Exhibit 99.1


                                  [ALTERA LOGO]


                                 Business Update

                                  June 3, 2003

      -     Based on quarter-to-date results, management is refining its revenue
            guidance for the June quarter. Management now expects that June
            quarter revenues will be 3 - 4% above the March quarter. Prior
            guidance was for 1 - 4% growth.

      -     Demand for the company's newest products, the Stratix(TM), Stratix
            GX, and Cyclone(TM) families, all manufactured on 0.13-micron
            process geometries, continues to expand. 200,000 units of these
            advanced products have been delivered to customers and distributors,
            further extending Altera's leadership at this advanced process node.
            More than 700 customers have taken delivery of Cyclone family
            devices demonstrating extremely rapid acceptance of this product
            family targeting emerging high-volume PLD applications.

This business update is presented to help investors understand the general
nature of Altera's business. This business update contains forward-looking
statements about expected revenue growth which are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements are subject to many
uncertainties and risks related to the company's operations and business
environment. The risks that the company faces may cause actual results to be
materially different from any future results expressed or implied by such
forward-looking statements. These risks are discussed further in the company's
SEC filings which are available from the company without charge.