing Party thereof within thirty (30) days following the last day of
such Current Year and the Purchasing Party may then, unless previously reported,
report its Glass Product Expenses for such Previous Year(s) to the Asserting
Party within ninety (90) days following the last day of such Current Year. The
Asserting Party will then calculate or recalculate the Glass Excess Payment, if
any, for such Previous Year(s) and submit its report relating thereto within one
hundred twenty (120) days following the last day of the Current Year, together
with the payment of any Glass Excess Payment owed and not previously paid for
such Previous Year(s).

            4.2.4 Defensive Actions. The provisions of Sections 4.2.1 through
4.2.3 will be suspended, and during such suspension shall cease to bind the
Asserting Party with respect to (but only with respect to) any Glass Supplier or
any of its Subsidiaries if such Glass Supplier or any of its Subsidiaries seeks
an injunction, restraint or other form of prohibitive order from any Government
Authority against the Asserting Party on the basis that the Asserting Party or
any of its products or services allegedly infringes, directly or indirectly, the
Patents of such Glass Supplier ("GLASS PROCEEDINGS") prior to any Suit by the
Asserting Party against such Glass Supplier. Such suspension shall last as long
as such Glass Proceedings are not Finally Resolved. Upon Final Resolution of
such Glass Proceedings, the provisions of Sections 4.2.1 through 4.2.3 shall (i)
be again effective from and after such Final Resolution, if such Glass
Proceedings are Finally Resolved by either an amicable settlement between the
Asserting Party and the Glass Supplier or a withdrawal of all such Glass
Proceedings by the Glass Supplier, and (ii) terminate and permanently cease to
bind the Asserting Party with respect to such Glass Supplier in all other cases.
Upon termination or during any suspension of the provisions of Sections 4.2.1
through 4.2.3 the Asserting Party shall be entitled to seek any remedies
available, including with respect to past activities.

                                      29

<PAGE>

      4.3 Special Mask Technology

            4.3.1 Definitions. For purposes of this Section 4.3:

                  (a) "EXCLUDED SPECIAL MASK CLAIM" means an Excluded Claim that
is described in Section 1.2.14(d);

                  (b) "CLASS A EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that would have been included in a Class A Patent within the
Licensed Patents of a Party or its Subsidiaries (collectively, the "LICENSOR
PARTY") but for the application of Section 1.2.14(d).

                  (c) "CLASS B EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that would have been included in a Class B Patent within the
Licensed Patents of a Licensor Party but for the application of Section
1.2.14(d).

                  (d) "CLASS C EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that is included in a Patent Owned or Sublicensable by a
Licensor Party having an Effective Application Date after December 31, 2002 and
issuing during the Transition Period.

            4.3.2 Limited Party Immunity. The Licensor Party will not Sue the
other Party or its Subsidiaries (collectively, the "OTHER PARTY") at any time,
during or after the Agreement Term:

                  (a) for direct or indirect infringement (including
contributory infringement and inducement to infringe) of any Class A Excluded
Special Mask Claim based on (i) activities of the Other Party occurring at any
time before, during or after the Agreement Term that would be covered by the
Other Party's license under Sections 2.1 or 2.2, as applicable, if such Class A
Excluded Special Mask Claim were a licensed claim within a Licensed Patent, or
(ii) a Covered Entity's use, import, repair, offer for sale, sale, lease, and
other distribution or conveyance at any time before, during or after the
Agreement Term of Licensed Products or Optical Components (but, if ASML is such
Other Party, only as long as ASML has a sublicense from Zeiss SMT under the
Nikon-Zeiss Patent Cross-License Agreement, unless Optical Components are ASML
Licensed Products following a Licensed Product Expansion) that were first sold,
leased, or otherwise distributed or conveyed by the Other Party at any time
before, during or after the Agreement Term and the sale, lease, or other
distribution or conveyance of which by the Other Party would be covered by the
Other Party's or its Subsidiaries' license under Sections 2.1 or 2.2, as
applicable, if such Class A Excluded Special Mask Claim were a licensed claim
within a Licensed Patent.

                  (b) for direct or indirect infringement (including
contributory infringement and inducement to infringe) of any Class B Excluded
Special Mask Claim or Class C Excluded Special Mask Claim based on either (i)
any activities of the Other Party occurring at any time during (but not after)
the Agreement Term that would be covered by the Other Party's license under
Sections 2.1 or 2.2, as applicable, if such Class B Excluded Special Mask Claim
or Class

                                      30

<PAGE>
C Excluded Special Mask Claim, as applicable, were a licensed claim within a
Licensed Patent, or (ii) a Covered Entity's use, import, repair, offer for sale,
sale, lease, and other distribution or conveyance at any time before, during or
after the Agreement Term of Licensed Products or Optical Components that were
first sold, leased, or otherwise distributed or conveyed by the Other Party at
any time before or during (but not after) the Agreement Term and the sale,
lease, or other distribution or conveyance of which by the Other Party or its
Subsidiaries would be covered by the Other Party's or its Subsidiaries' license
under Sections 2.1 or 2.2, as applicable, if such Class B Excluded Special Mask
Claim or Class C Excluded Special Mask Claim were a licensed claim within a
Licensed Patent.

            4.3.3 Limited Covered Entity Immunity. Subject to Section 4.3.4, the
Licensor Party will not Sue any Covered Entity of the Other Party:

                  (a) at any time during or after the Agreement Term, for direct
or indirect infringement (including contributory infringement and inducement to
infringe) of any Class A Excluded Special Mask Claim based on such Covered
Entity's use, import, repair, offer for sale, sale, lease, and other
distribution or conveyance at any time before, during or after the Agreement
Term of Licensed Products or Optical Components (but, if ASML is such Other
Party, only as long as ASML has a sublicense from Zeiss SMT under the
Nikon-Zeiss Patent Cross-License Agreement, unless Optical Components are ASML
Licensed Products following a Licensed Product Expansion) that were first sold,
leased, or otherwise distributed or conveyed by the Other Party at any time
before, during or after the Agreement Term and the sale, lease, or other
distribution or conveyance of which by the Other Party or its Subsidiaries would
be covered by the Other Party's or its Subsidiaries' license under Sections 2.1
or 2.2, as applicable, if such Class A Excluded Special Mask Claim were a
licensed claim within a Licensed Patent;

                  (b) at any time, during or after the Agreement Term, for
direct or indirect infringement (including contributory infringement and
inducement to infringe) of any Class B Excluded Special Mask Claim or Class C
Excluded Special Mask Claim based on such Covered Entity's use, import, repair,
offer for sale, sale, lease, and other distribution or conveyance at any time
before, during or after the Agreement Term of Licensed Products or Optical
Components (but, if ASML is such Other Party, only as long as ASML has a
sublicense from Zeiss SMT under the Nikon-Zeiss Patent Cross-License Agreement,
unless Optical Components are ASML Licensed Products following a Licensed
Product Expansion) that were first sold, leased, or otherwise distributed or
conveyed by the Other Party or its Subsidiaries at any time before or during
(but not after) the License Term and the sale, lease, or other distribution or
conveyance of which by the Other Party or its Subsidiaries would be covered by
the Other Party's or its Subsidiaries' license under Sections 2.1 or 2.2, as
applicable, if such Class B Excluded Special Mask Claim or Class C Excluded
Special Mask Claim were a licensed claim within a Licensed Patent; and

                  (c) during the Transition Period, for direct or indirect
infringement (including contributory infringement and inducement to infringe) of
any Class B Excluded Special Mask Claim or Class C Excluded Special Mask Claim
based on such Covered Entity's

                                      31

<PAGE>

use, import, repair, offer for sale, sale, lease, and other distribution or
conveyance at any time prior to the end of the Transition Period of Licensed
Products or Optical Components (but, if ASML is such Other Party, only as long
as ASML has a sublicense from Zeiss SMT under the Nikon-Zeiss Patent
Cross-License Agreement, unless Optical Components are ASML Licensed Products
following a Licensed Product Expansion) that were first sold, leased, or
otherwise distributed or conveyed by the Other Party at any time prior to or
during (but not after) the Transition Period and the sale, lease, or other
distribution or conveyance of which by the Other Party or its Subsidiaries would
be covered by the Other Party's or its Subsidiaries' license under Sections 2.1
or 2.2, as applicable, if such Class B Excluded Special Mask Claim or Class C
Excluded Special Mask Claim were a licensed claim within a Licensed Patent.

            4.3.4 Limitation of Certain Remedies Against Covered Entities as to
Transition Period. Nothing in this Agreement (including, without limitation,
Section 4.3.3(c) above) shall constitute any restriction or limitation on the
Licensor Party's right and ability to Sue, after the end of the Transition
Period, any Covered Entity of the Other Party for direct or indirect
infringement (including contributory infringement and inducement to infringe) of
any Class B Excluded Special Mask Claim or Class C Excluded Special Mask Claim
based on such Covered Entity's use, import, repair, offer for sale, sale, lease,
and other distribution or conveyance at any time prior to the end of the
Transition Period of Licensed Products or Optical Components that were first
sold, leased, or otherwise distributed or conveyed by the Other Party at any
time after the end of the License Term; provided, however, that with respect to
Licensed Products or Optical Components (but, if ASML is such Other Party, only
as long as ASML has a sublicense from Zeiss SMT under the Nikon-Zeiss Patent
Cross-License Agreement, unless Optical Components are ASML Licensed Products
following a Licensed Product Expansion) that were first sold, leased, or
otherwise distributed or conveyed by the Other Party during the Transition
Period, the Licensor Party's remedies in any such action against any Covered
Entity of such Other Party shall be limited to damages in the form of a
reasonable royalty not to exceed *** percent (***%) of the Net Selling Price of
all applicable Licensed Products.

            4.3.5 Defensive Actions. Notwithstanding anything to the contrary in
this Agreement, the immunity described in Section 4.3.3 and the application of
Section 4.3.4 are expressly conditioned upon the applicable Covered Entity not
Suing the Licensor Party for Patent infringement, and upon any such Suit such
immunity shall retroactively be null and void and of no effect with respect to
such Covered Entity, and the Licensor Party shall be entitled to seek any
remedies available against such Covered Entity under applicable Law, including
with respect to past activities, but only if the Licensor Party has notified the
Other Party of the existence of such Suit and the Covered Entity has not taken
all actions required on its part to withdraw such Suit completely within two (2)
months after such notification. No Suit by the Licensor Party against such
Covered Entity prior to any such withdrawal shall constitute a breach of this
Section by the Licensor Party as long as the Licensor Party takes all actions
required on its part to withdraw such Suit completely within two (2) months
after the Covered Entity has taken all actions required on its part to withdraw
its Suit completely.

5. PAYMENTS

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<PAGE>

      5.1 Payments. ASML or ASML Netherlands B.V. (provided that ASML
Netherlands B.V. can make such payments only for so long as it remains a Dutch
corporation) shall pay to Nikon the aggregate sum of Eighty-Seven Million U.S.
Dollars (US$ 87,000,000), to be payable in the following installments
("PAYMENTS"):

            a)    Sixty Million U.S. Dollars (US$ 60,000,000) on the Effective
                  Date, receipt of which amount on November 16, 2004 is hereby
                  acknowledged by Nikon;

            b)    Nine Million U.S. Dollars (US$ 9,000,000) on the first
                  anniversary of the Effective Date;

            c)    Nine Million U.S. Dollars (US$ 9,000,000) on the second
                  anniversary of the Effective Date; and

            d)    Nine Million U.S. Dollars (US$ 9,000,000) on the third
                  anniversary of the Effective Date.

      5.2 Taxes. All Payments shall be paid such that, after deduction or
withholding of any taxes or other amounts due on such Payments (not including
income taxes owed by Nikon) (collectively, "WITHHOLDINGS"), Nikon receives the
entire amounts of such Payments as if no Withholdings had been required.

      5.3 Late Payments. For purposes of clarification, ASML shall owe no
interest on any Payments set forth in Section 5.1.

      5.4 Other Payment Provisions. All amounts payable by ASML to Nikon shall
be paid by wire transfer of U.S. Dollars in immediately available funds to the
account of "Nikon Corporation," account number ***, Bank of Tokyo-Mitsubishi
Ltd., Head Office, Marunouchi 2-7-1, Chiyoda-ku, Tokyo, Japan (SWIFT Code
BOTKJPJT), or such other financial institution and account number as Nikon may
designate in writing to ASML, such notice to be received by ASML no later than
two (2) months prior to the applicable date on which payment is due. Each Party
shall be responsible for the proper allocation of payments made under this
Agreement in its own tax filings and financial statements.

      5.5 Audit. The Parties agree to keep full and accurate books and records
setting forth in reasonable detail the payments payable to the other Party
hereunder, or Glass Product Expenses to be recorded hereunder, and the
calculation thereof. Each Party (the "AUDITING PARTY") shall have the right to
appoint an  internationally recognized accounting firm (but not the
Auditing Party's accounting firm) reasonably acceptable to the other Party (the
"INDEPENDENT AUDITOR") to audit the financial books and records that the other
Party (the "AUDITED PARTY) is expressly required to keep under this Agreement
with respect to payments owed to the Auditing Party, or Glass Product Expenses
to be recorded, under this Agreement (the "RELEVANT BOOKS AND RECORDS"). The
Audited Party may require the Independent Auditor, prior to any such audit, to
agree to reasonable confidentiality restrictions and the Independent

                                      33

<PAGE>

Auditor shall (i) treat as confidential information of the Audited Party all
information obtained in connection with such audit and (ii) not disclose the
same to the Auditing Party or others, except that the Independent Auditor may
disclose to the Auditing Party only whether the audit revealed an underpayment,
or an inaccuracy with respect to Glass Product Expenses, and the amount of such
underpayment or inaccuracy, if any. An audit shall be permitted only upon at
least thirty (30) days' prior written notice to the Audited Party, and in no
event more than once during any calendar year (unless an audit in any calendar
year revealed an underpayment, in which case the Auditing Party may conduct one
(1) additional audit in such calendar year). The Independent Auditor shall
conduct the audit during normal business hours solely as necessary to confirm
the accuracy of the Relevant Books and Records. The Independent Auditor may not
be paid on a contingency fee basis and shall provide its report simultaneously
to both Parties. The Auditing Party shall be solely liable for all costs and
expenses accrued in connection with such audit. In the event the audit reveals
an underpayment or inaccuracy, prompt adjustment of all unpaid amounts owed
under this Agreement shall be made by the Audited Party, provided that nothing
contained herein is intended to waive or limit the Audited Party's right to
contest the accuracy of any finding of the Independent Auditor.

6. WARRANTIES AND DISCLAIMERS

      6.1 Authority. Each Party represents and warrants to the other Party that
(a) it has all requisite corporate power and authority to execute and deliver
this Agreement and to carry out the provisions of this Agreement, and (b) the
execution, delivery and performance by such Party of this Agreement have been
approved by all requisite action on the part of such Party, and no other
corporate proceeding on the part of such Party is necessary to authorize this
Agreement.

      6.2 No Conflicts. Each Party represents and warrants to the other Party
that (a) it has the right, and will continue during the Agreement Term to have
the right, to grant to the other Party and its Subsidiaries the licenses, rights
and immunities granted hereunder in accordance with the terms of this Agreement,
and (b) such grant of licenses, rights and immunities and such Party's
execution, delivery and performance of this Agreement do not, and will not
during the Agreement Term, conflict with, violate or result in any breach of any
provision of any license, agreement, contract, understanding, arrangement,
commitment or undertaking of any nature (whether written, oral or otherwise) to
which such Party is a party.

      6.3 No Encumbrances With Respect To Owned Licensed Patents.

            6.3.1 ASML Representations. ASML hereby represents and warrants to
Nikon that, (a) except as set forth in Schedule B-1, no Lithography Patent that
is either solely assigned to and/or owned (use of the non-defined term being
intentional) by, or Co-Owned by, ASML or its Subsidiaries as of the Effective
Date (but excluding any Excluded Claims thereof) is subject to any lien,
encumbrance or other restriction (including any contractual restriction such as
an exclusive license) that would prevent or prohibit ASML or its Subsidiaries
from granting to Nikon the full scope of the rights granted under Section 2.2
(excluding rights that employees may have in inventions that they develop while
employed by ASML or its Subsidiaries, such as, for example, the right to receive
monetary compensation or assert preemptive rights), and (b)

                                      34

<PAGE>

except as set forth in Schedule B-2, since January 1, 1996, neither ASML nor its
Subsidiaries have assigned any issued Patents to a third party, except for
assignments that were the result of Patent maintenance decisions in the ordinary
course of ASML's or its Subsidiaries' business, which Patents would, if Owned by
ASML or its Subsidiaries as of the Effective Date, constitute a Lithography
Patent included within the ASML Licensed Patents.

            6.3.2 Nikon Representations. Nikon hereby represents and warrants to
ASML that, (a) except as set forth in Schedule C-1, no Lithography Patent that
is either solely assigned to and/or owned (use of the non-defined term being
intentional) by, or Co-Owned by, Nikon or its Subsidiaries as of the Effective
Date (but excluding any Excluded Claims thereof) is subject to any lien,
encumbrance or other restriction (including any contractual restriction such as
an exclusive license) that would prevent or prohibit Nikon or its Subsidiaries
from granting to ASML the full scope of the rights granted under Section 2.1
(excluding rights that employees may have in inventions that they develop while
employed by Nikon or its Subsidiaries, such as, for example, the right to
receive monetary compensation or assert preemptive rights), and (b) except as
set forth in Schedule C-2, since January 1, 1996, neither Nikon nor its
Subsidiaries have assigned any issued Patents to a third party, except for
assignments that were the result of Patent maintenance decisions in the ordinary
course of Nikon's or its Subsidiaries' business, which Patents would, if Owned
by Nikon or its Subsidiaries as of the Effective Date, constitute a Lithography
Patent included within the Nikon Licensed Patents.

      6.4 No Transfers or Encumbrances in Anticipation of Litigation or
Execution. Each Party hereby represents to the other, as of the Effective Date,
that it has not transferred or assigned any ownership interest in any Patents to
any third party, or encumbered any Patents in a manner that would prevent or
prohibit such Party or its Subsidiaries from granting to the other Party and its
Subsidiaries the full scope of the rights granted hereunder, in anticipation of
Patent litigation with the other Party or in anticipation of the execution of
this Agreement.

      6.5 Inadvertent Omissions. In the event that a Party discovers after the
Effective Date an inadvertent, good faith omission from its Schedule B or
Schedule C, as applicable, such Party shall have the right to update the
applicable Schedule hereunder, provided that such omission does not result in
any material disadvantage to the other Party.

      6.6 No Circumvention. No Circumvention. Each Party agrees that, during the
License Term, neither it nor its Subsidiaries shall initiate any corporate
reorganization, merger, spinoff or restructuring that has the foreseeable effect
that Lithography Patents having an Effective Application Date after the
Effective Date, that would be Licensed Patents of such Party absent such
reorganization, merger, spinoff or restructuring, would be Owned by a Related
Company of such Party that is not a Subsidiary of such Party, unless, at the
sole election of the first Party, (a) such Related Company is obligated to grant
or extend to the other Party the licenses, immunities, and other commitments
that are set forth in this Agreement, or (b) such first Party retains sufficient
rights or is granted sufficient sublicensable rights by such Related Company to
grant or extend to the other Party the licenses, immunities, and other
commitments that are set forth in this Agreement. For purposes of this Section
6.6, "RELATED COMPANY"

                                      35

<PAGE>

means, with respect to any Person, any other Person that possesses or is under
common possession with such first Person, but only for such time as such
possession exists. For this purpose, "possession" of a Person (and the
correlative "possesses") means beneficial ownership, directly or indirectly, of
securities representing more than fifty percent (50%) of the power to elect such
other Person's board of directors or other managing authority or, in the case of
non-corporate Person, equivalent interests.

      6.7 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER
PARTY MAKES (AND EACH PARTY HEREBY EXPRESSLY DISCLAIMS), WITH RESPECT TO THIS
AGREEMENT, ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR NON-INFRINGEMENT, AND ANY WARRANTIES THAT MAY ARISE FROM
COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE.

7. LIMITATION OF LIABILITY

      TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER PARTY UNDER ANY LEGAL THEORY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, or ANY damages for loss of
profits, revenue OR businesS, ARISING OUT OF ANY BREACH OF THIS aGREEMENT BY
SUCH PARTY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, OR FOR ANY FINES, PENALTIES, OR LEVIES ASSESSED AGAINST THE OTHER PARTY
BY ANY GOVERNMENTAL AUTHORITY.

8. TERM AND TERMINATION

      8.1 Term of Agreement. This Agreement will be effective as of the
Effective Date, and except as expressly set forth in Section 8.2, will continue
in full force and effect until the end of the Agreement Term, after which it
will expire, subject to Sections 8.2.1 and 8.5. Except as expressly set forth in
Section 8.2, neither Party shall have the right, during the Agreement Term, to
terminate this Agreement, any of its obligations hereunder, or any of the
rights, licenses, immunities, or additional commitments granted or extended by
such Party hereunder.

      8.2 Expiration/Termination of Licenses.

            8.2.1 Expiration of License Term. Except as otherwise set forth in
Sections 2.8.4 and 8.2.2 of this Agreement, and notwithstanding any breach of
this Agreement other than non-payment and failure to cure such non-payment as
set forth in Section 8.2.2, (a) the licenses and rights granted in Sections 2.1
and 2.2 to each Party and its Subsidiaries under the other Party's Class B
Patents shall terminate on the expiration of the License Term, (b) the rights
and licenses granted in Sections 2.1 and 2.2 to each Party and its Subsidiaries
under each of the other Party's Class A Patents shall continue until the
expiration of such Class A Patent, notwithstanding the expiration of the License
Term or Agreement Term, and (c) the immunities

                                      36

<PAGE>

and additional commitments under Sections 2.7, 2.9, 3 and 4 shall continue as
provided in those Sections, respectively.

            8.2.2 Non-Payment By Zeiss SMT or ASML. If ASML fails to pay to
Nikon any of the payment installments set forth in Section 5.1 on the due dates
thereof or if Zeiss SMT fails to pay to Nikon any of the outstanding payments
described in Section 5.1 of the Nikon-Zeiss Patent Cross-License Agreement (in
the form in which such agreement exists as of the Effective Date) by the due
dates thereof (the "ZEISS SMT PAYMENTS"), then Nikon shall provide written
notice of such non-payment to both ASML and Zeiss SMT. If neither ASML nor Zeiss
SMT pays all delinquent amounts identified in such notice to Nikon within thirty
(30) days after Nikon's written notice of such non-payment, then Nikon shall
have the right to terminate the rights, licenses, immunities, and additional
commitments granted to ASML and its Subsidiaries and their respective Covered
Entities, vendors and Glass Suppliers in Sections 2, 3, and 4. For purposes of
clarification, no termination of such rights, licenses, immunities, and
additional commitments shall terminate or otherwise affect the rights, licenses,
immunities, and additional commitments granted to Nikon and its Subsidiaries,
and their respective Covered Entities, vendors, and Glass Suppliers in Sections
2, 3, and 4. Notwithstanding anything to the contrary in this Section 8.2.2,
once all payments set forth in Section 5.1 and all Zeiss SMT Payments have been
paid to Nikon in full (regardless of whether such payments are made by Zeiss SMT
or ASML), Nikon shall have no right to terminate the rights, licenses and
immunities granted by Nikon and its Subsidiaries to ASML and its Subsidiaries
hereunder.

      8.3 Change of Control of Subsidiaries. If a Subsidiary of a Party ceases
to be a Subsidiary of such Party ("CHANGE OF STATUS"), (a) the licenses, rights,
immunities, and additional commitments granted to such Subsidiary and Covered
Entities, vendors, or Glass Suppliers of such Subsidiaries under Sections 2, 3,
and 4 shall immediately terminate upon the consummation of such Change of
Status, without limiting the immunity, as provided in Sections 2.7, 3.1, 3.2,
3.3, and 4.3, as applicable, of the relevant Covered Entities to which such
Covered Entities were entitled as of the date of such termination, and (b) the
licenses, rights and immunities granted in this Agreement under the Licensed
Patents of such Subsidiaries will remain in effect, in accordance with the terms
and conditions of this Agreement, with respect to such of those Licensed Patents
that have an Effective Application Date prior to the consummation of such Change
of Status, but not with regard to any Patents that have an Effective Application
Date after the consummation of such Change of Status.

      8.4 Continuing Liability. The expiration of this Agreement shall not
release either Party from any liability, obligation or agreement which has
already accrued under this Agreement at the time of such expiration. The
expiration of this Agreement shall not constitute a waiver or release of, or
otherwise be deemed to prejudice or adversely affect, any rights, remedies or
claims, whether for damages or otherwise, which a Party may have hereunder, at
law or otherwise.

      8.5 Survival. The provisions of Sections 1, 2.1 (only with respect to
Class A Patents that are Licensed Patents as provided in Section 8.2.1), 2.2
(only with respect to Class A Patents

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<PAGE>

that are Licensed Patents as provided in Section 8.2.1), 2.4 (only with respect
to Class A Patents), 2.5 (for the periods set forth therein), 2.6, 2.7 (as set
forth therein), 2.8, 2.9.2, 2.9.3, 3.1 (only as set forth therein), 3.2 (only as
set forth therein), 3.3 (only as set forth therein), 4.1, 4.2 (only as set forth
therein), 4.3 (only as set forth therein), 5 (as applicable), 6.7, 7, 8.2, 8.3,
8.4, 8.5, 9, and 10, and any other sections of this Agreement to the extent
expressly provided herein, shall survive, to the extent applicable, the
expiration of this Agreement.

9. ASSIGNMENT

      9.1 Sale of Lithography Business. Either Party may assign this Agreement,
together with all of its rights and obligations hereunder as well as all of the
rights sublicensed to ASML and its Subsidiaries (and the other benefits
extended) pursuant to Section 2.2 of the Nikon-Zeiss Patent Cross-License
Agreement, to any Person that acquires all of such Party's rights in the
Lithography Patents included within the Licensed Patents of such Party and all
or substantially all of the other assets of the business of manufacturing and
selling Licensed Products of the assigning Party or its Subsidiary, as
applicable, provided, however, that the assigning Party shall remain liable for
the performance of all of its obligations under this Agreement.

      9.2 No Other Assignment. Except as permitted under Section 9.1, neither
Party may assign, delegate, or otherwise transfer any of its rights or
obligations under this Agreement to any other Person without the prior written
consent of the other Party. Any purported or attempted assignment, delegation or
other transfer of any rights or obligations under this Agreement in
contravention of the foregoing sentence shall be null and void.

      9.3 Transfer of Patents. In the event of any sale, assignment, transfer,
exclusive license, or other conveyance of any ownership interest in a Party's
Licensed Patents ("TRANSFER"), such Party shall (i) ensure that the purchaser,
assignee, transferee, or exclusive licensee ("TRANSFEREE") shall be bound by all
applicable licenses, immunities, covenants, and restrictions contained in this
Agreement, (ii) require that such Transferee agree in writing prior to any such
Transfer to be bound by all licenses, immunities, covenants, and other
restrictions hereunder, and (iii) ensure that such Transfer does not affect such
Party's right and ability to perform all of its obligations under this
Agreement. In no event shall such Party be relieved or excused from any of its
obligations under this Agreement as a result of such Transfer. Notwithstanding
anything to the contrary contained in Section 10.12, each Party shall have the
right to file this Agreement, and ASML shall have the right to file any
sublicense agreement with Zeiss SMT (including, to the extent attached thereto,
the Nikon-Zeiss SMT Patent Cross-License Agreement) or any summary or
translation hereof or thereof with any patent office or other Governmental
Authority in order to notify potential Transferees of the existence and terms of
this Agreement or such sublicense as it relates to any Licensed Patents proposed
to be Transferred, provided that prior to any such filing the other Party shall
be given an opportunity to propose reasonable redactions to be made to the filed
version of this Agreement or such sublicense and the Parties shall cooperate
with respect to agreeing on such redactions. Each Party shall provide all
reasonable cooperation requested by the filing Party, at the filing Party's

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<PAGE>

expense, including, without limitation, the execution, delivery and filing of
any applicable instruments, notifications, forms, affidavits and the like.

      9.4 Successors and Assigns. Subject to the other provisions of this
Section 9, this Agreement shall be binding upon and shall inure to the benefit
of the Parties and their respective successors and permitted assigns.

