Altera's Stratix Devices Now Shipping

Customers Now Have the World's Fastest FPGAs

San Jose, Calif., June 17, 2002 -- Altera Corporation (NASDAQ: ALTR) today announced that the first member of its Stratix^™ device family is shipping ahead of schedule. Originally scheduled to ship in late June, customers in North America, Europe, Japan, and the Asia-Pacific region have been receiving the Stratix EP1S25 device since May. With its high-performance architecture, unrivaled DSP capabilities, and industry-leading memory resources, the Stratix device family is providing customers with capabilities and levels of performance currently not available in other FPGAs.

With more than 500 customer engagements since the January release of the Quartus^® II version 2.0 design software, the Stratix device family is quickly gaining a strong foothold in the industry. Combined with better-than-expected pre-availability bookings, the Stratix device family's rate of adoption is higher than that of any other device family introduced by Altera to date.

"Now that we have our first Stratix FPGAs, we are beginning to exercise many of their impressive features on our board," said Greg Carter, Design Engineer at Echotek, Corp. "Stratix DSP blocks have allowed us to hit speeds that were not possible with earlier FPGAs, and will be a great boost to our high-performance digital radio products."

"Over the past few months, we have been using Altera's Quartus II development software to develop our Stratix FPGA design," said Kenichi Hosoya, manager of the second engineering department NEC System Technologies, Ltd.'s Servers Platform Division. "Now that we have the Stratix FPGA, we look forward to taking advantage of the outstanding DSP performance."

Stratix devices are specifically designed to address bandwidth-intensive designs, incorporating significant advances in memory design, processing power, and I/O flexibility. Rather than being restricted to non-critical peripheral processes, Stratix devices can be used at the heart of these high-bandwidth systems to accelerate performance and enable new functionality.

"Altera's rapid rollout of Stratix FPGAs enables us to bring new capabilities and higher levels of performance to our PSX-1000 intelligent storage switch product line," Doug Wood, vice president of engineering at Pirus Networks Inc. "By offering the most on-chip memory in the programmable logic industry, Stratix FPGAs fulfill a great need for bandwidth-hungry applications in storage and other markets."

The Stratix device family is Altera's second FPGA based on TSMC's leading-edge 0.13-micron all-layer copper process. The smoothness of the Stratix device family's rollout is attributed to the experience gained from the APEX^™ II EP2A70 devices, the industry's first FPGA family to use the 0.13-micron process.

"The die size reduction compared to previous families, combined with improved redundancy technology, were also driving forces behind the strong initial yields," said Tim Colleran, Altera's vice president of product marketing. "The successful rollout of the flagship EP1S25 device shows that we are on track to roll out the entire family over the next several months."

With customers already engaged in designs, all signs point to Stratix devices becoming Altera's most successful FPGA device family ever.

"We were very pleased to receive our Stratix devices, which met our requirements for extremely high bandwidth within a small footprint," said Derrick E. Burton, staff engineer at Seagate Technology, LLC.

To read what other customers are saying about the Stratix device family, please visit: http://www.altera.com/corporate/cqt-index.html#stx.

Availability
Pricing for the Stratix EP1S25 device will be $125 for high-volume quantities at the beginning of 2003. Beginning in late August, Altera expects to roll out a member of the Stratix family each month.

About Stratix Devices
Stratix devices are based on a 1.5-V, 0.13-micron, all-layer copper SRAM process, with densities ranging from 10,570 to 114,140 logic elements (LEs) and up to 10 Mbits of RAM. Stratix devices offer up to 28 DSP blocks with up to 224 embedded multipliers, optimized for DSP applications that require high data processing. Stratix devices support various differential I/O electrical standards such as the LVDS, LVPECL, PCML and HyperTransport^™ standards, as well as high-speed interfaces, including the UTOPIA IV, SPI-4 Phase 2, SFI-4, 10G Ethernet XSBI, RapidIO^™, HyperTransport and other interfaces. Stratix devices also offer a complete clock management solution with its hierarchical clock structure and up to 12 phase-locked loops (PLLs). More technical information about the Stratix device family is available at http://www.altera.com/stratix.

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 http://www.altera.com.

Safe Harbor
This press release contains "forward-looking statements" that 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 that imply a future state such as "expected" or that imply that a particular future event or events will occur such as "will". Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the risk that future performance is dependent on product development schedules, the design performance of software and other tools, as well as the company's and third parties' development technology and manufacture capabilities. Please refer to the company's Securities and Exchange Commission filings, copies of which are available from the company without charge.

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