Altera Signs Digi-Key Corporation as Distribution Partner

THIEF RIVER FALLS, Minnesota, USA - February 7, 2005

Altera Corporation (NASDAQ: ALTR) and Digi-Key Corporation today announced that the companies have signed a distribution agreement. This partnership complements Altera's existing distributor relationships and expands Altera's reach to North American customers seeking readily available, limited-volume quantities. Digi-Key will bring fast and convenient delivery for customers purchasing Altera's programmable logic devices (PLDs) and development tools. Digi-Key's inventory includes the full line of Altera® FPGA and CPLD devices, including the high-density, high-performance Stratix® FPGA series, low-cost Cyclone™ FPGA series, and the market-leading MAX® CPLDs series. Altera's Quartus® II development software and Nios® II Development Kit, Cyclone Edition are also immediately available. Customers can browse and purchase Altera's broad range of products through Digi-Key's printed product catalog or through their web site at www.digikey.ie.

"Digi-Key offers leading-edge components to its customers. Adding Altera's programmable logic devices and software further strengthens our offerings," said Digi-Key president Mark Larson. "Customers purchasing Altera's technology can expect exceptional customer service for both their engineering and production needs including product availability, same-day shipping, and on-time delivery." "Partnering with Digi-Key compliments Altera's strategy to reach more customers," said Mark Nelson, Altera's vice president of sales for North America West. "Customers will benefit from Digi-Key's fast and efficient delivery infrastructure."

About Altera

Altera Corporation (NASDAQ:ALTR) is the world's pioneer in system-on-a-programmable-chip (SOPC) solutions. Combining programmable logic technology with software tools, intellectual property, and technical services, Altera provides high-value programmable solutions to approximately 14,000 customers worldwide. More information is available at www.altera.com.

About Digi-Key Corporation

Digi-Key Corporation, based in Thief River Falls, Minn., is a global, full-service provider of both prototype/design and production quantities of electronic components, offering more than three million products from over 650 quality name-brand manufacturers. With over one million products in stock and an impressive selection of online resources, Digi-Key is committed to stocking the broadest range of electronic components in the industry and providing the best service possible to its customers. Additional information and access to Digi-Key's broad product offering is available on the Digi-Key website.

Media Contacts: Steven G. Tsukichi, VP/Marketing, Digi-Key Corporation; Bruce Fienberg, Altera Corporation, 408-544-6397 (voice), newsroom@altera.com