News Release

Supplemental Historic Financial Information

LATTICE SEMICONDUCTOR CORPORATION

- Supplemental Historic Financial Information -

(Q2 2001)

Appendix 1

Lattice Semiconductor Corporation

Consolidated Statement of Operations

(in thousands, except per share data)

(unaudited)

Notes:

(1) Goodwill (intangible assets) is $248.938 million, net, at June 30, 2001 and relates to the acquisition of Vantis Corporation on June 16, 1999 and the acquisition of Integrated Intellectual Property Inc. ("I2P") on March 16, 2001. Goodwill is amortized to expense generally over five years on a straight-line basis.

(2) Represents appreciation of foundry investments in Taiwan.

(3) For the three months and six months ended June 30, 2000, the computation of diluted net income per share includes the effect of stock options and $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 $4.765 million for the three and six months ended June 2000, respectively. Diluted weighted-average shares outstanding include the dilutive effect of stock options and approximately 12.548 million shares issuable on the assumed conversion of the notes. For the three months ended March 31, 2001 and the six months ended June 30, 2001, the computation of diluted net income per share includes only the effect of stock options as the convertible notes are antidilutive. For the June 2001 quarter, the computation of net loss per share excludes the effect of stock options and the convertible notes as both are antidilutive. 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 October 11, 2000.

Appendix 2

Lattice Semiconductor Corporation

Earnings Per Share Reconciliation (1)

(unaudited)

Notes:

(1) This table reconciles Earnings Before Goodwill per share information to Diluted Net Income per share which is presented in Appendix 1.

(2) Tax Shield represents the current period tax deduction available from amortizing intangible assets ($503.014 million) over 15 years on a straight line basis using a 33% tax rate.

(3) The effective tax rate is the ratio of income tax expense to pretax income. The rates for all periods presented in the Earnings Before Goodwill presentation are different from the rates in the GAAP Statements of Operations, due to the difference in the proportion of taxable income derived from operations. For the three and six months ended June 30, 2001, further differences in the effective tax rate are attributable to a change in the estimated rate at which tax benefits related to pretax losses will be recovered.

(4) Share count differences in earnings per share calculations result from the exclusion of potentially dilutive securities (convertible notes and/or stock options) in periods where their effect is antidilutive.