10. MISCELLANEOUS

      10.1 Limitation. Nothing contained in this Agreement shall be construed
as:

            10.1.1 a warranty or representation by either Party as to the
validity, enforceability or scope of any Patents; or

            10.1.2 conferring upon any Person any license, right or immunities
under any Patents except the licenses, rights and immunities expressly granted
hereunder; or

            10.1.3 a warranty or representation that any acts licensed hereunder
will be free from infringement or other violation of Patents, copyrights, mask
work rights, trade secrets or other intellectual property rights, other than
infringement of those Licensed Patents under which licenses, rights and
immunities have been expressly granted hereunder; or

            10.1.4 an obligation of either Party or its Subsidiaries to file or
maintain any patent application, secure any Patent or maintain any Patent in
force; or

            10.1.5 an arrangement to Sue third parties for infringement of any
Patent or other intellectual property right or conferring any right to Sue third
parties for infringement of any Patent or other intellectual property right.

      10.2 Relationship of the Parties. In the exercise of their respective
rights, and the performance of their respective obligations hereunder, the
Parties are and will remain independent contractors. Nothing in this Agreement
will be construed to constitute the Parties as partners, or principal and agent
for any purpose whatsoever. Neither Party will bind, or attempt to bind, the
other Party to any contract or other obligation, and neither Party will
represent to any third party that it is authorized to act on behalf of the other
Party.

      10.3 Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York, United States of America
(without application of any choice or conflicts of laws rules or principles that
would require the application of the laws of any other jurisdiction).

      10.4 Dispute Resolution. The Parties hereby agree that any controversy,
claim or dispute arising out of or relating to this Agreement or the breach
hereof shall be resolved in accordance with the terms and conditions of the
Arbitration Agreement. Except as permitted

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<PAGE>

under the Arbitration Agreement, the Parties hereby give up and waive any rights
they might have to have such disputes decided in a court or jury trial.

      10.5 Language. This Agreement is in the English language only, which
language shall be controlling in all respects, and all versions hereof in any
other language shall be for accommodation only and shall not be binding upon the
Parties. All communications and notices to be made or given pursuant to this
Agreement shall be in the English language.

      10.6 Entire Agreement; Amendment; Waiver. This Agreement (including the
Schedules hereto), the Arbitration Agreement, the Patent Cooperation Agreement
between Nikon and ASML of even date herewith, and the Nikon-ASML Settlement and
Release Agreement (together the "TRANSACTION AGREEMENTS") constitute the full
and entire understanding and agreement between Nikon and ASML with regard to the
subject matter hereof, and supersede any communications, representations,
understandings and agreements (including the MOU), either oral or written,
between Nikon and ASML prior to, but not on, the date hereof, with respect to
such subject matter. This Agreement may not be altered or amended except by a
written instrument signed by authorized legal representatives of both Parties.
Any waiver of the provisions of this Agreement or of a Party's rights or
remedies under this Agreement must be in writing to be effective. Failure,
neglect or delay by a Party to enforce the provisions of this Agreement or its
rights or remedies at any time will not be construed and will not be deemed to
be a waiver of such Party's rights under this Agreement and will not in any way
affect the validity of the whole or any part of this Agreement or prejudice such
Party's right to take subsequent action. No single or partial exercise of any
right, power or privilege granted under this Agreement shall preclude any other
or further exercise thereof or the exercise of any other right, power or
privilege. Except as expressly set forth in this Agreement, the rights and
remedies provided in this Agreement are cumulative and are not exclusive of any
rights or remedies provided by law or in any other agreement between the
Parties.

      10.7 Notices and Other Communications. All notices required or permitted
under this Agreement shall refer to this Agreement and will be deemed given: (a)
when delivered personally; (b) when sent by confirmed facsimile; or (c) three
(3) business days after deposit with an internationally recognized commercial
overnight carrier specifying next-day delivery, with written verification of
receipt. All such notices, requests, demands and other communications shall be
addressed as follows:

            If to Nikon:

                        Nikon Corporation
                        6-3, Nishi-ohi 1-chome
                        Shinagawa-ku
                        Tokyo 140-8601
                        Japan
                        Attn: General Manager, Intellectual Property Department
                        Fax: +81-3-3778-2900

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<PAGE>

            With a copy to (which shall not constitute notice):

                        Morrison & Foerster LLP
                        425 Market Street
                        San Francisco, CA 94105
                        Attn: Robert Townsend
                        Fax: +1 (415) 268-7522

            If to ASML:

                        ASML Holding N.V.
                        De Run 6501
                        5504 DR Veldhoven
                        The Netherlands
                        Attn:  General Counsel
                        Fax:  +31 (40) 268-2000

            With a copy to (which shall not constitute notice):

                        Wilmer Cutler Pickering Hale and Dorr LLP
                        60 State Street
                        Boston, MA 02109
                        Attn:  William F. Lee
                        Fax: +1 (617) 526-5000

or to such other address or facsimile number as a Party may have specified to
the other Party in writing delivered in accordance with this Section 10.7.

      10.8 Expenses. Except as otherwise expressly set forth in this Agreement,
each Party will bear its own costs and expenses, including fees and expenses of
legal counsel and other representatives used or hired in connection with the
transactions described in this Agreement.

      10.9 Severability. If any provision in this Agreement is found or held to
be invalid or unenforceable, then the meaning of such provision will be
construed, to the extent feasible, so as to render the provision enforceable and
still achieve the Parties' intent in entering into this Agreement, and if no
feasible interpretation would save such provision, it will be severed from the
remainder of this Agreement, which will remain in full force and effect. In such
event, the Parties and Zeiss SMT will use all reasonable efforts to negotiate,
in good faith, a substitute, valid and enforceable provision or agreement which
most nearly effects the Parties' intent in entering into this Agreement.

      10.10 Construction. This Agreement shall be deemed to have been drafted by
both Parties and, in the event of a dispute, neither Party shall be entitled to
claim that any provision should be construed against the other Party by reason
of the fact that it was drafted by the other Party.

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<PAGE>

      10.11 Execution. This Agreement may be executed in counterparts, each of
which so executed will be deemed to be an original and such counterparts
together will constitute one and the same agreement. Execution and delivery of
this Agreement by exchange of facsimile copies bearing the facsimile signature
of a Party shall constitute a valid and binding execution and delivery of this
Agreement by such Party.

      10.12 Confidentiality of Terms. Neither Party shall (and shall ensure that
none of its agents, representatives or attorneys shall) disclose the terms of
this Agreement to any third parties, except that either Party may disclose the
existence of this Agreement to third parties, and may disclose the terms of this
Agreement (a) to the extent reasonably necessary, in confidence, to its legal
counsel and accountants, (b) to Governmental Authorities as required by any
applicable Law or the applicable rules or regulations of any securities exchange
on which any of such Party's securities are listed (in either case, as
determined by such Party upon advice of counsel), provided that prior to any
such required disclosure, the disclosing Party gives the non-disclosing Party
reasonable advance notice of such disclosure, minimizes the scope of such
disclosure (including by making redactions to documents provided as part of such
disclosure and by cooperating with the non-disclosing Party to obtain protective
orders) to the extent permitted under applicable Law, and otherwise coordinates
with the non-disclosing Party with respect to the scope of such disclosure, (c)
in connection with the enforcement of this Agreement or any other Transaction
Agreement, or (d) as permitted under Section 9.3. Notwithstanding the foregoing,
neither Party will be prohibited from disclosing, in their entirety, the terms
of any of Sections 2.8, 3.1, 3.2, 3.3, 4.2 or 4.3, and the obligations of the
Parties under this Section 10.12 shall not apply to any terms of this Agreement
that have been disclosed by either Party as permitted by subclauses (a)-(d)
above.

      10.13 Publicity. No Party shall (and shall ensure that none of its agents,
representatives or attorneys shall) originate any publicity, news release, or
other public announcement, written or oral, relating to this Agreement without
the prior written approval of each other Party except as otherwise required by
Law. Such approval shall not be unreasonably withheld. Notwithstanding the
foregoing, nothing in this Section 10.13 shall prevent or prohibit, or be
construed to require approval by any Party for, (a) any disclosure of
information or matters relating to this Agreement to a Party's customers,
resellers, or suppliers in the ordinary course of business where, with respect
to information that constitutes confidential information of another Party under
one or more of the Transaction Agreements, such disclosure is subject to the
terms of a non-disclosure agreement in customary form, or (b) any publicity,
news release or other public announcement of information that (i) is or becomes
available to the general public other than in violation of Section 10.12 or
obligations of confidentiality under any other Transaction Agreement, or (ii)
otherwise does not constitute confidential information of another Party under
the Transaction Agreements.

      10.14 Section 365(n). Each Party, as licensor, acknowledges and agrees
that the licenses, immunities and rights granted under this Agreement to the
other Party and its Subsidiaries by such licensor are licenses, immunities and
rights as to "intellectual property" within the definition of Section 101(35A)
of the United States Bankruptcy Code (the "CODE").

                                      42

<PAGE>

The Parties hereto further agree that, in the event of the commencement of a
bankruptcy proceeding by or against the licensor Party under the Code, the
licensee Party and its Subsidiaries shall be entitled, at such licensee Party's
option, to retain all their licenses, immunities and rights under this
Agreement, including without limitation the licenses and immunities granted
under Sections 2.1 and 2.2, respectively, pursuant to Code Section 365(n). To
the extent that United States law is held by a court of competent jurisdiction
not to apply with respect to a non-US bankruptcy proceeding of a Party, each
Party shall take all actions that are reasonably necessary to effectuate the
intent of the foregoing provisions in the country in which it and each
Subsidiary holding any rights with respect to its Licensed Patents is
incorporated or conducts its business, subject to any mandatory provisions of
applicable law. Without limiting the generality of the foregoing, Nikon agrees
to take all reasonable measures necessary to ensure the survival of the rights,
immunities, and licenses granted to ASML and its Subsidiaries in the event that
Nikon or any of its Subsidiaries is subject to a bankruptcy proceeding under the
laws of Japan, and ASML agrees to take all reasonable measures necessary to
ensure the survival of the rights, immunities, and licenses granted to Nikon and
its Subsidiaries in the event that ASML or any of its Subsidiaries is subject to
a bankruptcy proceeding under the laws of the Netherlands, in each case in
accordance with applicable law.

      10.15 Nikon-Zeiss Patent Cross-License Agreement. Nikon agrees that it
shall not, without the prior written consent of ASML, agree or consent to any
amendment, modification, or termination of the Nikon-Zeiss Patent Cross License
Agreement that limits in scope or duration Zeiss SMT's rights to grant
sublicenses to ASML and its Subsidiaries (and to extend to ASML, its
Subsidiaries and their respective Covered Entities benefits of immunities,
covenants not to sue, and additional commitments) under Section 2.2 of the
Nikon-Zeiss Patent Cross License Agreement as of the Effective Date hereof.

      10.16 Further Assurances. Each Party agrees (a) to furnish upon request to
the other Party such further information, (b) to execute and deliver to the
other Party such other documents, and (c) to do such other acts and things, in
each case as the Party may reasonably request for the purpose of carrying out
the purposes, terms and conditions of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      43

<PAGE>

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
and delivered by their respective duly authorized representatives as of the date
first above written.

NIKON CORPORATION                                 ASML HOLDING N.V.

By: /s/ Kenzi Enya                                By: /s/ Ton van Hoef

Name: Kenzi Enya                                  Name:Ton van Hoef

Title: Vice Chairman and                          Title: VP and Chief IP Counsel

       Chief Financial Officer

                                      44

<PAGE>

                                   SCHEDULE A
                              EXCLUDED CLAIMS LIST

To be added pursuant to Section 2.3.1.

                                      45
<PAGE>

                                  SCHEDULE B-1
                  ASML DISCLOSURES PURSUANT TO SECTION 6.3.1(a)

None.

                                      46

<PAGE>

                                  SCHEDULE B-2
                  ASML DISCLOSURES PURSUANT TO SECTION 6.3.1(b)

<TABLE>
<CAPTION>
COUNTRY NAME        FILING NR        FILING DATE       PATENT NR             ASSIGNEE
<S>                <C>               <C>               <C>               <C>
European (E.P.O.)                    12/19/2001        1 217 450         Carl Zeiss Stiftung
Germany            DE 10061480.9     12/8/2000                           Carl Zeiss Stiftung
Germany            10144246.7        9/5/2001                            Carl Zeiss Stiftung
</TABLE>

                                      47

<PAGE>

                                  SCHEDULE C-1
                 NIKON DISCLOSURES PURSUANT TO SECTION 6.3.2(a)

All Patents that are based on the same priority document as the Patents listed
in the following table shall be deemed part of Schedule C-1 without being
expressly listed in the following table.

<TABLE>
<CAPTION>
COUNTRY NAME  APPLICATION NUMBER  DATE OF FILING  LAID OPEN NUMBER  DATE LAID OPEN  PATENT NUMBER   COUNTERPART PATENTS
- ------------  ------------------  --------------  ----------------  --------------  -------------   -------------------
<S>           <C>         <C>     <C>             <C>               <C>             <C>             <C>
</TABLE>

***

                                      48

<PAGE>

SCHEDULE C-2

                 NIKON DISCLOSURES PURSUANT TO SECTION 6.3.2(b)

***

                                      49

<PAGE>

                                   SCHEDULE D
                               SCHEDULE D PATENTS

The three Patent applications having international publication numbers:

***

***

***

                                      50

<PAGE>

                                   SCHEDULE E
                            DESIGNATED NIKON PATENTS

The three Patent applications having international publication numbers:

***

***

***

                                      51

<PAGE>

                                   SCHEDULE F
                                SPECIFIED ENTITY

***, a corporation organized under the laws of ***.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.11
<SEQUENCE>4
<FILENAME>u48286exv4w11.txt
<DESCRIPTION>EXHIBIT 4.11
<TEXT>
<PAGE>

                                                                    EXHIBIT 4.11

                         ASML/ZEISS SUBLICENSE AGREEMENT

      THIS ASML/ZEISS SUBLICENSE AGREEMENT ("AGREEMENT") is made and entered
into as of November 12, 2004 (the "EFFECTIVE DATE") by and between Carl Zeiss
SMT AG, a corporation organized under the laws of Germany ("ZEISS SMT") and ASML
Holding N.V., a corporation organized under the laws of The Netherlands
("ASML"). Zeiss SMT and ASML are hereinafter also referred to individually as a
"PARTY" and collectively as the "PARTIES".

                                  INTRODUCTION

      WHEREAS, ASML and Zeiss SMT entered into a Binding Term Sheet Regarding
Cross-License dated as of July 30, 2004 (the "TERM SHEET"), pursuant to which
they agreed, among other things, upon the terms and conditions of a sublicense
to be granted by Zeiss SMT to ASML as part of a worldwide settlement among ASML,
Zeiss SMT and Nikon Corporation and its Subsidiaries (collectively, "NIKON");

      WHEREAS, ASML, Zeiss SMT and Nikon have entered into certain agreements as
of the date hereof setting forth a worldwide settlement and cross-licensing with
respect to lithography-related patents, including that certain patent
cross-license agreement dated as of the date hereof by and between Nikon and
Zeiss SMT, in the form in which such patent cross-license agreement exists as of
the date hereof and is attached as Exhibit 1 hereto (the "NIKON-ZEISS PATENT
CROSS-LICENSE AGREEMENT"); and

      WHEREAS, as part of these cross-licensing arrangements, Zeiss SMT desires
to grant to ASML, and ASML desires to receive, a sublicense under the Nikon
Licensed Patents (as defined herein) pursuant to the terms and conditions of
this Agreement.

      NOW, THEREFORE, in consideration of the representations, warranties and
covenants herein contained, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

1.    DEFINITIONS

      1.1 TERMS DEFINED IN THIS AGREEMENT. The following terms, whether used in
the singular or plural, when used in this Agreement shall have the following
definitions:

            1.1.1 "AFFILIATE" shall have the meaning set forth in Section 1.1.3
of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.2 "ASML STAND-ALONE OPTICAL COMPONENTS" shall have the meaning
set forth in Section 1.1.8 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.3 "ASMLO" shall have the meaning set forth in the Zeiss/ASML
2003 Agreement. For purposes of this definition, the Parties agree to cooperate
in good faith in order to ensure that the definition of "ASMLO" in the
Zeiss/ASML 2003 Agreement properly reflects the intention of the Parties herein
and therein, provided, however, that Zeiss SMT reserves all rights, and does not
hereby or herein waive any right or remedy that Zeiss SMT may have, in
connection with the Zeiss/ASML 2003

***   Indicates certain information omitted pursuant to a request for
      confidential treatment filed separately with the Securities and Exchange
      Commission.

<PAGE>

Agreement properly reflects the intention of the Parties herein and therein,
provided, however, that Zeiss SMT reserves all rights, and does not hereby or
herein waive any right or remedy that Zeiss SMT may have, in connection with the
Zeiss/ASML 2003 Agreement.

            1.1.4 "COVERED ENTITIES" shall have the meaning set forth in Section
1.1.17 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.5 "DIRECT OR INDIRECT SALE" shall have the meaning set forth in
Section 1.1.20 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.6 "EFFECTIVE APPLICATION DATE" shall have the meaning set forth
in Section 1.1.22 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.7 "EXCLUDED NIKON PATENTS" shall have the meaning set forth in
Section 1.2.22 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.8 "GROSS SELLING PRICE" shall mean the gross revenues recognized
by ASML and its Subsidiaries on Direct or Indirect Sales of Royalty-Bearing
Products. No Gross Selling Price shall be deemed to accrue on any transfers of
Royalty-Bearing Products among ASML and its Subsidiaries, provided that such
Royalty-Bearing Products are not used or employed in any commercial
manufacturing processes by such transferee.

            1.1.9 "GOVERNMENTAL AUTHORITY" shall have the meaning set forth in
Section 1.1.38 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.10 "INDEPENDENT AUDITOR" shall have the meaning set forth in
Section 3.4.

            1.1.11 "LAW" shall have the meaning set forth in Section 1.1.40 of
the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.12 "LITHOGRAPHY EQUIPMENT" shall have the meaning set forth in
Section 1.3.2 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.13 "NIKON LICENSED PATENTS" shall have the meaning set forth in
Section 1.2.4 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.14 "NIKON-ZEISS PATENT CROSS-LICENSE AGREEMENT" shall have the
meaning set forth in the Introduction.

            1.1.15 "OPTICAL COMPONENTS" shall have the meaning set forth in
Section 1.1.57 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.16 "PATENT IN DISPUTE" shall have the meaning set forth in
Section 2.3.

                                       2

<PAGE>

            1.1.17 "PATENTS" shall have the meaning set forth in Section 1.1.59
of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.18 "PERSON" shall have the meaning set forth in Section 1.1.61
of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.19 "ROYALTY-BEARING PRODUCTS" means a lithography system that
includes either an illumination system or a projection system that is not
manufactured by or at the express direction or with the express authorization
of, or purchased from, Zeiss SMT or any of its Affiliates; provided, however,
that Royalty-Bearing Products shall not include products that are made by ASMLO
to the extent that such products utilize optical lithography where wafers,
masks, or other substrates are exposed by photons to generate the lithographic
pattern thereon without using a mask but using direct-write methods, by using
any kind of optics to project the pattern on the substrate for manufacturing of
semiconductors or similar applications such as manufacturing of flat panel
displays.

            1.1.20 "SUBLICENSE INQUIRY" shall have the meaning set forth in
Section 2.3.

            1.1.21 "SUBSIDIARY" shall have the meaning set forth in Section
1.1.80 of the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.22 "SUE" shall have the meaning set forth in Section 1.1.81 of
the Nikon-Zeiss Patent Cross-License Agreement.

            1.1.23 "THIRD PARTY" means a person or entity other than ASML or
Zeiss SMT and their respective Affiliates.

            1.1.24 "ZEISS/ASML 1997 AGREEMENT" means the Agreement dated as of
October 25, 1997 by and between Carl Zeiss AG and ASML Netherlands BV, as
amended from time to time, as applicable, or any subsequent agreement that
replaces such agreement.

            1.1.25 "ZEISS/ASML 2003 AGREEMENT" means the Agreement dated as of
October 24, 2003 by and between Zeiss SMT and ASML, as amended from time to
time, or any subsequent agreement that replaces such agreement.

      1.2 INTERPRETATION.

            1.2.1 Certain Terms. The words "hereof," "herein," "herewith,"
"hereunder" and similar words refer to this Agreement as a whole and not to any
particular provision of this Agreement. The term "including" is not limited and
means "including without limitation."

            1.2.2 Section References; Titles and Subtitles. Unless otherwise
noted, all references to Sections and Schedules herein are to Sections and
Schedules of this Agreement. The titles, captions and headings of this Agreement
are inserted for

                                       3

<PAGE>

convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

            1.2.3 Reference to Persons, Agreements, Statutes. Unless otherwise
expressly provided herein, (a) references to a Person include its successors and
permitted assigns, (b) references to agreements (including this Agreement) and
other contractual instruments shall be deemed to include all subsequent
amendments, restatements and other modifications thereto or supplements thereof
and (c) references to any statute or regulation are to be construed as including
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such statute or regulation.

            1.2.4 Controlling Effect Of The Nikon-Zeiss Patent Cross-License
Agreement. In the event of a conflict or inconsistency between any of the
provisions of this Agreement and the Nikon-Zeiss Patent Cross-License Agreement
in the form attached in Exhibit 1 hereto together with any amendments to which
ASML consents in writing, the applicable provisions of the Nikon-Zeiss Patent
Cross-License Agreement shall control, supersede, and take precedence over the
applicable provisions of this Agreement.

2.    SUBLICENSES AND IMMUNITIES

      2.1 Nikon Sublicensed Patents. Zeiss SMT hereby grants to ASML and its
Subsidiaries, under the Nikon Licensed Patents, retroactive to the Effective
Application Dates of the Nikon Licensed Patents, a non-exclusive,
non-sublicensable (except that this restriction on sublicensing shall not limit
or otherwise affect the immunities, covenants, and additional commitments set
forth in Sections 3 and 4 of the Nikon-Zeiss Patent Cross-License Agreement, to
the extent such are sublicensable or otherwise may be extended to ASML under
Section 2.2 of the Nikon-Zeiss Patent Cross-License Agreement), non-transferable
(except as set forth in Section 7 below) sublicense of all of the rights and
extension of all immunities and protections granted to Zeiss SMT under Sections
2.1, 2.2, 3 and 4 of the Nikon-Zeiss Patent Cross-License Agreement.

      2.2 Limitation for ASML Stand-Alone Components. The scope of ASML's
sublicense rights under Section 2.1 shall be narrowed prospectively to exclude
the right to sell ASML Stand-Alone Optical Components to the same extent (if
any) that the scope of Nikon's license rights under Section 2.3 of the
Nikon-Zeiss Patent Cross-License Agreement are narrowed to exclude the right to
sell Nikon Stand-Alone Optical Components as described in Section 2.4.3 of the
Nikon-Zeiss Patent Cross-License Agreement. The aforementioned exclusion of
ASML's right to sell ASML Stand-Alone Optical Components shall become permanent
if and when the aforementioned exclusion of Nikon's right to sell Nikon
Stand-Alone Components becomes permanent as described in Section 2.4.3 of the
Nikon-Zeiss Patent Cross-License Agreement.

      2.3 Inquiries as to Sublicensed Patents. In the event that a third party
Sues ASML or alleges or asserts that ASML has violated or infringed any one or
more Patents of such third party (a "PATENT IN DISPUTE"), ASML may request that
Zeiss SMT exercise

                                       4

<PAGE>

its rights under Section 2.6 of the Nikon/Zeiss Cross License Agreement to
inquire of Nikon whether each such Patent in Dispute is included within the
sublicense grant to ASML set forth in Section 2.1 of this Agreement (a
"SUBLICENSE INQUIRY"). Sublicense Inquiries shall be in writing and shall set
forth the identity of the third party and each Patent in Dispute. With respect
to each Sublicense Inquiry, Zeiss SMT will, by exercising its rights of inquiry
under Section 2.6 of the Nikon-Zeiss Patent Cross-License Agreement, provide
ASML with all information that Zeiss SMT receives from Nikon in response to such
inquiry. Zeiss SMT will not be responsible or liable for the accuracy or
completeness of any information provided by Nikon in response to such inquiry.

3.    ROYALTIES

      3.1 Royalties. The sublicenses set forth in Section 2 above shall be
royalty-bearing solely to the extent set forth in this Section 3.1. Following
the expiration or termination of the Zeiss/ASML 1997 Agreement, ASML shall pay
to Zeiss SMT a royalty of *** percent (***%) of the Gross Selling Price of every
Royalty-Bearing Product that is the subject of a Direct or Indirect Sale by or
on behalf of ASML or its Affiliates consummated after such expiration or
termination; provided, however, that no royalties shall be payable by ASML under
this Section 3.1 if Carl Zeiss AG (or any assignee or successor thereof)
unilaterally terminates the Zeiss/ASML 1997 Agreement pursuant to the second
sentence of Section 14 of the Zeiss/ASML 1997 Agreement. For purposes of
clarity, as of the date hereof, the second sentence of the Zeiss/ASML 1997
Agreement is as follows: "Thereafter this Agreement shall be automatically
renewed unless terminated as of the end of a calendar year by a party on three
(3) years prior written notice". No royalties shall be payable by ASML under
this Section 3.1 at any time prior to the termination of the Zeiss/ASML 1997
Agreement.

      3.2 Reports and Payments. For any calendar quarter in which a royalty
payment is due under Section 3.1, ASML shall deliver to Zeiss SMT within sixty
(60) days after the end of such calendar quarter a written report showing its
computation of royalties due under this Agreement for such calendar quarter.
Simultaneously with the delivery of each such report, ASML shall tender payment
of all amounts shown to be due thereon. The royalty payments due on sales in
currencies other than Euros ((euro)) shall be calculated using the appropriate
exchange rate for such currency quoted by the Citibank foreign exchange desk on
the close of business on the business day immediately preceding the date of such
report. All amounts due under this Agreement shall be paid to Zeiss SMT in Euros
((euro)) by wire transfer to an account designated by Zeiss SMT, or in such
other form and/or manner and/or to such other payee as Zeiss SMT may from
time-to-time direct ASML in writing as set forth in Section 8.12. In the absence
of any instructions, or in the event of inconsistent, incomplete, or conflicting
instructions, ASML shall send a bank or certified check for the amount due to
Zeiss SMT as set forth in Section 8.12.

      3.3 Audit. ASML agrees to make and keep full and accurate books and
records in sufficient detail to enable amounts payable to Zeiss SMT hereunder to
be determined. Zeiss SMT shall have the right to appoint an independent
accounting firm, reasonably acceptable to ASML (an "INDEPENDENT AUDITOR"), to
audit of the books and

                                       5

<PAGE>

records of ASML that pertain to such payments and the basis therefor. On thirty
(30) days' prior written notice to ASML, but no more than once during any
calendar year (unless Zeiss SMT, in good faith, has a concern about specific
inaccuracy, in which case an additional audit shall be permitted to address such
specific inaccuracy), the Independent Auditor shall have access to the books and
records of ASML during normal business hours solely as necessary to confirm
compliance with the payment terms of this Agreement. The Independent Auditor
shall treat as confidential all information obtained in such audit and shall not
disclose the same to any third party, other than to confirm to Zeiss SMT whether
ASML is in compliance with the payment obligations under this Agreement, and if
not, the amount of any excess or shortfall. Notwithstanding the foregoing, in
the event (a) that ASML contests the accuracy of the audit, or (b) the audit
determines a shortfall in excess of twenty-five percent (25%) of the amount due,
then the Independent Auditor's analysis, results, and conclusions shall, at the
option and expense of Zeiss SMT, be provided to outside counsel for Zeiss SMT,
on an outside counsel eyes' only basis. Prompt adjustment shall be made to
reflect the results of such audit. Nothing contained herein is intended to waive
or limit ASML's right to contest the accuracy of any audit, nor to limit any
additional audit or other requirements hereof.

4.    WARRANTIES, DISCLAIMERS AND COVENANTS

      4.1 Authority. Each Party represents and warrants to the other Party that
(a) it has all requisite corporate power and authority to execute and deliver
this Agreement and to carry out the provisions of this Agreement, and (b) the
execution, delivery and performance by such Party of this Agreement have been
approved by all requisite action on the part of such Party, and no other
corporate proceeding on the part of such Party is necessary to authorize this
Agreement.

