Altera Debuts Low-Cost ACE PLD Family for High-Volume Communications and Computing Applications.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 20, 1999--

Altera Corporation (Nasdaq:ALTR) today announced a new programmable logic device (PLD) family, code-named ACE(TM), aimed at high-volume applications in the communications and computing market segments. The mid-density family will range from 20,000 to approximately 150,000 gates (40,000 to 300,000 maximum system gates) and facilitates high-performance solutions with a typical system speed of 160-MHz. All devices in the ACE product family will be fully 64-bit, 66-MHz PCI-compliant. The ACE devices will offer the lowest cost-per-logic element of any Altera product family.

The high speed and low cost of the ACE family is ideal for high-volume, price-sensitive communications applications such as cable modems, xDSL modems, and low-cost switches, as well as computing applications like laser printers and PC peripherals. These are high-growth market segments; Dataquest contends that semiconductor consumption by xDSL modems, for instance, is growing at an annual rate of 118 percent (1997-2002).

"The ACE PLD family will add a new level of performance and power reduction," said Cliff Tong, Altera vice president of product marketing. "This family will meet communications designers' need for lower power and higher system performance to address ever-increasing bandwidth requirements, in devices that can be utilized in very high-volume applications."

Efficient Cost Structure

The ACE family will be fabricated on a 0.18-micron, 1.8-V, six-layer metal SRAM process by Altera's manufacturing partner, Taiwan Semiconductor Manufacturing Company (TSMC), Hsinchu, Taiwan. The ACE family's leading-edge process was co-developed with TSMC. The technology is production released and exhibits better than expected defect densities, which should allow volume yields at product introduction. The family combines traditional logic cells with embedded memory blocks on the same device. As a result, ACE devices will support high-speed logic functions, as well as provide efficient memory implementation for dual-port RAM and FIFOs. In addition, the devices operate at 1.8-V, providing nearly 50 percent power savings as compared to existing 2.5-V products.

"Altera's support has been instrumental in getting the new 0.18-micron processes qualified and into production," said Mike Pawlik, TSMC vice president of worldwide marketing. "With the high performance and high yields that the 0.18-micron line has been showing, Altera's ACE family will provide the performance and density requirements for leading edge applications for some time to come."

Software Support

The ACE family will be supported by Altera's fourth-generation development environment, Quartus(TM). The Quartus software was developed to support system-level designs, and features good-as-native links to industry-leading third-party tools from Exemplar Logic, Model Technology, Synopsys, Synplicity, Viewlogic, and other leading EDA vendors.

Altera's Quartus development environment is distributed at no extra cost to current subscribers of Altera's development tools program. Annual subscription rates for the program are $2,000 for a node-locked PC license, which includes Altera's Quartus and MAX+PLUS(R) II development environments and 12 months of upgrades and technical support. Quartus will launch the ACE PLD product family with software support in the first half of year 2000.

Availability, Packaging, and Pricing

The ACE family will be available in a wide range of packages, including Altera's FineLine BGA(TM) packaging, and will begin shipping in the first half of year 2000. Volume pricing is expected to begin below $10.00.

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," should, 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 may not satisfy customer demands, that other companies may develop products with greater functionality than those offered by the Company, that other companies may offer comparable products at lower prices than those offered by the Company, that yields may not be sufficient to support projected pricing, and that products may not be available according to the current schedule. 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 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, ACE, Quartus, MAX+PLUS, Fineline BGA, 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.