News Release

Lattice Semiconductor Reports Record Second 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)                    Six months ended (2)
                                      ----------------------                   ----------------------
Description                June 30, 2000  Mar. 31, 2000   June 30, 1999    June 30, 2000  June 30, 1999
-------------------------- -------------  --------------  -------------    -------------  --------------
Revenue                       $139,878        $126,055        $59,738         $265,933        $113,526

Costs and expenses:
   Costs of products sold       53,638          49,585         22,881          103,223          43,624
   Research and development     19,406          18,243          9,889           37,649          18,766
   Selling, general and
             administrative     19,937          19,514         10,845           39,451          20,321
                           -------------  --------------  -------------    -------------  --------------

       Total costs and
             expenses           92,981          87,342         43,615          180,323          82,711
                           -------------  --------------  -------------    -------------  --------------
Income from operations          46,897          38,713         16,123           85,610          30,815

Gain on appreciation of foundry
   investments (3)                  --         149,960             --          149,960              --
Other (expense) income, net       (991)         (1,161)         1,805           (2,152)          4,665
                           -------------  --------------  -------------    -------------  --------------

Income before provision
   for income taxes             45,906         187,512         17,928          233,418          35,480

Provision for income taxes      15,149          70,276          5,737           85,425          11,441

Tax shield                       2,794           2,794            614            5,588             614
                           -------------  --------------  -------------    -------------  --------------

Earnings Before Goodwill (EBG) $33,551        $120,030        $12,805         $153,581         $24,653
                           =============  ==============  =============    =============  ==============

Diluted EBG per share (4)        $0.61           $2.10          $0.26            $2.70           $0.51
                           =============  ==============  =============    =============  ==============

Shares used in calculations (4) 58,747          58,409         48,714           58,568          48,556
                           =============  ==============  =============    =============  ==============

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 June 30 and 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 $2.377 and $2.388 million for the June 2000 and March 2000 quarters, respectively. Diluted weighted- average shares outstanding include the dilutive effect of stock options and, in 2000, 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.

                                     June 30,    Dec. 31,
Description                           2000         1999
----------------------------------  ---------    ---------
     Assets
Current assets:
   Cash and short-term investments   $253,581     $214,140
   Accounts receivable                 86,258       33,676
   Inventories                         36,650       26,036
   Other current assets                63,386       40,134
                                    ---------    ---------

            Total current assets      439,875      313,986

Property and equipment, net            65,295       59,689
Foundry investments, advances
          and other assets            263,886      130,274
Intangible assets, net (1)            327,308      373,117
Deferred tax assets                        --       39,089
                                    ---------    ---------

                                   $1,096,364     $916,155
                                    =========    =========

Liabilities and Stockholders' Equity

Current liabilities:
   Accounts payable and other
          accrued liabilities        $101,524     $103,581
   Deferred income on sales
          to distributors              67,271       45,188
   Income taxes payable                16,336       12,459
                                    ---------    ---------

           Total current liabilities  185,131      161,228
                                    ---------    ---------

4 3/4% Convertible notes due in 2006  260,000      260,000
Deferred taxes                          3,555           --
Other long-term liabilities            13,439       12,154
                                    ---------    ---------
                                      276,994      272,154

Stockholders' equity                  634,239      482,773
                                    ---------    ---------

                                   $1,096,364     $916,155
                                    =========    =========

Notes:

1. Goodwill (intangible assets) is $327.308 million after In Process Research and Development charges of $89.003 million and amortization of $86.849 million through June 30, 2000 calculated using straight line method over five years.