      4.2 No Conflicts. Each Party represents and warrants to the other Party
that (a) such Party's execution, delivery and performance of this Agreement, and
the rights and obligations conferred and assumed herein, do not, and will not
during the term of this Agreement, conflict with, violate or result in any
breach of any provision of any license, agreement, contract, understanding,
arrangement, commitment or undertaking of any nature (whether written, oral or
otherwise) to which such Party is a party, and (b) it has considered all
applicable laws and regulations in connection with this Agreement, and that, to
the best of its knowledge, this Agreement complies with all applicable laws and
regulations applicable to such Party.

      4.3 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER
PARTY MAKES (AND EACH PARTY HEREBY EXPRESSLY DISCLAIMS), WITH RESPECT TO THIS
AGREEMENT, ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR NON-INFRINGEMENT, AND ANY WARRANTIES THAT MAY ARISE FROM
COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE.

                                       6

<PAGE>

5.    LIMITATION OF LIABILITY

      TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER PARTY UNDER ANY LEGAL THEORY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, or ANY damages for loss of
profits, revenue OR businesS, ARISING OUT OF ANY BREACH OF THIS aGREEMENT BY
SUCH PARTY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, OR FOR ANY FINES, PENALTIES, OR LEVIES ASSESSED AGAINST THE OTHER PARTY
BY ANY GOVERNMENTAL AUTHORITY.

6.    TERM AND TERMINATION

      6.1 Term. The term of this Agreement shall begin as of the Effective Date
and shall continue in full force and effect until the expiration of the last to
expire Nikon Licensed Patent under which ASML is sublicensed as set forth in
Section 2, subject to Sections 6.2 and 6.3. Except as expressly set forth in
Section 6.2, neither Party shall have the right, during the term of this
Agreement, to terminate this Agreement, any of its obligations hereunder, or any
of the rights, licenses, immunities or other protections granted hereunder.

      6.2 Termination of License.

            6.2.1 By Nikon. This Agreement shall terminate if and when Nikon
properly exercises its right pursuant to Section 8.2.2 of the Nikon-Zeiss Patent
Cross-License Agreement to terminate all of the rights, licenses, covenants,
immunities, and other protections granted to Zeiss SMT and its Subsidiaries
pursuant to Sections 2, 3, and 4 of the Nikon-Zeiss Patent Cross-License
Agreement.

            6.2.2 By Zeiss SMT. If (a) ASML disputes any royalty which Zeiss SMT
claims is due under Section 3.1, and (b) such dispute is resolved pursuant an
arbitration as set forth in Section 8.7 in which the arbitrator renders a
decision that ASML has failed to pay an amount that is due under Section 3.1,
and (c) ASML fails to pay such amount within thirty (30) days after notice of
such decision is received by ASML, then Zeiss SMT shall have the right, upon
written notice to ASML at any time prior to ASML's payment of such overdue
amount, to terminate this Agreement, including all rights, licenses, covenants,
immunities and other protections granted to ASML and its Subsidiaries under
Section 2.1. The arbitration set forth in clause (b) of this Section 6.2.2 shall
be conducted on an expedited basis, and shall be concluded within sixty (60)
days, subject only to the availability of (a) Zeiss SMT and (b) the Arbitration
Tribunal set forth in the Arbitration Agreement dated as of the date hereof by
and between Zeiss SMT, Carl Zeiss, Nikon, and ASML.

      6.3 Survival. Upon any expiration or termination of this Agreement, all
rights and obligations of the Parties shall terminate, except that the
provisions of Sections 3 (solely with regard to Direct and Indirect Sales by
ASML of Royalty Bearing

                                       7

<PAGE>

Products prior to the date of expiration or termination), 4.3, 5, this 6.3, 6.4,
6.5, 7, and 8, and any other sections of this Agreement to the extent expressly
provided herein, shall survive the expiration of this Agreement.

      6.4 Change of Control of Subsidiary. If a Subsidiary of ASML ceases to be
Controlled by ASML, the licenses, immunities and rights granted to such
Subsidiary and the Covered Entities of such Subsidiary under Sections 2 shall
immediately terminate upon the consummation of such change of Control, but only
with regard to products made, used, sold, offered for sale, imported, or
exported by such Subsidiary after the consummation of such change of Control.

      6.5 Continuing Liability. The expiration of this Agreement shall not
release either Party from any liability, obligation or agreement which has
already accrued under this Agreement at the time of such expiration. The
expiration of this Agreement shall not constitute a waiver or release of, or
otherwise be deemed to prejudice or adversely affect, any rights, remedies or
claims, whether for damages or otherwise, which a Party may have hereunder, at
law or otherwise.

7.    ASSIGNMENT

      7.1 Sale of Lithography Business.

            7.1.1 By ASML. ASML shall assign this Agreement, together with all
of its rights and obligations hereunder, to any Person that acquires all or
substantially all of the assets of the business of manufacturing and selling
Lithography Equipment of ASML and its Subsidiaries (including ASML's licenses
and other rights in the Nikon Licensed Patents under the ASML-Nikon Patent
Cross-License Agreement), provided, however, that ASML shall remain liable for
the performance of all of its obligations under this Agreement.

            7.1.2 By Zeiss SMT. Zeiss SMT may assign this Agreement, together
with all of its rights and obligations hereunder, to any Person that acquires
all of Zeiss SMT's rights in the Nikon Licensed Patents hereunder (as
sublicensor) and all or substantially all of the other assets of the business of
manufacturing and selling Optical Components of Zeiss SMT and its Subsidiaries,
provided, however, that Zeiss SMT shall remain liable for the performance of all
of its obligations under this Agreement.

      7.2 No Other Assignment. Except as permitted under Section 7.1, neither
Party may assign, or otherwise transfer any of its rights or obligations under
this Agreement to any other Person without the prior written consent of the
other Party. Any purported or attempted assignment, delegation or other transfer
of any rights or obligations under this Agreement in contravention of the
foregoing sentence shall be null and void.

      7.3 Assignment of Nikon-Zeiss Patent Cross-License Agreement. Zeiss SMT
shall ensure that any assignee or exclusive licensee of its rights under the
Nikon-Zeiss Patent Cross-License Agreement, whether by assignment, merger, sale
of assets or

                                       8

<PAGE>

otherwise ("ASSIGNEE") shall be bound by the terms and conditions contained in
this Agreement, and Zeiss SMT shall require that such Assignee agree in writing
prior to any such sale, assignment, transfer or exclusive license ("TRANSFER")
that the sublicenses, immunities and other rights granted to ASML, its
Subsidiaries and their respective Covered Entities hereunder shall not be
affected in any manner by such Transfer. In accordance with Section 9.3 of the
Nikon-Zeiss Patent Cross-License Agreement, ASML shall have the right to file
this Agreement or any summary hereof with any patent office or other
Governmental Authority in order to notify potential Assignees of the existence
and terms of this Agreement as it relates to any Nikon Licensed Patents. Zeiss
SMT shall provide all reasonable cooperation requested by ASML, at ASML's
expense, including, the execution, delivery and filing of any applicable
instruments, notifications, forms, affidavits and the like.

      7.4 Successors and Assigns. Subject to the other provisions of this
Section 7, this Agreement shall be binding upon and shall inure to the benefit
of the Parties and their respective successors and permitted assigns.

8.    MISCELLANEOUS

      8.1 Limitation. Nothing contained in this Agreement shall be construed as:

                  (a) a warranty or representation by either Party as to the
validity, enforceability or scope of any Patents; or

                  (b) conferring upon any Person any license, right or
immunities under any Patents except the licenses, rights and immunities
expressly granted hereunder; or

                  (c) a warranty or representation that any acts licensed
hereunder will be free from infringement or other violation of Patents,
copyrights, mask work rights, trade secrets or other intellectual property
rights, other than infringement of those Patents under which licenses, rights
and immunities have been expressly granted hereunder; or

                  (d) an obligation of either Party or its Subsidiaries to file
or maintain any patent application, secure any Patent or maintain any Patent in
force; or

                  (e) an arrangement to Sue third parties for infringement of
any Patent or other intellectual property right or conferring any right to Sue
third parties for infringement of any Patent or other intellectual property
right.

      8.2 Mutual Consent To Grant Licenses to Nikon. Notwithstanding anything to
the contrary in any agreement between the Parties and/or their respective
Affiliates entered into on or before the Effective Date hereto, each Party
hereby consents and agrees that the other Party shall have the right, without
additional consideration to the first Party, to grant to Nikon, its
Subsidiaries, their respective Covered Entities, vendors and Glass Products
Suppliers the rights, licenses, immunities and other protections

                                       9

<PAGE>

granted by such other Party to the extent, and solely to the extent, set forth
in the Nikon-Zeiss Patent Cross-License Agreement or the Nikon-ASML Patent
Cross-License Agreement, as applicable, in each case, as such agreements exist
as of the Effective Date hereof.

      8.3 Nikon-Zeiss Patent Cross-License Agreement. Zeiss SMT agrees that it
shall not agree or consent to any amendment, modification, waiver or variance of
or under the Nikon-Zeiss Patent Cross-License Agreement that will or would
reasonably be expected to diminish, burden or adversely affect the scope,
duration or effect of, or otherwise be inconsistent with, the sublicenses,
immunities or other protections granted to ASML under Section 2 of this
Agreement without the prior written consent of ASML, which shall not be
unreasonably withheld. Zeiss SMT shall provide ASML with a copy of all
correspondence, demands and notifications from Nikon or its representatives
relating to the termination, breach, expiration, assignment or amendment of the
Nikon-Zeiss Patent Cross-License Agreement.

      8.4 Release of Indemnification Obligations. ASML and its Affiliates hereby
release, and shall hereafter continue in perpetuity to release, Zeiss SMT and
Carl Zeiss AG and their respective Affiliates from any and all indemnification
obligations and claims, including indemnification obligations and claims that
arise in Law and indemnification obligations and claims that arise in or are
based on any implied or express contract in existence before the Effective Date,
including the Zeiss/ASML 1997 Agreement, or that are created on or after the
Effective Date, in connection with, arising from, or relating to any
infringement claim by or on behalf of Nikon or any of its Affiliates on any of
the Excluded Nikon Patents against (a) ASML or its Affiliates, or (b) any Third
Party.

      8.5 Relationship of the Parties. In the exercise of their respective
rights, and the performance of their respective obligations hereunder, the
Parties are and will remain independent contractors. Nothing in this Agreement
will be construed to constitute the Parties as partners, or principal and agent
for any purpose whatsoever. Neither Party will bind, or attempt to bind, the
other Party to any contract or other obligation, and neither Party will
represent to any third party that it is authorized to act on behalf of the other
Party.

      8.6 Governing Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York, United States of America
(without application of any choice or conflicts of laws rules or principles that
would require the application of the laws of any other jurisdiction).

      8.7 Dispute Resolution. The Parties hereby agree that any controversy,
claim or dispute arising out of or relating to this Agreement or the breach
thereof shall be resolved in accordance with the terms and conditions of the
Arbitration Agreement dated as of the date hereof by and between Zeiss SMT, Carl
Zeiss, Nikon, and ASML. The Parties hereby give up and waive any rights they
might have to have such disputes decided in a court or jury trial. Any dispute
arising from, in connection with or relating to the formation, existence,
validity, enforceability, performance, interpretation, breach,

                                       10

<PAGE>

or termination of this Agreement shall be deemed a Covered Dispute as between
the Parties hereto for purposes of such Arbitration Agreement.

      8.8 Language. This Agreement is in the English language only, which
language shall be controlling in all respects, and all versions hereof in any
other language shall be for accommodation only and shall not be binding upon the
Parties. All communications and notices to be made or given pursuant to this
Agreement shall be in the English language.

      8.9 Entire Agreement. This Agreement (including the Schedules hereto) and
the Financial Agreement on Nikon Case made and entered into as of September 27,
2004, by and among ASML and its subsidiaries and Zeiss SMT ("FINANCIAL
AGREEMENT") constitute the full and entire understanding and agreement between
the Parties with regard to the subject matter hereof, and supersedes any
communications, representations, understandings and agreements, either oral or
written, between the Parties prior to, but not on, the date hereof, with respect
to such subject matter, including the (a) Term Sheet, and (b) Minutes of Meeting
dated as of February 4, 2004 by and between Zeiss SMT and ASML, but not
including the Financial Agreement.

      8.10 Amendment. This Agreement may not be altered or amended except by a
written instrument signed by authorized legal representatives of both Parties.

      8.11 Waiver. Any waiver of the provisions of this Agreement or of a
Party's rights or remedies under this Agreement must be in writing to be
effective. Failure, neglect or delay by a Party to enforce the provisions of
this Agreement or its rights or remedies at any time will not be construed and
will not be deemed to be a waiver of such Party's rights under this Agreement
and will not in any way affect the validity of the whole or any part of this
Agreement or prejudice such Party's right to take subsequent action. No single
or partial exercise of any right, power or privilege granted under this
Agreement shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. Except as expressly set forth in this
Agreement, the rights and remedies provided in this Agreement are cumulative and
are not exclusive of any rights or remedies provided by law or in any other
agreement between the Parties.

      8.12 Notices and Other Communications. All notices required or permitted
under this Agreement shall refer to this Agreement and will be deemed given: (a)
when delivered personally; (b) when sent by confirmed facsimile; or (c) three
(3) business days after deposit with an internationally recognized commercial
overnight carrier specifying next-day delivery, with written verification of
receipt. All such notices, requests, demands and other communications shall be
addressed as follows:

             If to Zeiss SMT:

                   Carl Zeiss SMT AG
                   73446 Oberkochen

                                       11

<PAGE>

                   Germany
                   Attn: Chief Executive Officer
                   Fax:  +49 73 64 20 8100

             With a copy to (which shall not constitute notice):

                   Fish & Richardson P.C.
                   225 Franklin Street
                   Boston, MA 02110
                   Attn: Kurt L. Glizenstein
                   Fax: (617) 542-8906

             If to ASML:

                   ASML Holding N.V.
                   De Run 6501
                   5504 DR Veldhoven
                   The Netherlands
                   Attn:  General Counsel
                   Fax:  +31 (40) 268-2000

             With a copy to (which shall not constitute notice):

                   Wilmer Cutler Pickering Hale and Dorr LLP
                   60 State Street
                   Boston, MA 02109
                   Attn:  William F. Lee
                   Fax: (617) 526-5000

or to such other address or facsimile number as a Party may have specified to
the other Party in writing delivered in accordance with this Section 8.12.

      8.13 Expenses. Except as otherwise expressly set forth in this Agreement,
each Party will bear its own costs and expenses, including fees and expenses of
legal counsel and other representatives used or hired in connection with the
transactions described in this Agreement.

      8.14 Severability. If any provision in this Agreement is found or held to
be invalid or unenforceable, then the meaning of such provision will be
construed, to the extent feasible, so as to render the provision enforceable and
still achieve the Parties' intent in entering into this Agreement, and if no
feasible interpretation would save such provision, it will be severed from the
remainder of this Agreement, which will remain in full force and effect. In such
event, the Parties will use all reasonable efforts to negotiate in good faith a
substitute, valid and enforceable provision or agreement which most nearly
effects the Parties' intent in entering into this Agreement.

                                       12

<PAGE>

      8.15 Construction. This Agreement shall be deemed to have been drafted by
both Parties and, in the event of a dispute, neither Party shall be entitled to
claim that any provision should be construed against the other Party by reason
of the fact that it was drafted by the other Party.

      8.16 Execution. This Agreement may be executed in counterparts, each of
which so executed will be deemed to be an original and such counterparts
together will constitute one and the same agreement. Execution and delivery of
this Agreement by exchange of facsimile copies bearing the facsimile signature
of a Party shall constitute a valid and binding execution and delivery of this
Agreement by such Party.

      8.17 Confidentiality of Terms. Neither Party shall (and shall ensure that
none of its agents, representatives or attorneys shall) disclose the terms of
this Agreement to any third parties, except that either Party may disclose the
existence of this Agreement to third parties, and may disclose the terms of this
Agreement (a) to the extent reasonably necessary, in confidence, to its legal
counsel and accountants, (b) to Governmental Authorities as required by any
applicable Law or the applicable rules or regulations of any securities exchange
on which any of such Party's securities are listed (in either case, as
determined by such Party upon advice of counsel), provided that prior to any
such required disclosure, the disclosing Party gives the non-disclosing Party
reasonable advance notice of such disclosure, minimizes the scope of such
disclosure (including by making redactions to documents provided as part of such
disclosure and by cooperating with the non-disclosing Party to obtain protective
orders) to the extent permitted under applicable Law, and otherwise coordinates
with the non-disclosing Party with respect to the scope of such disclosure, or
(c) in connection with the enforcement of this Agreement or any other agreement
entered into between Nikon, ASML and/or Zeiss SMT contemporaneously herewith.
Notwithstanding the foregoing, the obligations of the Parties under this Section
8.17 shall not apply to any terms of this Agreement that have been disclosed by
either Party as permitted by subsections (a)-(c) above.

      8.18 Publicity. No Party shall (and shall ensure that none of its agents,
representatives or attorneys shall) originate any publicity, news release or
other public announcement, written or oral, relating to this Agreement without
the prior written approval of each other Party except as otherwise required by
law. Such approval shall not be unreasonably withheld.

      8.19 Section 365(n). Zeiss SMT, as licensor, acknowledges and agrees that
the licenses, immunities and rights granted under this Agreement to ASML and its
Subsidiaries by Zeiss SMT are licenses, immunities and rights as to
"intellectual property" within the definition of Section 101(35A) of the United
States Bankruptcy Code (the "CODE"). The Parties hereto further agree that, in
the event of the commencement of a bankruptcy proceeding by or against Zeiss SMT
under the Code, ASML and its Subsidiaries shall be entitled, at ASML's option,
to retain all their licenses, immunities and rights under this Agreement,
including without limitation the licenses and immunities granted under Section
2, pursuant to Code Section 365(n). Rejection pursuant to Section 365 of the
Code constitutes a material breach of this Agreement. To the extent that United
States law is held by a court of competent jurisdiction not to apply

                                       13

<PAGE>

with respect to a non-US bankruptcy proceeding of Zeiss SMT, Zeiss SMT shall
take all actions that are reasonably necessary to effectuate the intent of the
foregoing provisions in the country in which it and each Subsidiary holding any
rights with respect to its licensed patents is incorporated or conducts its
business, subject to any mandatory provisions of applicable law. Without
limiting the generality of the foregoing, Zeiss SMT agrees to take all
reasonable measures necessary to ensure the survival of the rights, immunities
and licenses granted to ASML and its Subsidiaries in the event that Zeiss SMT or
any of its Subsidiaries is subject to a bankruptcy proceeding under the laws of
Germany.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                       14

<PAGE>

      IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in their names by their properly and duly authorized officers or
representatives as of the date first above written.

                                      CARL ZEISS SMT AG

Date: December 10, 2004               By /s/ Herman Gerlinger
                                      Name: Herman Gerlinger
                                      Title: CEO

                                      By /s/ Daniel Schoch
                                      Name: Daniel Schoch
                                      Title: Chief Financial Officer

                                      ASML HOLDING N.V.

Date: December 10, 2004               By /s/ Ton van Hoef
                                      Name: Ton van Hoef
                                      Title: IP and Chief IP Counsel

                                       15

<PAGE>

                                    EXHIBIT 1

                   NIKON-ZEISS PATENT CROSS-LICENSE AGREEMENT

                                       16

<PAGE>

                   NIKON-ZEISS PATENT CROSS-LICENSE AGREEMENT

      THIS NIKON-ZEISS PATENT CROSS-LICENSE AGREEMENT (this "AGREEMENT") is made
and entered into as of November 12, 2004 (the "EFFECTIVE DATE") by and between
Carl Zeiss SMT AG, a corporation organized under the laws of Germany ("ZEISS
SMT"), and Nikon Corporation, a corporation organized under the laws of Japan
("NIKON"), and with regard to Sections, 2.1, 2.8, and 10.4 only, Carl Zeiss AG,
a corporation organized under the laws of Germany ("CARL ZEISS"). Zeiss SMT and
Nikon are hereinafter also referred to collectively as the "PARTIES" and
individually as a "PARTY."

                                    RECITALS

      WHEREAS, Nikon, Zeiss SMT and ASML entered into a Memorandum of
Understanding entered into as of September 27, 2004 ("MOU"), pursuant to which
they agreed, among other things, to settle certain litigation proceedings and
grant cross-licenses of certain patent rights; and

      WHEREAS, pursuant to the MOU, Nikon and Zeiss SMT are entering into that
certain Nikon-Zeiss SMT Settlement and Release Agreement of even date herewith
(the "NIKON-ZEISS SETTLEMENT AND RELEASE AGREEMENT");

      NOW, THEREFORE, the Parties agree as follows:

                                    AGREEMENT

1.    DEFINITIONS; INTERPRETATION

            1.1 Terms Defined in this Agreement. The following terms when used
in this Agreement shall have the following definitions:

                  1.1.1 "ACQUIRED PATENT" is defined in Section 1.2.9.

                  1.1.2 "ACQUIRING PARTY" is defined in Section 1.2.9.

                  1.1.3 "AFFILIATE" means, with respect to any Person, any other
Person that controls, is controlled by or is under common control with such
first Person, but only for such time as control exists. For this purpose control
of a Person means possession, directly or indirectly, of the power to direct or
cause the direction of management, business affairs or policies (whether through
ownership of securities or partnership or other ownership interests, by contract
or otherwise).

                  1.1.4 "AGREEMENT TERM" means the period commencing on the
Effective Date and ending on December 31, 2014.

                  1.1.5 "ARBITRATION AGREEMENT" means the Arbitration Agreement
dated as of the Effective Date by and among Nikon, ASML, Zeiss SMT, and Carl
Zeiss.

                                       17

<PAGE>

                  1.1.6 "ASML" means ASML Holding N.V., a corporation organized
under the laws of the Netherlands.

                  1.1.7 "ASML PAYMENTS" shall have the meaning set forth in
Section 8.2.2.

                  1.1.8 "ASML STAND-ALONE OPTICAL COMPONENTS" means Optical
Components that are sold separately from the Complete Lithography Systems of
ASML or its Subsidiaries, excluding such Optical Components that are replacement
or upgrade components for any Complete Lithography System of ASML or any of its
Subsidiaries.

                  1.1.9 "ASSERTING PARTY" is defined in Section 4.2.1.

                  1.1.10 "CARL ZEISS AFFILIATE PATENTS" means Lithography
Patents Owned by Carl Zeiss or any of its Affiliates (excluding Schott
Entities).

                  1.1.11 "CLASS A PATENT" is defined in Section 1.2.9.

                  1.1.12 "CLASS B PATENT" is defined in Section 1.2.10.

                  1.1.13 "CLASS C PATENT" is defined in Section 1.2.11.

                  1.1.14 "CO-OWNED" (and the correlative "Co-Owner") is defined
in Section 1.2.13.

                  1.1.15 "COMPLETE LITHOGRAPHY SYSTEM" means a complete assembly
of Lithography Equipment intended to be used for or capable of transferring a
pattern onto a substrate by Lithography, for use in the fabrication of
integrated circuits, thin film heads, flat panel displays, micromachines, and
other applications with similar requirements, and does not mean subassemblies,
subsystems, and other components of Lithography Equipment that are not combined
into such complete assembly.

                  1.1.16 "CONVERTIBLE PATENTS" is defined in Section 1.2.3.

                  1.1.17 "COVERED ENTITIES" of a Party means, with respect to a
Licensed Product, the direct and indirect resellers, distributors, users and
other customers of such Licensed Product of such Party and/or its Subsidiaries,
and any Person acquiring such Licensed Product from any of the foregoing.

                  1.1.18 "DESIGNATED NEUTRAL" means the Honorable Edward
Infante, or if he is unable or unwilling to perform the relevant function, a
substitute of comparable experience who is mutually agreeable to the Parties.

                  1.1.19 "DESIGNATED NIKON PATENTS" means the three (3) Patent
applications listed on Schedule E hereto.

                  1.1.20 "DIRECT OR INDIRECT SALE" means the sale, lease, or
other

                                       18

<PAGE>

conveyance of a product by a Party or its Subsidiaries to a third Person, or the
sale, lease, or other conveyance of a product by a Party or its Subsidiaries to
another Person which in turn sells, leases, or otherwise conveys such product to
the third Person substantially in the form acquired from such Party or its
Subsidiaries.

                  1.1.21 "E-BEAM LITHOGRAPHY" means electron beam lithography or
other charged particle beam lithography, including direct write electron beam
lithography.

                  1.1.22 "EFFECTIVE APPLICATION DATE" of a Patent application
means the earliest of (a) the filing date of such application, and (b), in the
event that such application claims priority from the filing date of an earlier
filed application or applications (including provisional applications), the
earliest (i) filing date of any of such earlier filed application or
applications, and (ii) for all of such earlier filed applications that make
further priority claims to earlier dates, the Effective Application Dates of
such earlier filed applications.

                  1.1.23 "ELIGIBLE NIKON PATENT FAMILY" is defined in Section
1.2.23.

                  1.1.24 "ELIGIBLE NIKON PATENT FAMILY MEMBER" is defined in
Section 1.2.24.

                  1.1.25 "EXCESS ASSERTION" is defined in Section 2.11.5(b).

                  1.1.26 "EXCLUDED CLAIM" is defined in Section 1.2.17.

                  1.1.27 "EXCLUDED CLAIM CRITERIA" is defined in Section 1.2.18.

                  1.1.28 "EXCLUDED CLAIMS LIST" is defined in Section 2.5.1.

                  1.1.29 "EXCLUDED GLASS METHODS" means all methods or processes
for making Excluded Glass Products described in subclauses (a) and (b) of
Section 1.1.30.

                  1.1.30 "EXCLUDED GLASS PRODUCTS" means (a) optical material,
including glass, silica glass, crystal, and calcium fluoride crystal, but not
including optical coatings, (b) optical blanks, and (c) unfinished lenses
purchased by a Party or its Subsidiaries from third parties other than ASML and
its Subsidiaries.

                  1.1.31 "EXCLUDED LITHOGRAPHY TECHNOLOGY" is defined in Section
1.2.1.

                  1.1.32 "EXCLUDED NIKON PATENTS" is defined in Section 1.2.22.

                  1.1.33 "FINALLY RESOLVED" (and the correlative, "Final
Resolution") with respect to a Suit, means that such Suit is (a) settled and
dismissed with

                                       19

<PAGE>

prejudice, (b) subject to a final judgment as to which no appeal is possible or
taken within the time permitted, or (c) is withdrawn completely by the Person
bringing such Suit.

                  1.1.34 "FPD/LARGE AREA SUBSTRATE LITHOGRAPHY" means
lithography to manufacture flat panel displays or expose large area substrates
other than wafers (i.e., substrates other than wafers that are greater than
500mm along any dimension).

                  1.1.35 "FULL RIGHTS TERMINATION" is defined in Section 2.11.4.
3 Nikon-Zeiss Patent Cross-License Agreement

                  1.1.36 "GERMAN RWHT" means German royalty withholding tax.

                  1.1.37 "GLASS SUPPLIER" is defined in Section 4.2.2.

                  1.1.38 "GOVERNMENTAL AUTHORITY" means any: (a) nation,
principality, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; (c) governmental or quasi governmental
authority of any nature (including any governmental division, subdivision,
department, agency, bureau, branch, office, commission, council, board,
instrumentality, officer, official, representative, organization, unit, body or
entity and any court or other tribunal); or (d) individual, entity or body
exercising, or entitled to exercise, any executive, legislative, judicial,
administrative, regulatory, police, military or taxing authority or power of any
nature.

                  1.1.39 "INDEPENDENT AUDITOR" shall have the meaning set forth
in Section 5.6.

                  1.1.40 "LAW" means any law, statute, legislation,
constitution, principle of common law, resolution, ordinance, code, order,
edict, decree, proclamation, treaty, convention, rule, regulation, ruling,
directive, pronouncement, requirement (licensing or otherwise), determination,
decision, opinion or interpretation that is, has been or may in the future be
issued, enacted, adopted, passed, approved, promulgated, made, implemented or
otherwise put into effect by or under the authority of any Governmental
Authority.

                  1.1.41 "LICENSABLE CO-OWNED PATENT" is defined in Section
1.2.14.

                  1.1.42 "LICENSE TERM" means the period commencing on the
Effective Date and ending on December 31, 2009.

                  1.1.43 "LICENSED PATENTS" is defined in Section 1.2.8.

                  1.1.44 "LICENSED PRODUCTS" is defined in Section 1.3.3.

