For Release: June 1, 1999

Altera Acquires Boulder Creek Engineering

• Acquisition Strengthens Altera's Leadership Role in Verification Tools for Programmable Logic
• Ensures Future Enhancement of Verification Tools for Quartus^™ Development Environment
• Broadens Appeal of System-on-a-Programmable-Chip^™ Technology

San Jose, Calif., June 1, 1999--Altera Corporation (Nasdaq: ALTR) today announced that it has acquired privately-held Boulder Creek Engineering, an innovative electronic design automation (EDA) company and co-developer of the powerful SignalTap^™ logic analysis tool. Terms of the acquisition were not disclosed. The acquisition is not expected to have a material effect on Altera's financial results.

The acquisition is expected to allow Altera to further enhance the range of functionality enabled by the SignalTap tool, an integral logic analysis feature within the Quartus development system, Altera's fourth-generation design software. This ongoing development will further exploit the potential of the SignalTap verification tool to enable faster, more accurate verification of System-on-a-Programmable-Chip designs. Both the Quartus software and the SignalTap feature were specifically designed to provide the complex capabilities necessary to design system-level functionality into Altera's APEX^™ devices, which are now shipping to customers who are actively creating System-on-a-Programmable-Chip designs.

"The SignalTap logic analyzer is perhaps one of the most exciting features of the Quartus design environment, because it can dramatically shorten verification time while adding easy-to-use debug capabilities," said Tim Southgate, vice president of software development at Altera. "This acquisition provides Altera with the technical and marketing focus to ensure that the functionality of the SignalTap logic analyzer is brought to its fullest potential. We're expecting to radically reshape the future of verification methodologies in the programmable logic sector."

Based in Santa Cruz, Calif., Boulder Creek Engineering was founded in 1994 to design and manufacture hardware and software tools used by electronic design engineers to debug systems on a chip.

"We look forward to further enhancing the SignalTap capability within Quartus, using it as a springboard to develop cutting-edge verification offerings," said Bryan Hoyer, founder of Boulder Creek Engineering. "We anticipate that the combined expertise of Boulder Creek Engineering and Altera will bring about a significant methodology shift for designers using programmable logic. This shift will result in faster, more accurate verification, translating directly to dramatically accelerated time-to-market for their end products."

About The SignalTap Solution

Verification is today the most time-intensive function in the design process. For many design situations, system-level verification is not practical due to long simulation times. In addition, board-level debug has become problematic due to the difficulty of accessing signals at the pins; indeed, when using new BGA-type packages, test signals could not be routed at all. The SignalTap logic analyzer sweeps away all of these issues by allowing the design team to capture and analyze any signal internal to the programmable logic device on-the-fly, in-system, in minutes. Just as important, the SignalTap logic analyzer works in real time, ensuring that the design will function as specified, under real operating conditions.

The SignalTap solution consists of the Quartus Waveform Editor software, the SignalTap megafunction, and Altera's MasterBlaster^™ communications cable. Through the Quartus Waveform Editor, designers select the signals they wish to observe, and define trigger points used to capture the data. A SignalTap megafunction is then automatically inserted into the design by the Quartus software, like any other synthesizable intellectual property (IP) core. The megafunction has a nominal effect on the size of the design, and can be removed when the analysis is completed. The SignalTap megafunction has all the functionality of a sophisticated logic analyzer, capturing the waveform in-system and at-speed. Captured data is then stored in the APEX device's embedded system blocks (ESBs) for streaming to the Quartus software through a communications cable. The Quartus software then analyzes the signals and displays the results on its own integrated Waveform Editor.

Safe Harbor Notice

This press release contains "forward looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally preceded by words such as "expects," "believes," "anticipates," "projects," or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the risks that the Company's products will not satisfy customer demands and that other companies will develop products with greater functionality than those offered by the Company. Please refer to the Company's Securities and Exchange Commission filings, copies of which are available from the Company without charge, for further information.

About Altera Corporation

Altera Corporation, The Programmable Solutions Company^™, was founded in 1983 and is a leading supplier of programmable logic devices and associated logic development software tools. Programmable logic devices are semiconductor chips that can be programmed on-site, using software tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. Altera's CMOS-based programmable logic devices address high-speed, high-density and low-power applications in the telecommunications, data communications, computer peripheral, and industrial markets. Altera common stock is traded on the Nasdaq Stock Market under the symbol ALTR.