Actel announces second quarter 2004 financial results

Mountain View, Calif.- July 21, 2004 – Actel Corporation (NASDAQ: ACTL) today announced net revenues of $43.7 million for the second quarter of 2004, up 19 percent from the second quarter of 2003 and 4 percent from the first quarter of 2004.

Pro-forma net income, which excludes acquisition-related amortization and other nonoperating items, was $3.2 million for the second quarter of 2004 compared with $2.0 million in the second quarter of 2003 and $3.2 million in the first quarter of 2004. Pro-forma earnings were $0.12 per diluted share compared with $0.08 for the second quarter of 2003 and $0.12 for the first quarter of 2004.

Including all amortization and other costs in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $2.5 million, or $0.09 per diluted share, for the second quarter of 2004 compared with net income of $1.4 million, or $0.05 per share, for the second quarter of 2003 and $2.5 million, or $0.09 per diluted share, for the first quarter of 2004.

Gross margin was 61.0 percent for the second quarter of 2004 compared with 60.2 percent for the second quarter of 2003 and 60.9 percent for the first quarter of 2004.

During the second quarter, Actel:

• Announced that improved versions of its radiation tolerant RTSX-S FPGAs are available from UMC’s wafer foundry. RTSX-S devices have been widely adopted for radiation-intensive and space-flight applications.
• Announced the availability of engineering samples for all three devices in its highdensity RTAX-S family of radiation tolerant FPGAs. The RTAX-S family has up to five times the density of the RTSX-S family, significantly expanding the number of space-flight applications that can be supported by Actel FPGAs.

Business Outlook – Third Quarter 2004

The company believes that third quarter revenues will remain flat sequentially, plus or minus two percent. Gross margin is expected to be about 61%. Operating expenses are anticipated to come in at approximately $23.9 million. Other income is expected to be about $0.7 million. The tax rate for the quarter is anticipated to be about 11%. Share count is expected to be approximately 26.6 million shares.

A conference call to discuss second quarter results will be held today at 2:30 p.m. Pacific Time. A live web cast and replay of the call will be available. Web cast and replay access information as well as financial and other statistical information can be found on Actel’s web site, www.actel.com. In addition, the company expects to issue a press release providing a financial update during the second week of September.

Actel Corporation is a supplier of innovative programmable logic solutions, including FPGAs based on antifuse and flash technologies, high-performance intellectual property (IP) cores, software development tools and design services, targeted for the high-speed communications, application-specific integrated circuit (ASIC) replacement and radiationtolerant markets. Founded in 1985, Actel employs more than 500 people worldwide. The Company is traded on the Nasdaq National Market under the symbol ACTL and is headquartered at 2061 Stierlin Court, Mountain View, CA 94043-4655. Telephone: 888-99-ACTEL (992- 2835). Internet: http://www.actel.com.

The statements under the heading “Business Outlook – Third Quarter 2004” are forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and should be read with the “Risk Factors” in Actel’s most recent Form 10-Q, which can be found on Actel’s web site, www.actel.com. Actel’s quarterly revenues and operating results are subject to a multitude of risks, including general economic conditions and a variety of risks specific to Actel or characteristic of the semiconductor industry, such as fluctuating demand, intense competition, rapid technological change and related intellectual property and international trade issues, wafer and other supply shortages, and booking and shipment uncertainties. These and the other Risk Factors make it difficult for Actel to accurately project quarterly revenues and operating results, and could cause actual results to differ materially from those projected in the forward-looking statements. Any failure to meet expectations could cause the price of Actel’s stock to decline significantly.

Editor’s Note: The Actel name and logo are trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.

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