                  1.1.45 "LITHOGRAPHY" is defined in Section 1.3.1.

                                       20

<PAGE>

                  1.1.46 "LITHOGRAPHY EQUIPMENT" is defined in Section 1.3.2.

                  1.1.47 "LITHOGRAPHY PATENT" is defined in Section 1.2.2.

                  1.1.48 "MASKLESS LITHOGRAPHY" means Lithography in which light
is patterned using individually-controllable elements and not a reflective or
transmissive mask.

                  1.1.49 "MOU" shall have the meaning set forth in the recitals.

                  1.1.50 "NET SELLING PRICE" means the gross revenues actually
received by a Party or its Subsidiaries from Direct or Indirect Sales of a
product, less (a) normal and customary rebates, and cash and trade discounts;
(b) sales, use and/or other excise taxes or duties; (c) insurance costs and
outbound transportation charges; (d) import and/or export duties; and (e)
amounts allowed or credited due to returns (not to exceed the original billing
or invoice amount).

                  1.1.51 "NIKON-ASML PATENT CROSS-LICENSE AGREEMENT" means that
certain Nikon-ASML Patent Cross-License Agreement by and between Nikon and ASML
of even date herewith, as amended from time to time.

                  1.1.52 "NIKON-ZEISS SETTLEMENT AND RELEASE AGREEMENT" shall
have the meaning set forth in the recitals.

                  1.1.53 "NIKON DEFENSIVE SUIT" is defined in Section 2.11.5(a).

                  1.1.54 "NIKON LICENSED PATENTS" is defined in Section 1.2.4.

                  1.1.55 "NIKON LICENSED PRODUCTS" is defined in Section 1.3.4.

                  1.1.56 "NIKON STAND-ALONE OPTICAL COMPONENTS" means Optical
Components that are sold separately from the Complete Lithography Systems of
Nikon or its Subsidiaries, excluding such Optical Components that are
replacement or upgrade components for any Complete Lithography System of Nikon
or any of its Subsidiaries.

                  1.1.57 "OPTICAL COMPONENTS" means (a) optical elements,
modules and systems, including illumination optical systems, projection optical
systems, manipulation devices and mounting means, and (b) processes, materials
and devices for designing, manufacturing, assembling, adjusting, measuring and
qualifying such optical elements, modules and systems, in each case for
Lithography Equipment.

                  1.1.58 "OWNED" (and the correlative "OWNERSHIP") is defined in
Section 1.2.12.

                  1.1.59 "PATENTS" means all classes or types of patents
(including design patents) and utility models of all countries of the world, and
applications therefor, together with any divisionals, continuations,
continuations-in-part,

                                       21

<PAGE>

reissues and results of re-examinations thereof.

                  1.1.60 "PAYMENTS" shall have the meaning set forth in Section
5.1.

                  1.1.61 "PERSON" means any person or entity, whether an
individual, corporation, partnership, limited partnership, limited liability
company, trust, foundation, unincorporated organization, business association,
firm, joint venture or other legal entity.

                  1.1.62 "PRACTICALLY USABLE EMBODIMENTS" shall have the meaning
set forth in Section 1.2.18.

                  1.1.63 "PURCHASING PARTY" shall have the meaning set forth in
Section 4.2.2.

                  1.1.64 "RESTRICTED PATENT" is defined in Section 1.2.15.

                  1.1.65 "RUNNING ROYALTY PAYMENTS" is defined in Section
4.2.2(b)(v).

                  1.1.66 "SCHEDULE B-3 PATENTS" is defined in Section 1.2.6.

                  1.1.67 "SCHEDULE D OMITTED CLAIMS" is defined in Section
1.2.20.

                  1.1.68 "SCHEDULE D PATENTS" is defined in Section 1.2.19.

                  1.1.69 "SCHEDULE D PATENT FAMILY" is defined in Section
1.2.20.

                  1.1.70 "SCHEDULE D PATENT FAMILY MEMBER" is defined in Section
1.2.21.

                  1.1.71 "SCHEDULE D RESPONSE" is defined in Section 2.11.5(c).

                  1.1.72 "SCHEDULE D SUIT" is defined in Section 2.11.5(c).

                  1.1.73 "SCHOTT ENTITIES" means Schott AG and its Subsidiaries.

                  1.1.74 "SPECIAL MASK TECHNOLOGY" means (i) a pattern on a mask
having a modified shape (as compared to the desired shape of the pattern to be
printed on the substrate), where such modification is made for the purpose of
forming a circuit pattern onto a substrate ("SPECIAL PATTERN"); (ii) a mask with
a Special Pattern, modified transmittance (as compared to a binary mask) or
modified phase (as compared to a binary mask), where such modification is made
for the purpose of forming a circuit pattern onto a substrate ("SPECIAL MASK");
(iii) a method of exposing a substrate using a Special

                                       22

<PAGE>

Mask; (iv) a method of manufacturing a semiconductor chip using a Special Mask;
(v) a method of manufacturing a Special Mask; or (vi) data processing hardware,
software, methods or processes used to analyze, simulate, predict, generate or
modify pattern data used on a Special Mask.

                  1.1.75 "SPECIFICALLY DIRECTED TO" shall have the meaning set
forth in Section 1.2.18.

                  1.1.76 "SPECIFIED ENTITY" shall mean the Person listed in
Schedule F.

                  1.1.77 "SPECIFIED ENTITY SUIT" is defined in Section
2.11.5(a).

                  1.1.78 "SUBLICENSABLE" is defined in Section 1.2.16.

                  1.1.79 "SUBLICENSOR" is defined in Section 1.2.16.

                  1.1.80 "SUBSIDIARY" of a Person means any other Person with
respect to which such first Person has beneficial ownership, directly or
indirectly, of securities representing more than fifty percent (50%) of the
power to elect such other Person's board of directors or other managing
authority or, in the case of a non-corporate Person, equivalent interests.

                  1.1.81 "SUE" means (a) to threaten, bring, or participate in
any legal or equitable action, claim or demand in any court or before any
tribunal or any arbitration or compulsory and binding alternative dispute
resolution proceeding, either directly or indirectly, or (b) to instruct,
request, encourage, or assist any designee, agent, nominee or other third party
to do the same, unless legally compelled to do so by a valid subpoena or court
order which the recipient has opposed by all reasonable means. "Sue" shall not
be construed to include offers to license Patents in connection with
cross-license or other license negotiations.

                  1.1.82 "SUIT" means any legal or equitable action, claim or
demand in any court or before any tribunal or any arbitration or compulsory and
binding alternative dispute resolution proceeding, or any threat thereof, but
not including offers to license Patents in connection with cross-license or
other license negotiations.

                  1.1.83 "TRANSACTION AGREEMENTS" is defined in Section 10.6.

                  1.1.84 "TRANSFER" shall have the meaning set forth in Section
9.3.

                  1.1.85 "TRANSFEREE" shall have the meaning set forth in
Section 9.3.

                  1.1.86 "TRANSITION PERIOD" means the period beginning upon the
end of the License Term and ending at the end of the Agreement Term.

                  1.1.87 "WITHHOLDINGS" shall have the meaning set forth in

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Section 5.2.

                  1.1.88 "ZEISS LICENSED PATENTS" is defined in Section 1.2.5.

                  1.1.89 "ZEISS LICENSED PRODUCTS" is defined in Section 1.3.5.

            1.2 Additional Definitions Relating to Licensed Patents.

                  1.2.1 "EXCLUDED LITHOGRAPHY TECHNOLOGY" means each of E-Beam
Lithography, FPD/Large Area Substrate Lithography, and Maskless Lithography.

                  1.2.2 "LITHOGRAPHY PATENT" means any Patent (a) that either
(i) issues from an application having an Effective Application Date on or before
December 31, 2002, or (ii) issues on or before December 31, 2014 from an
application having an Effective Application Date after December 31, 2002, and
(b) has one or more claims, other than Excluded Claims, which read on
Lithography Equipment or the manufacture or use thereof. For purposes of Section
6.3 only, a Patent application shall not constitute a "Lithography Patent"
unless and until such Patent application is published.

                  1.2.3 "CONVERTIBLE PATENTS" means, with respect to Patents of
a Party or its Subsidiaries, (i) Class B Patents that are Licensed Patents of
such Party, and (ii) any Class C Patents of such Party.

                  1.2.4 "NIKON LICENSED PATENTS" means all Class A Patents and
Class B Patents Owned or Sublicensable by Nikon or its Subsidiaries, excluding
any Excluded Claims thereof and excluding, subject to Section 2.11.3, all
Excluded Nikon Patents.

                  1.2.5 "ZEISS LICENSED PATENTS" means all Class A Patents and
Class B Patents Owned or Sublicensable by Zeiss SMT or its Subsidiaries,
excluding any Excluded Claims thereof.

                  1.2.6 "SCHEDULE B-3 PATENTS" means the Patents set forth on
Schedule B-3 to this Agreement.

                  1.2.7 "RESTRICTED SCHEDULE B-3 PATENTS" means all Schedule B-3
Patents only to the extent that and only as long as *** has not granted its
consent to the grant of the licenses and immunities granted by Zeiss SMT
hereunder.

                  1.2.8 "LICENSED PATENTS" means the Zeiss Licensed Patents or
the Nikon Licensed Patents, as applicable. For purposes of this Agreement, the
Licensed Patents "of" Zeiss and/or its Subsidiaries means the Zeiss Licensed
Patents and the Licensed Patents "of" Nikon and/or its Subsidiaries means the
Nikon Licensed Patents, and the Licensed Patents "of" a Party and/or its
Subsidiaries means the Zeiss Licensed Patents and/or the Nikon Licensed Patents,
as applicable.

                                       24

<PAGE>

                  1.2.9 "CLASS A PATENT" means (a) a Patent that issues at any
time (whether before or after the end of the License Term) from an application
having an Effective Application Date on or before December 31, 2002, and (b) a
Convertible Patent that is converted by a Party pursuant to and in accordance
with Section 2.7. Notwithstanding subsection (a) above, a Patent of a Party that
is purchased or otherwise acquired by such Party ("ACQUIRING PARTY") from a
third party (other than an Affiliate of such Party), whether by assignment,
merger, acquisition of assets or otherwise, after the Effective Date, and that
otherwise qualifies as a Licensed Patent ("ACQUIRED PATENT"), shall be deemed to
be a Class B Patent and not a Class A Patent, regardless of its Effective
Application Date (unless such Patent is converted to a Class A Patent by a Party
in accordance with Section 2.7). Notwithstanding anything to the contrary in
this Section 1.2.9, if (i) the Acquired Patent issues with the Acquiring Party
being identified on the face of the Acquired Patent or by patent office records
as the initial owner or assignee of record of such issued Acquired Patent, and
(ii) such Acquired Patent qualifies as a Class A Patent by virtue of its
Effective Application Date, then such issued Acquired Patent shall be deemed a
Class A Patent unless the Acquiring Party provides express written notice to the
other Party that such Patent is an Acquired Patent within three (3) months of
the issuance of such Acquired Patent.

                  1.2.10 "CLASS B PATENT" means (a) a Patent that issues on or
before the end of the License Term from an application having an Effective
Application Date after December 31, 2002, excluding (b) any such Patent that is
converted to a Class A Patent by a Party pursuant to and in accordance with
Section 2.7. Notwithstanding subsection (a) above, an Acquired Patent shall be
deemed to be a Class B Patent and not a Class A Patent, regardless of its
Effective Application Date (unless such Patent is converted to a Class A Patent
by a Party in accordance with Section 2.7). Notwithstanding anything to the
contrary in this Section 1.2.10, if (i) the Acquired Patent issues with the
Acquiring Party being identified on the face of the Acquired Patent or by patent
office records as the initial owner or assignee of record of such issued
Acquired Patent, and (ii) such Acquired Patent qualifies as a Class A Patent by
virtue of its Effective Application Date, then such issued Acquired Patent shall
be deemed a Class A Patent unless the Acquiring Party provides express written
notice to the other Party that such Patent is an Acquired Patent within three
(3) months of the issuance of such Acquired Patent.

                  1.2.11 "CLASS C PATENT" means a Patent having an Effective
Application Date after December 31, 2002 and issuing during the Transition
Period that would be a Zeiss Licensed Patent or Nikon Licensed Patent, as
applicable, had such Patent issued on or before the end of the License Term.

                  1.2.12 "OWNED" (and the correlative "OWNERSHIP") means, with
respect to a Patent of a Person, (a) a Patent that is solely assigned to and/or
solely owned by such Person (without regard to rights that employees may have in
inventions that they develop while employed by a Party, such as, for example,
the right to receive monetary compensation or assert preemptive rights), or (b)
a Licensable Co-Owned Patent. A Patent shall not be deemed "Owned" by the
applicable Party to the extent and as long as it is a Restricted Patent.

                                       25

<PAGE>

                  1.2.13 "CO-OWNED" (and the correlative "CO-OWNERS") means,
with respect to a Patent, a Patent that has been assigned to two or more Persons
or in which two or more Persons have an ownership interest.

                  1.2.14 "LICENSABLE CO-OWNED PATENT" means (a) a Patent that is
Co-Owned by a Party or its Subsidiaries and all other Co-Owners of which are
Affiliates (other than Schott Entities) of such Party or its Subsidiaries, (b) a
Patent that is Co-Owned by ASML and/or its Subsidiaries and all other Co-Owners
of which are Zeiss SMT and/or its Subsidiaries, and (c) a Patent that is
Co-Owned by a Party or its Subsidiaries and where any other Co-Owner is a third
party (other than an Affiliate of such Party, except for Schott Entities) as to
which, and only to the extent and for such time as, and subject to the
conditions under which, such Party or its Subsidiaries have the right to grant
licenses, immunities, and additional commitments within the scope of the
licenses and immunities granted under this Agreement (i) without such grant
requiring consent of any such third party, or (ii), where such grant requires
consent of any such third party or parties, if and to the extent such consent is
or has been granted by all such third parties.

                  1.2.15 "RESTRICTED PATENTS" means (a) any Restricted Schedule
B-3 Patent, (b) any Patent that (i) is listed on Schedule B-1 or Schedule C-1,
as applicable (as initially attached hereto, and not as such Schedules may be
amended pursuant to Section 6.5 or otherwise), or (ii) is published after the
Effective Date and results from activities funded by a Governmental Authority,
in each case where the license of such Patent to third parties is generally
prohibited under applicable Law or the applicable contract with such
Governmental Authority in accordance with the standard procedures of such
Governmental Authority, but only as long as such prohibition shall remain in
force and effect, and (c) any Patent that is (i) Co-Owned by a Party or its
Subsidiaries and one or more third parties, and (ii) not a Licensable Co-Owned
Patent, but only as long as, and solely to the extent that, it is not a
Licensable Co-Owned Patent.

                  1.2.16 "SUBLICENSABLE" means, with respect to a Patent
licensed or sublicensed to a Party or any of its Subsidiaries (as applicable,
the "SUBLICENSOR"), a Patent as to which, and only to the extent and for such
time as, and subject to the conditions under which, the Sublicensor has the
right to grant licenses or sublicenses, and extend immunities and additional
commitments, to the other Party and its Subsidiaries and their respective
Covered Entities within the scope of the licenses, immunities, and additional
commitments granted or made under this Agreement without such grant resulting in
the payment of royalties or other payments to third parties, except for payments
(i) relating to the prosecution or maintenance of Patents, (ii) to Affiliates of
the Sublicensor (other than Schott Entities), or (iii) to Persons for inventions
made by such Persons while employees or contractors of the Sublicensor.

                  1.2.17 "EXCLUDED CLAIM'" means any Patent claim that:

                  (a) is contained on the Excluded Claims List, unless and until
such Patent claim ceases to meet the Excluded Claim Criteria as set forth in
Section 2.5.2; or

                                       26

<PAGE>

                  (b) is not contained on the Excluded Claims List, but meets
the Excluded Claim Criteria, but only for so long as such Patent claim meets the
Excluded Claim Criteria; or

                  (c) reads only on Excluded Glass Products or Excluded Glass
Methods (provided that Patent claims reading only on unfinished lenses shall
constitute Excluded Claims solely with respect to unfinished lenses purchased by
a Party or its Subsidiaries from third parties other than ASML and its
Subsidiaries); or

                  (d) includes any Special Mask Technology as a required element
that is material to the patentability of such claim.

                  1.2.18 "EXCLUDED CLAIM CRITERIA" with respect to a Patent
claim shall be deemed met if such Patent claim is Specifically Directed To
equipment or methods for an Excluded Lithography Technology. A Patent claim
shall be deemed to be "SPECIFICALLY DIRECTED TO" equipment or methods for an
Excluded Lithography Technology if, and only for so long as,

                  (i) the embodiments of the Patent claim that are practically
usable in a commercial setting ("PRACTICALLY USABLE EMBODIMENTS") encompass only
equipment or methods for any one or more Excluded Lithography Technologies, and

                  (ii) the Patent claim contains one or more limitations by
reason of which the Practically Usable Embodiments of the Patent claim encompass
only equipment or methods for the Excluded Lithography Technology and that are
material to the patentability of the Patent claim;

provided that:

                        (A) actual use in a commercial setting is not required
for an embodiment of a Patent claim to qualify as a Practically Usable
Embodiment,

                        (B) an embodiment of a Patent claim is not a Practically
Usable Embodiment outside the Excluded Lithography Technology if it does not
have practical utility as an improvement upon, or alternative solution to,
existing technology other than the Excluded Lithography Technology,

                        (C) no Patent claim that covers actual and bona fide
commercial Lithography Equipment or Lithography methods, anywhere in the world
from any source, other than equipment or methods for an Excluded Lithography
Technology, shall qualify as an Excluded Claim, and

                        (D) if a dependent claim of a Patent depends from
another claim of such Patent that does not qualify as an Excluded Claim, such
dependent claim shall not qualify as an Excluded Claim simply by virtue of the
fact that it recites an Excluded Lithography Technology.

                                       27

<PAGE>

It is the Parties' intent to exclude only Patent claims in which the "heart of
the invention" of such Patent claim is practically usable only in equipment or
methods for an Excluded Lithography Technology.

The Parties anticipate that, in preparing the Excluded Claims List, they may
develop ideas for clarifying the Excluded Claim Criteria for whether certain
types of Patent claims should qualify as Excluded Claims. Accordingly, upon
completion of the Excluded Claims List, the Parties will revisit and negotiate
clarifications to such Excluded Claim Criteria in good faith, and if the Parties
agree on any such clarifications (each in its sole discretion), they will amend
the Excluded Claim Criteria to implement such clarifications.

                  1.2.19 "SCHEDULE D PATENTS" means the Patents listed on
Schedule D hereto.

                  1.2.20 "SCHEDULE D PATENT FAMILY" means, with respect to a
Schedule D Patent, collectively, such Schedule D Patent and (i) any Patents
claiming priority from such Schedule D Patent, but excluding claims of such
Patents that are not entitled to claim priority from such Schedule D Patent, and
(ii) any Patents from which such Schedule D Patent claims priority, but
excluding claims of such Patents that are not supported by such Schedule D
Patent. The excluded claims described in subclauses (i) and (ii) hereof,
together with any Excluded Claims of any Schedule D Patent Family Member, are
referred to as "SCHEDULE D OMITTED CLAIMS". For the avoidance of doubt, it is
understood that there shall, subject to reduction pursuant to Section 2.11.3, be
three Schedule D Patent Families, one based on each of the three Schedule D
Patents.

                  1.2.21 "SCHEDULE D PATENT FAMILY MEMBER" means, with respect
to any Schedule D Patent Family, separately, each Patent in such Schedule D
Patent Family (excluding any Schedule D Omitted Claims thereof).

                  1.2.22 "EXCLUDED NIKON PATENTS" means issued Eligible Nikon
Patent Family Members that are designated by Nikon as set forth in Section
2.11.1.

                  1.2.23 "ELIGIBLE NIKON PATENT FAMILY" means, with respect to a
Designated Nikon Patent, collectively, such Designated Nikon Patent and (i) any
Patents claiming priority from such Designated Nikon Patent, but excluding
claims of such Patents that are not entitled to claim priority from such
Designated Nikon Patent, and (ii) any Patents from which such Designated Nikon
Patent claims priority, but excluding claims of such Patents that are not
supported by such Designated Nikon Patent. For the avoidance of doubt, it is
understood that there shall, subject to reduction pursuant to Section 2.11.3, be
three Eligible Nikon Patent Families, one based on each of the three Designated
Nikon Patents.

                  1.2.24 "ELIGIBLE NIKON PATENT FAMILY MEMBER" means, with
respect to any Eligible Nikon Patent Family, separately, each Patent in such
Eligible Nikon Patent Family.

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<PAGE>

            1.3 Additional Definitions Relating to Licensed Products.

                  1.3.1 "LITHOGRAPHY" means exposing a resist using optical
(photons) projection means (including extreme ultraviolet) or particle
(including electron beam) projection means.

                  1.3.2 "LITHOGRAPHY EQUIPMENT" means, individually and
collectively, any tool or machine for transferring a pattern onto a substrate by
Lithography, for use in the fabrication of integrated circuits, thin film heads,
flat panel displays, micromachines, and other applications with similar
requirements (including (i) separately installed components of such tool or
machine, (ii) any components integrated in such tool or machine, (iii) materials
for use in, and solely to the extent they are for use in, the operation of such
tool or machine, such as fluids and gases, and (iv) any software used to operate
or control such tool or machine), including where such tool or machine uses
and/or incorporates masks, or uses, incorporates and/or processes resists or
substrates, including wafers, provided that "Lithography Equipment" shall not
include masks, resists, or such substrates themselves.

                  1.3.3 "LICENSED PRODUCTS" means the Zeiss Licensed Products or
the Nikon Licensed Products, as applicable.

                  1.3.4 "NIKON LICENSED PRODUCTS" means Lithography Equipment
and all applications therefor, including Optical Components. For purposes of
clarity, "Nikon Licensed Products" shall in all events include Nikon's products
within the following product families, as and in the form marketed by Nikon as
of the Effective Date: NSR series and FX series.

                  1.3.5 "ZEISS LICENSED PRODUCTS" means Optical Components and
all applications therefor. For purposes of clarity, "Zeiss Licensed Products"
shall in all events include Zeiss SMT's products within the following product
families, as and in the form marketed by Zeiss SMT as of the Effective Date:
Starlith series.

            1.4 Interpretation.

                  1.4.1 Certain Terms. The words "hereof," "herein," "herewith,"
"hereunder" and similar words refer to this Agreement as a whole and not to any
particular provision of this Agreement. The term "including" is
not limited and means "including without limitation."

                  1.4.2 Section References: Titles and Subtitles. Unless
otherwise noted, all references to Sections and Schedules herein are to Sections
and Schedules of this Agreement. The titles, captions and headings of this
Agreement are inserted for convenience of reference only and are not intended to
be a part of or to affect the meaning or interpretation of this Agreement.

                  1.4.3 Reference to Persons, Agreements, Statutes. Unless
otherwise expressly provided herein, (a) references to a Person include its
successors and

                                       29

<PAGE>

permitted assigns, (b) references to agreements (including this Agreement) and
other contractual instruments shall be deemed to include all subsequent
amendments, restatements and other modifications thereto or supplements thereof
and (c) references to any statute or regulation are to be construed as including
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such statute or regulation.

                  1.4.4 Further Negotiations. Any reference in this Agreement to
subsequent meetings, discussions, or negotiations between the Parties shall be
interpreted to include an obligation of the Parties to conduct such meetings,
discussions, or negotiations in good faith.

2.    LICENSE GRANTS

            2.1 Grant to Zeiss SMT and Carl Zeiss. Nikon on behalf of itself and
its Subsidiaries, hereby grants to Zeiss SMT and its Subsidiaries, under the
Nikon Licensed Patents, retroactive to the Effective Application Date of each
Nikon Licensed Patent, and to Carl Zeiss, but solely for the period from the
Effective Application Date of the applicable Nikon Licensed Patents until
October 1, 2001 for all Nikon Licensed Patents having an Effective Application
Date before October 1, 2001, a non-exclusive, non-sublicensable (except as set
forth in Section 2.2, and provided that this restriction on sublicensing shall
not limit or otherwise affect the immunities and additional commitments set
forth in Sections 3 and 4), non-transferable (except as set forth in Section
9.1) license to (a) make, use (including use with patterns or masks for
processing substrates such as wafers), sell, offer to sell, import, export,
lease and otherwise convey Zeiss Licensed Products anywhere in the world, (b)
have Zeiss Licensed Products made by their suppliers anywhere in the world,
provided that such Zeiss Licensed Products (i) are made by such suppliers in
accordance with specifications provided by, or agreed upon with, Zeiss SMT or
any of its Subsidiaries, and (ii) are not "off the shelf' products offered for
sale, lease, or other conveyance to Persons other than Zeiss SMT or its
Subsidiaries, (c) practice any method or process anywhere in the world in
connection with the design, manufacture, installation, assembly, operation,
adjustment, measurement, qualification, maintenance, support, repair, or
diagnosis of Zeiss Licensed Products designed, made, used and/or sold under this
Section 2.1, and (d) make, have made, and use any tool, software, machine, or
other apparatus anywhere in the world in connection with the design,
manufacture, installation, assembly, operation, adjustment, measurement,
qualification, maintenance, support, repair, or diagnosis of Zeiss Licensed
Products designed, made, used and/or sold under this Section 2.1.
Notwithstanding the foregoing, to the extent that the licenses granted in this
Section 2.1 include a sublicense under any third party rights, such sublicense
shall not exceed in scope the license granted to Nikon by the applicable third
party licensor or the rights that Nikon is otherwise authorized to sublicense
under any agreement with such third party licensor.

            2.2 Sublicense to ASML. The license granted in Section 2.1 includes
the right of Zeiss SMT to grant to ASML and its Subsidiaries a sublicense of the
rights granted to Zeiss SMT under Section 2.1 (and to extend to ASML, its
Subsidiaries and their respective Covered Entities the benefits of the
immunities, covenants not to sue, and

                                       30

<PAGE>

additional commitments set forth in Sections 2.10, 2.12, 3, and 4), provided
that the scope of ASML's rights under such sublicense shall be narrowed
prospectively to exclude the right to sell ASML Stand-Alone Optical Components
to the same extent (if any) that the scope of Nikon's license rights under
Section 2.3 are narrowed to exclude the right to sell Nikon Stand-Alone Optical
Components as described in Section 2.4.3, and provided further that the
aforementioned exclusion of ASML's right to sell ASML Stand-Alone Optical
Components shall become permanent if and when the aforementioned exclusion of
Nikon's right to sell Nikon Stand-Alone Optical Components becomes permanent as
described in Section 2.4.3. In the event of a permitted assignment by ASML of
the Nikon-ASML Patent Cross-License Agreement pursuant to Section 9.1 thereof,
ASML shall have the right and the obligation, and Zeiss SMT may and shall permit
ASML, to transfer all of the rights sublicensed to it and its Subsidiaries (and
the other benefits extended) pursuant to this Section 2.2 to the applicable
acquiror Person.

            2.3 Grant to Nikon. Zeiss SMT, on behalf of itself and its
Subsidiaries, hereby grants to Nikon and its Subsidiaries, under the Zeiss
Licensed Patents, retroactive to the Effective Application Date of each Zeiss
Licensed Patent, a non-exclusive, non-sublicensable (provided that this
restriction on sublicensing shall not limit or otherwise affect the immunities
and additional commitments set forth in Sections 3 and 4), non-transferable
(except as set forth in Section 9.1) license to (a) make, use (including use
with patterns or masks for processing substrates such as wafers), sell, offer to
sell, import, export, lease and otherwise convey Nikon Licensed Products
anywhere in the world, (b) have Nikon Licensed Products made by their suppliers
anywhere in the world, provided that such Nikon Licensed Products (i) are made
by such suppliers in accordance with specifications provided by, or agreed upon
with, Nikon or any of its Subsidiaries, and (ii) are not "off the shelf"
products offered for sale, lease, or other conveyance to Persons other than
Nikon and its Subsidiaries, (c) practice any method or process anywhere in the
world in connection with the design, manufacture, installation, assembly,
operation, adjustment, measurement, qualification, maintenance, support, repair,
or diagnosis of Nikon Licensed Products designed, made, used, and/or sold under
this Section 2.3, and (d) make, have made, and use any tool, software, machine,
or other apparatus anywhere in the world in connection with the design,
manufacture, installation, assembly, operation, adjustment, measurement,
qualification, maintenance, support, repair, or diagnosis of Nikon Licensed
Products designed, made, used, and/or sold under this Section 2.3.
Notwithstanding the foregoing, to the extent that the licenses granted in this
Section 2.3 include a sublicense under any third party rights, such sublicense
shall not exceed in scope the license granted to Zeiss SMT by the applicable
third party licensor or the rights that Zeiss SMT is otherwise authorized to
sublicense under any agreement with such third party licensor.

