Altera Increases First Quarter Revenue Guidance.

SAN JOSE, Calif. -- Altera Corporation (Nasdaq:ALTR) today announced an increase in first quarter revenue guidance.

The company now expects that first quarter revenue will increase approximately 6% from the fourth quarter. The company had previously estimated that first quarter sequential revenue growth would be in the range of 1 to 3%. Sales to customers in the communications market segment have rebounded more sharply than initially anticipated.

The company's newly introduced 90-nm Stratix(R) II FPGA family continues to ramp strongly. Taking advantage of the industry's fastest performance and highest density, more than 250 customers have now purchased Stratix II devices.

Forward-Looking Statements 

Our projection that first quarter revenue will increase approximately 6% from the fourth quarter is a "forward-looking statement," as the term is defined in the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this forward-looking statement involves risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, customer business environment, market acceptance of the company's products, the rate of growth of the company's new products and in particular the Stratix and Cyclone(TM) device families, the rate at which our customers' new platforms enter production, the rollout of the company's Stratix II, Cyclone II, MAX(R) II, and HardCopy(R) II families, as well as changing economic conditions, and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission from time to time. Copies of Altera's SEC filings are posted on the company's web site and are available from the company without charge. Forward-looking statements are made as of the date of this release, and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

About Altera

Altera Corporation (Nasdaq:ALTR) is the world's pioneer of system-on-a-programmable-chip (SOPC) solutions. Combining programmable logic technology with software tools, intellectual property, and technical services, Altera provides high-value programmable solutions to approximately 14,000 customers worldwide. More information is available at http://www.altera.com.

Altera, The Programmable Solutions Company, the stylized Altera logo, specific device designations and all other words that are identified as trademarks and/or service marks are, unless noted otherwise, the trademarks and service marks of Altera Corporation in the U.S. and other countries. All other product or service names are the property of their respective holder.