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News Release

Lattice Semiconductor Corporation
Consolidated Operations Information-Earnings Before Goodwill (1)
(in thousands, except per share data)

                                                        Three months ended (2)	      Six months ended (2)
                                                       ---------------------------   ----------------------
Description                                  Oct. 2,      July 3,      Sept. 26,        Oct. 2,       Sept. 26, 
                                               1999        1999          1998            1999           1998
                                            ----------   ----------   ------------   -------------   ------------      
Revenue                                        $94,973      $59,738        $48,088        $154,711        $96,116 
												
Costs and expenses:												 
   Costs of products sold                       39,771       22,881         19,043          62,652         38,152 
   Research and development                     17,864        9,889          7,920          27,753         15,815 
   Selling, general and administrative          20,393       10,845          9,005          31,238         18,010 
                                            ----------   ----------   ------------   -------------   ------------             
												
       Total costs and expenses                 78,028       43,615         35,968         121,643         71,977 
                                            ----------   ----------   ------------   -------------   ------------          

Income from operations                          16,945        16,123         12,120          33,068         24,139 
												
Other (expense) income, net                    (3,645)         1,805          2,503         (1,840)          5,026 
                                            ----------   -----------   ------------   -------------   ------------	
Income before provision 												
   for income taxes                             13,300        17,928         14,623          31,228         29,165 
						 						
Provision for income taxes                       4,855         5,737          4,753          10,592          9,479 
												
Tax shield                                       3,111           614              -          3,725               -
                                            ----------   -----------   ------------   -------------   ------------    

Earnings Before Goodwill (EBG)                 $11,556       $12,805         $9,870         $24,361        $19,686 
                                            ==========   ===========   ============   =============   ============
												
Diluted EBG per share                            $0.23         $0.26          $0.21           $0.49          $0.41 
                                            ==========   ===========   ============   =============   ============
												
Shares used in per share calculations (3)       49,884        48,714         47,228          49,283         47,474 
                                            ==========   ===========   ============   =============   ============

Notes:

  1. This table reconciles Earnings Before Goodwill per share information to Diluted Net (Loss) Income per share which is presented in Appendix 1.
  2. In Process Research and Development charges are $89.003 million and represent the appraised value of research and development work being performed by Vantis Corporation on June 16, 1999, the acquisition date.
  3. Goodwill (intangible assets) is $420.303 million after In Process Research and Development charges of $89.003 million and other adjustments approximating $2.230 million. Amortization of $25.291 million through October 2, 1999 is calculated using the straight line method over five years.
  4. Tax Shield represents the current period tax deduction available from amortizing intangible assets ($511.536 million) over 15 years on a straight line basis using a 36.5% tax rate.
  5. Share count difference in earnings per share calculations results from the inclusion of equivalent shares representing outstanding stock options in periods with profits and exclusion of such equivalent shares in periods with losses.
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