            2.4 Royalty Bearing Optical Components.

                  2.4.1 Royalties. On any Direct or Indirect Sales by Nikon or
its Affiliates to ASML, its Subsidiaries or their customers, for incorporation
in or combination with ASML Lithography Equipment, of Nikon Stand-Alone Optical
Components that, absent the license set forth in Section 2.3, would directly or
indirectly (including on principles of contributory infringement and inducement
of infringement)

                                       31

<PAGE>

infringe Zeiss Licensed Patents ("ROYALTY BEARING OPTICAL COMPONENTS"), Nikon
will pay to Zeiss SMT a royalty of *** percent (*** %) of Nikon's Net Selling
Price. This percentage rate takes into account the legitimate economic interests
of and impact on the Parties in the specific circumstances of the grant of the
license set forth in Section 2.3, including the fact that such license grant
provides the Parties with increased commercial freedom with regard to each
other's Licensed Patents. This royalty rate shall not be used as a precedent for
or as evidence of the value of any Zeiss Licensed Patents or other Patents
outside the specific context of the grant of such license, including in any
future court or arbitration proceeding that might occur between the Parties.

                  2.4.2 Payments and Records. The royalty payments set forth in
Section 2.4.1 shall be made quarterly, within thirty (30) days following the
last day of each calendar quarter during the Agreement Term. Nikon agrees to
keep full and accurate books and records setting forth in reasonable detail the
gross revenues actually received for Royalty Bearing Optical Components and the
deductions made in calculating the Net Selling Price.

                  2.4.3 Non-Payment. If for any reason Zeiss SMT does not
receive from either Nikon or ASML the full royalty of *** percent (***%) of
Nikon's Net Selling Price on Royalty Bearing Optical Components within fifteen
(15) days after Zeiss SMT's written notice of such non-payment is received by
both Nikon and ASML, the scope of Nikon's license under Section 2.3 shall be
narrowed prospectively to exclude the right to sell Nikon Stand-Alone Optical
Components until the unpaid amount is received by Zeiss SMT, at which time the
scope of Nikon's license shall revert to that set forth in Section 2.3. During
the period in which such narrowing of Nikon's license remains in effect, Nikon
and Zeiss SMT shall use all reasonable efforts, with the assistance of the
Designated Neutral if necessary, to negotiate an alternate provision in lieu of
Section 2.4 that will preserve for Nikon the right to sell Nikon Stand-Alone
Optical Components, and will preserve for Zeiss SMT economic benefits and
protections consistent with those reflected in Section 2.4. However, if such
negotiations are unsuccessful, the aforementioned prospective exclusion of the
right to sell Nikon Stand-Alone Optical Components shall become permanent. For
purposes of clarification, non-receipt by Zeiss SMT of any amounts due under
Section 2.4 will not give rise to termination or suspension of, or otherwise
affect, any other provisions of this Agreement.

                  2.4.4 Information. In order to enable Zeiss SMT to evaluate
whether Nikon is in compliance with Section 2.4, if Nikon or its Affiliates
directly or indirectly sells to ASML, its Subsidiaries or their customers, for
incorporation in or combination with ASML Lithography Equipment, any Nikon
Stand-Alone Optical Components that, absent the license set forth in Section
2.3, would directly or indirectly infringe Zeiss Licensed Patents, and Nikon
does not acknowledge within forty-five (45) days of receipt of a notice from
Zeiss SMT, that such Nikon Stand-Alone Optical Components are subject to the
royalty provisions set forth in Section 2.4, then upon Zeiss SMT's reasonable
request, Nikon shall provide to outside counsel for Zeiss SMT, on an "attorneys'
eyes only" basis, information sufficient to determine whether such Nikon
Stand-Alone Optical Components, or their method of manufacture or use, would
directly or indirectly infringe Zeiss Licensed Patents absent the license set
forth in Section 2.3.

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<PAGE>

            2.5 Excluded Claims List.

                  2.5.1 Creation. Within sixty (60) days of the Effective Date,
the Parties will attempt to agree on a list of Patent claims for each Excluded
Lithography Technology that will be excluded from the Licensed Patents (as so
agreed or as finalized by the Designated Neutral, the "EXCLUDED CLAIMS LIST").
The Excluded Claims List will only include Patent claims that are contained in
Patents nominated by each Party as follows: for each Excluded Lithography
Technology, each Party may nominate claims from no more than five (5)
English-language Patents, provided that for the purposes of the foregoing, a
Patent and all of its counterparts and its continuation, divisional, and
continuation-in-part applications will be counted as a single Patent. If the
Parties are unable to agree on the Excluded Claims List within sixty (60) days
of the Effective Date, the Designated Neutral will have the authority to
finalize the Excluded Claims List by including on the list all Patent claims
nominated by the Parties for each Excluded Lithography Technology (as described
above) that qualify as Excluded Claims pursuant to Sections 1.2.17 and 1.2.18,
and omitting from the Excluded Claims List all such Patent claims that do not
qualify as Excluded Claims pursuant to Sections 1.2.17 and 1.2.18. The Excluded
Claims List, with the entries agreed to by the Parties, and, as applicable,
finalized by the Designated Neutral shall be incorporated into this Agreement as
Schedule A.

                  2.5.2 Significance of Inclusion. Inclusion of a Patent claim
on the Excluded Claims List will constitute a binding determination that such
Patent claim is an Excluded Claim, unless and until such Patent claim ceases to
meet the Excluded Claim Criteria because of changed circumstances (such as, for
example, the subsequent emergence or awareness of a practical use of an
embodiment of such Patent claim in a commercial setting other than for an
Excluded Lithography Technology).

                  2.5.3 Significance of Non-Inclusion. For purposes of
clarification: (a) the Excluded Claims List will be deemed exemplary and will
not constitute an exhaustive list of the Excluded Claims for any Excluded
Lithography Technology nor will the failure to nominate a Patent claim for the
list be deemed an admission that the claim is not an Excluded Claim; and (b) a
Patent claim that does not appear on the Excluded Claims List will be an
Excluded Claim if (and for so long as) it qualifies as an Excluded Claim
pursuant to Sections 1.2.17 and 1.2.18, whether or not such Patent claim was in
existence at the time of the creation of the Excluded Claims List.

                  2.5.4 Process for Removing Claims from Excluded Claims List.
If a Party believes that a Patent claim, whether of such Party or of the other
Party, that is included in the Excluded Claims List has ceased to meet the
Excluded Claim Criteria because of changed circumstances as described in Section
2.5.2, such Party shall notify the other Party in writing of such belief and,
subject to existing confidentiality obligations, the basis therefor. If the
other Party agrees in writing that such Patent claim should no longer be
included within the Excluded Patent Claims List, such Patent claim shall be
deemed to be removed from the Excluded Claims List for all purposes hereunder.
If the other Party does not so agree within thirty (30) days after its receipt
of such notice,

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<PAGE>

the Parties shall, at the request of either Party, resolve the matter under the
Arbitration Agreement.

            2.6 Inquiries as to Patents. In the event that a third party Sues a
Party or its Subsidiary, or, in the event of Zeiss SMT being the inquiring
Party, ASML or its Subsidiary, and alleges or asserts that such Party has
infringed, or invites such Party to license, any one or more issued Patents of
such third party, or if a Party is otherwise actively engaged in licensing
negotiations with a third party with respect to any one or more issued Patents
(each a "PATENT IN DISPUTE"), such Party may request that the other Party
confirm whether each such Patent in Dispute is included within the Licensed
Patents (whether as an Owned Patent, a Sublicensable Patent or a Licensable
Co-Owned Patent) of such other Party hereunder (a "LICENSE INQUIRY"). License
Inquiries shall be in writing and shall set forth the identity of the applicable
third party and each Patent in Dispute. With respect to each License Inquiry,
the responding Party will inform the inquiring Party (a) if the Patent in
Dispute is a Licensed Patent of such responding Party, and (b) if so, the scope
of the rights thereunder, if any, to grant and extend the licenses, immunities,
and additional commitments granted and extended hereunder. If, after responding
to any License Inquiry, the responding Party becomes aware of any inaccuracy in
the response to a License Inquiry provided to the other Party, the responding
Party will, as its sole obligation or liability for any such failure, promptly
notify the other Party and provide a corrected response.

            2.7 Conversion of Class B Patents To Class A Patents.

                  2.7.1 At any time from the Effective Date until six (6) months
after the end of the Agreement Term, each Party shall have the right to
designate up to five (5) Convertible Patents of the other Party to be converted
into Class A Patents, in which case such designated Convertible Patents,
together with all Patents anywhere in the world that issue from or claim
priority to either the application that issued as the designated Convertible
Patent or any application or applications from which the designated Convertible
Patent claims priority, including all counterparts (including foreign
counterpart Patents), divisionals, continuations, continuations-in-part,
reissues and results of re-examinations thereof ("RELATED PATENTS"), shall be
deemed Class A Patents effective as of and retroactive to the Effective
Application Date of such Convertible Patent (or, if earlier, the earliest
Effective Application Date among the Related Patents thereof) for all purposes
of this Agreement (including the respective licenses and immunities). For the
avoidance of doubt, such retroactive effect shall also apply with respect to
Related Patents that issue after such conversion.

                  2.7.2 Notwithstanding the period described in the first clause
of Section 2.7.1, in the event a Party designates a Convertible Patent of the
other Party to be converted into a Class A Patent (the "INITIALLY DESIGNATED
PATENT") and the other Party is of the opinion that such Initially Designated
Patent would, in whole or in part, not be a Licensed Patent of such other Party
if it were a Class A Patent (e.g., because such Patent is not Owned or
Sublicensable or to the extent it includes Excluded Claims), then such other
Party shall promptly notify such first Party thereof. If the Parties agree that
such Initially Designated Patent would not be a Licensed Patent of such other
Party if

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<PAGE>

it were a Class A Patent, then such first Party shall have the right, within six
(6) months of such agreement, to designate another Convertible Patent (the
"SUBSEQUENTLY DESIGNATED PATENT") to be converted into a Class A Patent in lieu
of such Initially Designated Patent as to which Subsequently Designated Patent
the Parties agree that it would be a Licensed Patent of such other Party if it
were a Class A Patent. If the Parties do not so agree with respect to the
Initially Designated Patent or the Subsequently Designated Patent, they shall
resolve such dispute pursuant to the Arbitration Agreement. If it is determined
in such arbitration that such Initially Designated Patent or Subsequently
Designated Patent would not be a Licensed Patent of such other Party if it were
a Class A Patent, then such first Party shall provide in such arbitration
proceedings a list, in order of preference, of Convertible Patents to be
converted into a Class A Patent in lieu of such Initially Designated Patent or
Subsequently Designated Patent and the first of such Patents, if any, with
respect to which it is determined in such arbitration proceedings that it would
be a Licensed Patent of the other Party if it were a Class A Patent shall be
finally converted into a Class A Patent pursuant to Section 2.7.1 in lieu of
such Initially Designated Patent or Subsequently Designated Patent. If no
Convertible Patent on such list is determined to meet such requirements, such
Party may not convert any Convertible Patent into a Class A Patent in lieu of
such Initially Designated Patent or Subsequently Designated Patent.

            2.8 Carl Zeiss Representations.

                  2.8.1 Representations. Carl Zeiss represents and warrants that
either:

                  (a) Carl Zeiss and all of its Affiliates (other than Zeiss SMT
and Schott Entities) either have assigned to Zeiss SMT, or have licensed to
Zeiss SMT (with sufficient rights for Zeiss SMT to grant a sublicense to Nikon
and its Subsidiaries of at least the same scope as set forth in Sections 2.3 and
3.2), all Carl Zeiss Affiliate Patents, in each case with sufficient rights for
Zeiss SMT to grant Nikon and its Subsidiaries a release of all infringement
committed prior to the effective date of such assignment or license; or

                  (b) at Nikon's reasonable written request, Carl Zeiss and its
Affiliates (other than Zeiss SMT and Schott Entities) will either (at the
election of Carl Zeiss) promptly assign to Zeiss SMT, or promptly license to
Zeiss SMT (with sufficient rights for Zeiss SMT to grant a sublicense to Nikon
and its Subsidiaries of at least the same scope as set forth in Sections 2.3 and
3.2), all Carl Zeiss Affiliate Patents, in each case with sufficient rights for
Zeiss SMT to grant Nikon and its Subsidiaries a release of all infringement
committed prior to the effective date of such assignment or license.

                  2.8.2 Patent Transfers/Licenses. With regard to any Carl Zeiss
Affiliate Patent that does not qualify as a Zeiss Licensed Patent during any
period of time on or before December 31, 2014, for any reason, Carl Zeiss or its
Affiliate (other than Zeiss SMT and Schott Entities), as applicable, will, at
Nikon's reasonable written request, either (at the election of Carl Zeiss)
promptly assign such Carl Zeiss Affiliate Patent to Zeiss SMT, or promptly
license such Carl Zeiss Affiliate Patent to Zeiss SMT

                                       35

<PAGE>

(with sufficient rights for Zeiss SMT to grant a sublicense to Nikon and its
Subsidiaries of at least the same scope as set forth in Sections 2.3 and 3.2),
in each case with sufficient rights for Zeiss SMT to grant Nikon and its
Subsidiaries a release of all infringement committed prior to the effective date
of such assignment or license. Promptly upon such assignment or license, Zeiss
SMT shall grant Nikon and its Subsidiaries such a release in accordance with
Sections 3.2 and 3.3 of the Nikon/Zeiss SMT Settlement Agreement.

                  2.8.3 No Royalties. Notwithstanding anything to the contrary
in this Agreement (a) each Carl Zeiss Affiliate Patent that is licensed to Zeiss
SMT will constitute a Sublicensable Zeiss Licensed Patent, regardless of whether
the sublicense of such Carl Zeiss Affiliate Patent results in the payment of
royalties or other payments to Carl Zeiss or any of its Affiliates (other than
Schott Entities), and (b) in no event will Nikon or any of its Subsidiaries be
obligated to pay directly or reimburse Zeiss SMT for any such royalties or other
payments.

                  2.8.4 Meetings. Carl Zeiss shall meet and confer with Nikon
promptly at Nikon's request to discuss and attempt to resolve amicably any claim
brought by any Affiliate of Carl Zeiss (other than Schott Entities) against
Nikon or any of its Subsidiaries for infringement (directly or indirectly) on
account of the manufacture, use, sale, offer for sale, or import of any Licensed
Product under any Patent that Nikon contends constitutes a Carl Zeiss Affiliate
Patent

            2.9 Pre-Issuance Damages. To the extent, if any, that under
applicable law a Party has or its Subsidiaries have a right to claim damages or
seek other remedies with respect to activities of the other Party, its
Subsidiaries, or its or their respective Covered Entities or third party
suppliers making Licensed Products for such other Party as permitted under
Sections 2.1 or 2.3, as applicable, occurring prior to the issuance of a Patent
with respect to such Patent, each Party hereby waives and agrees not to assert
such rights under Patents issuing after the License Term and having an Effective
Application Date after December 31, 2002 and that would have been Licensed
Patents of such Party had they issued prior to the end of the License Term, but
only with respect to activities occurring prior to the end of the License Term
that would have been licensed or immune from suit under this Agreement if such
Patent were a Licensed Patent, and only for the period ending upon the end of
the License Term.

            2.10 Restricted Patents.

                  2.10.1 Covenant Not to Sue.

                  (a) Each Party covenants, to the extent not precluded by
contractual obligations that exist as of the Effective Date, that it shall not,
and shall cause its Subsidiaries not to, and shall not grant consent to, or
otherwise assist, encourage, or permit, any Co-Owner of any Restricted Patent to
Sue the other Party or its Subsidiaries, or their respective third party
suppliers making Licensed Products for such Party as permitted under Sections
2.1 or 2.3, as applicable, for direct or indirect infringement (including for
inducement of infringement or contributory infringement) of any Restricted
Patent (excluding any Excluded Claims thereof) based on activities that would

                                       36

<PAGE>

be covered by such Party's license under Sections 2.1, 2.2, or 2.3, as
applicable, if such Restricted Patent were a Licensed Patent of such covenanting
Party. Such covenant shall last perpetually (i) with respect to Class A Patents,
and (ii) under Restricted Patents that are Class B Patents and Restricted
Patents that would be Class C Patents if they were Owned by the covenanting
Party, with respect to activities of the other Party occurring prior to the end
of the License Term that would be covered by the other Party's license under
Sections 2.1, 2.2, or 2.3, as applicable, if such Restricted Patents were
Licensed Patents of the covenanting Party.

                  (b) Each Party covenants, to the extent not precluded by
contractual obligations that exist as of the Effective Date, that Sections 3.1,
3.2, 3.3, 3.4, 4.2, and 4.3 shall apply to Restricted Patents to the same extent
and in the same manner and the same time periods as if such Restricted Patents
were Owned by such covenanting Party.

                  2.10.2 Consent to License. Subject to Section 2.10.3, each
Party hereby grants its consent to a license to the other Party of the full
scope of the licenses granted to such other Party under this Agreement under any
Restricted Patent of such Party, provided, however, that such grant does not
result in any payment obligations by such first Party to any Co-Owner of such
Restricted Patent, other than payments relating to prosecution or maintenance of
Patents.

                  2.10.3 No Obligation to Seek Consent. Notwithstanding anything
to the contrary in this Agreement, neither Party shall have any obligation to
seek or obtain consent from any Co-Owner of any Restricted Patent with respect
to a grant of any license or immunity under such Restricted Patent.

                  2.10.4 No Circumvention. Neither Party nor its respective
Subsidiaries shall make any sale, assignment, transfer, or other conveyance or
transaction (i) with respect to any Lithography Patent that is a Licensed Patent
Owned by such Party that would result in such Licensed Patent becoming a
Restricted Patent, and (ii), solely during the Transition Period, with respect
to any Lithography Patent that is a Class B Patent or a Class C Patent Owned by
such Party that would result in such Lithography Patent becoming a Restricted
Patent during the Transition Period.

            2.11 Excluded Nikon Patents.

                  2.11.1 Designation. Nikon shall be entitled to designate, from
time to time and at any time, in a writing provided to ASML and Zeiss SMT,
issued Eligible Nikon Patent Family Members to be included in the Excluded Nikon
Patents, provided that (a) the total number of Excluded Nikon Patents shall not
exceed, at any time, the total number of issued Schedule D Patent Family
Members, and (b) the number of Excluded Nikon Patents issued in any one country
shall not exceed, at any time, the number of Schedule D Patent Family Members
issued in the same country, provided that, for purposes of the foregoing, the
European Community and all of its member states shall collectively be deemed to
constitute "one country." Nikon shall be entitled to designate issued Eligible
Nikon Patent Family Members to be included within the Excluded Nikon

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<PAGE>

Patents in accordance with the foregoing, but Nikon shall not be entitled to
subsequently change any such designation. For purposes of clarity, (i) no
Eligible Nikon Patent Family Member shall be deemed to be an Excluded Nikon
Patent unless and until such Patent is designated by Nikon as an Excluded Nikon
Patent pursuant to and in accordance with this Section 2.11.1, and (ii) Nikon
may pre-designate a Patent pursuant to the foregoing at any time, including, for
example, Patent applications, provided that a Patent application shall not
constitute an Excluded Nikon Patent unless and until a Patent or Patents issue
from such application, at which time each such pre-designated issued Patent
shall, as designated or, if not otherwise designated, in the order of issuance,
and subject to the limitations set forth in subclauses (a) and (b) of this
Section 2.11.1, constitute an Excluded Nikon Patent.

                  2.11.2 No License. Subject to Section 2.11.3, nothing in this
Agreement, nor the activities of the Parties under or in connection with this
Agreement, including, without limitation, the sale of any Licensed Product,
shall be construed to grant or otherwise convey or provide any right, license,
immunity, or other defense, whether directly, by implication, estoppel, or
otherwise, under any Excluded Nikon Patents to Zeiss SMT or its Subsidiaries or
any third party acquiring Licensed Products or other products from Zeiss SMT or
its Subsidiaries.

                  2.11.3 Schedule D Patents.

                  (a) When and if, and as long as, at least all claims other
than Schedule D Omitted Claims of all Patents within any one Schedule D Patent
Family either (a) become Owned or Sublicensable by ASML or its Subsidiaries,
such that they are included within the ASML Licensed Patents, and/or (b) expire
or are invalidated or abandoned, such that they are permanently not enforceable,
then Nikon or ASML (as determined pursuant to Section 2.11.3(b) below) shall
select one Eligible Nikon Patent Family (including all Eligible Nikon Patent
Family Members therein), excluding any Excluded Claims of any such Patents,
which (i) shall be deemed to be included within the Nikon Licensed Patents,
retroactive to the Effective Application Date of such Patents, for all purposes
hereunder (including the licenses, immunities and additional commitments granted
or extended hereunder), and (ii) shall not be deemed to be, or designable as,
Excluded Nikon Patents as long as at least all claims other than Schedule D
Omitted Claims of all Patents within the corresponding Schedule D Patent and
Schedule D Patent Family Members thereof remain (A) Owned or Sublicensable by
ASML or its Subsidiaries or (B) subject to all the licenses, immunities, and
additional commitments granted and extended by ASML and its Subsidiaries under
the Nikon-ASML Patent Cross-License Agreement.

                  (b) On the first occasion that the condition set forth in
Section 2.11.3(a) above occurs with respect to any one Schedule D Patent Family,
Nikon shall be entitled to select, and shall select, the first Eligible Nikon
Patent Family to be included in the Nikon Licensed Patents as set forth in
Section 2.11.3(a). On the occasion that the condition set forth in Section
2.11.3(a) above occurs with respect to a second Schedule D Patent Family, ASML
shall be entitled to select, and shall select, the second Eligible Nikon Patent
Family to be included in the Nikon Licensed Patents as set forth in Section

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<PAGE>

2.11.3(a). Each of Nikon and ASML, as applicable, shall make the selection
described in this Section 2.11.3(b) in a writing provided to Zeiss SMT no later
than thirty (30) days following ASML's notification to Nikon and Zeiss SMT that
the condition set forth in Section 2.11.3(a) has occurred. On the occasion that
the condition set forth in Section 2.11.3(a) occurs with respect to the
remaining Schedule D Patent Family, the remaining Eligible Nikon Patent Family
shall automatically be included in the Nikon Licensed Patents as set forth in
Section 2.11.3(a).

                  (c) During the life of the Eligible Nikon Patent Family
Members, except while such Patents are included in the Nikon Licensed Patents as
provided under this Section 2.11.3, in which case Section 9.3 shall apply, Nikon
shall, and shall ensure that its Subsidiaries shall, maintain all rights under
each of the Eligible Nikon Patent Family Members necessary in order to grant to
Zeiss SMT and its Subsidiaries the full scope of the licenses and immunities
granted under Nikon Licensed Patents hereunder should such Eligible Nikon Patent
Family Members be included in the Nikon Licensed Patents.

                  2.11.4 Consequences of Assertion. If Nikon or any of its
Subsidiaries Sues ASML, Zeiss SMT, their respective Subsidiaries, or any of
their respective vendors or Covered Entities, for direct or indirect
infringement (including inducement of infringement or contributory infringement)
of any Excluded Nikon Patent based on any activity that would be covered by a
license or immunity under this Agreement if such Excluded Nikon Patent were
included within the Nikon Licensed Patents, then Zeiss SMT shall have the right
to terminate, (a) at any time after the end of the Withdrawal Period (as defined
below), if applicable, or (b) if no Withdrawal Period is applicable, at any time
thereafter, all of the licenses, immunities, and other commitments granted and
extended by Zeiss SMT and its Subsidiaries to Nikon and its Subsidiaries and
their respective Covered Entities, vendors, and Glass Suppliers under this
Agreement (a "FULL RIGHTS TERMINATION") upon written notice to Nikon, provided,
however, that Zeiss SMT shall have no right to initiate or effect such Full
Rights Termination (i) in the cases expressly set forth in Section 2.11.5, or
(ii) if Nikon or its Subsidiary notifies Zeiss SMT in writing of the existence
of such Suit and together with such notice provides to Zeiss SMT copies of the
initial court filing made by Nikon or its Subsidiary in connection with such
Suit within thirty (30) days of the filing of any legal action, and Nikon or its
Subsidiary takes, within two (2) months after Nikon's or its Subsidiary's
receipt of a written response by Zeiss SMT to such notice stating Zeiss SMT's
good faith belief that such Suit is within the scope of this Section 2.11.4 and
the reasons therefor (the "WITHDRAWAL PERIOD"), all actions required on its part
to withdraw such Suit completely. Such Full Rights Termination shall have no
effect on the licenses, immunities and other commitments granted or extended to
Zeiss SMT, its Subsidiaries, Covered Entities, vendors and Glass Suppliers by
Nikon and its Subsidiaries as set forth in this Agreement.

                  2.11.5 Defensive Assertion.

                  (a) No Termination for Nikon Defensive Suits. In the event
that the Specified Entity or any of its Affiliates Sues Nikon or any of its
Subsidiaries under any Schedule D Patent Family Member (a "SPECIFIED ENTITY
SUIT"), then, subject to this

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<PAGE>

Section 2.11.5, Nikon and its Subsidiaries shall be permitted to Sue the
Specified Entity or such Affiliate (a "NIKON DEFENSIVE SUIT"). The Nikon
Defensive Suit shall be under an aggregate number of Excluded Nikon Patents that
does not exceed the aggregate number of issued Schedule D Patent Family Members
that are asserted by the Specified Entity and its Affiliates in the Specified
Entity Suit. Section 2.11.4 shall not apply with respect to such Nikon Defensive
Suit, and Zeiss SMT shall have no right to initiate or effect a Full Rights
Termination on account of such Nikon Defensive Suit.

                  (b) Excess Assertion By Nikon. If Nikon asserts against the
Specified Entity and/or its Affiliates in a Nikon Defensive Suit an aggregate
number of Excluded Nikon Patents greater than the aggregate number of issued
Schedule D Patent Family Members asserted by the Specified Entity and/or its
Affiliates against Nikon and/or its Subsidiaries in such action (an "EXCESS
ASSERTION"), then, if Nikon and/or its Subsidiaries fail to take all actions
required on their part to withdraw their claims completely under such number of
Excluded Nikon Patents as is required to eliminate the Excess Assertion within
thirty (30) days from such Excess Assertion, ASML may, at its sole discretion
upon written notice to Nikon and Zeiss SMT, designate any of the Excluded Nikon
Patents asserted in such Nikon Defensive Suit as Nikon Licensed Patents, up to a
number of Excluded Nikon Patents as required to eliminate the Excess Assertion,
and any Excluded Nikon Patents that are so designated shall be deemed ab initio
to be Nikon Licensed Patents for all purposes of this Agreement, including for
purposes of the immunities and other commitments granted or extended by Nikon
and its Subsidiaries under Sections 2.12, 3, and 4. In no event shall Zeiss SMT
be entitled to initiate or effect a Full Rights Termination on account of any
Excess Assertion.

                  (c) Specified Entity Assertion of Schedule D Omitted Claims.
The Parties acknowledge that, because Schedule D Patent Family Members do not
include Schedule D Omitted Claims, a Suit by the Specified Entity or its
Affiliates in which only Schedule D Omitted Claims are asserted does not
constitute a Specified Entity Suit hereunder, and does not give rise to Nikon's
or its Subsidiaries' right to bring a Nikon Defensive Suit pursuant to Section
2.11.5(a). The Parties further acknowledge that it may be difficult to determine
whether a Patent claim asserted in a Suit by the Specified Entity and/or its
Affiliates is a Schedule D Omitted Claim. Accordingly, if the Specified Entity
and/or its Affiliates assert any claim of any Schedule D Patent and/or any
Patent claiming priority from a Schedule D Patent and/or any Patent from which a
Schedule D Patent claims priority against Nikon and/or its Subsidiaries (a
"SCHEDULE D SUIT"), and Nikon and/or its Subsidiaries subsequently Sue the
Specified Entity and/or its Affiliates under Excluded Nikon Patents (a "SCHEDULE
D RESPONSE"), such Schedule D Response by Nikon and/or its Subsidiaries shall
not be grounds for a Full Rights Termination pursuant to Section 2.11.4.
Instead, (A) if a Party believes that the Schedule D Suit is partly or solely
based on Schedule D Omitted Claims, such Party shall notify the other Party of
such belief, and if the Parties disagree as to whether such Schedule D Suit is
partly or solely based on Schedule D Omitted Claims, the Parties shall resolve
such dispute under the Arbitration Agreement including, if applicable, which of
the Patent claims

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<PAGE>

asserted in such Schedule D Suit are Schedule D Omitted Claims, and (B) if it
is determined in such arbitration procedure that all or some of the Patent
claims asserted in the Schedule D Suit are Schedule D Omitted Claims, the
consequences shall be as set forth in the following subclauses (i) and (ii) of
this Section 2.11.5.

