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For Release: September 30, 2002

Altera-BlueArc Strategic Agreement Heralds Continued Innovation in Storage Market

Flexibility of Reprogrammable FPGAs Delivers Advanced Features to Next-Generation Si8000 SiliconServer Network Attached Storage Family

San Jose, Calif., September 30, 2002—Altera Corporation (NASDAQ: ALTR) and BlueArc today announced a technology sharing partnership that will enable BlueArc to continue delivering high-performance networked attached storage (NAS) systems powered by the latest FPGAs from Altera. BlueArc is the developer of the SiliconServer architecture and the world's only NAS server designed to scale from 1-Gbps to tomorrow's 10-Gbps networks. Altera's programmable devices enable BlueArc's systems, including the recently announced Si8000 SiliconServer family, to deliver the performance and reliability of hardware with the flexibility of software. The partnership includes the sharing of product roadmaps between the two companies, providing BlueArc with early access to advanced FPGAs that meet the exact needs of their future product architectures.

"Altera FPGAs are at the heart of BlueArc's SiliconServer architecture," said Geoff Barrall, chief technology officer at BlueArc. "By ensuring our early access to the most advanced FPGA technology like Stratix devices, this strategic agreement reinforces BlueArc's commitment to innovation in the NAS market. In addition, the FPGAs' reconfigurability is at the foundation of our SiliconUpdate capability, allowing us to continue to add features to our existing SiliconServer customer base, further extending their ROI."

The FPGA Advantage

By implementing software routines in Altera FPGAs instead of running them on microprocessors, BlueArc's SiliconServer architecture is built to deliver data storage and bandwidth at the speed of silicon. To add capacity for new routines and features in the second-generation Si8000 SiliconServer family, BlueArc increased the number and processing power of Altera FPGAs. The reprogrammable hardware-based nature of these new features, which include Virtual Volumes, Accelerated Data Copy (ADC), quotas, and snapshots, provides benefits not possible in microprocessor-based storage systems. For example, ADC provides volume-to-volume or server-to-server copying at consistent wire speeds regardless of other server activity, unlike microprocessor-bound storage systems that show a dramatic decrease in speed with increased activity.

Additionally, FPGA reconfigurability allows ADC and other new features of BlueArc's Si8000 family to be available to the prior generation Si7500 SiliconServers via BlueArc's SiliconUpdate 2.0. SiliconUpdate 2.0 can be downloaded and installed over the network, adding value to and extending the product lifetime of all products based on the SiliconServer architecture.

"BlueArc's SiliconServer family embodies the kind of uncompromising, forward-looking product that is required for success in today's rapidly evolving storage market," said Jordan Plofsky, senior vice president of applications business groups at Altera. "Our agreement with BlueArc is representative of our commitment to delivering the best programmable logic solutions to the storage industry, and reinforces our position as a leading supplier to storage equipment manufacturers."

About Altera

Altera Corporation (NASDAQ: ALTR) is the world's pioneer in system-on-a-programmable-chip (SOPC) solutions. Combining programmable logic technology with software tools, intellectual property, and technical services, Altera provides high-value programmable solutions to approximately 14,000 customers worldwide. More information is available at www.altera.com.

About BlueArc

BlueArc Corporation and its SiliconServer Architecture deliver the world's only file server designed to scale beyond today's 1 Gbps networks toward tomorrow's 10 Gbps networks. BlueArc's SiliconServer Architecture moves software into programmable hardware and removes the bottlenecks that limit performance in other NAS systems on the market today. BlueArc SiliconServers deliver groundbreaking speed and scalability, simplifying the way our customers design and build their storage infrastructures. The company's headquarters are in San Jose, California with UK operations based in Bracknell, England. More information on BlueArc is available on the Internet at www.bluearc.com.

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Editor Contacts:

Martin S. Won
Altera Corporation
(408) 544-6397
newsroom@altera.com
Jim Schaff
BlueArc Corporation
(408) 576-6682
jschaff@bluearc.com

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