Lattice Semiconductor Announces Restructuring

HILLSBORO, Oregon – September 16, 2008 - Lattice Semiconductor Corporation (NASDAQ:LSCC) today announced that it has initiated a restructuring plan (“2008 restructuring plan”) to better align operating expenses with near-term revenue expectations and to more efficiently implement its product strategy.

In connection with this restructuring, headcount will be reduced by approximately 125 employees, representing approximately 14 percent of the Company’s workforce. The restructuring is expected to result in a quarterly reduction in operating expenses of approximately $4.5 million, commencing with the fourth quarter of this year. The Company expects to record a restructuring charge of severance and related costs, estimated to be in the range of approximately $3.3 million to $3.8 million in the third quarter of 2008 and approximately $0.4 million in the fourth quarter of 2008. The 2008 restructuring plan will be substantially completed in the fourth quarter of 2008.

“Lattice is committed to delivering improved operating results and our restructuring is a key first element in our achieving that objective,” stated Bruno Guilmart, Lattice’s Chief Executive Officer. “We have also taken steps to reorganize our business to ensure that we can more effectively develop and timely deliver programmable logic solutions to meet our customers’ evolving demands.”

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 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