EXHIBIT 99.1

Business Update

March 11, 2004

· Management anticipates that sequential revenue growth will be at the high end of the company’s 6-8% guidance for the first quarter.

· Altera expects that its Stratix^™ and Cyclone^™ device families will again be significant growth drivers in the March quarter.

Forward-Looking Statements

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. Forward-looking statements are made as of the date of this update and, except as required by law, the company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.