Altera Stratix Devices — World's Fastest FPGAs Get Faster

Silicon and Software Enhancements Significantly Improve Performance

San Jose, Calif., July 16, 2002 -- Altera Corporation (NASDAQ: ALTR) today announced a new, faster speed grade for its Stratix™ devices, already the industry's fastest FPGA family. The company said that a combination of process technology improvements and software algorithm options has yielded up to an additional 20 percent performance in the Stratix family. This increase brings the total overall performance improvement over previous Altera devices to an average of 60 percent or more since the Stratix devices were announced in early 2002.

"System architects building high-performance system-on-a-programmable-chip (SOPC) applications can start designing today with the new, faster -5 Stratix devices, which are supported in the recently announced Quartus® II version 2.1 design software," said Tim Colleran, vice president of product marketing at Altera.

"Stratix FPGAs offer excellent performance and seamless integration with our demanding differential signaling environment," said Gareth Jenkins, principal engineer at Xyratex Inc. "The availability of faster versions will allow us to offer even greater capabilities in our products. Stratix devices provide us with a viable platform on which we can build next-generation products, freeing us from the constraining incremental evolution of less capable FPGA architectures."

The up to 20 percent increase is the result of both silicon and software enhancements, each accounting for about half of the total improvement. Initial characterization data for the EP1S25, which has been shipping since May, indicated that the new -5 speed grade offers a 10 percent performance improvement over the existing -6 speed grade. Additionally, the new netlist optimization options in the Quartus® II version 2.1 design software generate up to an additional 10 percent average boost in performance. The performance improvements provided are particularly effective for digital signal processing (DSP)-heavy applications, with 18 x 18 multipliers now functioning at 255 MHz.

"These improvements represent the first step in our ongoing process of accelerating the performance capabilities of Stratix devices," continued Colleran. "Software algorithm improvements and timing model optimization will continue throughout the year, further accelerating the performance capabilities of the family and opening new opportunities for FPGAs. With the integration and performance capabilities of Stratix devices, Altera is experiencing a rush of design wins that shows no signs of slowing down."

To read more details about the new, faster Stratix speed grade and other competitive comparisons, please visit: http://www.altera.com/products/devices/stratix/features/stx-speed.html .

Availability

The new, faster -5 Stratix devices are supported by the latest version of the Quartus II design software. To learn more about Altera's Quartus II version 2.1 software visit http://www.altera.com/products/software/pld/products/q2/qts-index.html . The schedule and availability of Stratix devices can be found at http://www.altera.com/stratix , or through your local Altera sales representative.

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.

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. HyperTransport is a trademark of the HyperTransport Consortium. RapidIO is a trademark of the RapidIO Trade Association. All other product or service names are the property of their respective holder.