Nova Ltd. — Earnings Release 2005

Jul 11, 2005

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Company Contact:

Investor relations Contacts:

Chai Toren, CFO and Vice President Ehud Helft / Kenny Green Nova Measuring Instruments Ltd. Gelbart Kahana Tel: 972-8-938-7505 Tel: +1-866-704-6710 E-mail: info@nova.co.il E-mail : Ehud@gk-biz.com http://www.nova.co.il Kenny@gk-biz.com

Nova Measuring Instruments Provides The Financial Outlook for the Second Quarter of 2005

Rehovot, Israel – July 11, 2005 – Nova Measuring Instruments Ltd. (NASDAQ: NVMI), the market leader in Integrated Metrology systems, today announced that its revenues for the second quarter of 2005 are expected to increase by about 60% over those of the previous quarter resuming sequential revenue growth. The company had previously projected, in April 2005, that it would resume revenue growth in the second quarter. In the second half of the year, the company expects to continue on its revenue growth trend.

The significant increase in revenues over the previous quarter is as a result of multiple sales of 300mm in Asia Pacific and Japan, and the successful introduction and sales of the new NovaScan 3090 systems for copper CMP and Optical CD applications. Repeat orders of these new products are expected in the coming quarters.

The company is focused, additionally, on continuing the proliferation of its new NovaScan 3090 systems and solution for Copper CMP and Etch with both equipment manufacturers and end-users. The cost saving measures taken in April 2005 that included more than a 10% work-force reduction and tighter control of expenses, are part the company’s on-going efforts to adjust costs to current market conditions without putting at risk the long term technology investments in the next generation metrology systems.

Dr. Giora Dishon, President and CEO of Nova said: "As we had expected, we resumed growth this quarter despite the fact that the semiconductor equipment market has not yet resumed growth. We expect that over the next quarter or two, the market will remain with very poor visibility (last Book-toBill ratio for front-end equipment was 0.85). At the same time, the introduction of our new NovaScan 3090 systems for the different processes, at advanced 90nm, 65nm and below technologies, does provide an engine for growth for the company. We are continuing to work with several major process equipment manufacturers to integrate our new systems with their process equipment and provide more advanced process control solutions."

Final results for the second quarter of 2005 will be released on August 4, 2005, and will be discussed during the company’s scheduled conference call later that day.

About Nova

Nova Measuring Instruments Ltd. (NASDAQ: NVMI) develops, designs and produces integrated process control systems for the semiconductor manufacturing industry. Nova provides a broad range of integrated process control solutions that link different semiconductor processes and process equipment. The Company’s website is www.nova.co.il.