Altera Ships Millionth Cyclone FPGA to Terayon Communications Systems

San Jose, Calif., January 12, 2004—Altera Corporation (NASDAQ: ALTR) today announced that it shipped its millionth Cyclone™ FPGA to Terayon Communications Systems, Inc. (NASDAQ: TERN).  Introduced just 16 months ago, Cyclone devices have been shipped to over 2,000 customers such as Terayon, who are now taking full advantage of the inherent flexibility of FPGAs at ASIC prices.

"Altera's ability to deliver high-volume quantities of Cyclone devices has contributed to the success of the Terayon BW cable modem termination system (CMTS) the only CMTS qualified to meet DOCSIS 2.0, the latest version of the cable data specification," said Steve Heinen, vice president of engineering for Terayon.  "Our CMTSs are used by some of the largest and most demanding cable television operators in the world.  To ensure our CMTSs are of the quality we demand, we require FPGAs with superior design flexibility, uncompromising performance, and availability in production quantities, all of which we get with Altera's Cyclone family."

Designed from the ground up for low cost, the Cyclone device family has achieved rapid acceptance from designers in cost-sensitive consumer, communications, industrial, computer peripheral, and automotive markets who can now leverage the full benefits of FPGA performance and flexibility in their designs.

"Being the first truly low-cost FPGA in the industry, the Cyclone family is opening many doors for programmable logic," said David Greenfield, senior director of product marketing at Altera.  "To date, it is the fastest ramping product in our history.  In addition to its unprecedented cost, we attribute Cyclone's success to Altera's strategy of getting customers involved at the product-planning phase.  Ultimately, our strategy has allowed us to deliver the right product to them at the right time. The Cyclone family continues to gain momentum as cost is a major driving factor in most system design."

A key factor in Altera's recent market success is Altera's ability to deliver next-generation FPGA architectures in production quantities shortly after product announcement.  The company's long-standing partnership with TSMC has been a critical contributor to its ability to deliver new leading products, such as Cyclone FPGAs, to customers on time and in the quantities they require.

About the Cyclone Device Family
Built from the ground up to ensure the lowest possible cost, Cyclone devices are the industry's lowest-cost FPGAs available today.  Cyclone devices are manufactured on TSMC's advanced 0.13-micron, all-layer-copper process and were developed to provide designers of high-volume, price-sensitive applications the flexibility of an FPGA at ASIC prices.  With support for leading-edge and emerging I/O standards, the Cyclone device family includes embedded RAM blocks and other features to put FPGA technology in the hands of designers developing volume-driven applications in the automotive, consumer, and computing markets.  For more information about the Cyclone device family, visit www.altera.com/cyclone.

About Terayon
Terayon Communication Systems, Inc. is the leading innovator of intelligent broadband access for operators who want to deliver the widest range of advanced data, video and voice services.  Terayon maintains its headquarters in Santa Clara, California, and has sales and support offices worldwide.  The company is traded on the NASDAQ under the symbol TERN and can be found on the web at www.terayon.com.

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

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Altera, The Programmable Solutions Company, the stylized Altera logo, specific device designations and all other words that are identified as trademarks and/or service marks are, unless noted otherwise, the trademarks and service marks of Altera Corporation in the U.S. and other countries. Terayon is a registered trademark of Terayon Communication Systems, Inc.  All other product or service names are the property of their respective holder.

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