Appendix 1

                                                           Three months ended(1)                           Six months ended(1)
                                       ---------------------------------------------------------  -------------------------------------
Description                              June 30, 2000       Mar. 31, 2000       June 30, 1999	    June 30, 2000       June 30, 1999
-------------------------------------- -----------------   -----------------   -----------------  -----------------   -----------------
Revenue                                       $139,878            $126,055             $59,738           $265,933            $113,526

Costs and expenses:
   Costs of products sold                       53,638              49,585              22,881            103,223              43,624
   Research and development                     19,406              18,243               9,889             37,649              18,766
   Selling, general and administrative          19,937              19,514              10,845             39,451              20,321
   In-Process research and development               -                   -              89,003                  -              89,003
   Amortization of intangible assets (2)        20,707              20,362               4,164             41,069               4,164
                                       -----------------   -----------------   -----------------   -----------------   -----------------

       Total costs and expenses                113,688             107,704             136,782            221,392             175,878
                                       -----------------   -----------------   -----------------   -----------------   -----------------
Income (loss) from operations                   26,190              18,351             (77,044)            44,541             (62,352)

Gain on appreciation of foundry
   investments (3)                                   -             149,960                   -            149,960                   -
Other (expense) income, net                       (991)             (1,161)              1,805             (2,152)              4,665
                                       -----------------   -----------------   -----------------   -----------------   -----------------

 Income (loss) before provision
   for income taxes                             25,199             167,150             (75,239)           192,349             (57,687)

Provision (benefit) for income taxes             8,457              62,329             (24,076)            70,786             (18,372)
                                       -----------------   -----------------   -----------------   -----------------   -----------------


Net income (loss)                              $16,742            $104,821            ($51,163)          $121,563            ($39,315)
                                       =================   =================   =================   =================   =================

Basic net income (loss) per share                $0.34               $2.15              ($1.08)             $2.48              ($0.83)
                                       =================   =================   =================   =================   =================

Diluted net income (loss) per share (4)          $0.33               $1.84              ($1.08)             $2.16              ($0.83)
                                       =================   =================   =================   =================   =================

Shares used in per share calculations:

       Basic net income (loss)                  49,283              48,738              47,304             48,987              47,189
                                       =================   =================   =================   =================   =================

       Diluted net income (loss) (4)            58,747              58,409              47,304             58,568              47,189
                                       =================   =================   =================   =================   =================

Notes:

1. Includes operations of Vantis Corporation for the period from acquisition, June 16, 1999 and certain purchase accounting adjustments, including the write-off of $89.003 million of In-process research and development in conjunction with the acquisition in the June 1999 quarter.
2. Goodwill (intangible assets) is $327.308 million after In Process Research and Development charges of $89.003 million and amortization of $86.849 million through June 30, 2000 calculated using the straight line method over five years.
3. Represents appreciation of foundry investments in Taiwan.
4. For the three months ended June 30 and 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 $2.377 and $2.388 million for the June 2000 and March 2000 quarters, respectively. Diluted weighted-average shares outstanding include the dilutive effect of stock options and, in 2000, 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                         Six months ended
                                    ----------------------------------------------     -------------------------------
Description                         June 30, 2000    Mar. 31, 2000    June 30, 1999     June 30, 2000    June 30, 1999 
----------------------------------  --------------   --------------   --------------   --------------   --------------
Earnings Before Goodwill                 $0.61           $2.10            $0.26            $2.70            $0.51

Less:
Amortization of intangible assets (2)   ($0.23)         ($0.23)           (0.06)          ($0.46)           (0.06)
In-process Research and Development (2)     --              --            (1.24)              --            (1.24)
Tax shield (3)                          ($0.05)         ($0.05)           (0.01)          ($0.10)           (0.01)
Difference in effective tax rate (4)        --           $0.02               --            $0.02               --
Difference in share count (5)               --              --            (0.03)              --            (0.03)
                                    --------------   --------------   --------------   --------------   --------------
Diluted Net Income Per Share             $0.33           $1.84           ($1.08)           $2.16           ($0.83)
                                    ==============   ==============   ==============   ==============   ==============

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 $327.308 million after In Process Research and Development charges of $89.003 million and amortization of $86.849 million through June 30, 2000 calculated using straight line method over five years.
3. Tax Shield represents the current period tax deduction available from amortizing intangible assets ($503.130 million) over 15 years on a straight line basis using a 33% tax rate.
4. 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.
5. Share count difference in earnings per share calculations results from the inclusion of potentially dilutive securities (options and convertible notes) in periods with profits and exclusion of such securities in periods with losses.