Lattice Semiconductor Reports First Quarter Financial Results

Conference Call and Business Update:

On April 24, 2008, Lattice will hold a telephone conference call at 2:00 p.m. (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 12, 2008, 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.

Forward-Looking Statements Notice:

The foregoing paragraphs contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. With respect to particular forward-looking statements in the "Business Outlook - June 2008 Quarter" section of this release, Lattice believes the factors identified below in connection with each such statement could cause actual results to differ materially from the forward-looking statements.

Estimates of future revenue are inherently uncertain due to the high percentage of quarterly "turns" business. In addition, revenue is affected by such factors as pricing pressures, competitive actions, the demand for our Mature, Mainstream, and New products, and the ability to supply products to customers in a timely manner. Actual gross margin percentage and operating expenses could vary from the estimates contained herein on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly and test costs, variations in manufacturing yields, and changes in stock-based compensation charges due to stock price changes. Restructuring charges are estimates that are subject to change. Other income may vary due to changes in investment returns. Assets held for investment purposes are subject to credit risk and may become impaired on an other than temporary basis.

In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements herein include the Company's dependencies on its silicon wafer suppliers, technological and product development risks, and the other risks that are described from time to time in our filings with the Securities and Exchange Commission. 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.

About Lattice Semiconductor:

Lattice Semiconductor Corporation provides the industry's broadest range of Programmable Logic Devices (PLD), including Field Programmable Gate Arrays (FPGA), Complex Programmable Logic Devices (CPLD), Mixed-Signal Power Management and Clock Generation Devices, and industry-leading SERDES products.

Lattice continues to deliver "More of the Best" to its customers with comprehensive solutions for system design, including an unequaled portfolio of high performance, non-volatile and low cost FPGAs.

Lattice products are sold worldwide through an extensive network of independent sales representatives and distributors, primarily to OEM customers in communications, computing, industrial, consumer, automotive, medical and military end markets. For more information, visit http://www.latticesemi.com.

Lattice Semiconductor Corporation, Lattice (& design), L (& design), ispLever, LatticeECP2M, LatticeSCM, LatticeXP, LatticeXP2, LatticeMico32 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.

                    Lattice Semiconductor Corporation
                   Consolidated Statement of Operations
                  (in thousands, except per share data)


                                                Three months ended
                                        ----------------------------------
                                        March 29,    December   March 31,
                                           2008      29, 2007      2007
                                        ----------  ----------  ----------
                                       (unaudited)  (unaudited) (unaudited)
Revenue                                 $   56,604  $   53,055  $   58,107

Costs and expenses:
   Cost of products sold                    25,160      23,641      26,218
   Research and development                 17,668      20,051      22,008
   Selling, general and administrative      14,999      14,080      14,566
   Goodwill impairment  (1)                     --     223,556          --
   Amortization of intangible assets
    (2)                                      1,481       2,042       2,667
   Restructuring (3)                         1,790         757        (130)
                                        ----------  ----------  ----------

Total costs and expenses                    61,098     284,127      65,329
                                        ----------  ----------  ----------
Loss from operations                        (4,494)   (231,072)     (7,222)

Other income, net                            1,333       1,682       3,008
                                        ----------  ----------  ----------
Loss before provision for income taxes      (3,161)   (229,390)     (4,214)

Provision for income taxes                      93         135         169
                                             ----------    ----------    ----------

Net  loss                                                                $      (3,254)  $  (229,525)  $      (4,383)
                                                                                ==========    ==========    ==========

Basic  net  loss  per  share                                $        (0.03)  $        (1.99)  $        (0.04)
                                                                                ==========    ==========    ==========

Diluted  net  loss  per  share                            $        (0.03)  $        (1.99)  $        (0.04)
                                                                                ==========    ==========    ==========

Shares  used  in  per  share  calculations:
Basic                                                                            115,146          115,121          114,688
                                                                                ==========    ==========    ==========

Diluted  (4)                                                                115,146          115,121          114,688
                                                                                ==========    ==========    ==========

