To extend KrF lithography below the 180nm SIA design rule node in manufacturing, an advanced DUV step and scan system utilizing a lens with an NA up to 0.7 will be required to provide sufficient process latitude. Towards the SIA's 150nm design rule node, manufacturing challenges for 248nm lithography include contact hole printing, iso-dense bias control and adequate across the field CD uniformity. All will benefit from higher NA lenses. In the paper, result obtained on a PAS 5500/700B DUV Step and Scan system are presented. The system design is based on the PAS 5500/500 with a new 0.7NA Starlith lens, AERIAL II illuminator and ATHENA advanced alignment system. Imaging of dense and isolated lines at 180nm, 150nm and below as well as 180nm and 160nm contact holes is shown. In addition to imaging performance, image plane deviation, system distortion fingerprints, single-machine overlay and multiple-machine matching results are shown. Using the ATHENA alignment system, alignment reproducibility as well as overlay result on CMP wafers will be shown. It is concluded that this exposure tool is capable of delivering imaging and overlay performance required for mass production at the 150nm design rule node, with potential for R and D applications beyond.