Exhibit 99.1

Contacts:	Jeffrey C. Benzing	Robin Yim
	Chief Administrative Officer	Investor Relations
	Novellus Systems, Inc.	Novellus Systems, Inc.
	Phone: (408) 943-9700	Phone: (408) 943-9700

FOR IMMEDIATE RELEASE

NOVELLUS SYSTEMS REPORTS FIRST QUARTER RESULTS

SAN JOSE, Calif., April 22, 2009—Novellus Systems, Inc. (NASDAQ: NVLS) today reported operating results for its first quarter ended March 28, 2009. Net sales for the first quarter of 2009 were $98.9 million, down $89.5 million or 47.5 percent from fourth quarter 2008 net sales of $188.5 million, and down $215.8 million or 68.6 percent from first quarter 2008 net sales of $314.7 million. The net loss for the first quarter of 2009 was $66.4 million, or $0.69 per diluted share, $63.9 million less than fourth quarter 2008 net loss of $130.3 million, or $1.36 per diluted share, and down $81.9 million from first quarter 2008 net income of $15.5 million, or $0.15 per diluted share.

First quarter 2009 results of operations include a $19.4 million charge as a result of a recent California tax law change. We incurred other charges of $2.0 million primarily in connection with our actions, announced in the fourth quarter of 2008, to align our business with the current economic environment. First quarter 2009 net loss without those items was $45.5 million, or $0.47 per diluted share. Excluding certain charges and benefits, fourth quarter 2008 net loss was $20.0 million, or $0.21 per diluted share, and first quarter 2008 net income was $16.0 million, or $0.16 per diluted share. A reconciliation of pro forma operating results to U.S. generally accepted accounting principles (“GAAP”) is included below.

Bookings in the first quarter of 2009 were $77.8 million, down $4.9 million or 5.9 percent from fourth quarter 2008 bookings of $82.7 million. Bookings were net of $10.6 million in backlog adjustments in the first quarter of 2009 compared to adjustments of $44.9 million in the fourth quarter of 2008. First quarter 2009 shipments of $92.1 million were down by $83.5 million or 47.6 percent from $175.6 million reported for the fourth quarter of 2008. Deferred revenue at the end of the first quarter of 2009 was $40.2 million, a decrease of $16.1 million or 28.6 percent from $56.3 million at the end of the fourth quarter of 2008.

Cash, cash equivalents, and short-term investments as of March 28, 2009 were $497.7 million, an increase of $26.8 million or 5.7 percent from the fourth quarter 2008 ending balance of $470.9 million. Long-term investments and restricted cash and cash equivalents as of March 28, 2009 were $204.4 million, a decrease of $7.2 million or 3.4 percent from the fourth quarter 2008 ending balance of $211.6 million.

Richard S. Hill, Chairman and Chief Executive Officer said, “The economic environment continues to be challenging and we remain disciplined and focused on cash flow and cost containment. We are cautiously optimistic that our customers’ order activity levels have stabilized and are beginning to rebound, although still at relatively low levels compared to our expectations.”

Management uses non-GAAP measures to evaluate operating performance. The presentation of net income (loss) excluding certain charges and benefits and the discussion of revenue on a shipments basis are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. We present net income (loss) on a pro forma basis, excluding certain charges and benefits, because we believe this helps both management and investors to assess the operating performance of our business by comparing it to prior periods on a more consistent basis. A reconciliation between our GAAP and non-GAAP results is provided below. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statements regarding (i) our goal to remain disciplined and focused on cash flow and cost containment; (ii) our belief that our customers’ order activity levels have stabilized and are beginning to rebound, although still at relatively low levels; and (iii) other matters discussed in this news release that are not purely historical data. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contemplated by such statements. These risks and uncertainties include, but are not limited to (i) our inability to sufficiently reduce our cost structure; (ii) our inability to prevent unexpected increases in costs associated with manufacturing our products; (iii) our inability to accurately predict our customers’ capital spending, including any further reductions in capital spending, which could have a material adverse effect on the industry’s demand for semiconductor processing equipment; and (iv) other risks indicated in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2008, our Current Reports on Form 8-K, and amendments to such reports. Forward-looking statements are made and based on information available to us on the date of this press release. We do not assume, and expressly disclaim, any obligation to update this information.

About Novellus:

Novellus Systems, Inc. (NASDAQ: NVLS) is a leading provider of advanced process equipment for the global semiconductor industry. The Company’s products deliver value to customers by providing innovative technology backed by trusted productivity. An S&P 500 company, Novellus is headquartered in San Jose, CA with subsidiary offices across the globe. For more information please visit www.novellus.com.