Notes:
(1)  At  December  29,  2007,  the  Company  performed  an  impairment  test  on
        Goodwill  in  accordance  with  SFAS  No.  142,  "Goodwill  and  Other
        Intangible  Assets."    As  a  result,  goodwill  related  to  the  acquisition
        of  Vantis  Corporation  on  June  15,  1999,  the  acquisition  of  Integrated
        Intellectual  Properties,  Inc.  on  March  16,  2001,  and  the  acquisition  of
        the  FPGA  business  of  Agere  Systems,  Inc.  on  January  18,  2002,  was
        determined  to  have  no  implied  fair  value  and  the  entire  balance  of
        $223.6  million  was  recorded  as  a  Goodwill  impairment  charge.
(2)  Intangible  assets  subject  to  amortization  aggregate  $4.3  million,  net,
        at  March  29,  2008  and  relate  to  the  acquisition  of  the  FPGA  business  of
        Agere  Systems,  Inc.  on  January  18,  2002.  Intangible  assets  related  to
        the  acquisition  of  Cerdelinx  Technologies,  Inc,  became  fully  amortized
        in  the  third  quarter  of  2007.  Amortization  charges  are  expected  to  be
        eliminated  after  the  first  quarter  of  2009.
(3)  Represents  costs  and  adjustments  incurred  under  the  corporate
        restructuring  plans  implemented  in  the  fourth  quarter  of  2005  and  the
        third  quarter  of  2007.  During  the  first  quarter  of  fiscal  2008,  the
        Company  incurred  costs  of  $1.8  million,  of  which  $1.3  million  primarily
        related  to  costs  to  vacate  leased  space  and  $0.5  million  in  severance
        costs  related  to  the  resignation  of  the  President  and  Chief  Executive
        Officer  announced  on  February  1,  2008.  During  the  fourth  quarter  of
        2007,  the  Company  incurred  a  charge  of  $0.8  million  primarily  related
        to  severance  costs.
(4)  For  the  three  months  ended  March  29,  2008,  December  29,  2007  and  March
        31,  2007  the  computation  of  diluted  earnings  per  share  excludes  the
        effects  of  stock  options,  restricted  stock  units,  warrants  and
        Convertible  Notes,  as  they  are  antidilutive.






                Reconciliation  of  GAAP  Net  Loss  to  Non-GAAP  Net  Income  (Loss)

                                                            (in  thousands)


                                                                                                Three  months  ended
                                                                                ----------------------------------
                                                                                  March  29,  December  29,    March  31,
                                                                                      2008                2007                2007
                                                                                ----------    ----------    ----------
                                                                                (unaudited)  (unaudited)  (unaudited)

GAAP  net  loss                                                      $      (3,254)  $  (229,525)  $      (4,383)
Reconciling  items:
            Goodwill  impairment    (1)                                    --          223,556                    --
            Amortization  of  intangibles  (2)                1,481              2,042              2,667
            Stock-based  compensation                              1,368              1,434              1,389
            Restructuring  (3)                                            1,790                  757                (130)
                                                                                ----------    ----------    ----------
Non-GAAP  net  income  (loss)                            $        1,385    $      (1,736)  $          (457)
                                                                                ==========    ==========    ==========




    Reconciliation  of  GAAP  Net  Loss  per  Share  to  Non-GAAP  Net  Income  (Loss)
                                                                          per  Share


                                                                                                Three  months  ended
                                                                                ----------------------------------
                                                                                  March  29,  December  29,    March  31,
                                                                                      2008                2007                2007
                                                                                ----------    ----------    ----------
                                                                                (unaudited)  (unaudited)  (unaudited)
Basic  and  Diluted  (5):
GAAP  net  loss                                                      $        (0.03)  $        (1.99)  $        (0.04)
Reconciling  items:
            Goodwill  impairment    (1)                                    --                1.94                    --
            Amortization  of  intangibles  (2)                  0.01                0.02                0.02
            Stock-based  compensation                                0.01                0.01                0.01
            Restructuring  (3)                                              0.02                0.01                    --
                                                                                ----------    ----------    ----------
Non-GAAP  net  income  (loss)                            $          0.01    $        (0.02)  $          0.00
                                                                                ==========    ==========    ==========
Shares  used  in  per  share  calculations:
        Basic                                                                    115,146          115,121          114,688
                                                                                ==========    ==========    ==========
        Diluted  (4)                                                        119,227          115,121          114,688
                                                                                ==========    ==========    ==========

