Lattice Semiconductor has initiated a restructuring plan. In connection with this headcount will be reduced by approximately 125 employees, representing approximately 14 percent of the Company's workforce. The restructuring is expected to result in a quarterly reduction in operating expenses of approximately $4.5 million, commencing with the fourth quarter of this year. The Company expects to record a restructuring charge of severance and related costs, estimated to be in the range of approximately $3.3 million to $3.8 million in the third quarter of 2008 and approximately $0.4 million in the fourth quarter of 2008. The 2008 restructuring plan will be substantially completed in the fourth quarter of 2008.

The second financial quarter 2008 for Lattice Semiconductor ended with sales of 58.1 million US$ and a net loss of 13.6 million US$.