                  (i) If (A) it is determined in such arbitration that all
Patent claims asserted by the Specified Entity or its Affiliates in such
Schedule D Suit against Nikon or its Subsidiaries are Schedule D Omitted Claims,
and (B) Nikon and its Subsidiaries fail to withdraw completely all Suits which
assert any Excluded Nikon Patents against the Specified Entity and/or its
Affiliates within thirty (30) days after such determination, then all Nikon
Excluded Patents asserted by Nikon and/or its Subsidiaries in such Suit shall be
deemed ab initio to be Nikon Licensed Patents for all purposes of this
Agreement, including for purposes of the licenses granted to Zeiss SMT and its
Subsidiaries under Sections 2.1 and 2.2 and the immunities and other commitments
granted or extended by Nikon and its Subsidiaries under Sections 2.12, 3, and 4.
In no event shall Zeiss SMT be entitled to initiate or effect a Full Rights
Termination on account of any such Suit and/or failure to withdraw.

                  (ii) If it is determined in such arbitration procedure that
some but not all Patent claims asserted by the Specified Entity and/or its
Affiliates in the Specified Entity Action are Schedule D Omitted Claims, then
Section 2.11.5(a) or 2.11.5(b), as applicable, shall apply, it being understood
that, if the Specified Entity and/or its Affiliates asserted any claim of a
Schedule D Patent Family Member other than a claim that has been determined in
an arbitration procedure pursuant to this Section 2.11.5(c), or agreed by the
Parties in writing, to be a Schedule D Omitted Claim, such Schedule D Patent
Family Member shall be counted as a Schedule D Patent Family Member asserted by
the Specified Entity and/or its Affiliates for purposes of determining the
number of Nikon Excluded Patents that may be asserted in any Nikon Defensive
Suit in accordance with Section 2.11.5(a).

            2.12 Transition Period Covenants and Limitation of Remedies.

                  2.12.1 Covenant Not To Sue During Transition Period. Each
Party covenants that, during the Transition Period, it shall not, and shall
cause its Subsidiaries not to (such Party and its Subsidiaries being referred to
as the "NON-ASSERTING PARTY"), Sue the other Party or its Subsidiaries, or their
respective third party suppliers making Licensed Products for such Party as
permitted under Sections 2.1 or 2.3, as applicable (as applicable, the
"DEFENDANT PARTY"), for direct or indirect infringement (including for
inducement of infringement or contributory infringement) of any (i) Class B
Patents that were Licensed Patents of the Non-Asserting Party prior to the end
of the License Term, (ii) Class C Patents Owned or Sublicensable by the
Non-Asserting Party, or (iii), to the extent not precluded by contractual
obligations that exist as of the Effective Date, Restricted Patents of the
Non-Asserting Party, excluding, in each case, any Excluded Claims thereof and,
in each case, based on (a) the Defendant Party's activities that would be
covered by the Defendant Party's license under Sections 2.1 or 2.3, as
applicable, if such Class B Patents, Class C Patents, or Restricted Patents were
Licensed Patents (collectively "LITHOGRAPHY ACTIVITIES"), but solely with
respect to Lithography Activities that occur during the Transition Period, or
(b) activities of Covered Entities of the Defendant Party to the extent such
activities are within the scope of the immunities

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<PAGE>

granted by the Non-Asserting Party under this Agreement.

                  2.12.2 Limitation of Remedies As To Transition Period. Nothing
in Section 2.10 or in this Section 2.12 shall constitute any restriction or
limitation on the Non-Asserting Party's right and ability (a) to Sue the
Defendant Party at any time after the Transition Period, or (b) to seek, after
the Transition Period, any remedies with respect to any activities occurring
during the Transition Period (including, without limitation, Lithography
Activities), provided, however, that with respect to Lithography Activities
occurring during the Transition Period, and only to the extent such Lithography
Activities occur during the Transition Period, such remedies shall be limited to
damages in the form of a reasonable royalty not to exceed *** percent (***%) of
the Net Selling Price of the applicable Licensed Products.

                  2.12.3 No Other Rights. Nothing in this Section 2.12 shall be
construed to grant or otherwise convey or provide any right or license under any
Patents, whether directly, by implication, estoppel, or otherwise. Nothing in
this Section 2.12, nor the Parties' or their Subsidiaries' conduct pursuant
hereto, shall give rise to any defense, claim, or counterclaim, including based
on laches or equitable estoppel, based on the failure of a Party or its
Subsidiaries to bring Suit or otherwise assert a claim during the Transition
Period where such Party or its Subsidiaries could not have brought such Suit or
assert such claim in accordance with this Section 2.12, and the Defendant Party
hereby expressly waives any such defense, claim, or counterclaim.

3.    CERTAIN IMMUNITIES

            3.1 Immunity for Zeiss Products.

                  3.1.1 The rights granted to Zeiss SMT and its Subsidiaries in
Section 2.1 shall include immunity as set forth in this Section 3.1 under the
Nikon Licensed Patents and the Class C Patents Owned or Sublicensable by Nikon
or its Subsidiaries for the Covered Entities of Zeiss SMT and its Subsidiaries
for such Covered Entities' use, importation, offer for sale, sale, lease, and
other distribution or conveyance of Zeiss Licensed Products made, had made,
sold, offered for sale, leased, imported or otherwise conveyed by or for Zeiss
SMT or its Subsidiaries pursuant to the license granted in Section 2.1. Such
immunity means that Nikon shall not, and shall cause its Subsidiaries not to,
Sue any Covered Entity of Zeiss SMT or its Subsidiaries for direct or indirect
infringement (including for inducement of infringement or contributory
infringement) based on such Covered Entities' use, importation, offer for sale,
sale, lease, and other distribution or conveyance of such Zeiss Licensed Product
(a) at any time under any Class A Patents that are Nikon Licensed Patents,
regardless of when such Zeiss Licensed Product was first sold, leased, or
otherwise distributed or conveyed by Zeiss SMT or its Subsidiaries, (b) at any
time under Class B Patents that are at any time Nikon Licensed Patents with
respect to Zeiss Licensed Products that were first sold, leased, or otherwise
distributed or conveyed by Zeiss SMT or its Subsidiaries prior to or during the
License Term or the Transition Period, and (c) at any time under Class C Patents
enforceable by Nikon or its Subsidiaries with respect to Zeiss Licensed Products
that were first sold, leased, or otherwise distributed or conveyed by Zeiss SMT
or its

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Subsidiaries prior to or during the License Term or the Transition Period.

                  3.1.2 Notwithstanding anything to the contrary in this
Agreement, the immunity described in subclauses (b) and (c) of Section 3.1.1 is
expressly conditioned upon the applicable Covered Entity not Suing Nikon or any
of its Subsidiaries for Patent infringement with respect to Lithography
Equipment or any activities relating thereto (including the manufacture, use,
sale, offer for sale, or import of Lithography Equipment and any other
activities described in Section 2.3 hereof), and upon any such Suit such
immunity shall retroactively be null and void and of no effect with respect to
such Covered Entity, and Nikon and its Subsidiaries shall be entitled to seek
any remedies against such Covered Entity available under applicable Law,
including with respect to past activities, but only if Nikon has notified Zeiss
SMT of the existence of such Suit and the Covered Entity has not taken all
actions required on its part to withdraw such Suit completely within two (2)
months after such notification. No Suit by Nikon or its Subsidiaries against
such Covered Entity prior to any such withdrawal shall constitute a breach of
this Section 3.1 by Nikon or its Subsidiaries as long as Nikon or its
Subsidiaries take all actions required on their part to withdraw such Suit
completely within two (2) months after the Covered Entity has taken all actions
required on its part to withdraw its Suit completely.

            3.2 Immunity for Nikon Products.

                  3.2.1 Subject to Section 3.3, the rights granted to Nikon and
its Subsidiaries in Section 2.3 shall include immunity as set forth herein under
the Zeiss Licensed Patents and the Class C Patents Owned or Sublicensable by
Zeiss SMT or its Subsidiaries for the Covered Entities of Nikon and its
Subsidiaries for such Covered Entities' use, importation, offer for sale, sale,
lease, and other distribution or conveyance of Nikon Licensed Products made, had
made, sold, offered for sale, leased, imported or otherwise conveyed by or for
Nikon or its Subsidiaries pursuant to the license granted in Section 2.3. Such
immunity means that Zeiss SMT shall not, and shall cause its Subsidiaries not
to, Sue any Covered Entity of Nikon or its Subsidiaries for direct or indirect
infringement (including for inducement of infringement or contributory
infringement) based on such Covered Entities' use, importation, offer for sale,
sale, lease, and other distribution or conveyance of such Nikon Licensed Product
(a) at any time under any Class A Patents that are Zeiss Licensed Patents,
regardless of when such Nikon Licensed Product was first sold, leased, or
otherwise distributed or conveyed by Nikon or its Subsidiaries, (b) at any time
under Class B Patents that are at any time Zeiss Licensed Patents with respect
to Nikon Licensed Products that were first sold, leased, or otherwise
distributed or conveyed by Nikon or its Subsidiaries prior to or during the
License Term or the Transition Period, and (c) at any time under Class C Patents
enforceable by Zeiss SMT or its Subsidiaries with respect to Nikon Licensed
Products that were first sold, leased, or otherwise distributed or conveyed by
Nikon or its Subsidiaries prior to or during the License Term or the Transition
Period.

                  3.2.2 Notwithstanding anything to the contrary in this
Agreement, the immunity described in subclauses (b) and (c) of Section 3.2.1 is
expressly conditioned upon the applicable Covered Entity not Suing Zeiss SMT or
any of its

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<PAGE>

Subsidiaries for Patent infringement with respect to Lithography Equipment or
any activities relating thereto (including the manufacture, use, sale, offer for
sale, or import of Lithography Equipment and any other activities described in
Section 2.1 hereof), and upon any such Suit such immunity shall retroactively be
null and void and of no effect with respect to such Covered Entity, and Zeiss
SMT and its Subsidiaries shall be entitled to seek any remedies available
against such Covered Entity under applicable Law, including with respect to past
activities, but only if Zeiss SMT has notified Nikon of the existence of such
Suit and the Covered Entity has not taken all actions required on its part to
withdraw such Suit completely within two (2) months after such notification. No
Suit by Zeiss SMT or its Subsidiaries against such Covered Entity prior to any
such withdrawal shall constitute a breach of this Section 3.2 by Zeiss SMT or
its Subsidiaries as long as Zeiss SMT or its Subsidiaries take all actions
required on their part to withdraw such Suit completely within two (2) months
after the Covered Entity has taken all actions required on its part to withdraw
its Suit completely.

            3.3 Limitation on Immunities. The immunity granted in Section 3.2
shall not apply to Nikon Stand-Alone Optical Components that are made, had made,
sold, offered for sale, leased, imported or otherwise conveyed by Nikon (a)
during the period of time (if any) in which Nikon's license rights have been
narrowed prospectively to exclude the right to sell Nikon Stand-Alone Optical
Components, or (b) after such prospective exclusion of the right to sell Nikon
Stand-Alone Optical Components has become permanent, in each case as set forth
in Section 2.4.3.

            3.4 Excluded Glass Products Claims.

                  3.4.1 Neither Party will Sue the other Party or its
Subsidiaries, or any of its or their respective Covered Entities, for direct or
indirect infringement (including for inducement of infringement or contributory
infringement) based on such Party's or its Subsidiaries', or any of their
respective Covered Entities' use, importation, offer for sale, sale, lease, and
other distribution or conveyance of Licensed Products of the other Party, (i) at
any time under any Excluded Claims described in Section 1.2.17(c) that would
have constituted Class A Patents and Licensed Patents of such first Party but
for the application of Section 1.2.17(c), regardless of when such Licensed
Products were first sold, leased, or otherwise distributed or conveyed by the
other Party or its Subsidiaries, (ii) with respect to Licensed Products that
were first sold, leased, or otherwise distributed or conveyed by the other Party
or its Subsidiaries prior to or during the License Term or the Transition
Period, at any time under any Excluded Claims described in Section 1.2.17(c)
that would have constituted Class B Patents and Licensed Patents of such first
Party but for the application of Section 1.2.17(c), and (iii) with respect to
Licensed Products that were first sold, leased, or otherwise distributed or
conveyed by the other Party or its Subsidiaries prior to or during the License
Term or the Transition Period, at any time under any claims of Patents having an
Effective Application Date after December 31, 2002 and issuing during the
Transition Period that are Excluded Claims described in Section 1.2.17(c) and
that would have constituted Licensed Patents of such Party but for the
application of Section 1.2.17(c) had such Patents issued during the License Term
(the claims described in (ii) and (iii) of the foregoing being "TRANSITION
PERIOD CLAIMS"). For the avoidance of doubt, the foregoing

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<PAGE>

sentence shall not apply to Glass Suppliers of the other Party or its
Subsidiaries.

                  3.4.2 Notwithstanding anything to the contrary in this
Agreement, the immunity pursuant to Section 3.4.1 under Transition Period Claims
is expressly conditioned upon the applicable Covered Entity not Suing the
applicable Party or any of its Subsidiaries for Patent infringement, and upon
any such Suit such immunity shall retroactively be null and void and of no
effect with respect to such Covered Entity and the applicable Party and its
Subsidiaries shall be entitled to seek any remedies available, including with
respect to past activities, but only if such Party has notified the other Party
of the existence of such Suit and the Covered Entity has not taken all actions
required on its part to withdraw such Suit completely within two (2) months
after such notification. No Suit by such Party or its Subsidiaries of such
Covered Entity prior to any such withdrawal shall constitute a breach of this
Section 3.4 by such Party or its Subsidiaries as long as such Party or its
Subsidiaries take all actions required on their part to withdraw such Suit
completely within two (2) months after the Covered Entity has taken all actions
required on its part to withdraw its Suit completely.

4.    ADDITIONAL COMMITMENTS

            4.1 Opposition Proceedings. Neither Party ("OPPOSING PARTY") nor its
Subsidiaries will present arguments, or request, encourage or assist any
designee, agent, or nominee or other strawman to present arguments, in any
opposition proceedings (which, for clarity, include reexaminations but do not
include interference proceedings) (i) directed against any claim of any Class A
Patent of the other Party or any of its Subsidiaries, to the extent that such
claim only covers subject matter that falls within the definition of the
Licensed Products of the Opposing Party, or (ii) to the extent that the other
Party covenants to the Opposing Party, in a form binding on the other Party and
its Subsidiaries and assigns, that it will never contend against the Opposing
Party or its Subsidiaries or their respective vendors, direct and indirect
resellers, distributors, users and other customers that such claim covers
subject matter that falls outside the definition of the Licensed Products of the
Opposing Party. Each Party shall have the right, but not the obligation, at any
time to provide the other Party with written notice identifying Subsidiaries of
such Party. If an Opposing Party presents arguments, or requests, encourages or
assists any designee, agent, or nominee or other strawman to present arguments,
in any opposition proceeding against a Subsidiary of the other Party that does
not do business under a name including the name of the other Party and has not
previously been identified in writing to the Opposing Party, or that the
Opposing Party does not actually know to be a Subsidiary of the other Party,
then such presentation, request, encouragement or assistance shall not be deemed
to be a breach of this Section 4.1, provided that, upon receipt of written
notice from the other Party of such Subsidiary relationship, such Opposing Party
shall promptly withdraw from such opposition proceeding.

            4.2 Glass Product Suppliers.

                  4.2.1 No Injunction. Subject to Section 4.2.4, a Party and its
Subsidiaries (collectively the "ASSERTING PARTY") will not seek or obtain an
injunction,

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<PAGE>

restraint or other form of prohibitive order enjoining the supply of Excluded
Glass Products to the other Party or its Subsidiaries on the basis that such
Excluded Glass Products infringe, directly or indirectly, the Patents of the
Asserting Party. Subject to Section 4.2.4, the foregoing covenant and the
provisions of Section 4.2.2 shall last (i) perpetually under Class A Patents of
the Asserting Party, and (ii) until the end of the Agreement Term under Class B
Patents of the Asserting Party and under any patents that would have constituted
Class C Patents of the Asserting Party but for the application of Section
1.2.17(c) (each such period, as applicable, the "GLASS RESTRICTION PERIOD").

                  4.2.2 Payment of Glass Excess Payment.

                  (a) If, during the applicable Glass Restriction Period the
Asserting Party asserts or seeks to assert any applicable Patents against a
third party with respect to the supply of Excluded Glass Products by such third
party (a "GLASS SUPPLIER") to the other Party (the "PURCHASING PARTY"), then,
with regard to all Covered Excluded Glass Products, the Asserting Party shall
pay any Glass Excess Payment to the Purchasing Party as set forth in Section
4.2.3.

                  (b) For purposes of this Section 4.2:

                  (i) "COVERED EXCLUDED GLASS PRODUCTS" means Excluded Glass
Products that are (A) covered by a license under the Asserting Party's Patents,
or (B) the subject of a damages award for infringement of the Asserting Party's
Patents.

                  (ii) "GLASS EXCESS PAYMENT" means the portion of Attributable
Glass Proceeds, if any, that exceeds an amount equal to *** percent (***%) of
the Purchasing Party's Glass Product Expenses in any calendar year. By way of
example, if the Attributable Glass Proceeds in any calendar year are $*** and
the Glass Product Expenses for such calendar year are $***, then the Glass
Excess Payment payable by the Asserting Party, to the other Party in respect of
such calendar year shall be such portion of $*** that exceeds ***% of $***
($***, i.e., $*** in total. In no event shall the Purchasing Party be required
to pay any amount to the Asserting Party under this Section 4.2, even if in any
calendar year the Attributable Glass Proceeds are less than *** percent (***%)
of the Purchasing Party's Glass Product Expenses.

                  (iii) "GLASS PRODUCT EXPENSES" means the aggregate amount paid
by the Purchasing Party and its Subsidiaries to the Glass Supplier for Covered
Excluded Glass Products purchased by the Purchasing Party from the Glass
Supplier in the applicable calendar year.

                  (iv) "ATTRIBUTABLE GLASS PROCEEDS" means the sum of the
following received with respect to any one calendar year: (A) Running Royalty
Payments based on sales of Covered Excluded Glass Products to the Purchasing
Party in such calendar year, (B) Allocable Amortized Lump-Sum Payments allocable
to such calendar year, and (C) Allocable Damages that are attributable to sales
of Covered Excluded Glass Products to the Purchasing Party in such calendar
year.

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<PAGE>

                  (v) "RUNNING ROYALTY PAYMENTS" means running royalty payments
made by the Glass Supplier to the Asserting Party under an applicable license
agreement the amounts of which are based on sales by the Glass Supplier of
Covered Excluded Glass Products in any calendar year. "Running Royalty Payments"
excludes any other payments, such as, for example, up-front license fees, annual
license fees, or other lump sum payments or payments other than variable
payments based on sales of Covered Excluded Glass Products.

                  (vi) "LUMP-SUM PAYMENTS" means up-front or lump-sum license
fees paid by the Glass Supplier to the Asserting Party (e.g., annual license
fees, but excluding, in any event, Running Royalty Payments) in consideration
of, and to the extent reasonably attributable to, the grant of license rights by
the Asserting Party to the Glass Supplier, under the Asserting Party's Patents
covering Covered Excluded Glass Products, to make and sell Covered Excluded
Glass Products. For the avoidance of doubt, if, under the applicable license
agreement, the Asserting Party grants any rights, or provides any consideration,
other than only the right to manufacture and sell Covered Excluded Glass
Products, only such portion of any up-front or recurring lump-sum license fees
shall be taken into account, for purposes of calculating Lump-Sum Payments, that
is reasonably attributable to the grant of the right to manufacture and sell
Covered Excluded Glass Products (but not any portion of such license fees that
is reasonably attributable to other rights granted, or other consideration
provided, to the Glass Supplier under such license agreement).

                  (vii) "ALLOCABLE DAMAGES" means the positive difference, if
any, between (A) such portion, if any, of damages finally assessed against the
Glass Supplier, and paid (including by way of setoff) to the Asserting Party,
for infringement of the Asserting Party's Patents based on the Glass Supplier's
sale of Covered Excluded Glass Products that is attributable to sales of Covered
Excluded Glass Products by the Glass Supplier to the Purchasing Party; the ratio
of such portion to the total damages finally assessed against the Glass
Supplier, and paid (including by way of setoff) to the Asserting Party, for
infringement of the Asserting Party's Patents based on the Glass Supplier's sale
of Covered Excluded Glass Products being referred to as the "FRACTION", minus
(B) the Fraction multiplied by the amount of damages, if any, finally assessed
against the Asserting Party in the same lawsuit, cause, or action, or in a
lawsuit pending at the same time, and paid (including by way of setoff) to the
Glass Supplier, for infringement of the Glass Supplier's Patents based on the
Asserting Party's sales of Excluded Glass Products.

                  (viii) "AMORTIZED LUMP-SUM PAYMENTS" means the applicable
portion of Lump-Sum Payments when such Lump-Sum Payments are amortized on a
straight line basis over the applicable Amortization Period.

                  (ix) "AMORTIZATION PERIOD" means, (A) with respect to up-front
license fees, the shorter of (I) a period of six (6) years from the payment date
of such up-front license fee, or (II) the initial term of the applicable license
agreement, and (B) with respect to any recurring lump-sum license fees, the
applicable period for which such recurring lump-sum license fee is made under
the applicable license agreement (e.g.,

                                       47

<PAGE>

one year in case of an annual license fee).

                  (x) "ALLOCABLE AMORTIZED LUMP-SUM PAYMENTS" means such portion
of the Amortized Lump-Sum Payment, if any, that is attributable to sales of
Covered Excluded Glass Products by the Glass Supplier to the Purchasing Party in
the applicable calendar year.

                  (c) For purposes of clarification, nothing in this Section 4.2
or any other provision of this Agreement shall constitute, or shall be deemed to
constitute, a restriction on the amount of any payments that may be sought by or
payable to the Asserting Party or any of its Subsidiaries from a Glass Supplier,
whether on account of Excluded Glass Products supplied to the Purchasing Party
or otherwise.

                  4.2.3 Payments and Records. The payments, if any, owed to the
Purchasing Party pursuant to Section 4.2.2 by the Asserting Party shall be made
annually within ninety (90) days following the last day of each calendar year of
the Agreement Term. The Parties agree to keep full and accurate books and
records setting forth in reasonable detail the Attributable Glass Proceeds, the
Glass Product Expenses, and the calculation of the Glass Excess Payment. The
Purchasing Party shall report its Glass Product Expenses, if any, to the
Asserting Party no later than thirty (30) days following the last day of each
calendar year of the Agreement Term. In the event that the Asserting Party
receives in any one calendar year (the "CURRENT YEAR") any Attributable Glass
Proceeds based on sales in, or otherwise attributable or allocable to, any
previous calendar year(s) ("PREVIOUS YEAR(S)"), the Asserting Party will notify
the Purchasing Party thereof within thirty (30) days following the last day of
such Current Year and the Purchasing Party may then, unless previously reported,
report its Glass Product Expenses for such Previous Year(s) to the Asserting
Party within ninety (90) days following the last day of such Current Year. The
Asserting Party will then calculate or recalculate the Glass Excess Payment, if
any, for such Previous Year(s) and submit its report relating thereto within one
hundred twenty (120) days following the last day of the Current Year, together
with the payment of any Glass Excess Payment owed and not previously paid for
such Previous Year(s).

                  4.2.4 Defensive Actions. The provisions of Sections 4.2.1
through 4.2.3 will be suspended, and during such suspension shall cease to bind
the Asserting Party with respect to (but only with respect to) any Glass
Supplier or any of its Subsidiaries if such Glass Supplier or any of its
Subsidiaries seeks an injunction, restraint or other form of prohibitive order
from any Government Authority against the Asserting Party on the basis that the
Asserting Party or any of its products or services allegedly infringes, directly
or indirectly, the Patents of such Glass Supplier ("GLASS PROCEEDINGS") prior to
any Suit by the Asserting Party against such Glass Supplier. Such suspension
shall last as long as such Glass Proceedings are not Finally Resolved. Upon
Final Resolution of such Glass Proceedings, the provisions of Sections 4.2.1
through 4.2.3 shall (i) be again effective from and after such Final Resolution,
if such Glass Proceedings are Finally Resolved by either an amicable settlement
between the Asserting Party and the Glass Supplier or a withdrawal of all such
Glass Proceedings by the Glass Supplier, and (ii) terminate and permanently
cease to bind the Asserting Party with respect to such

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<PAGE>

Glass Supplier in all other cases. Upon termination or during any suspension of
the provisions of Sections 4.2.1 through 4.2.3 the Asserting Party shall be
entitled to seek any remedies available, including with respect to past
activities.

            4.3   Special Mask Technology.

                  4.3.1 Definitions. For purposes of this Section 4.3:

                  (a) "EXCLUDED SPECIAL MASK CLAIM" means an Excluded Claim that
is described in Section 1.2.17(d);

                  (b) "CLASS A EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that would have been included in a Class A Patent within the
Licensed Patents of a Party or its Subsidiaries (collectively, the "Licensor
Party") but for the application of Section 1.2.17(d).

                  (c) "CLASS B EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that would have been included in a Class B Patent within the
Licensed Patents of a Licensor Party but for the application of Section
1.2.17(d).

                  (d) "CLASS C EXCLUDED SPECIAL MASK CLAIM" means an Excluded
Special Mask Claim that is included in a Patent Owned or Sublicensable by a
Licensor Party having an Effective Application Date after December 31, 2002 and
issuing during the Transition Period.

                  4.3.2 Limited Party Immunity. The Licensor Party will not Sue
the other Party or its Subsidiaries (collectively, the "OTHER PARTY") at any
time, during or after the Agreement Term:

                  (a) for direct or indirect infringement (including
contributory infringement and inducement to infringe) of any Class A Excluded
Special Mask Claim based on (i) activities of the Other Party occurring at any
time before, during or after the Agreement Term that would be covered by the
Other Party's license under Sections 2.1 or 2.3, as applicable, if such Class A
Excluded Special Mask Claim were a licensed claim within a Licensed Patent, or
(ii) a Covered Entity's use, import, repair, offer for sale, sale, lease, and
other distribution or conveyance at any time before, during or after the
Agreement Term of Licensed Products that were first sold, leased, or otherwise
distributed or conveyed by the Other Party at any time before, during or after
the Agreement Term and the sale, lease, or other distribution or conveyance of
which by the Other Party would be covered by the Other Party's or its
Subsidiaries' license under Sections 2.1 or 2.3, as applicable, if such Class A
Excluded Special Mask Claim were a licensed claim within a Licensed Patent.

                  (b) for direct or indirect infringement (including
contributory infringement and inducement to infringe) of any Class B Excluded
Special Mask Claim or Class C Excluded Special Mask Claim based on either (i)
any activities of the Other Party occurring at any time before or during (but
not after) the Agreement Term that

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<PAGE>

would be covered by the Other Party's license under Sections 2.1 or 2.3, as
applicable, if such Class B Excluded Special Mask Claim or Class C Excluded
Special Mask Claim, as applicable, were a licensed claim within a Licensed
Patent, or (ii) a Covered Entity's use, import, repair, offer for sale, sale,
lease, and other distribution or conveyance at any time before, during or after
the Agreement Term of Licensed Products that were first sold, leased, or
otherwise distributed or conveyed by the Other Party at any time before or
during (but not after) the Agreement Term and the sale, lease, or other
distribution or conveyance of which by the Other Party or its Subsidiaries would
be covered by the Other Party's or its Subsidiaries' license under Sections 2.1
or 2.3, as applicable, if such Class B Excluded Special Mask Claim or Class C
Excluded Special Mask Claim were a licensed claim within a Licensed Patent.

