Court Issues Preliminary Injunction Against Clear Logic in Altera Litigation

San Jose, Calif., July 17, 2002 -- Altera Corporation today announced that the United States District Court for the Northern District of California issued a preliminary injunction on July 9, 2002, enjoining Clear Logic, Inc. and its distributors from selling "any semiconductor device that was made, designed, configured, programmed or otherwise manufactured through or with the aid of any bitstream file or other output generated by" Altera's MAX+PLUS®  II software. The court also ordered Clear Logic and its distributors to destroy all semiconductor devices in their possession that were programmed with the output of Altera's software tools. The ruling is part of ongoing litigation brought by Altera against Clear Logic alleging that Clear Logic has unlawfully interfered with Altera's customer relations and unlawfully appropriated Altera's registered mask work technology.

John Daane, president and CEO said today, "This ruling means that Clear Logic must end its device conversion business using Altera's technology. The district court earlier ruled that using the bitstream from Altera's software to program a non-Altera part violates Altera's software license. Now the court has taken the additional step, prior to trial, of prohibiting the sale of Clear Logic devices that have been programmed with the output of Altera's software tools".

"There is great effort and investment behind the innovative technology we bring to market. This litigation was unfortunately necessary to protect that investment. We are pleased that the court issued the order enjoining Clear Logic prior to trial and look forward to resolution of the remaining issues in this case."

Litigation Background

On November 16, 1999, Altera filed suit against Clear Logic, Inc. in Federal District Court in San Jose. Altera alleged that Clear Logic unlawfully appropriated Altera's registered mask work technology in violation of the federal mask work statute and that Clear Logic unlawfully interfered with Altera's customer relations by using the output of the MAX+PLUS II software in violation of Altera's customer software license agreement. The suit asked for compensatory damages, punitive damages, and an injunction to stop Clear Logic from unlawfully using Altera's technology. On October 16, 2001, the court issued several rulings including a finding that as a matter of law "using the bit stream (from Altera's MAX+PLUS II software) to program a Clear Logic device violates Altera's software license."

Copies of the court's order can be requested from the United States District Court for the Northern District of California at 280 South First Street, San Jose, California (408-535-5364).

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 .

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. All other product or service names are the property of their respective holder.