Exhibit 99.1

Contacts:		William H. Kurtz		Robin Yim
		Executive Vice President and Chief Financial 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 18, 2007—Novellus Systems, Inc. (NASDAQ: NVLS) today reported net sales and results of operations for its first quarter ended March 31, 2007. Net sales for the first quarter were $397.0 million, down $41.5 million or 9.5 percent from fourth quarter 2006 net sales of $438.5 million, and up $31.1 million or 8.5 percent from first quarter 2006 net sales of $365.9 million. Net income for the first quarter was $53.8 million, or $0.42 per diluted share, up $11.2 million or 26.3 percent from fourth quarter 2006 net income of $42.6 million, and up $29.1 million or 117.6 percent from first quarter 2006 net income of $24.7 million.

The first quarter 2007 results did not include any unusual charges or benefits. Excluding certain unusual charges and benefits, fourth quarter 2006 net income would have been $79.0 million, or $0.63 per diluted share and first quarter 2006 net income would have been $33.5 million, or $0.25 per diluted share. A reconciliation of pro forma operating results to U.S. generally accepted accounting principles (“GAAP”) results is included below.

Bookings in the first quarter were $412.2 million, down 6.7 percent from fourth quarter 2006 bookings of $441.6 million. Shipments of $389.1 million in the first quarter represent a decrease of $1.1 million or 0.3 percent from $390.2 million reported for fourth quarter 2006. Deferred revenue at the end of the first quarter was $89.4 million, a decrease of $10.9 million or 10.9 percent from $100.3 million at the end of the fourth quarter of 2006.

Cash, cash equivalents, restricted cash and short-term investments as of March 31, 2007 were $1.0 billion, essentially unchanged from the fourth quarter 2006.

The financial measures set forth above that present net income excluding certain charges and benefits, revenue on a shipments basis and bookings, are not in accordance with GAAP. We believe that these non-GAAP financial measures provide further insight into the results of operations and enhance the consistency and comparability of those results to results in prior periods because they assist shareholder understanding of the effects of certain charges and benefits on the quarter’s results.

“The first quarter results represent another solid quarter of execution,” said Richard S. Hill, Chairman of the Board and CEO. “We remain focused on initiatives to strengthen our product portfolio and improve our customer responsiveness, which will enable us to grow our market share and improve our financial performance.”

“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 statements regarding (i) our belief that the non-GAAP measures will provide shareholders further insight into the results of operations and enhance the consistency and comparability of those results to results in prior periods, (ii) our continued progress to improve our bottom line performance resulting from the initiatives we have taken to strengthen our product portfolio and improve customer responsiveness and (iii) our expectation that these activities will enable us to grow our market share, as well as other matters discussed in this news release that are not purely historical data, are forward-looking statements. 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, the inability of the non-GAAP measures to provide shareholders further insight into the results of operations and enhance the consistency and comparability of those results to results in prior periods, the Company’s ability to accurately assess and strengthen the Company’s product portfolio and financial operating model due to market fluctuations and unanticipated economic and industry downturns; the Company’s ability to continue to improve its customer responsiveness; and 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, 2006 and 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)		March 31				December 31				April 1
(Unaudited)		2007				2006				2006
Net sales		$	396,974			$	438,505			$	365,906
Cost of sales			202,065				212,985				198,366
Gross profit			194,909				225,520				167,540
%			49.1	%			51.4	%			45.8	%
Operating expenses:
Selling, general and administrative			67,100				68,932				58,482
Research and development			60,400				56,475				63,783
Restructuring and other charges (benefits)			—				(1,894	)			12,629
Legal settlement			—				—				3,250
Total operating expenses			127,500				123,513				138,144
%			32.1	%			28.2	%			37.8	%
Income from operations			67,409				102,007				29,396
%			17.0	%			23.3	%			8.0	%
Other income, net			11,107				10,881				6,079
Income before income taxes and cumulative effect of a change in accounting principle			78,516				112,888				35,475
Provision for income taxes			24,733				70,314				11,706
Income before cumulative effect of a change in accounting principle			53,783				42,574				23,769
Cumulative effect of a change in accounting principle, net of tax			—				—				948
Net income		$	53,783			$	42,574			$	24,717
Net income per share:
Basic
Income before cumulative effect of a change in accounting principle		$	0.43			$	0.35			$	0.18
Cumulative effect of a change in accounting principle, net of tax			—				—				0.01
Basic net income per share		$	0.43			$	0.35			$	0.19
Diluted
Income before cumulative effect of a change in accounting principle		$	0.42			$	0.34			$	0.18
Cumulative effect of a change in accounting principle, net of tax			—				—				0.01
Diluted net income per share		$	0.42			$	0.34			$	0.19
Shares used in basic per share calculation			123,979				122,766				131,102
Shares used in diluted per share calculation			127,137				124,447				132,264

