Abstract: The present invention relates to a projection exposure apparatus (10) for and method of imaging a reticle (R) having patterned surface onto a substrate (W) in photolithographic processes for manufacturing a variety of devices. The invention further relates to an optical system (C) having a folding member (M1) suited to the projection exposure apparatus, and a method for manufacturing the optical system. The projection exposure apparatus comprises an illumination optical system (IS) and a reticle stage (RS) capable of holding the reticle so the normal line to its patterned surface is in the direction of gravity. The apparatus also includes a substrate stage (WS) capable of holding the substrate with its surface normal parallel to the direction of gravity. The optical system includes a first imaging optical system (A) comprising a concave reflecting mirror and a dioptric optical member arranged along a first optical axis. The first imaging optical system (A) forms an intermediate image of the patterned surface.