Actel Announces Record Annual and Quarterly Revenues and Profits.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 25, 2000

Actel Corporation (Nasdaq:ACTL) today announced record financial results for both the fourth quarter of 1999 and fiscal 1999.

For the fourth quarter of 1999, revenues were a record $46.0 million, compared with $43.2 million for the prior quarter and $40.2 million for the fourth quarter a year ago. This represents an increase of 7 percent from the prior quarter and 15 percent from the fourth quarter a year ago. For the full fiscal year, revenues were a record $171.7 million, which represents an increase of 11 percent over revenues of $154.4 million for fiscal 1998.

Gross margin improved in the fourth quarter to a record 62 percent, representing a 60 basis point improvement from the prior quarter. For the fiscal year, gross margin was a record 61.3%, compared with 60.1% for fiscal 1998. Before the effects of goodwill amortization and other acquisition-related charges, operating income in the fourth quarter increased by 12 percent from the prior quarter. Excluding restructuring and other charges taken in the second quarter of 1999 and goodwill amortization and other acquisition-related charges, operating income in fiscal 1999 increased by 29 percent over fiscal 1998.

Net income in the fourth quarter, excluding goodwill amortization and other acquisition-related charges, was a record $7.3 million, or 30 cents per share. This compares with $6.1 million, or 26 cents per share, in the prior quarter and $4.4 million, or 20 cents per share, in the fourth quarter a year ago. This represents an increase in net income of 20 percent from the prior quarter and 63 percent from the fourth quarter a year ago. Excluding restructuring and other charges taken in the second quarter of 1999 and goodwill amortization and other acquisition-related charges, net income for the fiscal year was a record $21.4 million, or 93 cents per share, compared with $15.8 million, or 72 cents per share, for fiscal 1998. This represents an increase in net income of 35 percent.

Including goodwill amortization and acquisition-related charges, net income in the fourth quarter was a record $5.8 million, or 24 cents per share. This compares with $5.7 million, or 25 cents per share, in the prior quarter and $4.1 million, or 19 cents per share, in the fourth quarter a year ago. This represents an increase in net income of 3 percent from the prior quarter and of 41 percent from the fourth quarter a year ago. Including all restructuring and other charges and acquisition-related charges, net income for the fiscal year was a record $17.6 million, or 76 cents per share, compared with $15.0 million, or 68 cents per share, for fiscal 1998. This represents an increase in net income of 18 percent.

Highlights for Actel during the fourth quarter included the following:

--   Completion of the acquisition of AutoGate Logic (AGL), a software
     service company that offered place and route timing analysis
     software.

--   Shipment of more than one million units of the MX product family,
     the first time any product has ramped to that level.

--   Addition of Actel to the S& Small Cap 600 Index.

John East, president and CEO, stated, &uot;We're pleased with our financial results for the fourth quarter. Our revenue growth, coupled with our continuing focus on spending controls, drove a sequential earnings increase of 20 percent (excluding goodwill amortization and acquisition-related charges). We again had a solid bookings quarter and feel better going into 2000 than any previous year. Our MX product is growing faster than any other product family in Actel's history, and our recently announced SX-A family is being very well received in the marketplace.&uot;

Actel is dedicated to becoming the field programmable gate array (FPGA) provider of choice. The company's FPGAs are used by manufacturers of communications, computer, consumer, industrial control, military/aerospace, and other electronic systems to bring complex, high-density digital designs rapidly to market. Actel, the world's leading supplier of FPGAs based on antifuse technology, is developing new families based on Flash and SRAM technologies. The company is traded on the Nasdaq National Market under the symbol ACTL and is located at 955 East Arques Avenue, Sunnyvale, California, 94086-4533. Telephone: 888-99-ACTEL (992-2835). Internet: http://www.actel.com. Email: [e-mail].

Actel's operating results are subject to a multitude of risks that could cause actual results to differ materially from past or projected performance, 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. For a discussion of these and other factors that could have a materially adverse effect on Actel's operating results, please see &uot;Risk Factors&uot; in Actel's most recent Forms 10-K and 10-Q, which will be provided to you free of charge upon request.

Note to Editors: The Actel name and logo are registered trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.

