Altera Licenses ARM Core To Enable System-On-A-Programmable-Chip Design

Altera to Integrate ARM Microprocessors as Part of New Excalibur^TM Embedded Processor Solutions

Embedded Processor Forum, San Jose, Calif., June 12, 2000--Altera Corporation (Nasdaq: ALTR) and ARM [(LSE: ARM); (Nasdaq: ARMHY)], today announced a licensing agreement that enables Altera customers to gain access to ARM core-based embedded processor solutions for their programmable logic designs. Under the terms of the agreement, ARM will supply Altera with the ARM9^TM Thumb^® technology-enabled embedded processor cores for use with the Altera APEX^TM architecture. The resulting ARM core-based embedded processor devices will be part of Altera's new Excalibur^TM embedded processor solutions, also announced today (see release entitled, "Altera Unveils Strategy for Embedded Processor Integration in System-On-A-Programmable-Chip Design"). The ARM processor, combined with the APEX architecture, will provide a high-performance and flexible system-on-a-programmable-chip (SOPC) solution for a broad range of customers in the communications, computing, digital consumer, and industrial markets.

"The integration of ARM's high-performance, low-power embedded processor cores with Altera's APEX architecture is a key to the success of our Excalibur solutions and system-on-a-programmable-chip designs," said Rodney Smith, Altera chairman, president and CEO. "The Excalibur solutions provide the broad marketplace with a pre-licensed, off-the-shelf, programmable alternative to ASICs, ASSPs, and stand-alone embedded processors. This will deliver the flexibility and horsepower designers require for next-generation designs."

"By combining ARM processors with Altera's programmable logic solutions, designers will reap the benefits of high-performance silicon that is also user-configurable," said Robin Saxby, ARM chairman and CEO. "As a leading provider of 16/32-bit embedded RISC processor solutions, we believe the ARM architecture will enable a new level of flexible and high-performance products in all industries, especially the communications market."

About ARM

ARM, a leading intellectual property (IP) provider, licenses high-performance, low-cost, power-efficient RISC processors, peripherals, and system-chip designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming the volume RISC standard in such markets as portable communications, handheld computing, multimedia, digital consumer and embedded solutions. More information on ARM is available at http://www.arm.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.

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Altera, The Programmable Solutions Company, Excalibur, APEX, 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.

ARM and Thumb are registered trademarks and ARM9 is a trademark of ARM Limited. All other trademarks are the property of their respective holders.

Editor Contacts:

Barry Katcher	Stephanie Oswold	Julie Seymour
Altera Corporation	Tsantes & Associates	ARM
(408) 544-8202	(408) 369-1500	(408) 579-2234
bkatcher@altera.com	stephanie@tsantes.com	Julie.Seymour@arm.com