News Release

Lattice Semiconductor Reports Record First Quarter Results

• Consolidated Operations Information - Earnings Before Goodwill
• Consolidated Balance Sheet
• Appendix 1 - Consolidated Statement of Operations
• Appendix 2 - Earnings Per Share Reconciliation

                                      Three months ended (2)
                                      ----------------------
Description                Mar. 31, 2000  Dec. 31, 1999   Mar. 31, 1999
-------------------------- -------------  --------------  -------------

Revenue                       $126,055        $114,988        $53,788

Costs and expenses:
   Costs of products sold       49,585          46,035         20,743
   Research and development     18,243          18,150          8,877
   Selling, general and
             administrative     19,514          19,438          9,476
                           -------------  --------------  -------------

       Total costs and
             expenses           87,342          83,623         39,096
                           -------------  --------------  -------------
Income from operations          38,713          31,365         14,692

Gain on appreciation of foundry
   investments (3)             149,960              --             --
Other (expense) income, net     (1,161)         (2,280)         2,860
                           -------------  --------------  -------------

Income before provision
   for income taxes            187,512          29,085         17,552

Provision for income taxes      70,276          10,616          5,704

Tax shield                       2,794           3,090             --
                           -------------  --------------  -------------

Earnings Before Goodwill (EBG)$120,030         $21,559        $11,848
                           =============  ==============  =============

Diluted EBG per share (4)        $2.10           $0.42          $0.24
                           =============  ==============  =============

Shares used in calculations (4) 58,409          50,949         48,398
                           =============  ==============  =============

Notes:

1. This table presents operating information which is consistent with the information reported by First Call, IBES and Zacks for Lattice Semiconductor Corporation. A Statement of Operations based on GAAP is attached as Appendix 1. A reconciliation of Earnings Before Goodwill ("EBG") to GAAP on a per share basis is attached as Appendix 2.
2. Includes operations of Vantis Corporation for the period from acquisition, June 16, 1999, and certain purchase accounting adjustments but excludes amortization of intangible assets and write-off of In-process research and development.
3. Represents appreciation of foundry investments in Taiwan.
4. For the three months ended March 31, 2000, the computation of diluted EBG per share includes the effect of stock options and the $260 million of convertible notes. Diluted EBG per share is adjusted to exclude interest expense and debt issuance cost amortization (net of tax) of $2.388 million. Diluted weighted-average shares outstanding include the dilutive effect of stock options and approximately 6.274 million shares issuable on the assumed conversion of the notes. All share and per share amounts have been adjusted retroactively to reflect the two-for-one stock split effected in the form of a stock dividend which was paid on September 16, 1999.

                                    March 31,    Dec. 31,
Description                           2000         1999
----------------------------------  ---------    ---------

     Assets
Current assets:
   Cash and short-term investments   $237,804     $214,140
   Accounts receivable                 58,759       33,676
   Inventories                         30,662       26,036
   Other current assets                51,905       40,134
                                    ---------    ---------

            Total current assets      379,130      313,986

Property and equipment, net            64,296       59,689
Foundry investments, advances
          and other assets            283,582      130,274
Intangible assets, net (1)            351,600      373,117
Deferred tax asset                         --       39,089
                                    ---------    ---------

                                   $1,078,608     $916,155
                                    =========    =========

Liabilities and Stockholders' Equity

Current liabilities:
   Accounts payable and other
          accrued liabilities        $107,288     $103,581
   Deferred income on sales
          to distributors              54,230       45,188
   Income taxes payable                 8,594       12,459
                                    ---------    ---------

          Total current liabilities   170,112      161,228
                                    ---------    ---------

4 3/4% Convertible notes due
          in 2006                     260,000      260,000
Deferred taxes                         15,457           --
Other long-term liabilities            13,699       12,154
                                      289,156      272,154
                                    ---------    ---------

Stockholders' equity                  619,340      482,773
                                    ---------    ---------

                                   $1,078,608     $916,155
                                    =========    =========

Notes:

1. Goodwill (intangible assets) is $351.600 million after In Process Research and Development charges of $89.003 million and amortization of $66.142 million through March 31, 2000 calculated using straight line method over five years.

