ASML - Summary U.S. GAAP Consolidated Statements of Operations¹

	Three months ended,						Twelve months ended,
	Dec 31, 2004			Dec 31, 2005			Dec 31, 2004			Dec 31, 2005
(Amounts in thousands EUR except per share data)
Net system sales		709,839			456,016			2,174,908			2,227,678
Net service sales		75,323			91,853			290,469			301,289
Net sales		785,162			547,869			2,465,377			2,528,967
Cost of sales		477,326			343,724			1,559,738			1,554,772
Gross profit on sales		307,836			204,145			905,639			974,195
Research and development costs		81,232			88,087			352,920	2		347,901
Research and development credits		(6,413	)		(5,831	)		(21,961	)		(24,027	)
Selling, general and administrative expenses		52,116			47,285			201,629			201,204
Restructuring expenses		-			-			(5,862	)		-
Total expenses		126,935			129,541			526,726			525,078
Operating income		180,901			74,604			378,913			449,117
Interest expense, net		(4,565	)		(1,783	)		(16,073	)		(14,094	)
Income before income taxes		176,336			72,821			362,840			435,023
Provision for income taxes		(67,699	)		(21,200	)		(127,380	)		(123,559	)
Net income		108,637			51,621			235,460	2		311,464
Basic net income per ordinary share		0.22			0.11			0.49	2		0.64
Diluted net income per ordinary share		0.21			0.11	3		0.49	2,3		0.63	4
Number of ordinary shares used in computing per share amounts (in thousands):
Basic		483,633			484,532			483,380			484,103
Diluted		541,564			487,253	3		484,661	3		543,297	4

1.) Except for statement of operations, balance sheet, and cash flow data as of December 31, 2004, all figures are unaudited.

2.) ASML, Nikon Corporation and Carl Zeiss SMT AG have agreed to a comprehensive settlement of legal proceedings and cross-license of patents related to lithography equipment. This agreement had the following effects on ASML’s results for the twelve months ended December 31, 2004:

- an increase of EUR 48.8 million in our Research and Development costs and consequently a decrease in Operating income from continuing operations.

- a decrease of EUR 33.1 million in Net income or EUR 0.07 per ordinary share.

3.) The calculation of the diluted net income per ordinary shares in this period does not assume conversion of ASML’s outstanding Convertible Subordinated Notes, as such conversions would have an anti-dilutive effect.

4.) This calculation of diluted net income per ordinary share assumes conversion of ASML’s 5.50 percent Subordinated Notes due 2010 and ASML’s 5.75 percent Subordinated Notes due 2006, as such conversions would have a dilutive effect (57,388(000) weighted average equivalent number of ordinary shares).

ASML - Ratios and Other Data¹

	Three months ended,				Twelve months ended,
	Dec 31, 2004		Dec 31, 2005		Dec 31, 2004		Dec 31, 2005
Gross profit on sales as a % of net sales		39.2		37.3		36.7		38.5
Operating income as a % of net sales		23.0		13.6		15.4		17.8
Net income as a % of net sales		13.8		9.4		9.6		12.3
Shareholders’ equity as a % of total assets		42.9		45.6		42.9		45.6
Income taxes as a % of income before income taxes		38.4		29.1		35.1		28.4
Sales of new systems (units)		62		34		216		156
Sales of used systems (units)		19		13		66		40
Sales of systems total (units)		81		47		282		196
Backlog new systems (units)		119		86		119		86
Backlog used systems (units)		12		9		12		9
Backlog systems total (units)		131		95		131		95
Net bookings new systems (units)		19		43		232		124
Net bookings used systems (units)		10		12		57		36
Net bookings total (units)		29		55		289		160
Number of employees		5,071		5,055		5,071		5,055

ASML - Summary U.S. GAAP Consolidated Balance Sheets¹

	Dec 31,		March 27,		June 26,		Sep 25,		Dec 31,
	2004		2005		2005		2005		2005
(Amounts in thousands EUR)
ASSETS
Cash and cash equivalents		1,228,130		1,319,651		1,544,078		1,699,763		1,904,609
Accounts receivable, net		503,153		483,898		485,352		403,489		302,572
Inventories, net		717,688		728,378		695,330		653,098		777,200
Other current assets		230,346		223,768		211,583		210,705		221,438
Total current assets		2,679,317		2,755,695		2,936,343		2,967,055		3,205,819
Deferred tax asset		201,100		210,818		206,641		195,969		206,884
Other assets		27,840		41,267		40,907		45,831		39,796
Intangible assets		31,818		29,772		27,726		25,680		24,943
Property, plant and equipment		303,691		310,316		306,919		292,799		278,581
Total assets		3,243,766		3,347,868		3,518,536		3,527,334		3,756,023
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities		813,141		765,668		776,786		765,464		1,419,983	5
Convertible subordinated bonds		802,810		825,041		858,298		855,857		380,238	5
Long term debt and deferred liabilities		236,213		274,498		292,942		269,246		243,965
Shareholders’ equity		1,391,602		1,482,661		1,590,510		1,636,767		1,711,837
Total liabilities and Shareholders’ equity		3,243,766		3,347,868		3,518,536		3,527,334		3,756,023

