The SOPC Market Opportunity

1. The SOPC Market Opportunity EmbeddedProcessors/Controllers $11B DSP $11B Standard Cell $15B ASSP $18B Traditional PLD $6B Over $60B* in 2003 Expanded Opportunityfor Altera Source: Gartner Group & Semico Research Corp.Forecast for 2003 * Does Not Include Handsets & Consumer Market

2. Revenue Growth Comparison Altera Worldwide Semiconductor 1993 Index = 100

3. 2001*Model 1995 1996 1997 1998 1999 2000 Target RevenueGrowth 30 102 24 27 4 28 65 -15 GrossProfit 60.5 61.4 63.5 61.9 64.0 66.1 65.0 65 13 R&D 8.4 9.2 8.6 9.1 10.3 13.0 18.8 18.6 17.6 17.9 17.3 17.1 15.3 21.8 < 16 SG&A NetIncome 21.6 22.0 24.0 23.6 26.8 28.6 20.5 30 * Guidance on February 27, 2001 Financial Highlights (%)

4. Disable Rowwith Impurity Impurity DefectiveDie Repaired withRedundancy EnableRedundantRow Redundancy Offers Unique Advantage

5. Product-Term Devices in 2000 • 47% Sales Growth • 3.3-Volt: Market Share Leader • 385% Growth in 2000 • 45% Market Share • Outgrew Competition • MAX 7000B: Only 2.5-Volt Device In Market

6. Look-Up Table Devices in 2000 • 91% Sales Growth in 2000 • Altera Gains Market Share • Excalibur Introduction Expands SOPC Opportunity • Shipping Largest Commercially Available Device

7. One-Million-Gate Crossover Point MPU Dual- Port RAM PLL PLL PLL PLL Dual- Port RAM M e m o r y L V D S Logic L V D S M e m o r y Logic PLL PLL CAM PLL PLL CAM Dual- Port RAM APEX 20KE Excalibur Logic M e m o r y PLL PLL PLL Quad- Port RAM IOR FLEX 10KE M e m o r y L V D S M e m o r y Logic Logic CDR Logic FLEX 10K PLL PLL CAM Mercury™ FLEX8000 Evolution of Programmable Logic Gates 2.5M PLL 1.5M 100K 10K

8. Intellectual Property Cores Communications Bus Interface Digital SignalProcessing Processor,Peripheral ADPCM (u-law, a-law) ATM Controller CRC Ethernet MAC (10/100/Gigabit) HDLC Protocol Core IMA Controller SONET Framer T3/E3 Framer Packet Over SONET Processor Telephony Tone Generator Utopia Master & Slave POS-PHY Interface PCI Target PCI Master-Target PCI-X CAN Bus IIC Master & Slave IEEE 1394 PowerPC Bus Arbiter PowerPC Bus Master PowerPC Bus Slave USB Function Controller USB Host Controller Color Space Converter Digital Modulator Discrete Cosine Transform Fast Fourier Transform FIR Compiler IIR Filter Image Processing Library NCO Reed Solomon Encoder/Decoder Interleaver/Deinterleaver Viterbi Decoder Turbo Decoder NiosTM Processor Tensilica X-tensa Processor PalmChip Bus SDRAM Controller DDR-SDRAM Controller QDR-SDRAM Controller 8237 DMA Controller 8255 Peripheral Interface 8259 Interrupt Controller 8254 Timer/Counter 8051, 6502, Z80 And More!

9. TSMC 0.15-mm Process Technology All Copper Interconnect for Highest Performance 25% Faster Shipping APEX 20KC with All Copper Interconnect All CopperInterconnect 25% Faster

10. Mercury™ Programmable ASSP • Combination of PLD and Transceiver ASSP 1.25 GHz Analog Clock/Data Recovery 0.15um 7 Layer Copper Process Technology Quad-Port ESB Embedded Memory High Performance PLD Architecture Analog PLL Advanced Programmable I/O

11. Focus • Leverage Advantages to Capture Share • SOPC Leadership – Excalibur & Mercury • Cost Advantage with Patented Redundancy • APEX with Copper Interconnect • MAX 7000 Leadership: Brand and Technology • Quartus II Leapfrogs Competition • Technical FAEs to Drive Sales • Accelerate New Product Development • Long-Term Target 30% Revenue Growth and 30% Net Income End ofPresentation