News Release

Lattice Semiconductor Reports 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)                   Nine months ended (2)
                                      ----------------------                   ---------------------
Description                Dec. 31, 1999  Sept. 30, 1999  Dec. 31, 1998     Dec. 31, 1999  Dec. 31, 1998
-------------------------- -------------  --------------  -------------     -------------  -------------

Revenue                       $114,988         $94,973         $50,168         $269,699      $146,284

Costs and expenses:
   Costs of products sold       46,035          39,771          19,545          108,687        57,697
   Research and development     18,150          17,864           8,498           45,903        24,313
   Selling, general and
             administrative     19,438          20,393           9,332           50,676        27,342
                           -------------  --------------  -------------     -------------  -------------

       Total costs and
             expenses           83,623          78,028          37,375          205,266       109,352
                           -------------  --------------  -------------     -------------  -------------
Income from operations          31,365          16,945          12,793           64,433        36,932

Other (expense) income, net     (2,280)         (3,645)          2,782           (4,120)        7,808
                           -------------  --------------  -------------     -------------  -------------

Income before provision
   for income taxes             29,085          13,300          15,575           60,313        44,740

Provision for income taxes      10,616           4,855           5,062           21,208        14,541

Tax shield                       3,090           3,111              --            6,815            --
                           -------------  --------------  -------------     -------------  -------------

Earnings Before Goodwill (EBG) $21,559         $11,556         $10,513          $45,920       $30,199
                           =============  ==============  =============     =============  =============

Diluted EBG per share            $0.42           $0.23           $0.22            $0.92         $0.64
                           =============  ==============  =============     =============  =============

Shares used in per share
           calculations (3)     50,949          49,884          47,236           49,895        47,402
                           =============  ==============  =============     =============  =============

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 (Intangible Assets) 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. 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.

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

     Assets
Current assets:
   Cash and short-term investments  $214,140    $319,434
   Accounts receivable                33,676      23,788
   Inventories                        26,036      17,683
   Other current assets               40,134      20,461
                                    --------    ---------

            Total current assets     313,986     381,366

Property and equipment, net           59,689      44,993
Foundry investments, advances
          and other assets (1)       130,274     114,537
Intangible assets, net (2)           373,117           -
Deferred tax asset                    39,089           -
                                    --------    ---------

                                    $916,155    $540,896
                                    ========    =========

     Liabilities and Stockholders' Equity

Current liabilities:
   Accounts payable and other       $103,581     $32,184
          accrued liabilities
   Deferred income on sales to
          distributors                45,188      19,993
   Income taxes payable               12,459       4,985
                                    --------    ---------

       Total current liabilities     161,228      57,162
                                    --------    ---------

4 3/4% Convertible notes due in 2006 260,000           -
Other long-term liabilities           12,154           -
                                    --------    ---------
                                     272,154           -

Stockholders' equity                 482,773     483,734
                                    --------    ---------

                                    $916,155    $540,896
                                    ========    =========

Notes:

1. Does not include $150 million of appreciation which will be reported in the quarter ended March 31, 2000.
2. Goodwill (intangible assets) is $373.117 million after In Process Research and Development charges of $89.003 million and amortization of $45.780 million through December 31, 1999 calculated using the straight line method over five years.

Appendix 1

                                                      Three months ended                           Nine months ended
                                       -------------------------------------------------      -----------------------------
Description                            Dec. 31, 1999   Sept. 30, 1999(1)   Dec. 31, 1998      Dec. 31, 1999   Dec. 31, 1998
-------------------------------------- -------------   -----------------   -------------      -------------   -------------
Revenue                                  $114,988          $94,973            $50,168            $269,699       $146,284

Costs and expenses:
   Costs of products sold                  46,035           39,771             19,545             108,687         57,697
   Research and development                18,150           17,864              8,498              45,903         24,313
   Selling, general and administrative     19,438           20,393              9,332              50,676         27,342
   In-process research and development (2)      -                -                  -              89,003              -
   Amortization of intangible assets (3)   20,489           21,127                  -              45,780              -
                                       -------------   -----------------   -------------      -------------   -------------

       Total costs and expenses           104,112           99,155             37,375             340,049        109,352
                                       -------------   -----------------   -------------      -------------   -------------
Income (loss) from operations              10,876           (4,182)            12,793             (70,350)        36,932

