Altera Reduces Prices on FLEX 8000 Devices

Prices Reduced Up to 45 Percent on 12,000 and 16,000 Gate Devices

SAN JOSE, CA., JANUARY 8, 1996 - Altera Corporation (NASDAQ: ALTR) today
announced that effective February 1, 1996 list prices on its highest
density FLEX 8000 devices, the 16,000 gate EPF81500A and the 12,000 gate
EPF81188A, will be reduced up to 45 percent. With these reductions, FLEX
8000 continues to be the most cost-effective programmable logic family in
the industry.

The price reductions are a result of continued process improvement and
manufacturing efficiencies as these devices are being used in higher
volumes. "We saw dramatic growth in overall FLEX 8000 demand during 1995.
The EPF81188A and EPF81500A shipments and fab capacity have increased to
meet the ever-growing demand, driving product costs down," stated Cliff
Tong, Altera's director of product marketing. "We are passing these cost
savings on to the customer in the form of price reductions that we
anticipate will further stimulate FLEX 8000 demand."

Price Reduction Trend

"Programmable logic prices tend to decrease about 30 percent every 12
months, and our goal is to stay ahead of that curve," stated Bob Beachler,
Altera's director of strategic marketing and communications. "Our fab
partnership with Taiwan Semiconductor Manufacturing Corporation (TSMC)
allows us to take advantage of the elasticity in the programmable logic
market and maintain the continuity of supply to our growing FLEX 8000
customer base." Altera reduced the prices of the EPF81188 and EPF81500
devices by 50 percent in July of 1994, with additional reductions in 1995.
The result has been that FLEX 8000 is now Altera's fastest growing product
family.

Significant Reductions

The price list reductions on the EPF81188A and EPF81500A will be effective
February 1, 1996 and apply to a variety of package options and speed
grades. Examples of the 100-unit list pricing are shown in the table
below. The 10,000-unit volume price projections for mid-1996 are $29 and
$59 for the EPF81188A and EPF81500A, respectively.

Price List Changes

                         Old                New            Percent
Part Number          100-Unit Price     100-Unit Price     Change
---------------------------------------------------------------------
EPF81188AQC208-4         $119               $ 89             25%
EPF81188ARC240-4         $185               $ 99             45%
EPF81500ARC240-4         $245               $139             40%
EPF81500ARC304-4         $295               $159             45%

Availability

The EPF81188A and EPF81500A are both available today in volume for PGA and
QFP package options and a variety of speed grades.

ABOUT ALTERA

Altera Corporation, founded in 1983, is a world-wide leader in high-
performance, high-density programmable logic devices and associated
computer aided engineering (CAE) logic development tools.  Programmable
logic devices are semiconductor chips that offer on-site programmability
to customers.  The chips are programmed using tools that run on personal
computers or engineering workstations. User benefits include ease of use,
lower risk, and fast time-to-market.  The Company offers the broadest line
of CMOS programmable logic devices that address high-speed, high-density,
and lower power applications.  Altera products serve a broad range of
market areas, including telecommunications, data communications,
computers, and industrial applications.  Altera common stock is traded on
The Nasdaq Stock Market using the symbol ALTR.
 
 =========================================================
 From the 'New Product News' Electronic News Service on...
 AOL (Keyword = New Products) and Delphi (GO COMP PROD)
 =========================================================
 This information was processed from data provided by the
 company/author mentioned. For additional details, please
 contact them directly at the address/phone# indicated.
 Trademarks are the property of their respective owners!
 =========================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  USA
 Email:   rbakerpc@delphi.com   --or--   rbakerpc@aol.com
 =========================================================
