Altera Unveils Strategy for Embedded Processor Integration in System-On-A-Programmable-Chip Design.

Business Editors/High-Tech Writers

Embedded Processor Forum

SAN JOSE, Calif.--(BUSINESS WIRE)--June 12, 2000

Altera Corporation (Nasdaq:ALTR) today disclosed its strategy and roadmap for embedded processor integration for system-on-a-programmable-chip (SOPC) designs by announcing its new Excalibur(TM) embedded processor solutions. These solutions combine programmability, logic, and memory with embedded processors, enabling system integration on a single programmable logic device (PLD). Through licensing agreements with MIPS Technologies and ARM Limited, as well as Altera's internally developed Nios(TM) embedded processor (see related press release titled "Altera Introduces the Nios(TM) Embedded Processor, Industry's First RISC-Based Embedded Processor Developed for SOPC Integration"), Altera's Excalibur solutions provide system designers with open access to an unprecedented level of design flexibility and integration. Providing a complete SOPC solution enables broad market access for all system designers to meet stringent time-to-market requirements, while lowering design risk and costs when compared to application-specific integrated circuits (ASICs), application-specific standard products (ASSPs), and stand-alone embedded processor solutions.

Wide Open Business Model Provides Access to All Customers

Altera's Excalibur embedded processor solutions provide programmable flexibility and system-level integration while bringing advance processor technology to the broad marketplace. Previously, designers were relegated to use ASICs, which involves fixed functionality, high non-recurring engineering and re-spin costs, and strict requirements on minimum order quantities. For users of ASSPs or stand-alone embedded processors, the lack of flexibility and integration has precluded their use in many applications. Furthermore, access to industry-leading processor cores has been limited to select companies by virtue of the terms and conditions typically associated with traditional core licensing models.

"Based upon the immediate availability, widespread accessibility, and completeness of our Excalibur embedded processor solutions, we believe the trend away from a fixed system-on-chip (SOC) methodology toward a highly-flexible SOPC solution will accelerate dramatically. Our new offerings enable us to address the ASIC, ASSP, and stand-alone embedded processor markets at a time when designers are searching for solutions that improve time-to-market while providing design flexibility," said Rodney Smith, chairman, president and CEO of Altera. "With the announcement of the ARM and MIPS agreements, our own Nios embedded processor and development kit, and the high-density APEX(TM) architecture as our SOPC silicon delivery vehicle, we believe that Altera's SOPC solutions now have the technical capability to address more than 90 percent of today's system-level designs."

Fifty Billion Dollar Opportunity

Altera anticipates that the Excalibur products and SOPC technology will expand it's market potential in 2003 from the $5 billion traditional PLD industry to an over $50 billion system integration market opportunity. Altera expects that its unique, wide-open business model will accelerate the SOPC adoption rate by providing designers with key intellectual property (IP) elements without the complexities and up-front costs typically associated with processor-based licensing or ASIC terms and conditions.

Delivers Complete SOPC Solution

Four key elements comprise a full system on a single programmable logic device:

      --  High-density silicon products that support the integration of
        key functions
      --  Expert development tools to support both software and hardware
        design methodologies
      --  Support for design re-use through readily accessible IP such
        as digital signal processing (DSP), peripheral component
        interface (PCI), and embedded processor functionality
      --  Key partnerships that provide the design infrastructure

With today's announcement, Altera provides system designers with the necessary product solutions that encompass all four of these key elements.

Excalibur(TM) Embedded Processor Solutions

Critical to its objective to meet both the technical and commercial requirements for system integration, Altera has established new benchmarks in SOPC integration with the introduction of its new Excalibur embedded processor solutions. These solutions include a comprehensive offering of embedded processor cores, expert hardware and software code compilers, programmable logic development tools, and development hardware.

Key Licensing Agreements with MIPS Technologies and ARM

To support high-end, high-performance system designs that have standardized upon existing processor architectures, Altera has licensed the use of RISC-based processor cores from ARM and MIPS Technologies. These licensing agreements allow Altera to develop and provide hard core implementations of industry-leading processor cores, within the framework of Altera's programmable logic architectures. The agreements also cover the peripheral cores necessary for a complete, high-performance SOPC solution.

Nios Embedded Processor Offers Enhanced Flexibility, Low Cost, and Scalability

For broad market coverage where end customers seek a programmable solution that efficiently and cost-effectively integrates a flexible embedded processor, Altera has developed the Nios embedded processor core, the industry's first embedded processor developed for programmable logic. The Nios embedded processor core is a RISC-based, configurable and scalable soft core processor that offers a 16-bit instruction set and 16-/32-bit datapaths. When implemented in Altera's APEX 20KE architecture, the Nios embedded processor core can operate at 50 MIPS and consumes approximately 1,000 logic cells, equivalent to 12 percent of the capacity of the APEX EP20K200E device, or just two percent of the APEX EP20K1500E device. Due to its scalability and flexibility, the Nios embedded processor can be instantiated multiple times, and configured to act as a specialized network processor. This embedded processor functionality is available at a $5 volume price, making it cost-competitive with alternative stand-alone embedded processor solutions, while providing enhanced flexibility and integration. The Nios embedded processor is supported by a complete development kit that includes all necessary peripheral cores, a C/C++ compiler and source-level debugger licensed from Red Hat, Inc., Quartus(TM) development software, verification tools, and a hardware development board. The C/C++ compiler and debugger are part of the GNUPro tool suite created by Cygnus, a division of Red Hat.

The APEX(TM) Architecture -- Altera's Flagship SOPC Integration

Platform

The Altera APEX PLD family architecture meets the system-level design challenge by offering complete system integration on a single device. The APEX device family ranges from 60,000 to more than 1.5 million gates (160,000 to over 2.5 million maximum system gates) and is shipping on a 0.18-um, six-layer-metal process. The APEX device family feature set includes embedded system blocks (ESBs) for fast, efficient on-chip memory, and high-bandwidth I/O capabilities, providing an ideal silicon delivery vehicle for SOPC designs.

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," "intends," or "will." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty, including without limitation the risks that the Company's Excalibur products and SOPC technology will not satisfy customer demands. 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(R), was founded in 1983 and is a leading supplier of programmable logic devices (PLDs). Altera's CMOS-based PLDs are user-programmable semiconductor chips that enhance flexibility and reduce time-to-market for companies in the communications, computer peripheral, and industrial markets. By using high performance devices, software development tools, and sophisticated intellectual property cores, system-on-a-programmable-chip (SOPC) solutions can be created with embedded processors, memory, and other complex logic together on a single PLD. Altera common stock is traded on The Nasdaq Stock Market under the symbol ALTR. More information on Altera is available on the Internet at http://www.altera.com.

Note to Editors: Altera, The Programmable Solutions Company, Excalibur, Nios, APEX, Quartus, 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.