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GLOBALPRESS SUMMIT 2010

GLOBALPRESS SUMMIT 2010. April 26, 2010. SAFE HARBOR NOTICE. SAFE HARBOR NOTICE.

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GLOBALPRESS SUMMIT 2010

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  1. GLOBALPRESS SUMMIT 2010 April 26, 2010

  2. SAFE HARBOR NOTICE SAFE HARBOR NOTICE • This presentation contains forward-looking statements that involve estimates, assumptions, risks and uncertainties, including statements relating to our 2Q10 business outlook, the potential growth of various served markets, strong and consistent new product growth, continuing cost structure and reduction opportunities, and the potential growth of the programmable logic market. Lattice believes the factors identified below 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 global economic conditions which may affect customer demand, pricing pressures, competitive actions, the demand for our Mature, Mainstream and New products, the ability to supply products to customers in a timely manner and our actions to restructure our distribution channel. Actual gross margin percentage, operating expenses and operating income 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, test and other costs, variations in manufacturing yields, the failure to sustain operational improvements, the effects of transitioning certain distributors from the sell-to to the sell-through business model, and compensation charges due to stock price changes. Any unanticipated declines in revenue or gross margin, any unanticipated increases in our operating expenses or unanticipated charges, including without limitation, restructuring charges or any impairment charges related to an other-than-temporary decline in the fair value of auction rate securities held in Long-term marketable securities, could adversely affect our profitability during the quarter. • In addition to the foregoing, other factors that may cause actual results to differ materially from the forward-looking statements herein include overall semiconductor market conditions, market acceptance and demand for our new and existing products, the Company's dependencies on its silicon wafer suppliers, the impact of competitive products and pricing, technological and product development risks, the compromised liquidity of the Company's auction rate securities, our ability to improve customer service by moving our warehouse to Singapore, our ability to improve our operational efficiencies by establishment of our Asia Operations Center, and the other risks that are described herein and that are otherwise 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.

  3. AGENDA • Where Lattice Is Today • Chris Fanning, CVP & General Manager, Low Density & Mixed Signal Solutions • Lattice’s Roadmap To The Future • Sean Riley, CVP & General Manager, High Density Solutions • Lattice’s Financial Achievements • Bruno Guilmart, President & CEO • Question Time

  4. ABOUT LATTICE SEMICONDUCTOR Founded (1983); IPO 1989 (NASDAQ: LSCC) Design and develop programmable semiconductor products, which allow the end customer to determine functionality FPGA, PLD, Mixed Signal Customers are primarily OEMs in the communications, computing, consumer, and industrial end markets Product development, manufacturing, and sales offices worldwide $194.4M revenue in 2009

  5. WHERE LATTICE COMPETES Linking People Together Server Wireless Smartphone Camera LCD TV • Lattice continuing to differentiate in its traditional Communications, Computing, and Industrial markets • Low cost • Low power • High convenience • Consumer is emerging as a good fit for PLD strengths • Reducing time to market • Mitigating ASIC development risk and cost • Integrating discrete components

  6. DIGITAL CAMERAS Picture A New PLD Market Volume 110Mu 130Mu Year 2009 2013E Lattice Product: MachXO 4000ZE Function: Image Rotation Discrete Component Integration Why We Won: Cost Reduction, Technical Support, Supply Chain Source: iSuppli, “Core Silicon Market Tracker & Component AMFT – Q4 2009,” January 5, 2010

  7. LCD TV High Growth In High Definition LCD TV Shipments (Mu) CAGR ’09 – ’13 15% Lattice Product: MachXO Function: LED backlight control Why We Won: Price, High IO Count, Non-Volatility Source: iSuppli, “Digital TV Semiconductor Q4 2009 Market Tracker,” January 13, 2010

  8. SERVERS Big Iron Opportunities Volume 7Mu 10Mu Year 2009 2013E Lattice Product: MachXO Function: Clock Generation, Bus / Memory Processor Interface Why We Won: Memory, PLLs, Price, Technical Support Source: iSuppli, “Core Silicon Market Tracker & Component AMFT – Q4 2009,” January 5, 2010

  9. WIRELESS The Appetite Is Still Growing • “20x increase in 3G traffic in the next 5 years” • Unwired Insight • “Wireless data to double yearly through 2014” • Cisco • “Wireless Comm to grow 10% annually through 2013” • iSuppli Key Lattice Product: LatticeECP3 Functions: Baseband and Radio Interfaces Why We Win: Low Power, High Value, Relevant IP Source: Unwired Insight, iSuppli, San Jose Business Journal – Cisco Systems, February 12, 2010