Other (expense) income, net                (2,280)          (3,645)             2,782              (4,120)         7,808
                                       -------------   -----------------   -------------      -------------   -------------

 Income (loss) before provision
   for income taxes                         8,596           (7,827)            15,575             (74,470)        44,740

(Benefit) provision for income taxes       (1,056)          (2,857)             5,062             (27,989)        14,541
                                       -------------   -----------------   -------------      -------------   -------------

Income (loss) before
  extraordinary item                       $9,652          ($4,970)           $10,513            ($46,481)       $30,199
                                       -------------   -----------------   -------------      -------------   -------------

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

Net income (loss)                          $7,987          ($4,970)           $10,513            ($48,146)       $30,199
                                       =============   =================   =============      =============   =============

Basic income (loss) per share
  before extraordinary item                 $0.20           ($0.10)             $0.22              ($0.97)         $0.64
                                       =============   =================   =============      =============   =============

Diluted income (loss) per share
  before extraordinary item                 $0.19           ($0.10)             $0.22              ($0.97)         $0.64
                                       =============   =================   =============      =============   =============

Basic net (loss) income per share           $0.17           ($0.10)             $0.22              ($1.01)         $0.64
                                       =============   =================   =============      =============   =============

Diluted net (loss) income per share         $0.16           ($0.10)             $0.22              ($1.01)         $0.64
                                       =============   =================   =============      =============   =============

Shares used in per share calculations (5):

       Basic net (loss) income             48,117           47,714             46,786              47,714         46,920
                                       =============   =================   =============      =============   =============

       Diluted net (loss) income           50,949           47,714             47,236              47,714         47,402
                                       =============   =================   =============      =============   =============

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. 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 $373.117 million after In Process Research and Development charges of $89.003 million and amortization of $45.780 million through December 31, 1999 calculated using the straight line method over five years.
4. The extraordinary item represents the writeoff of unamortized debt issuance costs related to bank borrowings retired in the quarter ended December 31, 1999 in conjunction with the issuance of $260 million 4 3/4% convertible notes due in 2006, net of applicable income taxes.
5. 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)               Nine months ended (unaudited)
                                    ----------------------------------------------      -----------------------------
Description                         Dec. 31, 1999   Sept. 30, 1999   Dec. 31, 1998      Dec. 31, 1999   Dec. 31, 1998
----------------------------------  -------------   --------------   -------------      -------------   -------------
                                                                      (per share)
Earnings Before Goodwill                $0.42           $0.23           $0.22                $0.92           $0.64

Less:
In-process research and
              development charges (2)                                                       ($1.22)
Amortization of intangible assets (3)  ($0.26)         ($0.27)                              ($0.58)
Tax shield (4)                          $0.06           $0.06                                $0.13
Extraordinary item, net of tax (5)     ($0.03)                                              ($0.03)
Difference in effective tax rate (6)   ($0.03)                                              ($0.08)
Difference in share count (7)                          ($0.12)                              ($0.15)
                                    -------------   --------------   -------------      -------------   -------------

Net (Loss) Income Per Share             $0.16          ($0.10)          $0.22               ($1.01)           $0.64
                                    =============   ==============   =============      =============   =============

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 $373.117 million after In Process Research and Development charges of $89.003 million and amortization of $45.780 million through December 31, 1999 calculated using the straight line method over five years.
4. Tax Shield represents the current period tax deduction available from amortizing intangible assets ($507.9 million) over 15 years on a straight line basis using a 36.5% tax rate.
5. The extraordinary item represents the writeoff of unamortized debt issuance costs related to the early retirement of bank borrowings in the quarter ended December 31, 1999 in conjunction with the issuance of $260 million 4 3/4% convertible notes due in 2006, net of applicable income taxes.
6. The effective tax rate is the ratio of income tax expense (benefit) to pretax income (loss). The rates for the periods ended 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 December 31, 1999 is primarily attributable to a change in the estimated rate at which tax benefits related to pretax losses will be recovered. The difference for the nine months ended December 31, 1999 is primarily attributable to a different proportion of non-taxable income to total pretax income (loss).
7. 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.