Supplemental Historic Financial Information, Q1, FY 2003

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 reconciliation to GAAP on a per share basis is attached as Appendix 2.

(2) Represents market depreciation of foundry investments in Taiwan.

(3) For the 2002 periods presented and the quarter ended December 31, 2001, the computation of diluted Non-GAAP earnings includes the effect of stock options. For the year ended December 31, 2001, the computation of diluted pro forma loss excludes the effect of stock options as they are antidilutive. For all periods presented, the computation of Non-GAAP earnings (loss) excludes the effect of our convertible notes as they are also antidilutive.

Notes:

(1) This table reconciles net income (loss) to non-GAAP information, which is presented in Appendix 1, on a per-share basis.

(2) Represents write-off of in-process research and development in conjunction with the August 26, 2002 acquisition of Cerdelinx Technologies, Inc. and the January 18, 2002 acquisition of the FPGA business of Agere Systems, Inc.

(3) In the quarter ended December 31, 2002, we recorded a tax provision of $111.1 million, representing a 100% valuation allowance for our recorded deferred tax assets, in accordance with the provisions of Statement of Financial Accounting Standards No. 109.

(4) Tax Shield represents the current period tax deduction available from amortizing gross goodwill and other intangible assets (approximately $750 million as of December 31, 2002) over 15 years on a straight line basis using a 34% tax rate.

(5) The effective tax rate is the ratio of income tax expense to pretax income. The rates for all periods presented in the non-GAAP information presentation are different from the rates in the Statement of Operations, due to the difference in the proportion of taxable income derived from operations. For the three months and year ended December 31, 2002, the three months ended September 30, 2002 and the year ended December 31, 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.