Altera Announces Acquisition of Northwest Logic

Northwest Logic Adds Design Services Expertise in Communications and Embedded Processor Design
Complements Altera's Existing Device, Software, and Intellectual Property To Provide Complete System-on-a-Programmable-Chip Solutions

San Jose, Calif., September 12, 2000--Altera Corporation (Nasdaq: ALTR) announced today that it has acquired privately-held Northwest Logic Inc., (Hillsboro, OR), a provider of system design services and intellectual property (IP) specializing in telecommunications, data communications, and embedded processor systems design. Terms of the acquisition are not being disclosed, and are not expected to have a material effect on Altera's financial results. This agreement continues Altera's strategy to invest in leading-edge capabilities that enhance its ability to provide complete solutions to customers.

By including system design services, the acquisition adds to Altera's comprehensive solution of devices, development software, and IP cores for system-on-a-programmable-chip (SOPC) design. Northwest Logic will provide system architecture development, embedded system design, and embedded software development, as well as programmable logic/ASIC design. Operating as a wholly-owned subsidiary, Northwest Logic will be headquartered in its existing facility in Hillsboro, OR.

"In today's increasingly resource-constrained market, our major customers are requesting Altera to provide contract design services as they try to accelerate product development. Northwest Logic has the expertise to provide sophisticated system design services and a successful track record within the design services business," said Erik Cleage, Altera's senior vice president of marketing. "By focusing Northwest Logic on our major accounts, we complement our Altera Consultants Alliance Program (ACAP^®), a network of 62 design services companies that has been serving our broad base of customers."

"Altera and Northwest Logic share the vision of reducing the time-to-market for system design," said Allan Douglas, Northwest Logic's president and CEO. "Combining Altera's expertise in programmable technology and its customer base with our system design knowledge will create a superior design services organization and accelerate the adoption of SOPC design."

Northwest Logic has completed a wide range of system designs from around the world, with specialization in communications equipment, including optical networking and telecommunications. Northwest Logic's portfolio of intellectual property (IP) cores, including SDRAM controllers that support synchronous DRAM (SDRAM), double data rate (DDR) DRAM, and zero burst transfer (ZBT) SRAM, will become part of Altera's MegaCore^® product line. Existing customers of Northwest Logic's IP cores and design services will continue to be serviced by Northwest Logic.

About Altera

Altera Corporation, The Programmable Solutions Company^®, was founded in 1983 and is a leading supplier of programmable logic devices and associated logic development software tools. Programmable logic devices are semiconductor chips that can be programmed on-site, using software tools that run on personal computers or engineering workstations. User benefits include ease of use, lower risk, and fast time-to-market. Altera's CMOS-based programmable logic devices address high-speed, high-density and low-power applications in the telecommunications, data communications, computer peripheral, and industrial markets. Altera common stock is traded on the Nasdaq Stock Market under the symbol ALTR. More information on Altera can be obtained on the Internet at http://www.altera.com.

Editor Contacts:
Richard Haas
Altera Corporation
(408) 544-7496
rhaas@altera.com

Stephanie Oswold
Tsantes & Associates
(408) 369-1500
stephanie@tsantes.com