Exhibit 99.1

	Altera Corporation
	101 Innovation Drive
	San Jose, CA 95134
	Phone: 408-544-7000

INVESTOR CONTACT	MEDIA CONTACT
Scott Wylie	Anna Del Rosario
Vice President – Investor Relations	Director – Corporate Communications
Altera Corporation	Altera Corporation
(408) 544-6996	(408) 544-6397
swylie@altera.com	newsroom@altera.com

ALTERA ANNOUNCES SECOND QUARTER EARNINGS;

COMPLETES SEC FILINGS

SAN JOSE, Calif., October 24, 2006 — Altera Corporation (NASDAQ:ALTR) today announced second quarter 2006 net income, on a generally accepted accounting principles (GAAP) basis, of $77.3 million, $0.21 per diluted share, compared with net income of $67.6 million, $0.18 per diluted share, in the second quarter of 2005. Non-GAAP net income, which excludes the effects of stock-based compensation expense, was $91.0 million, $0.25 per diluted share, in the second quarter of 2006.

The company had previously announced second quarter revenues of $334.1 million, up 14 percent from the first quarter of 2006 and 17 percent from the second quarter of 2005. New product sales increased 49 percent sequentially and were up 138 percent from the prior year’s second quarter.

On a GAAP basis, second quarter gross margin was 66.1 percent and operating expenses were $140.7 million. Excluding the effects of stock-based compensation expense, non-GAAP gross margin was 66.2 percent and operating expenses were $122.5 million.

Prior to the temporary suspension of its share repurchase program in May 2006, Altera repurchased 448,000 shares of its common stock during the second quarter at a cost of $9.4 million. Altera ended the quarter with $1.5 billion in cash and investments.

Altera’s 2005 Form 10-K/A, first quarter Form 10-Q, and second quarter Form 10-Q are also being filed with the Securities and Exchange Commission today.

“With today’s SEC filings we will have completed the restatement we previously announced and become current in our periodic reports. We have taken steps to ensure that Altera’s financial reporting is as it should be: accurate, transparent, timely, and compliant with applicable accounting standards,” said John Daane, president, chief executive officer, and chairman of the board. “I want to apologize to our shareholders for the past events that resulted in the need to restate historical financial statements. We are committed to investing in ongoing efforts to continuously improve our internal controls and to remediate the material weakness identified in our SEC reports.”

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Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the second quarter’s results. To participate in the conference call, dial (785) 832-2422 (use access code 7292741). The live web cast and subsequent replay will be available in the investor relations section of the company’s web site at http://www.altera.com. A telephonic replay of the call may be accessed later in the day by calling (719) 457-0820 and referencing confirmation code 258712. The telephonic replay will be available for two weeks following the live call.

Third Quarter Results

Third quarter results are currently scheduled to be released November 6, 2006 after the market close.

Forward-Looking Statements

Statements in this press release that are not historical are “forward-looking statements” as the term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally written in the future tense and/or preceded by words such as “will”, “expects”, “anticipates”, or other words that imply or predict a future state. Forward-looking statements include statements relating to today’s filing of Altera’s periodic reports with the SEC, the timing of our third quarter earnings release, the adequacy of Altera’s subsequent periodic reports, and Altera’s efforts to improve internal controls and remediate an identified material weakness in the company’s internal controls. Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that can cause actual results to differ from those currently anticipated, due to a number of factors, including without limitation, technical difficulties with the SEC and EDGAR system, a delay in the release of our third quarter earnings or future periodic reports, judgments required in the application of accounting standards, and delays or difficulties in improvement of our internal controls or remediation of the company’s material weakness, as well as other risk factors discussed in documents filed by the company with the SEC from time to time. Copies of Altera’s SEC filings are posted on the company’s web site and are available from the company without charge. Forward-looking statements are made as of the date of this release, 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.