                  4.3.3 Limited Covered Entity Immunity. Subject to Section
4.3.4, the Licensor Party will not Sue any Covered Entity of the Other Party:

                  (a) at any time during or after the Agreement Term, for direct
or indirect infringement (including contributory infringement and inducement to
infringe) of any Class A Excluded Special Mask Claim based on such Covered
Entity's use, import, repair, offer for sale, sale, lease, and other
distribution or conveyance at any time before, during or after the Agreement
Term of Licensed Products that were first sold, leased, or otherwise distributed
or conveyed by the Other Party at any time before, during or after the Agreement
Term and the sale, lease, or other distribution or conveyance of which by the
Other Party or its Subsidiaries would be covered by the Other Party's or its
Subsidiaries' license under Sections 2.1 or 2.3, as applicable, if such Class A
Excluded Special Mask Claim were a licensed claim within a Licensed Patent;

                  (b) at any time, during or after the Agreement Term, for
direct or indirect infringement (including contributory infringement and
inducement to infringe) of any Class B Excluded Special Mask Claim or Class C
Excluded Special Mask Claim based on such Covered Entity's use, import, repair,
offer for sale, sale, lease, and other distribution or conveyance at any time
before, during or after the Agreement Term of Licensed Products that were first
sold, leased, or otherwise distributed or conveyed by the Other Party or its
Subsidiaries at any time before or during (but not after) the License Term and
the sale, lease, or other distribution or conveyance of which by the Other Party
or its Subsidiaries would be covered by the Other Party's or its Subsidiaries'
license under Sections 2.1 or 2.3, as applicable, if such Class B Excluded
Special Mask Claim or Class C Excluded Special Mask Claim were a licensed claim
within a Licensed Patent; and

                  (c) during the Transition Period, for direct or indirect
infringement (including contributory infringement and inducement to infringe) of
any Class B Excluded Special Mask Claim or Class C Excluded Special Mask Claim
based on such Covered Entity's use, import, repair, offer for sale, sale, lease,
and other distribution or conveyance at any time prior to the end of the
Transition Period of Licensed Products that were first sold, leased, or
otherwise distributed or conveyed by the Other Party at any time prior to or
during (but not after) the Transition Period and the sale, lease, or other
distribution or conveyance of which by the Other Party or its Subsidiaries would
be covered by the Other Party's or its Subsidiaries' license under

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<PAGE>

Sections 2.1 or 2.3, as applicable, if such Class B Excluded Special Mask Claim
or Class C Excluded Special Mask Claim were a licensed claim within a Licensed
Patent.

                  4.3.4 Limitation of Certain Remedies Against Covered Entities
as to Transition Period. Nothing in this Agreement (including, without
limitation, Section 4.3.3(c) above) shall constitute any restriction or
limitation on the Licensor Party's right and ability to Sue, after the end of
the Transition Period, any Covered Entity of the Other Party for direct or
indirect infringement (including contributory infringement and inducement to
infringe) of any Class B Excluded Special Mask Claim or Class C Excluded Special
Mask Claim based on such Covered Entity's use, import, repair, offer for sale,
sale, lease, and other distribution or conveyance at any time prior to the end
of the Transition Period of Licensed Products that were first sold, leased, or
otherwise distributed or conveyed by the Other Party at any time after the end
of the License Term; provided, however, that with respect to Licensed Products
that were first sold, leased, or otherwise distributed or conveyed by the Other
Party during the Transition Period, the Licensor Party's remedies in any such
action against any Covered Entity of such Other Party shall be limited to
damages in the form of a reasonable royalty not to exceed *** percent (***%) of
the Net Selling Price of all applicable Licensed Products.

                  4.3.5 Defensive Actions. Notwithstanding anything to the
contrary in this Agreement, the immunity described in Section 4.3.3 and the
application of Section 4.3.4 are expressly conditioned upon the applicable
Covered Entity not Suing the Licensor Party for Patent infringement, and upon
any such Suit such immunity shall retroactively be null and void and of no
effect with respect to such Covered Entity, and the Licensor Party shall be
entitled to seek any remedies available against such Covered Entity under
applicable Law, including with respect to past activities, but only if the
Licensor Party has notified the Other Party of the existence of such Suit and
the Covered Entity has not taken all actions required on its part to withdraw
such Suit completely within two (2) months after such notification. No Suit by
the Licensor Party against such Covered Entity prior to any such withdrawal
shall constitute a breach of this Section by the Licensor Party as long as the
Licensor Party takes all actions required on its part to withdraw such Suit
completely within two (2) months after the Covered Entity has taken all actions
required on its part to withdraw its Suit completely.

5.    PAYMENTS.

            5.1 Payments. Zeiss SMT or, upon prior written request by Zeiss SMT
and subject to Nikon's prior written consent, which consent shall not be
unreasonably withheld, any Subsidiary of Zeiss SMT, shall pay to Nikon the
aggregate sum of Fifty-Eight Million U.S. Dollars (US$ 58,000,000), to be
payable in the following installments ("PAYMENTS"):

                  (a) Forty Million U.S. Dollars (US$ 40,000,000) on the
Effective Date, receipt of which amount is hereby acknowledged by Nikon;

                  (b) Six Million U.S. Dollars (US$ 6,000,000) due on the first

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anniversary of the Effective Date

                  (c) Six Million U.S. Dollars (US$ 6,000,000) due on the second
anniversary of the Effective Date; and

                  (d) Six Million U.S. Dollars (US$ 6,000,000) due on the third
anniversary of the Effective Date.

            5.2 Taxes. All Payments shall be paid such that, after deduction or
withholding of any taxes or other amounts due on such Payments (not including
income taxes owed by Nikon) (collectively, "WITHHOLDINGS"), Nikon receives the
entire amounts of such Payments as if no Withholdings had been required. Nikon
will promptly, as part of its applicable tax filings, apply for Japanese tax
credits and German tax refunds on such Withholdings, and shall reasonably
promptly pay to Zeiss SMT any and all credits, offsets, or refunds based on the
Withholdings it receives from the applicable tax authorities, provided, however,
that upon loss by Nikon of any refund, offset or credit previously refunded to
Zeiss SMT, Zeiss SMT will promptly refund to Nikon the amount of such refund,
offset, or credit previously refunded to Zeiss SMT to the extent of the loss by
Nikon of such refund, offset, or credit. The Parties shall reasonably assist
each other in addressing any taxation issues arising from this Agreement
including by providing the other Party with necessary documentation from local
and/or national tax authorities, and using reasonable efforts to obtain any
refunds from any applicable national tax authorities based on Withholdings.

            5.3   German RWHT.

                  5.3.1 Refunds. Zeiss SMT will also pay any German RWHT
resulting from any Payments. Nikon will refund to Zeiss SMT any German RWHT paid
by Zeiss SMT for any Payments to the extent Nikon receives a refund, offset, or
credit based thereon or attributable thereto, including as follows:

                  (a) Nikon shall (i) use fair and commercially reasonable
efforts to obtain, and to assist Zeiss SMT in obtaining, all applicable refunds,
offsets, and credits from the German tax authorities of German RWHT related to a
certain Payment and/or this Agreement, where such refund, offset, or credit is
the difference between the German RWHT at the statutory rate and the reduced
treaty rate pursuant to the applicable German - Japanese Treaty for the
avoidance of Double Taxation, and (ii) promptly upon receiving or otherwise
obtaining the benefit of any such refund, offset, or credit, pay the full amount
of such refund, offset, or credit to Zeiss SMT.

                  (b) Nikon shall (i) use fair and commercially reasonable
efforts (without loss of otherwise available tax credits, deductions or offsets;
provided, however, that any credits, deductions, or offsets related to German
RWHT payments made by Zeiss SMT for any Payments and/or this Agreement will be
treated in a non-discriminatory manner with respect to other of Nikon's credits,
deductions, or offsets, including by applying first-in, first-out considerations
for the application of such credits, deductions, and offsets and taking
advantage of all applicable carry-forward provisions) to offset the

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German RWHT related to a certain Payment or this Agreement against its
applicable Japanese taxes, (ii) promptly upon receiving or otherwise obtaining
the benefit of any such refund, offset, or credit, pay the full amount of such
refund, offset, or credit to Zeiss SMT.

                  (c) Nikon shall promptly inform Zeiss SMT of, and make fair
and reasonable efforts to consult with Zeiss SMT about, any subsequent action by
tax authorities that could disallow, reverse or otherwise reduce the amount of
any refund, offset or credit Nikon has claimed and refunded to Zeiss SMT based
on the Withholdings. Upon loss by Nikon of any refund, offset or credit
previously refunded to Zeiss SMT, Zeiss SMT will promptly refund to Nikon the
amount of such refund, offset, or credit previously refunded to Zeiss SMT to the
extent of the loss by Nikon of such refund, offset, or credit.

                  5.3.2 Certification/Opinion. By no later than March 31 of each
year in which Nikon can seek to offset the German RWHT related to a certain
Payment and/or this Agreement against its applicable Japanese taxes (including
all applicable carry-forward provisions), Nikon shall provide Zeiss SMT with
either an internal certification or a confidential opinion from its auditors or
tax counsel stating whether, and the extent to which, Nikon will be entitled to
make such offset in connection with its applicable taxes for its fiscal year
ending that March 31, and stating approximately when Zeiss SMT can expect to
receive payments from such refunds, offsets, or credits. The purpose of this
provision is to provide Zeiss SMT with documentation sufficient to substantiate
the extent to which Zeiss SMT can treat the German RWHT subject to Section
5.3.1(b) as an asset for accounting purposes. Accordingly, Nikon and Zeiss SMT
agree that the statement will be provided by an outside tax auditor or tax
counsel only if an internal certification from Nikon is not sufficient for such
purposes and that the substance of such certification or statement will only
include such content as is necessary to enable Zeiss SMT to achieve its
accounting goal and shall not address topics other than the ability of Nikon to
obtain the relevant tax credit or refund and the timing thereof. For avoidance
of doubt, Nikon does not represent, warrant or guarantee Zeiss SMT's ability to
achieve its desired tax or accounting treatment.

                  5.3.3 Assistance to Zeiss. Promptly upon Zeiss SMT's request,
Nikon will reasonably cooperate with Zeiss SMT to promptly file all appropriate
forms or certificates with Zeiss SMT and/or the German tax authorities in order
for Zeiss SMT to apply for the reduced German RWHT rate pursuant to the
applicable German - Japanese Treaty for the avoidance of Double Taxation.

                  5.3.4 Assistance to Nikon. Zeiss SMT will assist Nikon in
obtaining a refund of excess withheld German RWHT if applicable, and Zeiss SMT
will provide Nikon with any and all forms and certificates required by Nikon for
Nikon to substantiate the offset of the German RWHT with its applicable Japanese
taxes.

            5.4 Late Payments. For purposes of clarification, Zeiss SMT shall
owe no interest on the Payments set forth in Section 5.

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            5.5 Other Payment Provisions. All amounts payable by Zeiss SMT to
Nikon shall be paid by wire transfer of U.S. Dollars in immediately available
funds to the account of "Nikon Corporation," account number *** Bank of
Tokyo-Mitsubishi Ltd., Head Office, Marunouchi 2-7-1, Chiyoda-ku, Tokyo, Japan
(SWIFT Code BOTKJPJT), or such other financial institution and account number as
Nikon may designate in writing to Zeiss SMT. Each Party shall be responsible for
the proper allocation of payments made under this Agreement in its own tax
filings and financial statements.

            5.6 Audit. The Parties agree to keep full and accurate books and
records setting forth in reasonable detail the payments payable to the other
Party hereunder, or Glass Product Expenses to be recorded hereunder, and the
calculation thereof. Each Party (the "AUDITING PARTY") shall have the right to
appoint an independent internationally recognized accounting firm (but not the
Auditing Party's accounting firm) reasonably acceptable to the other Party (the
"INDEPENDENT AUDITOR") to audit the financial books and records that the other
Party (the "AUDITED PARTY") is expressly required to keep under this Agreement
with respect to payments owed to the Auditing Party, or Glass Product Expenses
to be recorded, under this Agreement (the "RELEVANT BOOKS AND RECORDS"). The
Audited Party may require the Independent Auditor, prior to any such audit, to
agree to reasonable confidentiality restrictions and the Independent Auditor
shall (i) treat as confidential information of the Audited Party all information
obtained in connection with such audit and (ii) not disclose the same to the
Auditing Party or others, except that the Independent Auditor may disclose to
the Auditing Party only whether the audit revealed an underpayment, or an
inaccuracy with respect to Glass Product Expenses, and the amount of such
underpayment or inaccuracy, if any. An audit shall be permitted only upon at
least thirty (30) days' prior written notice to the Audited Party, and in no
event more than once during any calendar year (unless an audit in any calendar
year revealed an underpayment, in which case the Auditing Party may conduct one
(1) additional audit in such calendar year). The Independent Auditor shall
conduct the audit during normal business hours solely as necessary to confirm
the accuracy of the Relevant Books and Records. The Independent Auditor may not
be paid on a contingency fee basis and shall provide its report simultaneously
to both Parties. The Auditing Party shall be solely liable for all costs and
expenses accrued in connection with such audit. In the event the audit reveals
an underpayment or inaccuracy, prompt adjustment of all unpaid amounts owed
under this Agreement shall be made by the Audited Party, provided that nothing
contained herein is intended to waive or limit the Audited Party's right to
contest the accuracy of any finding of the Independent Auditor.

6.    WARRANTIES AND DISCLAIMERS

            6.1 Authority. Each Party represents and warrants to the other Party
that (a) it has all requisite corporate power and authority to execute and
deliver this Agreement and to carry out the provisions of this Agreement, and
(b) the execution, delivery and performance by such Party of this Agreement have
been approved by all requisite action on the part of such Party, and no other
corporate proceeding on the part of such Party is necessary to authorize this
Agreement.

            6.2 No Conflicts. Each Party represents and warrants to the other

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Party that (a) it has the right, and will continue during the Agreement Term to
have the right, to grant to the other Party and its Subsidiaries the licenses,
rights and immunities granted hereunder in accordance with the terms of this
Agreement, and (b) such grant of licenses, rights and immunities and such
Party's execution, delivery and performance of this Agreement do not, and will
not during the Agreement Term, conflict with, violate or result in any breach of
any provision of any license, agreement, contract, understanding, arrangement,
commitment or undertaking of any nature (whether written, oral or otherwise) to
which such Party is a party.

            6.3 No Encumbrances With Respect To Owned Licensed Patents.

                  6.3.1 Zeiss SMT Representations. Zeiss SMT hereby represents
and warrants to Nikon that, (a) except as set forth in Schedule B-1 and Schedule
B-3, no Lithography Patent that is either solely assigned to and/or owned (use
of the non-defined term being intentional) by, or Co-Owned by, Zeiss SMT or its
Subsidiaries as of the Effective Date (but excluding any Excluded Claims
thereof) is subject to any lien, encumbrance or other restriction (including any
contractual restriction such as an exclusive license) that would prevent or
prohibit Zeiss SMT or its Subsidiaries from granting to Nikon the full scope of
the rights granted under Section 2.3 (excluding rights that employees may have
in inventions that they develop while employed by Zeiss SMT or its Subsidiaries,
such as, for example, the right to receive monetary compensation or assert
preemptive rights), and (b) except as set forth in Schedule B-2, since January
1, 1996, neither Zeiss SMT nor its Subsidiaries have assigned any issued Patents
to a third party, except for assignments that were the result of Patent
maintenance decisions in the ordinary course of Zeiss SMT's or its Subsidiaries'
business, which Patents would, if Owned by Zeiss SMT or its Subsidiaries as of
the Effective Date, constitute a Lithography Patent included within the Zeiss
Licensed Patents.

                  6.3.2 Nikon Representations. Nikon hereby represents and
warrants to Zeiss SMT that, (a) except as set forth in Schedule C-1, no
Lithography Patent that is either solely assigned to and/or owned (use of the
non-defined term being intentional) by, or Co-Owned by, Nikon or its
Subsidiaries as of the Effective Date (but excluding any Excluded Claims
thereof) is subject to any lien, encumbrance or other restriction (including any
contractual restriction such as an exclusive license) that would prevent or
prohibit Nikon or its Subsidiaries from granting to Zeiss SMT the full scope of
the rights granted under Section 2.1 (excluding rights that employees may have
in inventions that they develop while employed by Nikon or its Subsidiaries,
such as, for example, the right to receive monetary compensation or assert
preemptive rights), and (b) except as set forth in Schedule C-2, since January
1, 1996, neither Nikon nor its Subsidiaries have assigned any issued Patents to
a third party, except for assignments that were the result of Patent maintenance
decisions in the ordinary course of Nikon's or its Subsidiaries' business, which
Patents would, if Owned by Nikon or its Subsidiaries as of the Effective Date,
constitute a Lithography Patent included within the Nikon Licensed Patents.

            6.4 No Transfers or Encumbrances in Anticipation of Litigation or
Execution. Each Party hereby represents to the other, as of the Effective Date,
that it has

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not transferred or assigned any ownership interest in any Patents to any third
party, or encumbered any Patents in a manner that would prevent or prohibit such
Party or its Subsidiaries from granting to the other Party and its Subsidiaries
the full scope of the rights granted hereunder, in anticipation of Patent
litigation with the other Party or in anticipation of the execution of this
Agreement.

            6.5 Inadvertent Omissions. In the event that a Party discovers after
the Effective Date an inadvertent, good faith omission from its Schedule B or
Schedule C, as applicable, such Party shall have the right to update the
applicable Schedule hereunder, provided that such omission does not result in
any material disadvantage to the other Party.

            6.6 No Circumvention. Each Party agrees that, during the License
Term, neither it nor its Subsidiaries shall initiate any corporate
reorganization, merger, spinoff or restructuring that has the foreseeable effect
that Lithography Patents having an Effective Application Date after the
Effective Date, that would be Licensed Patents of such Party absent such
reorganization, merger, spinoff or restructuring, would be Owned by a Related
Company of such Party that is not a Subsidiary of such Party, unless, at the
sole election of the first Party, (a) such Related Company is obligated to grant
or extend to the other Party the licenses, immunities, and other commitments
that are set forth in this Agreement, or (b) such first Party retains sufficient
rights or is granted sufficient sublicensable rights by such Related Company to
grant or extend to the other Party the licenses, immunities, and other
commitments that are set forth in this Agreement. For purposes of this Section
6.6 "RELATED COMPANY" means, with respect to any Person, any other Person (other
than Schott Entities where such first Person is Zeiss SMT) that possesses or is
under common possession with such first Person, but only for such time as such
possession exists. For this purpose, "possession" of a Person (and the
correlative "possesses") means beneficial ownership, directly or indirectly, of
securities representing more than fifty percent (50%) of the power to elect such
other Person's board of directors or other managing authority or, in the case of
non-corporate Person, equivalent interests.

            6.7 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
NEITHER PARTY MAKES (AND EACH PARTY HEREBY EXPRESSLY DISCLAIMS), WITH RESPECT TO
THIS AGREEMENT, ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR NON-INFRINGEMENT, AND ANY WARRANTIES THAT MAY ARISE FROM
COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE.

7.    LIMITATION OF LIABILITY

      TO THE EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER PARTY UNDER ANY LEGAL THEORY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, OR ANY DAMAGES FOR LOSS OF
PROFITS, REVENUE OR BUSINESS, ARISING OUT OF ANY BREACH OF THIS

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AGREEMENT BY SUCH PARTY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES, OR FOR ANY FINES, PENALTIES, OR LEVIES ASSESSED AGAINST THE
OTHER PARTY BY ANY GOVERNMENTAL AUTHORITY.

8.    TERM AND TERMINATION

            8.1 Term of Agreement. This Agreement will be effective as of the
Effective Date, and except as expressly set forth in Section 8.2, will continue
in full force and effect until the end of the Agreement Term, after which it
will expire, subject to Sections 8.2.1 and 8.5. Except as expressly set forth in
Section 8.2, neither Party shall have the right, during the Agreement Term, to
terminate this Agreement, any of its obligations hereunder, or any of the
rights, licenses, immunities, or additional commitments granted or extended by
such Party hereunder.

            8.2 Expiration/Termination of Licenses.

                  8.2.1 Expiration of License Term. Except as otherwise set
forth in Sections 2.11.4 or 8.2.2 of this Agreement, and notwithstanding any
breach of this Agreement other than non-payment and failure to cure such
non-payment as set forth in Section 8.2.2, (a) the licenses and rights granted
in Sections 2.1, 2.2, and 2.3 to each Party and its Subsidiaries under the other
Party's Class B Patents shall terminate on the expiration of the License Term,
(b) the rights and licenses granted in Sections 2.1, 2.2, and 2.3 to each Party
and its Subsidiaries under each of the other Party's Class A Patents shall
continue until the expiration of such Class A Patent notwithstanding the
expiration of the License Term or Agreement Term, and (c) the immunities and
additional commitments under Sections 2.10, 2.12, 3 and 4 shall continue as
provided in those Sections.

                  8.2.2 Non-Payment By Zeiss SMT or ASML. If Zeiss SMT fails to
pay to Nikon any of the payment installments set forth in Section 5 on the due
dates thereof or if ASML fails to pay to Nikon pursuant to the Nikon-ASML Patent
Cross-License Agreement any of the payments set forth in Section 5.1 thereof by
the due dates thereof (the "ASML PAYMENTS"), then Nikon shall provide written
notice of such non-payment to both ASML and Zeiss SMT. If neither ASML nor Zeiss
SMT pays all delinquent amounts identified in such notice to Nikon within thirty
(30) days after Nikon's written notice of such non-payment, then Nikon shall
have the right to terminate the rights, licenses, immunities, and additional
commitments granted to Zeiss SMT and its Subsidiaries and their respective
Covered Entities, vendors and Glass Suppliers in Sections 2, 3, and 4. For
purposes of clarification, no termination of such rights, licenses, immunities,
and additional commitments shall terminate or otherwise affect the rights,
licenses, immunities, and additional commitments granted to Nikon and its
Subsidiaries, and their respective Covered Entities, vendors, and Glass
Suppliers in Sections 2, 3, and 4. Notwithstanding anything to the contrary in
this Section 8.2.2, once all payments set forth in Section 5 and all ASML
Payments have been paid to Nikon in full (regardless of whether such payments
are made by Zeiss SMT or ASML), Nikon shall have no right to terminate the
rights, licenses and immunities granted by Nikon and its Subsidiaries to

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Zeiss SMT and its Subsidiaries hereunder.

            8.3 Change of Control of Subsidiaries. If a Subsidiary of a Party
ceases to be a Subsidiary of such Party ("CHANGE OF STATUS"), (a) the licenses,
rights, immunities, and additional commitments granted to such Subsidiary and
Covered Entities, vendors, or Glass Suppliers of such Subsidiaries under
Sections 2, 3, and 4 shall immediately terminate upon the consummation of such
Change of Status, without limiting the immunity, as provided in Sections 2.10,
3.1, 3.2, 3.4, and 4.3, as applicable, of the relevant Covered Entities to which
such Covered Entities were entitled as of the date of such termination, and (b)
the licenses, rights and immunities granted in this Agreement under the Licensed
Patents of such Subsidiaries will remain in effect, in accordance with the terms
and conditions of this Agreement, with respect to such of those Licensed Patents
that have an Effective Application Date prior to the consummation of such Change
of Status, but not with regard to any Patents that have an Effective Application
Date after the consummation of such Change of Status.

            8.4 Continuing Liability. The expiration of this Agreement shall not
release either Party from any liability, obligation or agreement which has
already accrued under this Agreement at the time of such expiration. The
expiration of this Agreement shall not constitute a waiver or release of, or
otherwise be deemed to prejudice or adversely affect, any rights, remedies or
claims, whether for damages or otherwise, which a Party may have hereunder, at
law or otherwise.

            8.5 Survival. The provisions of Sections 1, 2.1 (only with respect
to Class A Patents that are Licensed Patents as provided in Section 8.2.1), 2.2
(only with respect to Class A Patents that are Licensed Patents as provided in
Section 8.2.1), 2.3 (only with respect to Class A Patents that are Licensed
Patents as provided in Section 8.2.1), 2.4 (only with respect to Class A
Patents), 2.6 (only with respect to Class A Patents), 2.7 (for the periods set
forth therein), 2.9, 2.10 (as set forth therein), 2.11, 2.12.2, 2.12.3, 3.1
(only as set forth therein), 3.2 (only as set forth therein), 3.3 (as
applicable), 3.4 (only as set forth therein), 4.1, 4.2 (only as set forth
therein), 4.3 (only as set forth therein), 5 (as applicable), 6.7, 7, 8.2, 8.3,
8.4, 8.5, 9, and 10, and any other sections of this Agreement to the extent
expressly provided herein, shall survive, to the extent applicable, the
expiration of this Agreement.

9.    ASSIGNMENT

            9.1 Sale of Lithography Business. Either Party may assign this
Agreement, together with all of its rights and obligations hereunder, to any
Person that acquires all of such Party's rights in the Lithography Patents
included within the Licensed Patents of such Party and all or substantially all
of the other assets of the business of manufacturing and selling Licensed
Products of the assigning Party or its Subsidiary, as applicable, provided,
however, that the assigning Party shall remain liable for the performance of all
of its obligations under this Agreement.

            9.2 No Other Assignment. Except as permitted under Section 9.1,
neither Party may assign, delegate, or otherwise transfer any of its rights or
obligations

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under this Agreement to any other Person without the prior written consent of
the other Party. Any purported or attempted assignment, delegation or other
transfer of any rights or obligations under this Agreement in contravention of
the foregoing sentence shall be null and void.

            9.3 Transfer of Patents. In the event of any sale, assignment,
transfer, exclusive license, or other conveyance of any ownership interest in a
Party's Licensed Patents ("TRANSFER"), such Party shall (i) ensure that the
purchaser, assignee, transferee, or exclusive licensee ("TRANSFEREE") shall be
bound by all applicable licenses, immunities, covenants, and restrictions
contained in this Agreement, (ii) require that such Transferee agree in writing
prior to any such Transfer to be bound by all licenses, immunities, covenants,
and other restrictions hereunder, and (iii) ensure that such Transfer does not
affect such Party's right and ability to perform all of its obligations under
this Agreement. In no event shall such Party be relieved or excused from any of
its obligations under this Agreement as a result of such Transfer.
Notwithstanding anything to the contrary contained in Section 10.12, each Party
shall have the right to file this Agreement, and Zeiss SMT and ASML (as provided
in Section 9.3 of the Nikon-ASML Patent Cross-License Agreement) shall have the
right to file any sublicense agreement with ASML or any summary or translation
hereof or thereof with any patent office or other Governmental Authority in
order to notify potential Transferees of the existence and terms of this
Agreement or such sublicense as it relates to any Licensed Patents proposed to
be Transferred, provided that prior to any such filing the other Party shall be
given an opportunity to propose reasonable redactions to be made to the filed
version of this Agreement or such sublicense and the Parties shall cooperate
with respect to agreeing on such redactions. Each Party shall provide all
reasonable cooperation requested by the filing Party, at the filing Party's
expense, including, without limitation, the execution, delivery and filing of
any applicable instruments, notifications, forms, affidavits and the like.
Notwithstanding the foregoing, to the extent Zeiss SMT is by operation of German
Law obligated to offer the inventor of any Patent the option to maintain such
Patent or file a subsequent Patent application claiming priority from such
Patent in his or her own name in any country in which Zeiss SMT is not
interested in pursuing such Patent, Zeiss SMT shall first request that such
inventor agree to grant Nikon the same rights under such Patent as if Zeiss SMT
were to retain its rights under such Patent. If such inventor refuses to consent
to this condition, and to the extent German Law does not allow Zeiss SMT to
require the inventor to either (i) grant Nikon the same rights under such Patent
as if Zeiss SMT were to retain its rights under such Patent, or (ii) permit
Zeiss SMT to grant to Nikon and its Subsidiaries and their respective Covered
Entities and vendors the licenses, immunities, and additional commitments set
forth in Sections 2, 3, and 4 hereof, then Zeiss SMT shall notify Nikon of the
situation, and if Nikon makes a written request to Zeiss SMT within three (3)
weeks of receipt of such notification from Zeiss SMT, Zeiss SMT shall maintain
and/or prosecute such Patent at Nikon's sole expense, as long as Nikon is
willing to bear such maintenance and prosecution costs and expenses, in which
event Zeiss SMT shall retain full control, discretion, and ownership of and
regarding such Patent, subject to all the terms and conditions of this
Agreement. If Nikon fails to make such a written request, or notifies Zeiss SMT
that it is no longer willing to bear any such maintenance and prosecution costs,
then Zeiss SMT may, to the extent it is,

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by operation of German Law, obligated to offer the inventor of any Patent the
option to maintain such Patent or file a subsequent Patent application claiming
priority from such Patent in his or her own name in any country in which Zeiss
SMT is not interested in pursuing such Patent, so offer the inventor such option
without further restrictions under this Section 9.3. Where Nikon bears
maintenance and prosecution costs and expenses pursuant to the foregoing with
respect to any Patent and Zeiss SMT derives any license fee or similar proceeds
from such Patent, Zeiss SMT shall reimburse Nikon for such maintenance and
prosecution costs and expenses out of such proceeds, but shall otherwise be
entitled to retain any excess proceeds.

