Motorola and Altera Have Entered Discussions Toward an Embedded Processor Technology Licensing Agreement

Embedded Processor Forum, San Jose, Calif., June 12, 2000 Motorola Inc. (NYSE: MOT), one of the pioneers and leading suppliers of embedded microprocessor solutions, and Altera Corporation (Nasdaq: ALTR), a leading supplier of programmable logic devices, announced today that the two companies have entered discussions toward a licensing agreement to embed Motorola processor core technology into Altera programmable logic devices. Products which may result from these discussions would become part of Altera's Excalibur^[tm] embedded processor solutions (see related release titled "Altera Unveils Strategy for Embedded Processor Integration in System-on-a-Programmable-Chip Design" ;). Advanced processor cores to be evaluated by Altera include 32-bit versions of PowerPC^[tm], as well as its derivatives. The companies share the vision that large-scale system design in telecommunications and networking is rapidly evolving from traditional fixed-ASICs to more flexible, programmable solutions. In addition to being potential technology partners, Altera and Motorola already have a well-established business relationship, with Motorola being one of Altera's major customers.

"Motorola is widely recognized as a leader in advanced processor technology," said Erik Cleage, Altera senior vice president of marketing. "A partnership with Motorola can further expand our Excalibur embedded processor solutions and be an important part of our system-on-a-programmable-chip roadmap."

"Altera is a demonstrated leader in the programmable logic market. The combination of Motorola's advanced processor technology with Altera's leading-edge programmable architectures is a strong move toward enabling powerful Smart Networks solutions for the communications marketplace," said Daniel Artusi, corporate vice president and general manager of Motorola's Networking and Computing Systems Group.

About Motorola

As the world's #1 producer of embedded processors, Motorola Semiconductor Products Sector offers multiple Digital DNA^[tm] technologies which enable its customers to create "smart" products and new business opportunities in the networking and computing, wireless communications, transportation, and imaging and entertainment markets. Motorola's worldwide semiconductor sales were $7.4 billion (USD) in 1999. http://www.Motorola.com/semiconductors/

Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion. http://www.Motorola.com

About Altera

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.