As part of the European MEDEA project on Ion Projection Lithography (IPL), headed by Infineon Techologies, a process development tool (PDT) has been assembled at IMS, Vienna, with the final target of 50 nm resolution in a 12.5 mm exposure field at 4× demagnification. The ion-optical system (PDT-IOS) has been integrated, including the LEICA mask changer and a sophisticated metrology stage with in-situ diagnostics. In parallel, the LEICA wafer stage and the vacuum compatible off-axis ASML wafer alignment system have been realized. At the moment (Nov00) the He+ ion beam is aligned until the mask level. Ion beam proximity wafer exposures directly behind the mask show a performance of the illumination optics as predicted. 150 mm stencil masks with 125mm diameter, 3μm Si membranes, 50mm × 50mm design field, have been produced by IMS-Chips, Stuttgart. There is expectation to start the PDT-IOS test phase in Q1/01. Using the experimental ion projector at the Fraunhofer-Institute ISiT in Berlin recent resolution tests have demonstrated 50 nm lines and spaces without proximity effect in standard Shipley DUV resist UVIIHS at an exposure dose of 0.5 μC/cm2 for 75 keV He+ions. This was accomplished by 8.5 × demagnification of a new generation of stencil test masks from IMSChips. One further promising application of IPL is the resistless structuring of thin magnetic films to produce magnetic nano dots for future ≥ 100 G bit/in2 storage devices. A consortium of IBM Germany - Speichersysteme Mainz, Fraunhofer-ISiT, LEICA Jena and IMS-Chips in cooperation with IMS-Vienna has been formed to evaluate this technology.