Altera Acquires DesignPRO Inc.; Enhances SOPC Solutions for Optical Internetworking Applications.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 1, 2000

Altera Corporation (Nasdaq:ALTR) announced today that it has acquired privately-held DesignPRO Inc. (Nepean, Ontario, Canada), a provider of intellectual property (IP) cores and custom design solutions, specializing in optical internetworking technologies. With the acquisition, DesignPRO becomes the Altera Ottawa Technology Center. Terms of the acquisition are not being disclosed, and are not expected to have a material effect on Altera's financial results.

The acquisition allows Altera to enhance its services and product offerings, especially IP cores, for customers developing system-on-a-programmable-chip (SOPC) solutions for optical internetworking applications. Ongoing development of these IP cores by the Ottawa Technology Center will further enable Altera's customers to bring the flexibility of SOPC solutions to bear on the constantly changing standards prevalent within the communications industry.

"The purchase of DesignPRO is another example of Altera's commitment to acquire first-class technologies that greatly enhance time-to-market for our customers," said Craig Lytle, Altera vice president of the intellectual property business unit. "DesignPRO has created and delivered cutting-edge solutions to many of the industry leaders in optical internetworking and has a proven track record of meeting the demands of its customers by envisioning tomorrow's technical challenges today."

Creation of the Ottawa Technology Center further enhances Altera's design experience and expertise in communications system design. Along with the extensive product development activities performed at Altera's San Jose headquarters and at its European Technology Center, the Ottawa Technology Center reinforces Altera's leadership role in providing leading-edge programmable solutions to its customers.

The Ottawa Technology Center is strategically located in Nepean, Ontario, Canada, part of the thriving Ottawa region often referred to as Silicon Valley North. The Ottawa area is a world-class telecom research and development area.

"Since DesignPRO's inception, we have been involved in numerous challenging projects, and have developed many exciting new technologies," said Eric Dormer, founder and president of DesignPRO. "DesignPRO's optical networking experience combined with Altera's programmable logic leadership will create more powerful SOPC solutions for Altera's customers. The synergies created through this combination within the Ottawa Technology Center will further enhance Altera solutions targeted at the communications marketplace."

Safe Harbor Notice

This press release contains "forward looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally preceded by words such as "expects," "believes," "anticipates," "projects," or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the risks that the Company's products will not satisfy customer demands and that other companies will develop products with greater functionality than those offered by the Company. Please refer to the Company's Securities and Exchange Commission filings, copies of which are available from the Company without charge, for further information.

About DesignPRO Inc.

DesignPRO has been a member of the Altera Consultant Alliance Program (ACAP(R)) since February 1999, specializing in digital design for optical communications applications, such as high speed access products, synchronous optical networking (SONET/SDH), ATM , and wireless technologies. As an ACAP partner, DesignPRO had also offered a complete spectrum of product development services including system design, chip and board specification, programmable logic device (PLD) and ASIC design and verification, evaluation board design and manufacturing, digital signal processing (DSP) coding, firmware and software development, and hardware and software integration testing. The company has completed projects for many major companies across the globe including Ascend Communications, Applied Micro Circuits, Arris Interactive, Newbridge Networks, Nortel Networks, and Motorola.

About Altera

Altera Corporation, The Programmable Solutions Company(TM), 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.

Note to Editors: Altera, The Programmable Solutions Company, ACAP, 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.