Exhibit 99.1

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	anna.delrosario@altera.com

ALTERA ANNOUNCES 2006 RESULTS

SALES UP 14%

San Jose, Calif., February 13, 2007 — Altera Corporation (NASDAQ: ALTR) today announced 2006 sales of $1.29 billion, up 14%, compared with $1.12 billion in 2005. New product sales increased 150 percent. Net income for 2006 was $323.2 million, $0.88 per diluted share, versus net income of $278.8 million, $0.74 per diluted share, in 2005. Non-GAAP net income in 2006, excluding the effects of stock-based compensation expense, was $371.2 million, $1.01 per diluted share.

Fourth quarter sales were $317.4 million, up 13 percent from the fourth quarter of 2005 and down 7 percent from the third quarter of 2006. Fourth quarter net income was $99.9 million, $0.27 per diluted share, up 43 percent compared with net income of $69.7 million, $0.19 per diluted share, in the fourth quarter of 2005. Gross profit margin was 66.3 percent for the fourth quarter of 2006 versus 66.7 percent for the fourth quarter of 2005.

During the fourth quarter, Altera reduced its 2006 effective tax rate from 15 percent to 10 percent resulting in a net income benefit of $18 million or $0.05 per diluted share. The tax benefit in the fourth quarter arose primarily from the reinstatement in December 2006 of the federal R&D tax credit and the favorable impact of a tax audit settlement.

Altera repurchased 7.1 million shares of its common stock during 2006 at a cost of $140.4 million, with 4.4 million shares repurchased during the fourth quarter at a cost of $87.4 million. Altera ended the quarter with $1.6 billion in cash and investments.

“Our 2006 results show an acceleration in top line growth for Altera as we once again outpaced semiconductor industry growth. We aim to capitalize on this momentum and drive for additional sales growth and market share gains. Our overall financial performance remained very strong with profitability that puts us at the top of the programmable logic industry,” said John Daane, president, chief executive officer, and chairman of the board. “We are in the final development stage for our high-end Stratix^® III FPGA devices and are completing work on several new products that we will introduce in 2007, making 2007 a very ambitious year for us. We are confident that we can extend our record of smooth new product roll-outs, and that we will be well positioned to compete for the substantial growth opportunity available to the programmable logic industry.”

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Several recent accomplishments mark the company’s continuing progress.

• Altera’s Stratix III FPGA family has been selected as one of EDN magazine’s Hot 100 Products of 2006. This annual list is compiled by the magazine’s editors and represents the year’s most important products that advanced the state of the art in electronics. The 65-nm Stratix III family, together with our Quartus^® II development software, uses ground-breaking advancements to deliver devices with 50 percent lower power, 25 percent higher performance, and twice the density of Stratix II devices. The unique Programmable Power Technology found in Stratix III FPGAs responds to customers who increasingly need new ways to reduce power use in their designs. Stratix III devices allow the user’s design to automatically establish the optimum balance between performance and power throughout the device, dramatically reducing overall power consumption, making Stratix III FPGAs the lowest-power, high-performance FPGAs available. Customers have already begun designing with this new family which will begin shipping in the third quarter.

• The range of products that employ Altera’s HardCopy^® structured ASICs continues to expand across all market segments served by Altera. As part of this trend, SANYO Electric Company, Ltd. is using Altera’s HardCopy devices in its PLV-Z5 series of home projectors. In this application SANYO is taking advantage of Altera’s Nios^® II embedded processor for image processing and enhancement. Together, the HardCopy device and Nios processor deliver a combination of digital signal processing performance and programming flexibility that efficiently integrates many video functions into a single device. The previous version of this award-winning projector used Altera’s Stratix FPGAs. The PLV-Z5 has won several awards including this year’s HiVi magazine’s Best Buy Award, a Hot Product award from ProjectorReviews.com and five-star ratings across all review categories from Projector Central.

• Altera’s Stratix II GX FPGA family has won EDN China’s 2006 Innovation Award in the digital IC and digital logic category. The award results from a pre-selection process by a panel of EDN China technical editors and online voting among the 35,000 EDN China readers. This recognition confirms the widespread appeal of this third generation of Altera FPGAs with embedded transceivers. Stratix II GX FPGAs are the industry’s only FPGAs to provide transceiver speeds up to 6.375 Gbps on every channel, operating with the industry’s lowest power consumption and best signal integrity. Altera has now completed the rollout of the entire product family and has begun shipping production-qualified parts to customers.

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Business Outlook for the First Quarter 2007

The following guidance includes stock-based compensation expense in cost of goods sold, research and development, and SG&A of $0.4 million, $6 million, and $8 million respectively. The tax rate would be 2 percentage points higher excluding stock-based compensation.

Sales	Unchanged from fourth quarter to down 4% sequentially
Gross Margin	65% to 66%
Research and Development	Low to mid-$60 million range
SG&A	Mid-$70 million range
Other Income	Approximately $16 million
Tax Rate	13% to 15%

Conference Call and Quarterly Update:

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter’s results and management’s outlook for the first quarter of 2007. The 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.