Notes:
(1)  At  December  29,  2007,  the  Company  performed  an  impairment  test  on
        Goodwill  in  accordance  with  SFAS  No.  142,  "Goodwill  and  Other
        Intangible  Assets."    As  a  result,  goodwill  related  to  the  acquisition
        of  Vantis  Corporation  on  June  15,  1999,  the  acquisition  of  Integrated
        Intellectual  Properties,  Inc.  on  March  16,  2001,  and  the  acquisition  of
        the  FPGA  business  of  Agere  Systems,  Inc.  on  January  18,  2002,  was
        determined  to  have  no  implied  fair  value  and  the  entire  balance  of
        $223.6  million  was  recorded  as  a  Goodwill  impairment  charge.
(2)  Intangible  assets  subject  to  amortization  aggregate  $4.3  million,  net,
        at  March  29,  2008  and  relate  to  the  acquisition  of  the  FPGA  business  of
        Agere  Systems,  Inc.  on  January  18,  2002.  Intangible  assets  related  to
        the  acquisition  of  Cerdelinx  Technologies,  Inc,  became  fully  amortized
        in  the  third  quarter  of  2007.  Amortization  charges  are  expected  to  be
        eliminated  after  the  first  quarter  of  2009.
(3)  Represents  costs  and  adjustments  incurred  under  the  corporate
        restructuring  plans  implemented  in  the  fourth  quarter  of  2005  and  the
        third  quarter  of  2007.  During  the  first  quarter  of  fiscal  2008,  the
        Company  incurred  costs  of  $1.8  million,  of  which  $1.3  million  primarily
        related  to  costs  to  vacate  leased  space  and  $0.5  million  in  severance
        costs  related  to  the  resignation  of  the  President  and  Chief  Executive
        Officer  announced  on  February  1,  2008.  During  the  fourth  quarter  of
        2007,  the  Company  incurred  a  charge  of  $0.8  million  primarily  related
        to  severance  costs.
(4)  For  the  three  months  ended  March  29,  2008,  the  computation  of  diluted
        earnings  per  share  includes  the  effects  of  stock  options,  restricted
        stock  units,  warrants  and  Convertible  Notes,  as  they  are  dilutive.  For
        the  three  months  ended  December  29,  2007  and  March  31,  2007  the
        computation  of  diluted  earnings  per  share  excludes  the  effects  of  stock
        options,  restricted  stock  units,  warrants  and  Convertible  Notes,  as
        they  are  antidilutive.
(5)  Per  share  amounts  may  not  add  up  due  to  rounding.





                                        Lattice  Semiconductor  Corporation
                                                Consolidated  Balance  Sheet
                                                            (in  thousands)


                                                                                                        March  29,    December  29,
                                                                                                            2008                  2007
                                                                                                    ------------  ------------
                                                                                                    (unaudited)
                                            Assets
Current  assets:
      Cash,  cash  equivalents  and  short-term
        marketable  securities  (1)                                          $          87,738  $          85,063
      Accounts  receivable,  net                                                          28,916              29,293
      Inventories                                                                                    39,252              40,005
      Other  current  assets                                                                  38,737              37,185
                                                                                                    ------------  ------------
            Total  current  assets                                                          194,643            191,546

Property  and  equipment,  net                                                          43,575              43,617
Long-term  marketable  securities    (1)                                        36,971              44,900
Foundry  advances,  investments  and  other  assets                    80,018              90,407
Intangible  assets,  net  (2)                                                              4,334                5,815
                                                                                                    ------------  ------------

                                                                                                    $        359,541  $        376,285
                                                                                                    ============  ============

            Liabilities  and  Stockholders'  Equity

Current  liabilities:
      Accounts  payable  and  other  accrued  liabilities  $          28,426  $          32,978
      Deferred  income  and  allowances  on  sales  to
        distributors                                                                                  7,114                8,033
      Zero  Coupon  Convertible  Notes  due  in  2010                        40,000              40,000
                                                                                                    ------------  ------------
            Total  current  liabilities                                                  75,540              81,011