Use of Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with U.S. GAAP, this release and accompanying financial tables contain non-GAAP financial measures to exclude the effects of the non-cash stock-based compensation expense and the related tax effects of SFAS 123 (R), “Share-based Payment.” The non-GAAP financial measures are neither in accordance with, nor an alternative for, generally accepted accounting principles and may be different from similarly titled non-GAAP financial measures used by other companies. Accordingly, the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures included below should be carefully evaluated. Altera believes that the use of these non-GAAP financial measures, when shown in conjunction with corresponding GAAP financial measures, provide useful information to management and investors regarding financial and business trends relating to Altera’s financial condition and results of operations. Altera management uses these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, to review Altera’s financial performance. Non-GAAP reporting represents relevant and useful information that is widely used by financial analysts, investors and other interested parties in our industry. Altera’s management believes this presentation is useful to investors in evaluating performance on a

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basis that is consistent and comparable with periods prior to the adoption of SFAS 123(R). Since expensing stock-based compensation expense does not require cash expenditures by the company, the company’s non-GAAP presentation that excludes these expenses may be a useful measure of the company’s performance. A reconciliation between GAAP and non-GAAP financial results is provided on pages 4 to 6 of this release.

About Altera

Altera’s programmable solutions enable system and semiconductor companies to rapidly and cost-effectively innovate, differentiate and win in their markets. Find out more at www.altera.com.

Altera, The Programmable Solutions Company, the stylized Altera logo, specific device designations and all other words that are identified as trademarks and/or service marks are, unless noted otherwise, the trademarks and service marks of Altera Corporation in the U.S. and other countries.

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ALTERA CORPORATION

GAAP AND NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data and note)

(Unaudited)

	THREE MONTHS ENDED
	June 30 2006									July 1 2005
	GAAP (2)			Adjustments (1)			Non-GAAP (2)			GAAP (2)
Net sales	$	334,100		$	—		$	334,100		$	285,477
Cost of sales		113,335			(554	)		112,781			90,592
Gross margin		220,765			554			221,319			194,885
Operating expenses:
Research and development		63,904			(7,977	)		55,927			55,340
Selling, general, and administrative		76,749			(10,158	)		66,591			55,895
Total operating expenses		140,653			(18,135	)		122,518			111,235
Income from operations		80,112			18,689			98,801			83,650
Interest and other income, net		10,781			—			10,781			8,058
Income before income taxes		90,893			18,689			109,582			91,708
Provision for income taxes		13,633			4,996			18,629			24,142
Net income	$	77,260		$	13,693		$	90,953		$	67,566
Net income per share:
Basic	$	0.21					$	0.25		$	0.18
Diluted	$	0.21					$	0.25		$	0.18
Shares used in computing per share amounts:
Basic		360,501						360,501			373,040
Diluted (as restated, for 2005)		367,092						367,092			379,693
Tax rate		15.0	%					17.0	%		26.3	%
% of Net Sales:
Gross margin		66.1	%					66.2	%		68.3	%
Research and development		19.1	%					16.7	%		19.4	%
Selling, general, and administrative		23.0	%					19.9	%		19.6	%
Income from operations		24.0	%					29.6	%		29.3	%
Net income		23.1	%					27.2	%		23.7	%

Notes:

(1) Adjustments consist of non-cash stock-based compensation expenses and related tax effects.

(2) The GAAP and Non-GAAP income statements above include amounts related to our Nonqualified Deferred Compensation Plan (NQDC Plan). The NQDC Plan had a loss of $1.0 million and a gain of $0.7 million, respectively, for the three month periods ended June 30, 2006 and July 1, 2005. Gains or (losses) were included in interest and other income, net, as well as operating expenses. There was no net impact in any period presented on income before income taxes or net income arising from this plan.

	THREE MONTHS ENDED
NQDC Plan Impact (In Millions)	June 30 2006			July 1 2005
(Decrease) Increase in R&D Expense	$	(0.4	)	$	0.4
(Decrease) Increase in SG&A Expense		(0.6	)		0.3
(Decrease) Increase in Interest and other income	$	(1.0	)	$	0.7

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ALTERA CORPORATION

GAAP AND NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data and note)

(Unaudited)