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 any projection of revenue, gross margin, expense or other financial items discussed in the Business Outlook section of this press release and comments relating to new products and anticipated product rollouts. 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, customer business environment, market acceptance of the company’s products, the rate of growth of the company’s new products including the Stratix III, Stratix II, Stratix II GX, Cyclone^® II, MAX^® II and HardCopy device families, changes in the mix of our business between prototyping and production-based demand, as well as changes in economic conditions and other risk factors discussed in documents filed by the company with the Securities and Exchange Commission 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.

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Use of Non-GAAP Financial Information

In addition to disclosing financial results calculated in accordance with U.S. GAAP, the accompanying financial tables contain non-GAAP financial measures that 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 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 5 to 7 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. All other product or service names are the property of their respective holder.

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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
	December 29 2006								December 30 2005
	GAAP (2)			Adjustments (1)			Non-GAAP (2)		GAAP (2)
Net sales	$	317,392		$	—		$	317,392	$	281,910
Cost of sales		107,007			(369	)		106,638		93,817
Gross margin		210,385			369			210,754		188,093
Operating expenses:
Research and development		58,355			(6,549	)		51,806		53,593
Selling, general, and administrative		73,994			(8,583	)		65,411		58,343
Total operating expenses		132,349			(15,132	)		117,217		111,936
Income from operations		78,036			15,501			93,537		76,157
Interest and other income, net		18,842			—			18,842		10,945
Income before income taxes		96,878			15,501			112,379		87,102
Provision (Benefit) for income taxes		(2,984	)		5,928			2,944		17,420
Net income	$	99,862		$	9,573		$	109,435	$	69,682
Net income per share:
Basic	$	0.28					$	0.30	$	0.19
Diluted	$	0.27					$	0.30	$	0.19
Shares used in computing per share amounts:
Basic		362,569						362,569		362,047
Diluted		368,448						368,448		366,864
Tax rate		-3.1%						2.6%		20.0%
% of Net Sales:
Gross margin		66.3%						66.4%		66.7%
Research and development		18.4%						16.3%		19.0%
Selling, general, and administrative		23.3%						20.6%		20.7%
Income from operations		24.6%						29.5%		27.0%
Net income		31.5%						34.5%		24.7%

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 gains of $2.5 million and $0.9 million for the three month periods ended December 29, 2006 and December 30, 2005, respectively. Gains or (losses) were included in interest and other income, net, as well as cost of sales and 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 Impact (In Millions)	December 29 2006		December 30 2005
Increase in Cost of sales	$	0.1	$	—
Increase in R&D Expense		0.9		0.4
Increase in SG&A Expense		1.5		0.5
Increase in Interest and other income, net	$	2.5	$	0.9

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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
	September 29 2006							September 30 2005
	GAAP (2)		Adjustments (1)			Non-GAAP (2)		GAAP (2)
Net sales	$	341,213	$	—		$	341,213	$	291,530
Cost of sales		110,527		(422	)		110,105		97,647
Gross margin		230,686		422			231,108		193,883
Operating expenses:
Research and development		63,604		(6,116	)		57,488		49,443
Selling, general, and administrative		80,773		(8,483	)		72,290		57,289
Total operating expenses		144,377		(14,599	)		129,778		106,732
Income from operations		86,309		15,021			101,330		87,151
Interest and other income, net		16,539		—			16,539		11,368
Income before income taxes		102,848		15,021			117,869		98,519
Provision for income taxes		15,427		4,611			20,038		20,704
Net income	$	87,421	$	10,410		$	97,831	$	77,815
Net income per share:
Basic	$	0.24				$	0.27	$	0.21
Diluted	$	0.24				$	0.27	$	0.21
Shares used in computing per share amounts:
Basic		361,840					361,840		372,690
Diluted		367,313					367,313		379,080
Tax rate		15.0%					17.0%		21.0%
% of Net Sales:
Gross margin		67.6%					67.7%		66.5%
Research and development		18.6%					16.8%		17.0%
Selling, general, and administrative		23.7%					21.2%		19.7%
Income from operations		25.3%					29.7%		29.9%
Net income		25.6%					28.7%		26.7%

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 gains of $2.1 million for the three month periods ended September 29, 2006 and September 30, 2005, respectively. 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 Impact (In Millions)	September 29 2006		September 30 2005
Increase in R&D Expense	$	1.2	$	0.7
Increase in SG&A Expense		0.9		1.4
Increase in Interest and other income, net	$	2.1	$	2.1

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ALTERA CORPORATION

GAAP AND NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data and note)

(Unaudited)