                           ACTEL CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          (unaudited, in thousands except per share amounts)

                          Three Months Ended       Fiscal Year Ended
                       Jan. 2,  Jan. 3,  Oct. 3,   Jan. 2,    Jan. 3,
                        2000     1999     1999      2000       1999

Net revenues         $ 46,042 $ 40,174 $ 43,162   $171,661   $154,427
Costs and expenses:
 Cost of revenues      17,496   15,797   16,659     66,387     61,642
 Research and
  development           8,087    8,483    7,740     32,338     31,220
 Selling, general,
  and administrative   11,637    9,869   10,921     45,903     40,558
 Amortization of
  goodwill and other
  acquisition-related
  intangibles           1,047      490      350      2,226      1,185
 Restructure and
  other charges            --       --       --      1,963         --
 Purchased in-process
  research and
  development             600       --       --        600         --
     Total costs
      and expenses     38,867   34,639   35,670    149,417    134,605

Income from operations  7,175    5,535    7,492     22,244     19,822
Interest income and
 other, net             1,263      565      724      3,449      2,380
Income before tax
 provision              8,438    6,100    8,216     25,693     22,202
Tax provision           2,615    1,982    2,548      8,055      7,215
Net income           $  5,823 $  4,118 $  5,668   $ 17,638   $ 14,987

Net income per share:
 Basic               $   0.26 $   0.20 $   0.26   $   0.81   $   0.71
 Diluted             $   0.24 $   0.19 $   0.25   $   0.76   $   0.68

Shares used in
 computation:
  Basic                22,048   21,091   21,748     21,664     21,251
  Diluted              24,015   22,201   23,003     23,058     21,921


        PRO-FORMA INFORMATION EXCLUDING GOODWILL AMORTIZATION,
         ACQUISITION-RELATED, RESTRUCTURING AND OTHER CHARGES

The following Pro-Forma supplemental information adjusts for the
effect of amortization of goodwill and other acquisition-related
charges (including in-process research and development) and
restructuring and other charges. Not all goodwill amortization and
acquisition-related charges are deductible for income tax purposes.
The tax implications of these items have been included in the
determination of the pro forma net income. This pro forma information
is not prepared in accordance with generally accepted accounting
principles.

                          Three Months Ended       Fiscal Year Ended
                       Jan. 2,  Jan. 3,  Oct. 3,   Jan. 2,    Jan. 3,
                        2000     1999     1999      2000       1999
Operating costs
 and expenses        $ 19,724 $ 18,352 $ 18,661   $ 78,241   $ 71,778

Operating income     $  8,822 $  6,025 $  7,842   $ 27,033   $ 21,007

Net income excluding
 amortization of
 goodwill and other
 acquisition-related
 intangibles,
 purchased in-process
 research and
 development, and
 restructuring and
 other charges       $  7,257 $  4,448 $  6,052   $ 21,387  $ 15,786

Basic earnings per
 share excluding
 amortization of
 goodwill and other
 acquisition-related
 intangibles,
 purchased in-process
 research and
 development, and
 restructuring and
 other charges       $   0.33 $   0.21 $   0.28   $  0.99  $    0.74

Diluted earnings
 per share excluding
 amortization of
 goodwill and other
 acquisition-related
 intangibles,
 purchased in-
 process research
 and development, and
 restructuring and
 other charges       $   0.30 $   0.20 $   0.26   $  0.93  $    0.72

NOTE: Certain prior amounts have been reclassified to conform with the
current presentation.


                           ACTEL CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                       (unaudited, in thousands)


                                               Jan. 2,       Jan. 3,
                                                2000          1999
     ASSETS
Current assets:
 Cash and cash equivalents                   $  4,939      $ 13,947
 Short-term investments                       103,044        56,449
 Accounts receivable, net                      22,753        20,820
 Inventories                                   25,324        25,669
 Deferred income taxes and
  other current assets                         20,827        21,627
     Total current assets                     176,887       138,512
Property and equipment, net                    12,564        14,592
Investment in foundry                          37,619        10,680
Other assets                                   31,221        15,924
                                             --------      --------
                                             $258,291      $179,708

     LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                            $ 15,374      $ 11,525
 Accrued salaries and employee benefits         6,884         4,960
 Other accrued liabilities                      6,912         4,198
 Deferred income                               39,896        31,971
     Total current liabilities               $ 69,066      $ 52,654
Shareholders' equity                          189,225       127,054
                                             --------      --------
                                             $258,291      $179,708