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

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

"Along with these intended transactions, we reiterate ASML's commitment to return excess cash to the shareholders and reduce the number of shares outstanding," said Peter Wennink, executive vice president and Chief Financial Officer, ASML.
The proposed transactions will become effective subject to prevailing market conditions and liquidity.