	YEAR ENDED
	December 29 2006							December 30 2005
	GAAP (2)		Adjustments (1)			Non-GAAP (2)		GAAP (2)
Net sales	$	1,285,535	$	—		$	1,285,535	$	1,123,739
Cost of sales		427,975		(1,868	)		426,107		365,946
Gross margin		857,560		1,868			859,428		757,793
Operating expenses:
Research and development		248,720		(28,566	)		220,154		209,765
Selling, general, and administrative		307,765		(37,690	)		270,075		225,861
Total operating expenses		556,485		(66,256	)		490,229		435,626
Income from operations		301,075		68,124			369,199		322,167
Interest and other income, net		58,595		—			58,595		34,869
Income before income taxes		359,670		68,124			427,794		357,036
Provision for income taxes		36,434		20,123			56,557		78,207
Net income	$	323,236	$	48,001		$	371,237	$	278,829
Net income per share:
Basic	$	0.90				$	1.03	$	0.75
Diluted	$	0.88				$	1.01	$	0.74
Shares used in computing per share amounts:
Basic		361,096					361,096		370,164
Diluted		367,372					367,372		376,302
Tax rate		10.1%					13.2%		21.9%
% of Net Sales:
Gross margin		66.7%					66.9%		67.4%
Research and development		19.3%					17.1%		18.7%
Selling, general, and administrative		23.9%					21.0%		20.1%
Income from operations		23.4%					28.7%		28.7%
Net income		25.1%					28.9%		24.8%

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 gains of $5.9 million and $2.5 million for the years ended December 29, 2006 and December 30, 2005, respectively. Gains or (losses) were included in interest and other income, net, as well as cost of sales and operating expenses. There was no net impact in any year presented on income before income taxes or net income arising from this plan.

	YEARS ENDED
NQDC Impact (In Millions)	December 29 2006		December 30 2005
Increase in Cost of sales	$	0.1	$	—
Increase in R&D Expense		2.6		1.1
Increase in SG&A Expense		3.2		1.4
Increase in Interest and other income, net	$	5.9	$	2.5

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ALTERA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	December 29 2006		September 29 2006		December 30 2005
ASSETS
Current assets:
Cash and short-term investments	$	1,363,747	$	1,307,038	$	1,166,588
Accounts receivable, net		74,795		126,543		80,509
Inventories		78,477		93,437		70,711
Deferred compensation plan assets		69,378		66,021		61,567
Other current assets		148,155		161,997		132,221
Total current assets		1,734,552		1,755,036		1,511,596
Long-term investments		256,563		267,899		115,965
Property and equipment, net		178,363		174,804		165,999
Deferred income taxes and other assets, net		45,314		38,928		34,136
	$	2,214,792	$	2,236,667	$	1,827,696
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and current liabilities	$	230,508	$	279,869	$	239,350
Deferred compensation plan obligations		69,378		66,021		61,567
Deferred income and allowances on sales to distributors		298,078		330,944		258,285
Total current liabilities		597,964		676,834		559,202
Capital lease obligations		1,304		1,486		3,871
Other non-current liabilities		7,363		5,665		5,035
Stockholders' equity		1,608,161		1,552,682		1,259,588
	$	2,214,792	$	2,236,667	$	1,827,696
KEY RATIOS & INFORMATION
Current Assets/Current Liabilities		3:1		3:1		3:1
Liabilities/Equity		1:3		1:2		1:2
Annualized YTD Return on Equity		23%		21%		21%
Quarterly Depreciation Expense	$	7,133	$	6,744	$	7,038
Quarterly Capital Expenditures	$	10,692	$	9,597	$	7,665
Annualized Sales per Employee	$	506	$	514	$	498
Number of Employees		2,654		2,649		2,361
Inventory MSOH (a): Altera		2.2		2.5		2.3
Inventory MSOH (a): Distribution		1.3		1.3		1.4
Days Sales Outstanding		21		34		26

(a) MSOH: Months Supply On Hand

Note: Certain reclassifications have been made to prior period balances in order to conform to the current period's presentation.

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ALTERA CORPORATION

REVENUE SUMMARY

(Unaudited)

				Quarterly Growth Rates		Year ending		Annual Growth Rate
	Q4'06	Q3'06	Q4'05	Q-Q	Y-Y	2006	2005
Geography
North America	22%	23%	26%	-11%	-2%	24%	25%	13%
Asia Pacific	31%	28%	26%	3%	31%	27%	25%	22%
Europe	26%	27%	24%	-10%	21%	26%	25%	16%
Japan	21%	22%	24%	-11%	-1%	23%	25%	6%
International	78%	77%	74%	-6%	17%	76%	75%	15%
Total	100%	100%	100%	-7%	13%	100%	100%	14%
Product Category
New	24%	21%	11%	6%	155%	19%	9%	150%
Mainstream	32%	36%	36%	-16%	-1%	35%	34%	17%
Mature & Other	44%	43%	53%	-6%	-6%	46%	57%	-8%
Total	100%	100%	100%	-7%	13%	100%	100%	14%
Market Segment
Communications	39%	41%	43%	-11%	4%	42%	42%	15%
Industrial	35%	33%	33%	-2%	17%	34%	32%	20%
Consumer	15%	15%	15%	-2%	16%	14%	16%	0%
Computer & Storage	11%	11%	9%	-14%	34%	10%	10%	16%
Total	100%	100%	100%	-7%	13%	100%	100%	14%
FPGAs and CPLDs
FPGA	71%	71%	71%	-8%	13%	71%	70%	16%
CPLD	19%	19%	20%	-4%	7%	19%	20%	12%
Other	10%	10%	9%	-5%	21%	10%	10%	7%
Total	100%	100%	100%	-7%	13%	100%	100%	14%

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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