	THREE MONTHS ENDED
	March 31 2006									April 1 2005
	GAAP (2)			Adjustments (1)			Non-GAAP (2)			GAAP (2)
Net sales	$	292,830		$	—		$	292,830		$	264,822
Cost of sales		97,106			(523	)		96,583			83,890
Gross margin		195,724			523			196,247			180,932
Operating expenses:
Research and development		62,857			(7,924	)		54,933			51,389
Selling, general, and administrative		76,249			(10,466	)		65,783			54,334
Total operating expenses		139,106			(18,390	)		120,716			105,723
Income from operations		56,618			18,913			75,531			75,209
Interest and other income, net		12,433			—			12,433			4,498
Income before income taxes		69,051			18,913			87,964			79,707
Provision for income taxes		10,358			4,588			14,946			15,941
Net income	$	58,693		$	14,325		$	73,018		$	63,766
Net income per share:
Basic	$	0.16					$	0.20		$	0.17
Diluted	$	0.16					$	0.20		$	0.17
Shares used in computing per share amounts:
Basic		359,479						359,479			372,881
Diluted (as restated, for 2005)		367,047						367,047			379,569
Tax rate		15.0	%					17.0	%		20.0	%
% of Net Sales:
Gross margin		66.8	%					67.0	%		68.3	%
Research and development		21.5	%					18.8	%		19.4	%
Selling, general, and administrative		26.0	%					22.5	%		20.5	%
Income from operations		19.3	%					25.8	%		28.4	%
Net income		20.0	%					24.9	%		24.1	%

Notes:

(1) Adjustments consist of non-cash stock-based compensation expenses and related tax effects.

(2) The GAAP and Non-GAAP income statements above include amounts related to our Nonqualified Deferred Compensation Plan (NQDC Plan). The NQDC Plan had a gain of $2.3 million and a loss of $1.2 million, respectively, for the three month periods ended March 31, 2006 and April 1, 2005. Gains or (losses) were included in interest and other income, net, as well as operating expenses. There was no net impact in any period presented on income before income taxes or net income arising from this plan.

	THREE MONTHS ENDED
NQDC Plan Impact (In Millions)	March 31 2006		April 1 2005
Increase (Decrease) in R&D Expense	$	0.9	$	(0.4	)
Increase (Decrease) in SG&A Expense		1.4		(0.8	)
Increase (Decrease) in Interest and other income	$	2.3	$	(1.2	)

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ALTERA CORPORATION

GAAP AND NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data and note)

(Unaudited)

	SIX MONTHS ENDED
	June 30 2006									July 1 2005
	GAAP (2)			Adjustments (1)			Non-GAAP (2)			GAAP (2)
Net sales	$	626,930		$	—		$	626,930		$	550,299
Cost of sales		210,441			(1,077	)		209,364			174,482
Gross margin		416,489			1,077			417,566			375,817
Operating expenses:
Research and development		126,761			(15,901	)		110,860			106,729
Selling, general, and administrative		152,998			(20,624	)		132,374			110,229
Total operating expenses		279,759			(36,525	)		243,234			216,958
Income from operations		136,730			37,602			174,332			158,859
Interest and other income, net		23,214			—			23,214			12,556
Income before income taxes		159,944			37,602			197,546			171,415
Provision for income taxes		23,991			9,584			33,575			40,083
Net income	$	135,953		$	28,018		$	163,971		$	131,332
Net income per share:
Basic	$	0.38					$	0.46		$	0.35
Diluted	$	0.37					$	0.45		$	0.35
Shares used in computing per share amounts:
Basic		359,990						359,990			372,961
Diluted (as restated, for 2005)		367,070						367,070			379,631
Tax rate		15.0	%					17.0	%		23.4	%
% of Net Sales:
Gross margin		66.4	%					66.6	%		68.3	%
Research and development		20.2	%					17.7	%		19.4	%
Selling, general, and administrative		24.4	%					21.1	%		20.0	%
Income from operations		21.8	%					27.8	%		28.9	%
Net income		21.7	%					26.2	%		23.9	%

Notes:

(1) Adjustments consist of non-cash stock-based compensation expenses and related tax effects.

(2) The GAAP and Non-GAAP income statements above include amounts related to our Nonqualified Deferred Compensation Plan (NQDC Plan). The NQDC Plan had a gain of $1.3 million and a loss of $0.5 million, respectively, for the six month periods ended June 30, 2006 and July 1, 2005. Gains or (losses) were included in interest and other income, net, as well as operating expenses. There was no net impact in any period presented on income before income taxes or net income arising from this plan.