5.) Current liabilities include as of December 31, 2005 USD 575 million principal amount of ASML’s 5.75 percent Convertible Subordinated Notes due October 15, 2006. In previous period ends, this was presented under convertible subordinated bonds.

ASML - Summary U.S. GAAP Consolidated Statements of Cash Flows¹

	Three months ended,						Twelve months ended,
	Dec 31, 2004			Dec 31, 2005			Dec 31, 2004			Dec 31, 2005
(Amounts in thousands EUR)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		108,637			51,621			235,460			311,464
Depreciation and amortization		20,774			29,657			93,144			98,881
Change in tax assets and liabilities		64,522			1,445			115,538			97,802
Change in assets and liabilities		(241,944	)		126,794			(192,875	)		203,346
Net cash provided by operating activities		(48,011	)		209,517			251,267			711,493
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(28,607	)		(24,012	)		(75,535	)		(74,038	)
Disposals		1,610			8,794			15,137			13,235
Net cash used in investing activities		(26,997	)		(15,218	)		(60,398	)		(60,803	)
Net cash provided by operating and
investing activities		(75,008	)		194,299			190,869			650,690
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption and/or repayment of loans		(331	)		(307	)		(1,159	)		(12,949	)
Proceeds from share issuance		1,077			5,530			20,030			15,828
Net cash provided by financing activities		746			5,223			18,871			2,879
Net cash flow		(74,262	)		199,522			209,740			653,569
Effect of changes in exchange rates on cash		(13,366	)		5,324			(9,416	)		22,910
Net increase in cash and cash equivalents		(87,628	)		204,846			200,324			676,479

ASML - Quarterly Summary U.S. GAAP Consolidated Statements of Operations¹

	Three months ended,
	Dec 31,			March 27,			June 26,			Sep 25,			Dec 31,
	2004			2005			2005			2005			2005
(Amounts in millions EUR)
Net system sales		709.8			632.1			680.6			459.0			456.0
Net service sales		75.3			52.6			82.7			74.2			91.8
Net sales		785.1			684.7			763.3			533.2			547.8
Cost of sales		477.3			410.6			464.6			336.0			343.7
Gross profit on sales		307.8			274.1			298.7			197.2			204.1
Research and development costs, net of credits		74.8			79.4			82.2			80.0			82.2
Selling, general and administrative expenses		52.1			50.8			54.9			48.2			47.3
Total expenses		126.9			130.2			137.1			128.2			129.5
Operating income		180.9			143.9			161.6			69.0			74.6
Interest income (expense), net		(4.6	)		(4.6	)		(3.8	)		(3.9	)		(1.8	)
Income before income taxes		176.3			139.3			157.8			65.1			72.8
Provision for income taxes		(67.7	)		(39.0	)		(46.0	)		(17.3	)		(21.2	)
Net income		108.6			100.3			111.8			47.8			51.6

ASML - Quarterly Summary Ratios and other data¹

	Three months ended,
	Dec 31,		March 27,		June 26,		Sep 25,		Dec 31,
	2004		2005		2005		2005		2005
Gross profit on sales as a % of net sales		39.2		40.0		39.1		37.0		37.3
Operating income as a % of net sales		23.0		21.0		21.2		12.9		13.6
Net income as a % of net sales		13.8		14.6		14.6		9.0		9.4
Shareholders' equity as a % of total assets		42.9		44.3		45.2		46.4		45.6
Income taxes as a % of income before income taxes		38.4		28.0		29.2		26.6		29.1
Sales of new systems (units)		62		50		44		28		34
Sales of used systems (units)		19		9		7		11		13
Sales of systems total (units)		81		59		51		39		47
Backlog new systems (units)		119		92		67		77		86
Backlog used systems (units)		12		15		13		10		9
Backlog systems total (units)		131		107		80		87		95
Value of backlog new systems (EUR million)		1,664		1,316		935		1,216		1,411
Value of backlog used systems (EUR million)		27		61		52		29		23
Value of backlog systems total (EUR million)		1,691		1,377		987		1,245		1,434
Net bookings new systems (units)		19		23		19		38		43
Net bookings used systems (units)		10		12		5		8		12
Net bookings total (units)		29		35		24		46		55
Number of employees		5,071		5,038		5,032		5,014		5,055

ASML - Notes to the Summary U.S. GAAP Consolidated Financial Statements

Basis of Presentation

ASML follows accounting principles generally accepted in the United States of America (“U.S. GAAP”). Further disclosures, as required under U.S. GAAP in annual reports, are not included in the summary consolidated financial statements. The accompanying consolidated financial statements are stated in thousands of euros (‘EUR’).

