Lattice Semiconductor Reports First Quarter Financial Results

HILLSBORO, Ore. - April 22, 2004 - - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced financial results for the first quarter ended March 2004.

Revenue for the first quarter was $59.1 million, an increase of 12 percent from last quarter's revenue of $52.8 million and up three percent from the $57.3 million reported in the same quarter a year ago.

Beginning this quarter, the Company will provide product revenue detail for only two categories: FPGA and PLD. PLD product revenue includes revenue from CPLD and SPLD products. Quarterly revenue from FPGA products was $11.4 million, or 19 percent of total revenue, and grew 10 percent sequentially. Quarterly revenue from PLD products was $47.7 million, or 81 percent of total revenue, and grew over 12 percent sequentially.

Net loss for the first quarter was $16.5 million ($0.15 per share). This loss includes $18.7 million of charges for amortization of intangible assets. Excluding these charges, income for the quarter was $2.1 million ($0.02 per share). These non-cash charges have been highlighted here as they are not expected to continue at these levels beyond June 2004 and are currently expected to be eliminated in 2009. The Company believes exclusion of these charges more closely approximates its cash earnings performance. A reconciliation of non-GAAP income to GAAP loss accompanies the financial tables in this earnings release.

"During the first quarter, the programmable logic market experienced a strong recovery", stated Cyrus Y. Tsui, chairman and chief executive officer. "Due to these favorable conditions we posted very strong sequential quarterly revenue growth. However, these historically high growth rates are not sustainable going forward. During the ensuing year we will remain steadfastly focused on executing our product development strategy and introducing our next generation FPGA product families."

Business Outlook - June 2004 Quarter:

• Revenue is expected to grow approximately 3 to 5 percent on a sequential basis;
• Gross margin percent is expected to be in the same range as the March 2004 quarter;
• Total operating expenses are expected to be approximately flat;
• Intangible asset amortization is expected to decrease by approximately $1 million;
• Other Income is expected to be approximately $3 million; and
• We do not anticipate reporting a tax provision.

On April 23, 2004, Lattice will hold a telephone conference call at 5:30 am (Pacific Time) with financial analysts. Investors may listen to our conference call live via the web at www.lscc.com. Replays of the call will also be available at www.lscc.com. On June 10, 2004, we plan to publish a "Business Update Statement" on our website. Our financial guidance will be limited to the comments on our public quarterly earnings call and these public business outlook statements. Additionally, during the June 2004 quarter, Lattice plans to participate in investor conferences sponsored by the JP Morgan and Smith Barney Citigroup. Specific presentation dates and times are posted on our website at www.lscc.com.

• Consolidated Financial Statements & Supplemental Historical Financial Information

The foregoing paragraphs contain forward-looking statements within the meaning of the federal securities laws including statements about future quarterly financial results, revenues, customers, product offerings and the Company's ability to compete. Investors are cautioned that actual events and results could differ materially from these statements as a result of a number of factors, including the possibility that further accounting adjustments may be required and the effectiveness of changes to the Company's internal controls, as well as overall semiconductor market conditions, market acceptance and demand for the Company's new products, the Company's dependencies on our silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks. The Company does not intend to update or revise any forward looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Lattice Semiconductor Corporation, the inventor of in-system programmable^TM (ISP^TM) logic products, designs, develops and markets the broadest range of Field Programmable Gate Arrays(FPGA), Field Programmable System Chips(FPSC) and high-performance ISP Programmable Logic Devices(PLD), including Complex Programmable Logic Devices(CPLD), Programmable Analog Chips(PAC), and Programmable Digital Interconnect(GDX). Lattice also offers industry leading SERDES products. Lattice provides total solutions for today's system designs by delivering innovative programmable silicon products that embody leading-edge system expertise.

Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in the communications, computing, industrial and military end markets. Company headquarters are located at 5555 N.E. Moore Court, Hillsboro, Oregon 97124 USA. For more information access our web site at http://www.latticesemi.com.

# # #

Lattice Semiconductor Corporation, L (& design), Lattice (& design) ISP and specific product designations are either registered trademarks or trademarks of Lattice Semiconductor Corporation or its subsidiaries in the United States and/or other countries.

For more information contact:

Roddy Sloss
Vice President, Finance
Lattice Semiconductor Corporation
(503) 268-8000