Pirelli Selects Lattice Field Programmable System Chip for CITY8™ Metro Access System

HILLSBORO, OR - DECEMBER 17, 2004 - Lattice Semiconductor Corporation (NASDAQ: LSCC) today announced that the Photonics Products Division of Pirelli has selected its ORT42G5 Field Programmable System Chip (FPSC) for use in Pirelli's City8™ Metro Access System Multiservice Platform. Pirelli will use the Lattice devices to aggregate ESCON (Enterprise Systems Connection, a legacy IBM storage protocol) data for encapsulation into higher bandwidth GbE or Fibre Channel streams. Another ORT42G5 will be used to interface with pluggable (SFP) optical transponders, which transport CWDM optical streams across metro area networks up to 80km.

The City8 Metro Access System Multiservice Platform combines CWDM optical technology with carrier-class level features. With its modular and compact design, the platform is targeted to enterprises and operators that wish to offer high-bandwidth managed services over a single fibre pair. City8 features 8 channels (16 channels upgrade ready) with complete support of TDM and data communications interfaces.

"The Lattice ORT42G5 is an excellent choice for Pirelli, as it offers us a platform on which to build two separate designs which work together in our City8 system. The superior signal integrity and drive strength of the Lattice FPSCs, together with flexible IP implemented on programmable gates, allow us to transport packet-based data over metro-based optical fibre," said Pierluigi Franco, VP Marketing & Product Management of Pirelli Photonics Products.

"Adoption of our Serial I/O FPSCs continues to broaden as innovative vendors like Pirelli find new ways to join native protocols such as ESCON, Gigabit Ethernet and Fibre Channel over metropolitan networks," said Stan Kopec, Lattice vice president of corporate marketing. "Pirelli is a leader in broadband solutions, and our ORT42G5 is an excellent fit for their requirements. Our FPSC devices provide the best SERDES in the market, as well as the programmability to do the aggregation necessary to build an ESCON bridge. Using customized SDH IP, the ORT42G5 also works seamlessly with SFP optical transponders, allowing Pirelli to extend the reach of its City8 Metro Access System up to 80km. We think this will be a definite advantage for Pirelli," Kopec concluded.

About Pirelli
Pirelli is a global producer of Tyres, Energy, and Telecommunication Cables and Systems. With more than 36,000 employees, 77 production sites, and total sales of 6.67 billion Euros as of December 31, 2003, Pirelli is one of the world's leading companies. It focuses its R&D, production resources and competencies on leading-edge technologies, as demonstrated by the advanced Pirelli Labs in the photonics and new materials. Additional information on Pirelli Photonics and Broadband Access Products is available at www.pirelli.com/telecomsystems.

About Lattice Field Programmable System Chips
Lattice Semiconductor pioneered the approach of putting ASIC embedded cores and FPGA gates on the same silicon die, creating the Field Programmable System Chip (FPSC). In contrast to ASICs with embedded FPGA gates, FPSCs have a broad range of uses. The embedded cores hold industry-standard Intellectual Property: bus interface, high-speed line interface and high-speed transceiver cores. When these embedded cores are combined with hundreds of thousands of programmable gates they can be used in a variety of advanced system designs. The ORT42G5 is made up of backplane transceivers containing four channels, each operating over a range from 600 Mbits/s to 3.7 Gbits/s, along with more than 400K FPGA system gates. The ORT42G5 offers a clockless high-speed interface for interdevice communication on a board or across a backplane. The built-in clock recovery of the ORT42G5 allows for higher system performance, easier-to-design clock domains in a multiboard system, and fewer signals on the backplane.

About Lattice Semiconductor
Lattice Semiconductor Corporation designs, develops and markets the broadest range ofField Programmable Gate Arrays (FPGA),Field Programmable System Chips (FPSC) and high-performance ISP™; Programmable Logic Devices (PLD), includingComplex Programmable Logic Devices (CPLD),Programmable Analog Chips (PAC™), and Programmable Digital Interconnect (GDX™). Lattice also offers industry leading SERDESproducts. Lattice is "Bringing the Best Together" with comprehensive solutions for today's system designs, 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 fields of communications, computing, computer peripherals, instrumentation, industrial controls and military systems. Company headquarters are located at 5555 NE Moore Court, Hillsboro, Oregon 97124-6421, USA; telephone 503-268-8000, fax 503-268-8037. For more information about Lattice Semiconductor Corporation, visit http://www.latticesemi.com.

Statements in this news release looking forward in time are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties including market acceptance and demand for our new products, our dependencies on our silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks and other risk factors detailed in the Company's Securities and Exchange Commission filings. Actual results may differ materially from forward-looking statements.

Lattice Semiconductor Corporation, Lattice (& design), L (& design), GDX, ISP, PAC 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.

GENERAL NOTICE: Other product names used in this publication are for identification purposes only and may be trademarks of their respective holders.

For more information contact:

Brian Kiernan, Corporate Communications Manager
Lattice Semiconductor Corporation
brian.kiernan@latticesemi.com
voice: (503) 268-8739
fax: (503) 268-8193