San Jose, Calif., May 8, 2006 — Altera Corporation (NASDAQ:ALTR) today announced that, as a result of management’s recent review of the company’s stock option practices, and issues concerning options granted during the period 1996 through 2000, the company’s board of directors has established a special committee of independent directors to review the company’s historical stock option practices and related accounting. The special committee will be assisted by independent legal counsel and outside accounting experts. Management initiated its review following recent media reports regarding stock option practices at other companies. Although the impact to the company’s historical financial statements is not yet known, the company does not expect the review to result in material changes to its historical revenues or non-option related operating expenses. In light of this review, the company will not be able to file its Form 10-Q for the first quarter of 2006, which is due on May 10, 2006. The company is not seeking a five-day extension to file its Form 10-Q because it does not believe it can complete its review by the end of the allowed extension period. Altera does not anticipate that these developments will change the timing of its second quarter business update, currently scheduled for release after the market closes on May 30, 2006.
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