News Release

In Detail

Supplemental Historic Financial Information, Q2, FY 2003

Appendix 1
Lattice Semiconductor Corporation
Consolidated Operations Information- Non-GAAP Basis (1)
(in thousands, except per share data)
(unaudited)
	Three months ended			Six months ended
Description	June 30, 2003	Mar. 31, 2003	June 30, 2002	June 30, 2003	June 30, 2002
Revenue	$58,178	$58,311	$56,466	$116,489	$115,344
Costs and expenses:
Costs of products sold	23,289	23,208	22,492	46,497	46,098
Research and development	21,702	21,832	21,078	43,534	42,463
Selling, general and administrative	12,614	12,483	12,220	25,097	24,078
Total costs and expenses	57,605	57,523	55,790	115,128	112,639
Income from operations	573	788	676	1,361	2,705
Other (expense) income, net	(1,365)	1,491	3,078	126	1,177
Income before (benefit) provision
for income taxes	(792)	2,279	3,754	1,487	3,882
(Benefit) provision for income taxes	(2,554)	--	976	(2,554)	1,009
Tax shield (2)	--	--	4,250	--	8,173
Non-GAAP earnings	$1,762	$2,279	$7,028	$4,041	$11,046
Diluted Non-GAAP earnings per share (3)	$0.02	$0.02	$0.06	$0.04	$0.10
Shares used in calculations	113,405	113,098	110,991	113,268	111,978

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) 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. As of the March 31, 2003 quarter, we are no longer reporting a Tax Shield.

(3) For all periods presented, the computation of diluted Non-GAAP earnings includes the effect of stock options but excludes the effect of our convertible notes as they are antidilutive.

Appendix 2
Lattice Semiconductor Corporation
Non-GAAP Earnings Reconciliation (1)
(unaudited)
	Three months ended			Six months ended
Description	June 30, 2003	Mar. 31, 2003	June 30, 2002	June 30, 2003	June 30, 2002
Net loss	($0.15)	($0.17)	($0.07)	($0.32)	($0.31)
Add:
Amortization of intangible assets	$0.17	$0.19	$0.09	$0.36	$0.20
In-process research and development (2)	--	--	--	--	$0.13
Tax shield (3)	--	--	$0.04	--	$0.07
Difference in effective tax rate (4)	--	--	--	--	$0.01
Non-GAAP earnings	$0.02	$0.02	$0.06	$0.04	$0.10

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 January 18, 2002 acquisition of the FPGA business of Agere Systems, Inc.

(3) 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. As of the March 31, 2003 quarter, we are no longer reporting a Tax Shield.

(4) The effective tax rate is the ratio of income tax expense to pretax income. The rate for the six months ended June 30, 2002 presented in the non-GAAP information presentation is different from the rates in the Statement of Operations, due to the difference in the proportion of taxable income derived from operations.

Appendix 3
LATTICE SEMICONDUCTOR CORPORATION
- Supplemental Historic Financial Information -
(Q2 2003)
Operations Information	Q203	Q103	Q202
Percent of Revenue
Gross Margin	60.0%	60.2%	60.2%
R&D Expense	37.3%	37.4%	37.3%
SG&A Expense	21.7%	21.4%	21.6%
Operating (Loss) Income	-31.1%	-34.9%	-30.5%
Operating Income (Non-GAAP)	1.0%	1.4%	1.2%
Depreciation Expense ($000)	4,603	4,742	4,780
Capital Expenditures ($000)	2,504	3,211	5,626
Balance Sheet Information	Q203	Q103	Q202
Current Ratio	14.0	7.4	8.2
A/R Days Revenue Outstanding	45	48	46
Inventory Months	6.2	6.7	8.5
Revenue % (by Product Family)	Q203	Q103	Q202
FPGA	16%	14%	13%
CPLD	69%	70%	68%
SPLD	15%	16%	19%
Revenue % (by Geography)	Q203	Q103	Q202
Americas	45%	41%	47%
Europe (incl. Africa)	24%	29%	23%
Asia (incl. ROW)	31%	30%	30%
Revenue % (by End Market)	Q203	Q103	Q202
Communications	52%	44%	55%
Computing	21%	21%	23%
Other	27%	35%	22%
Revenue % (by Channel)	Q203	Q103	Q202
Direct	52%	54%	52%
Distribution	48%	46%	48%