NOVELLUS SYSTEMS, INC.

RECONCILIATION OF THE STATEMENTS OF OPERATIONS
(EXCLUDING CERTAIN CHARGES AND BENEFITS) ⁽¹⁾

		Three Months Ended
(In thousands, except per share amounts)		March 31				December 31				April 1
(Unaudited)		2007				2006				2006
Net income excluding certain charges and benefits:		$	53,783			$	78,979			$	33,535
Restructuring and other (charges) benefits			—				1,894				(12,629	)
Legal settlement			—				—				(3,250	)
Cumulative effect of a change in accounting principle			—				—				1,542
Total charges and benefits			—				1,894				(14,337	)
Adjustments on provision for income taxes:
Tax effect of the above charges and benefits			—				(720	)			5,519
Settlement of IRS audit			—				8,527				—
Tax charge associated with new global business structure			—				(46,106	)			—
Net income		$	53,783			$	42,574				24,717
Net income per diluted share excluding certain charges and benefits		$	0.42			$	0.63			$	0.25
Charges and benefits:
Restructuring and other (charges) benefits			—				0.02				(0.09	)
Legal settlement			—				—				(0.02	)
Cumulative effect of a change in accounting principle			—				—				0.01
Adjustments on provision for income taxes:
Tax effect of the above charges and benefits			—				(0.01	)			0.04
Settlement of IRS audit			—				0.07				—
Tax charge associated with new global business structure			—				(0.37	)			—
Net income per diluted share		$	0.42			$	0.34			$	0.19

NOVELLUS SYSTEMS, INC.
SCHEDULE OF SHARE-BASED COMPENSATION

		Three Months Ended
		March 31				December 31				April 1
(In thousands)		2007				2006				2006
(Unaudited)		(1)				(2)				(3)
Cost of sales		$	510			$	179			$	308
Selling, general and administrative			5,697				5,792				5,439
Research and development			2,895				2,713				3,061
Total share-based compensation expenses			9,102				8,684				8,808
Benefit from income taxes			2,276				2,866				3,391
Net share-based compensation expenses		$	6,826			$	5,818			$	5,417

NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		March 31,				December 31,
		2007				2006
(In thousands)		(Unaudited)				*
ASSETS
Current assets:
Cash and short-term investments		$	856,547			$	853,328
Accounts receivable, net			371,697				310,888
Inventories			234,106				198,571
Deferred taxes and other current assets			140,274				142,506
Total current assets			1,602,624				1,505,293
Property and equipment, net			346,975				364,599
Restricted cash			144,120				143,769
Goodwill			228,576				225,431
Intangible and other assets			122,078				123,400
Total assets		$	2,444,373			$	2,362,492
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	264,076			$	261,659
Deferred profit			46,535				41,351
Income taxes payable			21,757				38,879
Current obligations under lines of credit			20,545				19,480
Total current liabilities			352,913				361,369
Long-term debt			129,842				127,862
Other liabilities			51,208				38,556
Total liabilities			533,963				527,787
Shareholders’ equity:
Common stock			1,423,347				1,393,914
Retained earnings and accumulated other comprehensive income			487,063				440,791
Total shareholders’ equity			1,910,410				1,834,705
Total liabilities and shareholders’ equity		$	2,444,373			$	2,362,492