NOVELLUS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended
(In thousands, except per share amounts) (Unaudited)	March 28, 2009			December 31, 2008			March 29, 2008
Net sales	$	98,913		$	188,453		$	314,713
Cost of sales		73,175			119,936			169,773
Gross profit		25,738			68,517			144,940
%		26.0	%		36.4	%		46.1	%
Selling, general and administrative		43,102			52,061			60,329
Research and development		36,015			50,856			57,340
Impairment of goodwill		—			99,522			—
Total operating expenses		79,117			202,439			117,669
%		80.0	%		107.4	%		37.4	%
Income (loss) from operations		(53,379	)		(133,922	)		27,271
%		-54.0	%		-71.1	%		8.7	%
Other income (expense), net		1,296			(4,160	)		1,109
Income (loss) before income taxes		(52,083	)		(138,082	)		28,380
Provision for (benefit from) income taxes		14,309			(7,831	)		12,851
Net income (loss)	$	(66,392	)	$	(130,251	)	$	15,529
Net income (loss) per share:
Basic	$	(0.69	)	$	(1.36	)	$	0.15
Diluted	$	(0.69	)	$	(1.36	)	$	0.15
Shares used in basic per share calculation		96,193			96,016			100,683
Shares used in diluted per share calculation		96,193			96,016			101,375

NOVELLUS SYSTEMS, INC.

RECONCILIATION OF NET INCOME (LOSS),

EXCLUDING CERTAIN CHARGES AND BENEFITS (1)

	Three Months Ended
(In thousands, except per share amounts) (Unaudited)	March 28, 2009			December 31, 2008			March 29, 2008
Net income (loss) excluding certain (charges) benefits (2):	$	(45,515	)	$	(19,986	)	$	16,035
Impairment of goodwill		—			(99,522	)		—
Other-than-temporary impairment of auction-rate securities		—			(3,491	)		—
Reductions in workforce		(1,731	)		(6,947	)		(618	)
Impairment of inventory and evaluation systems		—			(2,628	)		—
Write down of certain research and development assets		—			(1,534	)		—
Restructuring and other charges		(313	)		(1,683	)		—
Reversal of stock-based compensation expense		—			545			—
Total (charges) benefits		(2,044	)		(115,260	)		(618	)
Tax effect of the above (charges) benefits		602			4,995			112
Charge due to California tax law change		(19,435	)		—			—
Net income (loss)	$	(66,392	)	$	(130,251	)	$	15,529
Net income (loss) per diluted share excluding certain (charges) benefits:	$	(0.47	)	$	(0.21	)	$	0.16
Impairment of goodwill		—			(1.04	)		—
Other-than-temporary impairment of auction-rate securities		—			(0.04	)		—
Reductions in workforce		(0.02	)		(0.07	)		(0.01	)
Impairment of inventory and evaluation systems		—			(0.03	)		—
Write down of certain research and development assets		—			(0.01	)		—
Restructuring and other charges		(0.01	)		(0.02	)		—
Reversal of stock-based compensation expense		—			0.01			—
Tax effect of the above (charges) benefits		0.01			0.05			0.00
Charge due to California tax law change		(0.20	)		—			—
Net income (loss) per diluted share	$	(0.69	)	$	(1.36	)	$	0.15

(1) The reconciliation of net income (loss), excluding certain charges and benefits is intended to present our operating results, excluding certain charges and benefits. The reconciliation of net income (loss) is not in accordance with or an alternative for GAAP and may be different from similar measures presented by other companies.

(2) For the three months ended March 28, 2009, there are charges of $0.1 million in cost of sales, $1.8 million in selling, general and administrative, $0.1 million in research and development and $19.4 million in the provision for (benefit from) income taxes.

For the three months ended December 31, 2008, there are net charges of $4.0 million in cost of sales, $4.4 million in selling, general and administrative, $3.8 million in research and development, $99.5 million in impairment of goodwill and $3.5 million in other income (expense), net.

For the three months ended March 29, 2008, there are charges of $0.1 million in selling, general and administrative and $0.5 million in research and development.

NOVELLUS SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)	March 28 2009		December 31 2008
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	497,722	$	470,888
Accounts receivable, net		72,327		144,330
Inventories		193,432		213,305
Restricted cash and cash equivalents		112,724		116,819
Deferred taxes and other current assets		84,114		97,260
Total current assets		960,319		1,042,602
Property and equipment, net		261,218		271,866
Non-current restricted cash and cash equivalents		3,075		2,883
Long-term investments		88,584		91,873
Goodwill		125,474		126,073
Intangible and other assets		86,172		102,230
Total assets	$	1,524,842	$	1,637,527
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	134,981	$	177,531
Deferred profit		8,085		14,784
Current debt obligations		110,497		112,907
Total current liabilities		253,563		305,222
Long-term income taxes payable		29,418		29,778
Other liabilities		49,949		55,745
Total liabilities		332,930		390,745
Shareholders’ equity:
Common stock		1,169,117		1,158,637
Retained earnings and accumulated other comprehensive loss		22,795		88,145
Total shareholders’ equity		1,191,912		1,246,782
Total liabilities and shareholders’ equity	$	1,524,842	$	1,637,527