  10. SMART PHONE Where The World Is Going Smartphone Shipments (Mu) CAGR ’09 – ’12 34% • “Virtually all phones sold in the U.S. will be smart phones within 5 years” • Frost & Sullivan Lattice Product: 4000ZE Functions: Discrete Integration, Level Shifting, Data Bus Control Why We Won: Lower Power, Small Form Factor, Halogen Free Packaging Source: Goldman Sachs, Frost & Sullivan

  11. LATTICE HAS SOLUTIONS ACROSS THE SPECTRUM Server Wireless Smartphone Camera LCD TV • 10M • 10% • 34% • 130M • 15% • CAGR • CAGR • CAGR • Units • Units • 4000ZE ✓✓✓✓ • MachXO ✓✓ ✓ ✓ • Power Manager ✓ ✓ ✓ • LatticeECP3 ✓ ✓ • LatticeXP2 ✓ ✓

  12. THREE PROGRAMMABLE DIGITAL SEGMENTS Ultra-High Ultra-High Ultra-High Customer needs: ultimate performance & density Example: ASIC emulation, 100G optical switches Mid-Range Customer needs: optimized blend of power and performance Examples: wireless interfaces, security & surveillance Performance / Density R&D Investment / Support Low Density Customer needs: cost & convenience Examples: handhelds, LCD displays, control & glue logic Low Low

  13. LATTICE DIGITAL ROADMAP Ultra-High Ultra-High Ultra-High Mid-Range Next Gen SC 90nm • Mid-Range • Low Power • High Value ECP3 65nm R&D Investment / Support Performance / Density ECP2/M 90nm Non-Volatile Next Gen XP2 90nm • Low Density • Low Cost • High Convenience • Channel Partnerships XO 130nm 4KZE 180nm Low Low 2007 2008 2009 2010

  14. MID-RANGE PRESENTS SIGNIFICANT OPPORTUNITY High Fast SerDes High Speed I/O DSP/MACs Big Memory High Performance Ultra-High FPGA High Gross Margins Performance / Density Low Density FPGA No SerDes Lower Speed I/O Minimal DSP Minimal Memory Low Performance Medium Gross Margins Market w/out Mid-Range FPGAs Low

  15. SerDes High Speed I/O DSP/MACs Big Memory Mid-Range Performance MID-RANGE PRESENTS SIGNIFICANT OPPORTUNITY High Fast SerDes High Speed I/O DSP/MACs Big Memory High Performance Ultra-High FPGA Ultra-High FPGA High Gross Margins Mid-Range FPGA Performance / Density Lower Price Lower Power Low Density FPGA No SerDes Lower Speed I/O Minimal DSP Minimal Memory Low Performance Low Density FPGA Medium Gross Margins Market w/out Mid-Range FPGAs Market with Mid-Range FPGAs Low

  16. LATTICE MIXED SIGNAL ROADMAPExtending The Benefits Of Programmability 2003 2010 2006 Next Gen Power Manager II Power Manager I Platform Manager Platform Manager II • Sequencing • Monitoring • Sequencing • Monitoring • Hot-swap • Voltage Measurement • Trimming/ Margining • Sequencing • Monitoring • Hot-swap • VoltageMeasurement • Trimming/ Margining • Reset Tree • NV Error Logging • System Interface • Sequencing • Monitoring • Hot-swap • VoltageMeasurement • Trimming/ Margining • Reset Tree • NV Error Logging • System Interface • Fan Control • User Logic • Temperature Monitoring • Current Measurement

  17. QUARTERLY REVENUE Revenue ($M) ~6-10% +28%

  18. CONSISTENT NEW PRODUCT REVENUE GROWTH Revenue ($M) 34% Quarterly Growth New products: LatticeECP2/M/3, LatticeXP2, MachXO, Power Manager II, ispClock A/D/S, ispMACH 4000ZE

  19. LATTICE FPGA GAINING TRACTION 2009 / 08 FPGA Revenue Growth FPGA Up 41% In 1Q10 Source: Company financials, Lattice estimates

  20. PROFITABILITY ACCELERATINGStrong Balance Sheet

  21. SUMMARY • Focused on programmable logic opportunities where we have sustainable and differentiated market positions • Good product position in large and growing markets • Differentiating with high-value, low power solutions • Strong and consistent new product growth • Accelerating profitability • Strong balance sheet Stock Price Jan. ‘09 Apr. ‘10

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