Actel announces record revenues and earnings for third quarter 1995.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 19, 1995--Actel Corporation (NASDAQ: ACTL) today announced record third quarter 1995 net revenues of $29.8 million, up 48 percent from third quarter 1994 net revenues of $20.2 million, and record net income of $2.9 million, up 32 percent from third quarter 1994 net income of $2.2 million. Actel also reported net income per share of 14 cents, compared with 13 cents per share for the third quarter last year.

Net revenues increased 12 percent over second quarter 1995 net revenues of $26.6 million, and net income increased 74 percent over second quarter 1995 net income of $1.7 million, or 8 cents per share.

Actel also reported net revenues of $76.0 million for the nine month period ended Oct. 1, 1995, up 37% from $55.3 million for the first nine months of 1994. Prior to consideration of a $16.6 million charge for in-process research and development and related tax benefit of $6.6 million that resulted from Actel's acquisition of the antifuse field programmable gate array (FPGA) business of Texas Instruments, Actel's net income for the nine months ended Oct. 1, 1995, was $5.0 million, or 25 cents per share, compared with net income of $5.6 million, or 32 cents per share, for the first nine months of 1994.

John East, president and CEO, stated, "We believe we have successfully assimilated Texas Instruments' antifuse FPGA business into our ongoing operations and are excited about our position in the rapidly growing FPGA market." FPGAs are used in voice and data communications, computing, medical, industrial controls, and military and aerospace applications worldwide to reduce development costs and time to market.

In the third quarter of 1995, unit sales of FPGAs increased 68 percent, and overall average selling prices (ASPs) decreased 6 percent, compared with the third quarter of 1994. Sequential quarter-to-quarter FPGA unit sales decreased during the third quarter by 3 percent, and ASPs increased by 16 percent.

Actel is the world's leading supplier of antifuse-based FPGAs and associated software development tools. Actel Corporation is dedicated to providing logic designers with the capability and confidence to move up to higher complexity designs. Actel's cost-effective antifuse architecture offers designers advantages in total system performance, gate utilization, and high-level design efficiences.

Actel is traded on the NASDAQ market under the symbol ACTL and is located at 955 E. Arques Avenue, Sunnyvale, CA 94086. Telephone: [phone]. Actel's quarterly operating results are subject to a variety of risks, many of which are characteristic of the semiconductor industry. For a discussion of such risks, as well as further information about Actel's quarterly operating results, please see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Actel's Form 10-Q for the third quarter of 1995, a copy of which will be provided to you free of charge upon request. -0-

                        ACTEL CORPORATION
              CONSOLIDATED STATEMENT OF OPERATIONS
            (In thousands, except per share amounts)
                           (unaudited)

                           Three Months Ended     Nine Months Ended
                        Oct. 1,   Oct. 2,  July 2,  Oct. 1,  Oct. 2,
                          1995     1994     1995     1995     1994
                        -------   ------   ------  -------  -------
Net Revenues            $29,834  $20,222  $26,611  $75,963  $55,275
Cost and Expenses:
  Cost of revenues       14,416    8,890   13,243   37,283   24,041
  Research & development  5,430    3,777    4,885   14,758   10,654
  Selling, general &
   administrative         7,244    5,079    6,904   19,515   14,519
  In-process research
    & development          --        --       --    16,600       --
                         ------  -------  -------  -------   ------
Operating costs and
 expenses                27,090   17,746   25,032   88,156   49,214
Operating income (loss)   2,744    2,476    1,579  (12,193)   6,061
Interest and other
 income, net                191      138      104      543      481
                         ------   ------   ------  -------  -------
Income (loss) before
 tax provision            2,935    2,614    1,683  (11,650)   6,542
Provision (benefit)
 for taxes                 --        392      --    (6,640)     981
                        -------   ------   ------  --------  ------
Net income (loss)       $ 2,935  $ 2,222 $  1,683 $ (5,010) $ 5,561
                        =======   ======   ======   =======   =====
Net income (loss)
 per share              $  0.14  $  0.13 $   0.08 $  (0.29) $  0.32
                        =======   ======  =======  ========  ======
Shares used in
 computing net
 income (loss)
 per share               21,082   17,577   20,581   17,329   17,522
                         ======   ======   ======   ======   ======

                       ACTEL CORPORATION
                   CONSOLIDATED BALANCE SHEET
                        (In thousands)
                          (unaudited)

                                             Oct. 1,     Jan. 1,
                                              1995        1995
                                            -------      -------
Current assets
Cash, cash equivalents and short
 term investments                           $14,565      $25,963
Accounts receivable                          15,473       13,232
Inventories                                  23,973       12,931
Other current assets                          7,961        2,317
                                            -------      -------
Total current assets                         61,972       54,443
Property and equipment, net                  14,402        9,278
Other assets                                 17,759        4,134
                                            -------      -------
Total assets                                $94,133      $67,855
                                            =======      =======

Current liabilities
Accounts payable, accrued liabilities,
 and deferred income                        $29,449      $17,984
Current obligations under capital
leases                                          134          488
                                            -------      -------
Total current liabilities                    29,583       18,472
Long-term obligations and redeemable
 convertible preferred stock                 18,147           72
Shareholders equity                          46,403       49,311
                                            -------      -------
Total liabilities and shareholders equity   $94,133      $67,855
                                            =======      =======-0-

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CONTACT: Actel Corporation

Buford Barr, 408/522-4368

David M. Sugishita, 408/522-4393