Intel to Acquire Altera For $16.7 Billion

Intel to Acquire Altera

Enables New Classes of Products in High-Growth Data Center and Internet of Things Market Segments

Combination Harnesses the Power of Moores Law to Accelerate Alteras Existing Businesses

Expected to be Accretive to Non-GAAP EPS and Free Cash Flow in First Year After Close

SANTA CLARA and SAN JOSE, Calif., June 1, 2015 Intel Corporation (NASDAQ: INTC) and Altera Corporation (NASDAQ: ALTR) today announced a definitive agreement under which Intel would acquire Altera for $54 per share in an all-cash transaction valued at approximately $16.7 billion.

The acquisition will couple Intels leading-edge products and manufacturing process with Alteras leading field-programmable gate array (FPGA) technology. The combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments. Intel plans to offer Alteras FPGA products with Intel Xeon processors as highly customized, integrated products. The companies also expect to enhance Alteras products through design and manufacturing improvements resulting from Intels integrated device manufacturing model.

Intels growth strategy is to expand our core assets into profitable, complementary market segments, said Brian Krzanich, CEO of Intel. With this acquisition, we will harness the power of Moores Law to make the next generation of solutions not just better, but able to do more. Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs. This is the promise of Moores Law and its the innovation enabled by Intel and Altera joining forces. We look forward to working with the talented team at Altera to deliver this value to our customers and stockholders.

Given our close partnership, weve seen firsthand the many benefits of our relationship with Intel the worlds largest semiconductor company and a proven technology leader, and look forward to the many opportunities we will have together, said John Daane, President, CEO and Chairman of Altera. We believe that as part of Intel we will be able to develop innovative FPGAs and system-on-chips for our customers in all market segments. Together, we expect to drive meaningful value for our customers,partners and employees around the world. This is an exciting transaction that provides immediate and significant value to our stockholders. We look forward to working closely with the Intel team to ensure a
smooth transition and complete the transaction as quickly as possible.

Altera will become an Intel business unit to facilitate continuity of existing and new customer sales and support. Intel plans to continue support and development for Alteras ARM-based and power management product lines.

The transaction is expected to be accretive to Intels non-GAAP EPS and free cash flow in the first year after close. Intel intends to fund the acquisition, which is expected to close within six to nine months, with a combination of cash from the balance sheet and debt.

The transaction has been unanimously approved by the Intel and Altera Boards of Directors and is subject to certain regulatory approvals and customary closing conditions, including the approval of Alteras stockholders.
J.P. Morgan Securities LLC and Rothschild Inc. are serving as financial advisors and Gibson, Dunn & Crutcher LLP and Weil, Gotshal & Manges LLP are serving as legal advisors to Intel. Goldman, Sachs & Co. is serving as the exclusive financial advisor to Altera and Wilson Sonsini Goodrich & Rosati, Professional Corporation, is serving as legal advisor to Altera.

For more information, investors are encouraged to visit intelacquiresaltera.transactionannouncement.com, which will be used by Intel and Altera to disclose information about the transaction and comply with Regulation FD.

Transaction Discussion Webcast
Intel will hold a public webcast at 7:00 a.m. PT (10:00 a.m. ET) today to discuss the transaction. The
webcast and a copy of the webcast presentation materials can be found on Intels Investor Relations
website at www.intc.com. The live webcast can also be accessed in the United States at 1-866-383-8009
and outside the United States at +1-617-597-5342 with the passcode 99323762. A webcast replay and a
copy of the webcast presentation materials will also be available at
intelacquiresaltera.transactionannouncement.com.

About Intel
Intel is a world leader in computing innovation. The company designs and builds the essential
technologies that serve as the foundation for the worlds computing devices. As a leader in corporate
responsibility and sustainability, Intel also manufactures the worlds first commercially available
conflict-free microprocessors. Additional information about Intel is available at newsroom.intel.com
and blogs.intel.com, and about Intels conflict-free efforts at conflictfree.intel.com.

About Altera
Altera programmable solutions enable designers of electronic systems to rapidly and cost effectively
innovate, differentiate and win in their markets. Altera offers FPGA, SoC, CPLD, and complementary
technologies, such as power solutions to provide high-value solutions to customers worldwide. Visit
Altera at www.Altera.com.