Altera Taps into Linux and Ethernet Markets With Nios^TM Embedded Processor Core

Designers using Linux Operating System Will Enjoy the Flexibility and Time-to-Market Acceleration of PLDs

Embedded Systems Conference, San Francisco, Calif., April 10, 2001-Altera Corporation (Nasdaq: ALTR), a leading programmable logic device (PLD) supplier, today announced the addition of two new development kits that will add Linux operating system and Ethernet peripheral support for its highly-successful Nios^TM embedded processor core. These kits provide designers with a well-accepted software platform and a hardware interface that will accelerate software development and increase time-to-market of new products.

With the addition of the new Linux and Ethernet development kits, Altera will offer system-on-a-programmable-chip (SOPC) solutions to designers of Ethernet-connected data gathering and control applications, including telecommunications, networking, industrial telemetry and control, digital entertainment, set-top boxes, and a wide range of internet-connected devices.

Additionally, Altera is releasing its Nios 1.1 development kit. The upgrade expands device support for Altera's ACEX^TM, FLEX^® 10K, APEX^TM, Excalibur^TM ARM^®-based, Excalibur MIPS^®-based, and Mercury^TM device families accommodating a wide array of system requirements.

"Since its introduction in September of 2000, more than 1000 Nios Development Kits have been sold to SOPC developers, enabling them to rapidly create custom, processor-based designs in Altera programmable logic devices," said Jordan Plofsky, senior vice president of Altera embedded processor products division. "Even more significant is the fact that there are currently dozens of Nios processor-based products shipping today, in applications ranging from entertainment, industrial control, medical applications, automotive diagnostic and wireless communications."

Nios Linux Development Kit

Jointly developed with Microtronix Datacom Ltd., a provider of Linux-based solutions, the uCLinux development kit contains hardware and software components designed to work with the Nios development kit. A complete Linux development environment including, uCLinux source code, SDRAM controller and memory module, Ethernet expansion board, host adapter board, hardware reference design, and web server application software provides a robust Linux development suite to enable rapid system development.

Nios Ethernet Appliance Kit

The Nios Ethernet development kit includes an Ethernet daughter card that plugs onto the Nios development board, a complete TCP/IP stack, hardware reference design, and web server application software. The Ethernet card contains a non-PCI, external 10Mbit Ethernet interface using the CS8900A? Ethernet MAC/PHY from Cirrus Logic.

Nios 1.1 Development Kit

The Nios development kit release 1.1 is a feature-rich upgrade, bringing a new level of performance and device support to this highly successful development kit. The new capabilities include expanded device support, a faster Integer Multiplier (MUL), serial peripheral interface (SPI), dynamic bus sizing, and expandable peripheral library.

Pricing & Availability

The Nios Linux Development Kit will cost $2,495 and is scheduled to ship in July 2001. Customers who purchase the Nios uCLinux development kit receive a zero-dollar, perpetual license to use the included SDRAM controller. The Nios Ethernet Development Kit will cost $495 and is scheduled to ship in July of 2001. The Nios development kit release 1.1 is available today for $995. Existing customers will receive the upgrade at no cost, as part of the included 1-year maintenance subscription.

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.

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, Nios, ACEX, FLEX, APEX, Excalibur, Mercury, and specific device designations are trademarks and/or service marks of Altera Corporation in the U.S. and other countries. All other trademarks are the property of their respective holders.

MIPS is a registered trademark of MIPS Technologies, Inc.

ARM is a registered trademark of ARM Limited.

Altera Taps into Linux and Ethernet Markets With NiosTM Embedded Processor Core