            9.4 Successors and Assigns. Subject to the other provisions of this
Section 9, this Agreement shall be binding upon and shall inure to the benefit
of the Parties and their respective successors and permitted assigns.

            9.5 Divestiture Discussions. In the event that either Party wishes
to transfer a portion of the subject matter of this Agreement together with its
business relating thereto, to a Subsidiary, the other Party shall meet and
confer with the Party seeking such transfer to discuss whether such transfer can
be achieved consistent with the Parties' respective interests.

10.   MISCELLANEOUS

            10.1 Limitation. Nothing contained in this Agreement shall be
construed as:

                  10.1.1 a warranty or representation by either Party as to the
validity, enforceability or scope of any Patents; or 10.1.2 conferring upon any
Person any license, right or immunities under any Patents except the licenses,
rights and immunities expressly granted hereunder; or

                  10.1.3 a warranty or representation that any acts licensed
hereunder will be free from infringement or other violation of Patents,
copyrights, mask work rights, trade secrets or other intellectual property
rights, other than infringement of those Licensed Patents under which licenses,
rights and immunities have been expressly granted hereunder; or

                  10.1.4 an obligation of either Party or its Subsidiaries to
file or maintain any patent application, secure any Patent or maintain any
Patent in force; or

                  10.1.5 an arrangement to Sue third parties for infringement of
any Patent or other intellectual property right or conferring any right to Sue
third parties for infringement of any Patent or other intellectual property
right.

            10.2 Relationship of the Parties. In the exercise of their
respective rights, and the performance of their respective obligations
hereunder, the Parties are and

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will remain independent contractors. Nothing in this Agreement will be construed
to constitute the Parties as partners, or principal and agent for any purpose
whatsoever. Neither Party will bind, or attempt to bind, the other Party to any
contract or other obligation, and neither Party will represent to any third
party that it is authorized to act on behalf of the other Party.

            10.3 Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the State of New York, United States of America
(without application of any choice or conflicts of laws rules or principles that
would require the application of the laws of any other jurisdiction).

            10.4 Dispute Resolution. The Parties hereby agree that any
controversy, claim or dispute arising out of or relating to this Agreement or
the breach hereof shall be resolved in accordance with the terms and conditions
of the Arbitration Agreement. Except as permitted under the Arbitration
Agreement, the Parties hereby give up and waive any rights they might have to
have such disputes decided in a court or jury trial.

            10.5 Language. This Agreement is in the English language only, which
language shall be controlling in all respects, and all versions hereof in any
other language shall be for accommodation only and shall not be binding upon the
Parties. All communications and notices to be made or given pursuant to this
Agreement shall be in the English language.

            10.6 Entire Agreement; Amendment; Waiver. This Agreement (including
the Schedules hereto), the Arbitration Agreement, and the Nikon-Zeiss Settlement
and Release Agreement (collectively the "TRANSACTION AGREEMENTS") constitute the
full and entire understanding and agreement between Nikon and Zeiss SMT with
regard to the subject matter hereof, and supersede any communications,
representations, understandings and agreements (including the MOU), either oral
or written, between Nikon and Zeiss SMT prior to, but not on, the date hereof,
with respect to such subject matter. This Agreement may not be altered or
amended except by a written instrument signed by authorized legal
representatives of both Parties. Any waiver of the provisions of this Agreement
or of a Party's rights or remedies under this Agreement must be in writing to be
effective. Failure, neglect or delay by a Party to enforce the provisions of
this Agreement or its rights or remedies at any time will not be construed and
will not be deemed to be a waiver of such Party's rights under this Agreement
and will not in any way affect the validity of the whole or any part of this
Agreement or prejudice such Party's right to take subsequent action. No single
or partial exercise of any right, power or privilege granted under this
Agreement shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. Except as expressly set forth in this
Agreement, the rights and remedies provided in this Agreement are cumulative and
are not exclusive of any rights or remedies provided by law or in any other
agreement between the Parties.

            10.7 Notices and Other Communications. All notices required or
permitted under this Agreement shall refer to this Agreement and will be deemed
given:

                                       61

<PAGE>

(a) when delivered personally; (b) when sent by confirmed facsimile; or (c)
three (3) business days after deposit with an internationally recognized
commercial overnight carrier specifying next-day delivery, with written
verification of receipt. All such notices, requests, demands and other
communications shall be addressed as follows:

            If to Nikon:

                     Nikon Corporation
                     6-3, Nishi-ohi 1-chome
                     Shinagawa-ku
                     Tokyo 140-8601
                     Japan
                     Attn: General Manager, Intellectual Property Department
                     Fax: +81-3-3778-2900

            With a copy to (which shall not constitute notice):

                     Morrison & Forester LLP
                     425 Market Street
                     San Francisco, CA 94105
                     Attn: Robert Townsend
                     Fax: +1 (415) 268-7522

            If to Zeiss SMT:

                     Carl Zeiss SMT AG
                     Attn: Chief Executive Officer
                     73446 Oberkochen
                     Germany
                     Fax: +49-7364-208100

            With a copy to (which shall not constitute notice):

                     Fish & Richardson P.C.
                     Attn: Kurt L. Glitzenstein
                     225 Franklin Street
                     Boston, MA 02110
                     Fax: +1(617)542-8906

or to such other address or facsimile number as a Party may have specified to
the other Party in writing delivered in accordance with this Section 10.7.

            10.8 Expenses. Except as otherwise expressly set forth in this
Agreement, each Party will bear its own costs and expenses, including fees and
expenses of legal counsel and other representatives used or hired in connection
with the transactions described in this Agreement.

            10.9 Severability. If any provision in this Agreement is found or
held to

                                       62

<PAGE>

be invalid or unenforceable, then the meaning of such provision will
beconstrued, to the extent feasible, so as to render the provision enforceable
and still achieve the Parties' intent in entering into this Agreement, and if no
feasible interpretation would save such provision, it will be severed from the
remainder of this Agreement, which will remain in full force and effect. In such
event, the Parties and ASML will use all reasonable efforts to negotiate in good
faith a substitute, valid and enforceable provision or agreement which most
nearly effects the Parties' intent in entering into this Agreement.

            10.10 Construction. This Agreement shall be deemed to have been
drafted by both Parties and, in the event of a dispute, neither Party shall be
entitled to claim that any provision should be construed against the other Party
by reason of the fact that it was drafted by the other Party.

            10.11 Execution. This Agreement may be executed in counterparts,
each of which so executed will be deemed to be an original and such counterparts
together will constitute one and the same agreement. Execution and delivery of
this Agreement by exchange of facsimile copies bearing the facsimile signature
of a Party shall constitute a valid and binding execution and delivery of this
Agreement by such Party.

            10.12 Confidentiality of Terms. Neither Party shall (and shall
ensure that none of its agents, representatives or attorneys shall) disclose the
terms of this Agreement to any third parties, except that either Party may
disclose the existence of this Agreement to third parties, and may disclose the
terms of this Agreement (a) to the extent reasonably necessary, in confidence,
to its legal counsel and accountants, (b) to Governmental Authorities as
required by any applicable Law or the applicable rules or regulations of any
securities exchange on which any of such Party's securities are listed (in
either case, as determined by such Party upon advice of counsel), provided that
prior to any such required disclosure, the disclosing Party gives the
non-disclosing Party reasonable advance notice of such disclosure, minimizes the
scope of such disclosure (including by making redactions to documents provided
as part of such disclosure and by cooperating with the non-disclosing Party to
obtain protective orders) to the extent permitted under applicable Law, and
otherwise coordinates with the non-disclosing Party with respect to the scope of
such disclosure, (c) in connection with the enforcement of this Agreement or any
other Transaction Agreement, or (d) as permitted under Section 9.3.
Notwithstanding the foregoing, neither Party will be prohibited from disclosing,
in their entirety, the terms of any of Sections 2.11, 3.1, 3.2, 3.4, 4.2 or 4.3,
and the obligations of the Parties under this Section 10.12 shall not apply to
any terms of this Agreement that have been disclosed by either Party as
permitted by subclauses (a)-(d) above.

            10.13 Publicity. No Party shall (and shall ensure that none of its
agents, representatives or attorneys shall) originate any publicity, news
release, or other public announcement, written or oral, relating to this
Agreement without the prior written approval of each other Party except as
otherwise required by Law. Such approval shall not be unreasonably withheld.
Notwithstanding the foregoing, nothing in this Section 10.13 shall prevent or
prohibit, or be construed to require approval by any Party for, (a) any
disclosure of information or matters relating to this Agreement to a Party's
customers, resellers, or suppliers in the ordinary course of business where,
with respect to

                                       63

<PAGE>

information that constitutes confidential information of another Party under one
or more of the Transaction Agreements, such disclosure is subject to the terms
of a non-disclosure agreement in customary form, or (b) any publicity, news
release or other public announcement of information that (i) is or becomes
available to the general public other than in violation of Section 10.12 or
obligations of confidentiality under any other Transaction Agreement, or (ii)
otherwise does not constitute confidential information of another Party under
the Transaction Agreements.

            10.14 Section 365(n). Each Party, as licensor, acknowledges and
agrees that the licenses, immunities and rights granted under this Agreement to
the other Party and its Subsidiaries by such licensor are licenses, immunities
and rights as to "intellectual property" within the definition of Section
101(35A) of the United States Bankruptcy Code (the "CODE"). The Parties hereto
further agree that, in the event of the commencement of a bankruptcy proceeding
by or against the licensor Party under the Code, the licensee Party and its
Subsidiaries shall be entitled, at such licensee Party's option, to retain all
their licenses, immunities and rights under this Agreement, including without
limitation the licenses and immunities granted under Sections 2.1 and 2.3,
respectively, pursuant to Code Section 365(n). To the extent that United States
law is held by a court of competent jurisdiction not to apply with respect to a
non-US bankruptcy proceeding of a Party, each Party shall take all actions that
are reasonably necessary to effectuate the intent of the foregoing provisions in
the country in which it and each Subsidiary holding any rights with respect to
its Licensed Patents is incorporated or conducts its business, subject to any
mandatory provisions of applicable law. Without limiting the generality of the
foregoing, Nikon agrees to take all reasonable measures necessary to ensure the
survival of the rights, immunities, and licenses granted to Zeiss SMT and its
Subsidiaries in the event that Nikon or any of its Subsidiaries is subject to a
bankruptcy proceeding under the laws of Japan, and Zeiss SMT agrees to take all
reasonable measures necessary to ensure the survival of the rights, immunities,
and licenses granted to Nikon and its Subsidiaries in the event that Zeiss SMT
or any of its Subsidiaries is subject to a bankruptcy proceeding under the laws
of Germany, in each case in accordance with applicable law.

            10.15 Further Assurances. Each Party agrees (a) to furnish upon
request to the other Party such further information, (b) to execute and deliver
to the other Party such other documents, and (c) to do such other acts and
things, in each case as the Party may reasonably request for the purpose of
carrying out the purposes, terms and conditions of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                       64

<PAGE>

      IN WITNESS WHEREOF, the Parties and Carl Zeiss have caused this Agreement
to be executed and delivered by their respective duly authorized representatives
as of the date first above written.

NIKON CORPORATION                           CARL ZEISS SMT AG

By: ____________________________            By: ___________________________
Name: _________________________             Name: _________________________
Title: __________________________           Title: ________________________

                                            By: ___________________________
                                            Name: _________________________
                                            Title: ________________________

                                            For purposes of Sections 2.1,2.8 and
                                            10.4 only,

                                            CARL ZEISS AG

                                            By: ___________________________
                                            Name: _________________________
                                            Title: ________________________

                                            By: ___________________________
                                            Name: _________________________
                                            Title: ________________________

                                       65

<PAGE>

                                   SCHEDULE A
                              EXCLUDED CLAIMS LIST

To be added pursuant to Section 2.5.1.

                                       66

<PAGE>

                                  SCHEDULE B-1
               ZEISS SMT DISCLOSURES PURSUANT TO SECTION 6.3.1(a)

The following table contains only one counterpart per Patent family. All Patents
that are based on the same priority document as the Patents listed in the
following table shall be deemed part of Schedule B-1 without being expressly
listed in the following table.

<TABLE>
<CAPTION>
Application No.     Country    Publication No.    Patent No.
- ---------------     -------    ---------------    ----------
<S>                 <C>        <C>                <C>
***
</TABLE>

                                       67

<PAGE>

                                  SCHEDULE B-2
               ZEISS SMT DISCLOSURES PURSUANT TO SECTION 6.3.1(b)

***

                                       68

<PAGE>

                                  SCHEDULE B-3
                              SCHEDULE B-3 PATENTS

The following table contains only one counterpart per Patent family. All Patents
that are based on the same priority document as the Patents listed in the
following table shall be deemed part of Schedule B-3 without being expressly
listed in the following table.

<TABLE>
<CAPTION>
Country          Application No.        Publication No.
- -------          ---------------        ---------------
<S>              <C>                    <C>
***
</TABLE>

                                       69

<PAGE>

                                  SCHEDULE C-1
                 NIKON DISCLOSURES PURSUANT TO SECTION 6.3.2(a)

All Patents that are based on the same priority document as the Patents listed
in the following table shall be deemed part of Schedule C-1 without being
expressly listed in the following table.

<TABLE>
<CAPTION>
Country      Application      Date of    Laid open        Date Laid       Patent
 Name           number        filing       number            Open         number      Counterpart Patents
- -----        -----------      -------    ---------        ---------       ------      -------------------
<S>          <C>              <C>        <C>              <C>             <C>         <C>
***
</TABLE>

                                       70

<PAGE>

                                  SCHEDULE C-2
                 NIKON DISCLOSURES PURSUANT TO SECTION 6.3.2(b)

***

                                       71

<PAGE>

                                   SCHEDULE D
                               SCHEDULE D PATENTS

The three Patent applications having international publication numbers:

***

***

***

                                       72

<PAGE>

                                   SCHEDULE E
                            DESIGNATED NIKON PATENTS

The three Patent applications having international publication numbers:

***

***

***

                                       73

<PAGE>

                                   SCHEDULE F
                                SPECIFIED ENTITY

***, a corporation organized under the laws of ***.

                                       74

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.12
<SEQUENCE>5
<FILENAME>u48286exv4w12.txt
<DESCRIPTION>EXHIBIT 4.12
<TEXT>
<PAGE>

                                                                    EXHIBIT 4.12

DEED OF SETTLEMENT

THE UNDERSIGNED:

1.    ASML HOLDING N.V., a public company incorporated under the laws of the
      Netherlands, established and having its principle place of business at
      Veldhoven in the Netherlands, represented by Mr. H. Bodt as Chairman of
      the Supervisory Board, herein after referred to as: "ASML";

and

2.    MR. S. MCINTOSH, residing at (5644 RB) Eindhoven at Aalsterweg 241 in the
      Netherlands, herein after referred to as "Mr. McIntosh";

HAVE AGREED AS FOLLOWS:

1.    Mr. McIntosh resigns from his position as a member of the Board of
      Management of ASML per 3 January 2005 (the "Termination Date") and Mr.
      McIntosh resigns from all his other positions with ASML and affiliates on
      the Termination Date and agrees to cooperate with any steps to be taken to
      effect these resignations in time.

2.    The employment agreement between ASML and Mr. McIntosh dated 10 October
      2000 (the "Employment Agreement") terminates by mutual consent per the
      Termination Date.

3.    Immediately upon signing this agreement a press release shall be issued in
      accordance with the draft attached hereto as Appendix I [press release to
      be prepared by Communication Department in consultation with ASML and Mr.
      McIntosh].

4.    Until the Termination Date, Mr. McIntosh will receive his salary and
      benefits. The bonus over 2004, if any, shall be dealt with in accordance
      with the existing plan. The parties agree that on the Termination Date Mr.
      McIntosh will have used all his remaining outstanding holidays; therefore
      no compensation will be paid to him in this respect.

<PAGE>

5.    Within two weeks after the Termination Date, ASML will pay as severance to
      Mr. McIntosh an amount of (Euro)589,845 gross. This amount will be paid
      by ASML to Mr. McIntosh in a way to be indicated by Mr. McIntosh, provided
      that this way of payment is allowed by the relevant tax authorities and
      provided that this does not result in any risks or extra costs for ASML
      and the latter can be substantiated by Mr. McIntosh by means of written
      documentation if requested by ASML.

6.    There will be no further grants of stock options. Mr. McIntosh shall be
      allowed to vesting and exercise rights regarding stock options currently
      in his possession in accordance with the relevant stock option plan(s).

7.    Mr. McIntosh shall be entitled to pension rights in accordance with Dutch
      law and the contractual arrangements, whereby for the purpose of
      calculating the pension rights the Employment Agreement is terminated per
      the Termination Date.

8.    ASML shall pay for the relocation of Mr. McIntosh and his spouse to the
      United Kingdom during the spring of 2005, in accordance with the
      prevailing company policy.

9.    Both before and after the Termination Date, Mr. McIntosh shall keep
      confidential all data and information regarding ASML and its activities
      and affiliated companies, insofar as these data or information are of a
      confidential nature or have been qualified by ASML as strictly
      confidential. Article 11(1) of the Employment Agreement is and remains
      applicable.

10.   All belongings, including documents, other information carriers, mobile
      phone, fax, keys, entrance cards and business credit cards of ASML and/or
      its affiliated companies that Mr. McIntosh has or may have in his
      possession, have to be returned no later than on the Termination Date (and
      will, until that date, be used in accordance with prevailing company
      policies). Article 11(2) of the Employment Agreement is and remains
      applicable.

11.   Until 1 April 2005 Mr. McIntosh is entitled to the use of a company car in
      accordance with the existing arrangement.

12.   Until 1 April 2005 Mr. McIntosh can participate in ASML's collective
      health insurance in accordance with the relevant insurance policy and
      existing conditions.

                                                                               2

<PAGE>

13.   Mr. McIntosh is entitled to use the services of ASML's tax advisor [ ] in
      relation to the filing of his tax returns in both the Netherlands and the
      United Kingdom at the expense of ASML up to and including the tax year
      2005.

14.   During the remainder of the Employment Agreement and after the Termination
      Date parties shall in the future conduct themselves with respect to each
      other within the confines of normal good behaviour and shall not refer to
      the other party in the future vis-a-vis third parties in a negative way.
      Neither party shall co-operate in any publication any/or publicity about
      the other party without the written consent of the other party. On the
      side of Mr. McIntosh, this obligation relates to ASML and affiliated
      companies.

15.   From the Termination Date until 3 January 2007, Mr. McIntosh shall remain
      subject to the non competition provisions contained in the articles 13 and
      14 of the Employment Agreement.

16.   Mr. McIntosh accepts that the terms and conditions referred to in this
      agreement are in full and final settlement of all claims or other rights
      of action, whatsoever and howsoever arising, which Mr. McIntosh has now or
      may have against ASML or any affiliated company or any employee, agent of
      officer of ASML or any affiliated company, in connection with the
      employment of Mr. McIntosh and the termination thereof. This release does
      not apply, however, to the discharge of Mr. McIntosh as a member of the
      Board of Management of ASML and affiliated companies as the case may be,
      which discharge shall follow from the decisions of the respective
      shareholders meetings with respect to the management of ASML and
      affiliated companies as per Dutch company law.

17.   This agreement is governed by Dutch law.

Signed in twofold on 12 October 2004.

On behalf of ASML Holding N.V.:

By:   /s/ Mr. H.Bodt                                 By: /s/ Mr. S. McIntosh
Name: Mr. H. Bodt                                        Mr. S. McIntosh
      Chairman of the Supervisory Board

                                                                               3

<PAGE>

                                    ADDENDUM

Mr.K.McIntosh
Aalsterweg 241
5644 RB Eindhoven

January 26, 2005

Dear Stuart,

Referring to the Deed of Settlement dated 12 October 2004 ("Deed of
Settlement"), which states that the employment agreement dated 10 October 2000
("Employment Agreement") will terminate per 3 January 2005, we hereby confirm
that the Employment Agreement will continue until 30 April 2005, without
remuneration to be paid over the period from 3 January 2005 until 30 April 2005.

Contrary to what is stated in the Deed of Settlement, you will also be entitled
to the use of a company car in accordance with the existing arrangement as well
as to participation in ASML's collective health insurance in accordance with the
relevant insurance policy and existing conditions until 30 April 2005.

On behalf of ASML Holding N.V.                    For approval:

By:   /s/ P.T.F.M. Wennink                        By:   /s/ Mr. H. Bodt
Name: P.T.F.M. Wennink                            Name: Mr. H. Bodt
      Executive Vice President and CFO            Chairman of the Supervisory
                                                  Board

                                                                               4

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8.1
<SEQUENCE>6
<FILENAME>u48286exv8w1.htm
<DESCRIPTION>EXHIBIT 8.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 8.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><U><B>Exhibit&nbsp;8.1</B></U>



<P align="left" style="font-size: 10pt"><U><B>List of material subsidiaries</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Legal Entity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Country of Incorporation</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>100% owned subsidiaries of ASML Holding N.V.:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Netherlands B.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Netherlands (Veldhoven)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Finance B.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Netherlands (Veldhoven)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML MaskTools B.V.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Netherlands (Veldhoven)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Germany GmbH
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Germany (Dresden)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML France S.a.r.l.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">France (Montbonnot)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML (UK)&nbsp;Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">UK (Paisley (Scotland))</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Israel (2001)&nbsp;Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Israel (Ramat-Gan)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Ireland Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ireland (Dublin)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Italy S.r.l.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Italy (Avezzano)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Hong Kong Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Hong Kong SAR</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Singapore Pte. Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Singapore</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Korea Co. Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Korea (Kyunggi-Do)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Japan Co. Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Japan (Kawasaki-shi, Kanagawa-Ken)</TD>
</TR>
<TR valign="bottom">

    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Shanghai International Trading Co. Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">China/ Shanghai Free Trade Zone</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML (Tianjin) Co. Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">China (Tianjin)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Taiwan Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Republic of China (Hsinchu)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Equipment Malaysia Sdn. Bhd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Malaysia (Penang)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML US, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US (Delaware)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>100% owned subsidiaries of ASML US, Inc.:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Capital US, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US (Delaware)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML MaskTools Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">US (Delaware)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>100% owned subsidiaries of ASML Hong Kong Ltd.:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ASML Macau Commercial Offshore Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Macau</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="right" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>7
<FILENAME>u48286exv12w1.htm
<DESCRIPTION>EXHIBIT 12.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 12.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt"><U><B>Exhibit&nbsp;12.1</B></U>



<P align="left" style="font-size: 10pt"><U><B>Certification of the Chief Executive Officer</B></U>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">I, Eric Meurice, certify that:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 20-F of ASML Holding N.V.;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any
untrue statement of a material fact
or omit to state a material fact necessary to make the statement made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.&nbsp;&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the company as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.&nbsp;&nbsp;</TD>
    <TD>The company&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the company and have:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)&nbsp;&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the company, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)&nbsp;&nbsp;</TD>
    <TD>Evaluated the effectiveness of the company&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c)&nbsp;&nbsp;</TD>
    <TD>Disclosed in this report any change in the company&#146;s internal control over financial
reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the company&#146;s internal control over
financial reporting; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.&nbsp;&nbsp;</TD>
    <TD>The company&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the company&#146;s auditors and the
audit committee of the company&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)&nbsp;&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the company&#146;s ability to record, process, summarize and report financial information; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)&nbsp;&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the company&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: January&nbsp;28, 2005



<P align="left" style="font-size: 10pt">/s/ Eric Meurice,<BR>
Chief Executive Officer


<P align="right" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B><U>Certification of the
Chief Financial Officer</U></B>



<P align="left" style="font-size: 10pt">I, Peter T.F.M. Wennink, certify that:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 20-F of ASML Holding N.V.;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any
untrue statement of a material fact
or omit to state a material fact necessary to make the statement made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.&nbsp;&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the company as of, and for, the periods presented in this report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.&nbsp;&nbsp;</TD>
    <TD>The company&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the company and have:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)&nbsp;&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under our supervision, to ensure that material information
relating to the company, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being
prepared;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)&nbsp;&nbsp;</TD>
    <TD>Evaluated the effectiveness of the company&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such
evaluation; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c)&nbsp;&nbsp;</TD>
    <TD>Disclosed in this report any change in the company&#146;s internal control over financial
reporting that occurred during the period covered by the annual report that has materially
affected, or is reasonably likely to materially affect, the company&#146;s internal control over
financial reporting; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.&nbsp;&nbsp;</TD>
    <TD>The company&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the company&#146;s auditors and the
audit committee of the company&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)&nbsp;&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the company&#146;s ability to record, process, summarize and report financial information; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)&nbsp;&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees who
have a significant role in the company&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: January&nbsp;28, 2005



<P align="left" style="font-size: 10pt">/s/ Peter T.F.M. Wennink<BR>
Chief Financial Officer


<P align="right" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>8
<FILENAME>u48286exv13w1.htm
<DESCRIPTION>EXHIBIT 13.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 13.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><U><B>Exhibit&nbsp;13.1</B></U>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U><B>Certification of CEO and CFO Pursuant to 18 U.S.C. Section&nbsp;1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002</B></U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">In connection with the Annual Report on Form 20-F of ASML Holding N.V. (the &#147;Company&#148;) for the
fiscal year ended December&nbsp;31, 2004 as filed with the Securities and Exchange Commission on the
date hereof (the &#147;Report&#148;), Eric Meurice, as Chief Executive Officer of the Company, and Peter
T.F.M. Wennink, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18
U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, that, to
the best of his knowledge:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(1)&nbsp;&nbsp;&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)&nbsp;&nbsp;&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">/s/&nbsp;&nbsp;Eric Meurice<BR>
Name: Eric Meurice<BR>
Title: Chief Executive Officer<BR>
Date: January&nbsp;28, 2005


<P align="left" style="font-size: 10pt">/s/&nbsp;&nbsp;Peter T.F.M. Wennink<BR>
Name: Peter T.F.M. Wennink<BR>
Title: Chief Financial Officer<BR>
Date: January&nbsp;28, 2005


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A signed original of this written statement required by Section&nbsp;906 of the Sarbanes-Oxley Act of
2002 has been provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">This certification accompanies the Report pursuant to section 906 of the Sarbanes-Oxley Act of 2002
and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by
the Company for purposes of section 18 of the Securities Exchange Act of 1934.


<P align="right" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-15.1
<SEQUENCE>9
<FILENAME>u48286exv15w1.htm
<DESCRIPTION>EXHIBIT 15.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EXHIBIT 15.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><U><B>Exhibit&nbsp;15.1</B></U>



<P align="left" style="font-size: 10pt">Deloitte Accountants B.V.<BR>
Flight Forum 1<BR>
5657 DA Eindhoven<BR>
P.O. Box 782<BR>
5600 AT Eindhoven<BR>
The Netherlands


<P align="left" style="font-size: 10pt">Tel: &#043;31 (40)&nbsp;2345000<BR>
Fax: &#043;31 (40)&nbsp;2345407<BR>
www.deloitte.nl


<P align="left" style="font-size: 10pt">ASML Holding N.V.<BR>
De Run 6501<BR>
5504 DR Veldhoven

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">From</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">January&nbsp;28, 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J.G.C.M. Bun&#233;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><U>Consent of independent auditors</U>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We consent to the incorporation by reference, in the following Registration Statements on Form S-8
(Nos. 333-13332, No.&nbsp;333-109154, 333-105600, 333-116337), of ASML Holding N.V. (the &#147;Company&#148;) and
in the related Prospectuses, of our report dated January&nbsp;28, 2005 included in the Financial
Statements on Form 20-F of the Company for the year ended December&nbsp;31, 2004.


<P align="left" style="font-size: 10pt">/s/ Deloitte Accountants B.V.




<P align="right" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>

</TEXT>
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