Principles of consolidation

The consolidated financial statements include the accounts of ASML Holding N.V. and all of its majority-owned subsidiaries. All inter-company profits, transactions and balances have been eliminated in the consolidation.

Recognition of revenues

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’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 revenue recognition from the installation of a system upon completion of that installation at the customer site. Each system undergoes, prior to shipment, a "Factory Acceptance Test" in ASML's clean room facilities, effectively replicating the operating conditions that will be present on the customer'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's performance is re-tested upon installation at the customer's site, ASML has never failed to successfully complete installation of a system at a customer premises.

The fair value of installation services provided to customers is initially deferred and is recognized when the installation is completed. Sales from service contracts are recognized when performed. Revenue from prepaid service contracts is recognized over the life of the contract.

Use of estimates

The preparation of ASML’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 the 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.

ASML - Reconciliation U.S. GAAP - IFRS¹

Net income	Three months ended,						Twelve months ended,
	Dec 31, 2004			Dec 31, 2005			Dec 31, 2004			Dec 31, 2005
(Amounts in thousands EUR)
Net income under U.S. GAAP		108,637			51,621			235,460			311,464
Share Based Payments (see Note 1)		(957	)		197			(8,509	)		(9,435	)
Capitalization of development costs (see Note 2)		-			10,504			-			51,814
Convertible bonds (see Note 3)		-			(4,985	)		-			(21,017	)
Net income under IFRS		107,680			57,337			226,951			332,826

Shareholders’ Equity

	Dec 31, 2004		Dec 31, 2005		Dec 31, 2004		Dec 31, 2005
(Amounts in thousands EUR)
Shareholders’ equity under U.S. GAAP		1,391,602		1,711,837		1,391,602		1,711,837
Share Based Payments (see Note 1)		1,179		2,100		1,179		2,100
Capitalization of development costs (see Note 2)		-		51,815		-		51,815
Convertible subordinated bonds (see Note 3)		-		55,219		-		55,219
Shareholders’ equity under IFRS		1,392,781		1,820,971		1,392,871		1,820,971

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Share Based Payments

Under IFRS, ASML applies IFRS 2, “Share based payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share based payments with respect to stock options granted to its employees after November 7, 2002.

Under U.S. GAAP, ASML accounts for stock option plans using the intrinsic value method in accordance with APB 25 “Accounting for stock issued to employees” and provides pro forma disclosure of the impact of the fair value method on net income and earnings per share in accordance with SFAS 123 “Accounting for stock based compensation”.

Note 2 Capitalization of development costs

Under IFRS, ASML applies IAS 38, “Intangible Assets” beginning from January 1, 2005. During the second half of 2004, ASML made changes to its administrative systems in order to provide sufficient information to comply with IFRS beginning from January 1, 2005. Sufficient reliable information relating to development costs under IFRS before January 1, 2005 is not available. Under IAS 38, capitalized development costs are amortized over the expected useful life of the related product generally ranging between 2 and 3 years. Amortization starts when the developed product is ready for volume production.

Under U.S. GAAP, ASML applies SFAS 2, “Accounting for Research and Development Costs”. In accordance with SFAS 2, ASML charges costs relating to research and development to operating expense as incurred.

Note 3 Convertible subordinated bonds

Under IFRS, ASML applies IAS 32 “Financial instruments: Disclosure and presentation” and IAS 39 “Financial instruments: Recognition and measurement” beginning from January 1, 2005. In accordance with IAS 32 and IAS 39, ASML accounts separately for the equity and liability component of its convertible bonds. The equity component relates to the grant of a conversion option to shares to the holder of the bond.

The liability component creates a financial liability that is measured at amortized cost which results in additional interest charges.

Under U.S. GAAP, ASML accounts for its convertible bonds as a liability at the principal amount outstanding.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), competitive products and pricing, manufacturing efficiencies, new product development, ability to enforce patents, the outcome of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission.