The IBM/Nikon alliance is developing an EPL stepper alpha tool based on the PREVAIL technology. This article provides a status report on the alliance activity with particular focus on the electron optical subsystem developed at IBM. We have previously described design features of the PREVAIL Alpha system. The state-of-the-art e-beam lithography concepts have since been reduced to practice and turned into functional building blocks of a production level lithography tool. The electron optical subsystem has been designed, built, assembled, and tested at IBM’s Semiconductor Research and Development Center (SRDC) in East Fishkill, NY. After demonstrating subsystem functionality, the column, an interim mechanical system and all associated control electronics hardware and software have been shipped during January 2001 to Nikon’s facility in Kumagaya, Japan, for integration into the Nikon commercial e-beam stepper Alpha tool. Postshipment activity has been directed primarily toward demonstrating subfield stitching, a task which exercises system architecture, calibration, stability, and noise performance.