	SIX MONTHS ENDED
NQDC Plan Impact (In Millions)	June 30 2006		July 1 2005
Increase in R&D Expense	$	0.5	$	—
Increase (Decrease) in SG&A Expense		0.8		(0.5	)
Increase (Decrease) in Interest and other income	$	1.3	$	(0.5	)

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ALTERA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	June 30 2006			March 31 2006			December 30 2005
				(b)			(as restated)
Assets
Current assets:
Cash and short-term investments	$	1,256,809		$	1,087,546		$	1,166,588
Accounts receivable, net		200,604			169,957			80,509
Inventories		77,819			66,766			70,711
Deferred compensation plan assets		63,004			66,487			61,567
Other current assets		133,272			114,577			115,826
Total current assets		1,731,508			1,505,333			1,495,201
Long-term investments		203,841			172,328			115,965
Property and equipment, net		171,951			171,307			165,999
Deferred income taxes and other assets, net		53,454			53,713			50,531
	$	2,106,754		$	1,902,681		$	1,827,696
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and current liabilities	$	284,988		$	233,832		$	244,385
Deferred compensation plan obligations		63,004			66,487			61,567
Deferred income and allowances on sales to distributors		367,806			280,833			258,285
Total current liabilities		715,798			581,152			564,237
Capital lease obligations		3,484			3,678			3,871
Stockholders’ equity		1,441,472			1,317,851			1,259,588
	$	2,160,754		$	1,902,681		$	1,827,696
Key Ratios & Information
Current Assets/Current Liabilities		2:1			3:1			3:1
Liabilities/Equity		1:2			1:2			1:2
Annualized YTD Return on Equity		20	%		18	%		21	%
Quarterly Depreciation Expense	$	7,418		$	7,070		$	7,038
Quarterly Capital Expenditures	$	8,062		$	12,378		$	7,665
Annualized Sales per Employee	$	508		$	487		$	498
Number of Employees		2,594			2,451			2,361
Inventory MSOH (a): Altera		2.1			2.1			2.3
Inventory MSOH (a): Distribution		1.5			1.4			1.4
Days Sales Outstanding		55			53			26

(a) MSOH: Months Supply On Hand

(b) These numbers have been adjusted from those previously announced to reflect the cumulative restatement adjustments made to the consolidated balance sheet as of December 30, 2005. Refer to 2005 10K/A for details.

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ALTERA CORPORATION

REVENUE SUMMARY

(Unaudited)

	Q2’06		Q1’06		Q2’05		Q-Q Growth		Y-Y Growth
Geography
North America	25	%	26	%	24	%	12	%	26	%
Europe	24	%	25	%	25	%	9	%	13	%
Japan	24	%	25	%	25	%	8	%	10	%
Asia Pacific	27	%	24	%	26	%	29	%	20	%
International	75	%	74	%	76	%	15	%	14	%
Total	100	%	100	%	100	%	14	%	17	%
Product Category
New	17	%	13	%	8	%	49	%	138	%
Mainstream	36	%	36	%	32	%	15	%	32	%
Mature & Other	47	%	51	%	60	%	5	%	-8	%
Total	100	%	100	%	100	%	14	%	17	%
Market Segment
Communications	44	%	44	%	43	%	13	%	19	%
Industrial	34	%	33	%	31	%	16	%	27	%
Consumer	13	%	13	%	16	%	19	%	-2	%
Computer & Storage	9	%	10	%	10	%	9	%	8	%
Total	100	%	100	%	100	%	14	%	17	%
FPGAs and CPLDs
FPGA	70	%	71	%	69	%	12	%	18	%
CPLD	21	%	19	%	20	%	27	%	25	%
Other	9	%	10	%	11	%	4	%	-3	%
Total	100	%	100	%	100	%	14	%	17	%

Product Category Description
Category	Products
New	Stratix II, Stratix II GX, Cyclone II, MAX II, HardCopy and HardCopy II
Mainstream	Stratix, Stratix GX, Cyclone, and MAX 3000A
Mature & Other	Classic, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, FLEX 6000, FLEX 8000, FLEX 10K, FLEX 10KA, FLEX 10KE, APEX 20K, APEX 20KE, APEX 20KC, APEX II, ACEX 1K, Mercury, Excalibur, configuration and other devices, intellectual property cores, and software and other tools

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