Other  long-term  liabilities                                                            7,358                9,042
                                                                                                    ------------  ------------
            Total  liabilities                                                                  82,898              90,053

Stockholders'  equity  (1)                                                              276,643            286,232
                                                                                                    ------------  ------------

                                                                                                    $        359,541  $        376,285
                                                                                                    ============  ============

Notes:
(1)  Long-term  marketable  securities  include  auction  rate  securities  that
        were  reclassified  from  Cash,  cash  equivalents  and  short-term  marketable
        securities  because  recent  auctions  have  been  unsuccessful,  and  as  a
        result,  such  securities  are  presently  considered  to  be  illiquid.    The
        Company  has  the  intent  and  ability  to  hold  these  investments  until  the
        resumption  of  orderly  auctions.    As  a  result  of  temporary  declines  in
        fair  value  for  the  securities,  we  recorded  an  unrealized  loss  of  $7.9
        million  to  accumulated  other  comprehensive  loss.
(2)  At  December  29,  2007,  the  Company  performed  an  impairment  test  on
        Goodwill.  As  a  result,  Goodwill  related  to  the  acquisition  of  Vantis
        Corporation  on  June  15,  1999,  the  acquisition  of  Integrated
        Intellectual  Properties,  Inc.  on  March  16,  2001,  and  the  acquisition  of
        the  FPGA  business  of  Agere  Systems,  Inc.  on  January  18,  2002,  was
        determined  to  have  no  implied  fair  value  and  the  entire  balance  of
        $223.6  million  was  recorded  as  a  Goodwill  impairment  charge.  As  a
        result,  we  no  longer  have  Goodwill  recorded  on  our  Consolidated  Balance
        Sheet.





                                        Lattice  Semiconductor  Corporation
                            -  Supplemental  Historic  Financial  Information  -



OperationsInformation                                                Q108              Q407              Q107
                                                                                      ---------    ---------    ---------
Percent  of  Revenue:
Gross  Margin                                                                        55.6%            55.4%            54.9%
R&D  Expense                                                                          31.2%            37.8%            37.9%
SG&A  Expense                                                                        26.5%            26.5%            25.1%


Depreciation  Expense  ($000)                                        3,249            3,295            3,383
Capital  Expenditures  ($000)                                        3,207            2,099            3,915

Balance  Sheet  Information
Current  Ratio                                                                        2.6                2.4                4.7
A/R  Days  Revenue  Outstanding                                            47                  50                  45
Inventory  Months                                                                  4.7                5.1                4.6

Revenue%  (by  Product  Family)
FPGA                                                                                            24%                25%                20%
PLD                                                                                              76%                75%                80%

Revenue%  (by  Product  Classification)
New                                                                                              20%                18%                  8%
Mainstream                                                                                48%                49%                48%
Mature                                                                                        32%                33%                44%

Revenue%  (by  Geography)
Americas                                                                                    22%                21%                23%
Europe  (incl.  Africa)                                                          22%                20%                22%
Asia                                                                                            56%                59%                55%

Revenue%  (by  End  Market)
Communications                                                                        54%                54%                45%
Industrial  &  Other                                                                24%                24%                32%
Consumer  &  Automotive                                                          10%                11%                12%
Computing                                                                                  12%                11%                11%

Revenue%  (by  Channel)
Direct                                                                                        63%                66%                62%
Distribution                                                                            37%                34%                38%

New:                LatticeXP2,  LatticeSC,  LatticeECP2M,  LatticeECP,  LatticeXP,
                        MachXO,  Power  Manager,  ispClock

Mainstream:  FPSC,  ispXPLD,  ispGDX2,  ispMACH  4/LV,  ispGDX/V,  ispMACH  4000/Z,
                        ispXPGA,  Software  and  IP

Mature:          ORCA  2,  ORCA  3,  ORCA  4,  ispPAC,  ispLSI  8000V,  ispMACH  5000B,
                        ispMACH  2LV,  ispMACH  5LV,  ispLSI  2000V,  ispLSI  5000V,  ispMACH
                        5000VG,  all  5  Volt  CPLDs,  all  SPLDs
 




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