Appendix 1

                                                           Three months ended(1)
                                       ---------------------------------------------------------
Description                              Mar. 31, 2000       Dec. 31, 1999       Mar. 31, 1999
-------------------------------------- -----------------   -----------------   -----------------
Revenue                                       $126,055            $114,988             $53,788

Costs and expenses:
   Costs of products sold                       49,585              46,035              20,743
   Research and development                     18,243              18,150               8,877
   Selling, general and administrative          19,514              19,438               9,476
   Amortization of intangible assets (2)        20,362              20,489                   -
                                       -----------------   -----------------   -----------------

       Total costs and expenses                107,704             104,112              39,096
                                       -----------------   -----------------   -----------------
Income from operations                          18,351              10,876              14,692

Gain on appreciation of foundry
   investments (3)                             149,960                   -                   -
Other (expense) income, net                     (1,161)             (2,280)              2,860
                                       -----------------   -----------------   -----------------

 Income before provision
   for income taxes                            167,150               8,596              17,552

Provision (benefit) for income taxes            62,329              (1,056)              5,704
                                       -----------------   -----------------   -----------------

Income before
  extraordinary item                           104,821               9,652              11,848
                                       -----------------   -----------------   -----------------

Extraordinary item, net of income taxes (4)          -              (1,665)                  -

Net income                                    $104,821              $7,987             $11,848
                                       =================   =================   =================

Basic income per share
  before extraordinary item                      $2.15               $0.20               $0.25
                                       =================   =================   =================

Diluted income per share
  before extraordinary item                      $1.84               $0.19               $0.24
                                       =================   =================   =================

Basic net income per share                       $2.15               $0.17               $0.25
                                       =================   =================   =================

Diluted net income per share (5)                 $1.84               $0.16               $0.24
                                       =================   =================   =================

Shares used in per share calculations:

       Basic net income                         48,738              48,117              47,076
                                       =================   =================   =================

       Diluted net income (5)                   58,409              50,949              48,398
                                       =================   =================   =================

Notes:

1. Includes operations of Vantis Corporation for the period from acquisition, June 16, 1999, and certain purchase accounting adjustments but excludes write-off of In-process research and development.
2. Goodwill (intangible assets) is $351.600 million after In Process Research and Development charges of $89.003 million and amortization of $66.142 million through March 31, 2000 calculated using the straight line method over five years.
3. Represents appreciation of foundry investments in Taiwan.
4. Represents the writeoff of unamortized debt issuance costs (net of tax) related to retired bank borrowings.
5. For the three months ended March 31, 2000, the computation of diluted net income per share includes the effect of stock options and the $260 million of convertible notes. Diluted net income per share is adjusted to exclude interest expense and debt issuance cost amortization (net of tax) of $2.388 million. Diluted weighted-average shares outstanding include the dilutive effect of stock options and approximately 6.274 million shares issuable on the assumed conversion of the notes. All share and per share amounts have been adjusted retroactively to reflect the two-for-one stock split effected in the form of a stock dividend which was paid on September 16, 1999.

Appendix 2

                                           Three months ended (unaudited)
                                    ----------------------------------------------
Description                         Mar. 31, 2000    Dec. 31, 1999    Mar. 31, 1999
----------------------------------  --------------   --------------   --------------
                                                      (per share)
Earnings Before Goodwill                 $2.10           $0.42             $0.24

Less:
Amortization of intangible assets (2)   ($0.23)         ($0.26)               --
Tax shield (3)                           $0.05           $0.06                --
Extraordinary item, net of tax (4)          --          ($0.03)               --
Difference in effective tax rate (5)    ($0.08)         ($0.03)               --
                                    --------------   --------------   --------------
Net Income Per Share                     $1.84           $0.16             $0.24
                                    ==============   ==============   ==============

Notes:

1. This table reconciles Earnings Before Goodwill per share information to Diluted Net Income per share which is presented in Appendix 1.
2. Goodwill (intangible assets) is $351.600 million after In Process Research and Development charges of $89.003 million and amortization of $66.142 million through March 31, 2000 calculated using straight line method over five years.
3. Tax Shield represents the current period tax deduction available from amortizing intangible assets ($506.745 million) over 15 years on a straight line basis using a 33.0% tax rate.
4. Represents the writeoff of unamortized debt issuance costs (net of tax) related to retired bank borrowings.
5. The effective tax rate is the ratio of income tax expense to pretax income. The rates for the periods ended March 31, 2000 and December 31, 1999 in the Earnings Before Goodwill presentation are different from the rates in the GAAP Statements of Operations. The difference for the three months ended March 31, 2000 is due to the difference in the proportion of taxable income derived from operations and that derived from the gain on appreciation of foundry investments. The difference for the three months ended December 31, 1999 is primarily attributable to a change in the estimated rate at which tax benefits related to pretax losses will be recovered.