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For Release: July 23, 2001

Lattice and Altera Execute Comprehensive Patent Cross-License Agreement

San Jose, California and Hillsboro, Oregon, July 23, 2001--Altera Corporation (Nasdaq: ALTR) and Lattice Semiconductor Corporation (Nasdaq: LSCC) today announced they have signed a comprehensive, royalty-free patent cross-license agreement and have entered into a multi-year patent peace agreement.

In addition, Lattice and Altera have agreed to dismiss all patent infringement lawsuits against each other without any admission of liability. Terms of the agreements are confidential, however, no payments were exchanged as part of the settlement. The patent litigation began in August 1994 between Advanced Micro Devices (AMD) and Altera. Lattice replaced AMD as a party in 1999 after Lattice's acquisition of Vantis Corporation, a wholly owned subsidiary of AMD.

About Lattice Semiconductor

Oregon-based Lattice Semiconductor Corporation designs, develops and markets the broadest range of high-performance ISP programmable logic devices (PLDs) and offers total solutions for today's advanced logic designs.

Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in the fields of communications, computing, computer peripherals, instrumentation, industrial controls and military systems. Company headquarters are located at 5555 NE Moore Court, Hillsboro, Oregon 97124 USA; Telephone 503-268-8000, FAX 503-268-8037. For more information on Lattice Semiconductor Corporation, access our World Wide Web site at http://www.latticesemi.com.

About Altera Corporation

Altera Corporation, The Programmable Solutions Company®, was founded in 1983 and is a leading supplier of programmable logic devices (PLDs), Altera's CMOS-based PLDs are user-programmable semiconductor chips that enhance flexibility and reduce time-to-market for companies in the communications, computer peripheral, and industrial markets. By using high performance devices, software development tools, and sophisticated intellectual property cores, system-on-a-programmable-chip (SOPC) solutions can be created with embedded processors, memory, and other complex logic together on a single PLD. Altera common stock is traded on the Nasdaq Stock Market under the symbol ALTR. More information on Altera is available on the Internet at http://www.altera.com.

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Altera and The Programmable Solutions Company are trademarks and/or service marks of Altera Corporation in the U.S. and other countries.

Lattice Semiconductor Corporation, L (& design), Lattice (& design) and ISP are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.

GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.


Editor Contacts:

Scott Wylie
Altera Corporation
(408) 544-6996
swylie@altera.com
Roddy Sloss
Lattice Semiconductor Corporation
(503) 268-8000
roddy.sloss@latticesemi.com

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