Contact: Jon Anderson, Actel Corporation (650) 318-4445

For Release: January 31, 2006 @ 1:30 P.M. PT

ACTEL ANNOUNCES FOURTH QUARTER 2005 FINANCIAL RESULTS

Mountain View, Calif. – Actel Corporation (NASDAQ: ACTL) today announced net revenues of $43.7 million for the fourth quarter of 2005, up 9 percent from the fourth quarter of 2004 and down 6 percent from the third quarter of 2005. For the full fiscal year, net revenues were $179.4 million, up 8 percent from fiscal 2004.

Non-GAAP net income, which excludes amortization of acquisition-related intangibles and other costs, was $1.4 million for the fourth quarter of 2005 compared with $0.6 million for the fourth quarter of 2004 and $2.8 million for the third quarter of 2005. Non-GAAP earnings were $0.06 per diluted share for the fourth quarter of 2005 compared with $0.03 for the fourth quarter of 2004 and $0.11 for the third quarter of 2005. Non-GAAP net income was $8.9 million, or $0.35 per diluted share, for the 2005 fiscal year compared with $8.2 million, or $0.31 per diluted share, for the 2004 fiscal year.

Including all amortization and other costs in accordance with generally accepted accounting principles (GAAP), Actel reported net income of $1.2 million, or $0.05 per diluted share, for the fourth quarter of 2005 compared with a net loss of $3.2 million, or ($0.12) per share, for the fourth quarter of 2004 and net income of $2.2 million, or $0.09 per diluted share, for the third quarter of 2005. Net income in accordance with GAAP was $7.0 million, or $0.28 per diluted share, for the 2005 fiscal year compared with $2.4 million, or $0.09 per diluted share, for the 2004 fiscal year.

Gross margin was 59.1 percent for the fourth quarter of 2005 compared with 48.2 percent for the fourth quarter of 2004 and 59.0 percent for the third quarter of 2005. Gross margin was 59.1 percent for the 2005 fiscal year compared with 57.4 percent for the 2004 fiscal year.

During the fourth quarter, the company announced the immediate availability of the Actel Fusion™ Programmable System Chip (PSC), the world’s first mixed-signal field programmable gate array (FPGA) family. By integrating mixed-signal analog, flash memory, and FPGA fabric in a monolithic PSC, the Actel Fusion devices bring the benefits of programmable logic to many application areas (including power management, smart battery charging, clock generation and management, and motor control) that until now have only been served by either discrete analog components or mixed-signal ASIC solutions. In addition, the company announced the availability of the industry’s first fully qualified MIL-STD 883B flash-based FPGAs. Actel’s reprogrammable, nonvolatile ProASICPLUS FPGAs passed extensive testing at extreme conditions to achieve compliance with MIL-STD 883 Class B and qualify for use in high-reliability defense applications.

Business Outlook – First Quarter 2006

The company believes that first quarter revenues will increase sequentially in the 2 percent to 5 percent range. Gross margin is expected to be about 58 percent. Operating expenses are anticipated to come in at approximately $29.8 million, which includes an estimated $3.3 million of stock-based compensation expense. Other income is expected to be about $1.2 million. The tax provision for the quarter is expected to be approximately $1.0 – 1.2 million. Outstanding share count is expected to be about 25.7 million shares; fully diluted share count is expected to be about 26.7 million shares.

A conference call to discuss fourth quarter results will be held Tuesday, January 31, 2006, at 2:00 p.m. Pacific Time. A live web cast and replay of the call will be available. Web cast and replay access information as well as financial and other statistical information can be found on Actel’s web site, www.actel.com. In addition, the company expects to issue a press release providing a financial update in early March, 2006.

Actel Corporation is the leader in single-chip FPGA solutions. The company trades on the NASDAQ National Market under the symbol ACTL and is headquartered at 2061 Stierlin Court, Mountain View, Calif., 94043-4655. For more information about Actel, visit http://www.actel.com. Telephone: 888-99-ACTEL (992-2835).

The statements under the heading “Business Outlook – First Quarter 2006” are forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and should be read with the “Risk Factors” in Actel’s most recent Form 10-Q or 10-K, which can be found on Actel’s web site, www.actel.com. Actel’s quarterly revenues and operating results are subject to a multitude of risks, including general economic conditions and a variety of risks specific to Actel or characteristic of the semiconductor industry, such as fluctuating demand, intense competition, rapid technological change and related intellectual property and international trade issues, wafer and other supply shortages, and booking and shipment uncertainties. These and the other Risk Factors make it difficult for Actel to accurately project quarterly revenues and operating results, and could cause actual results to differ materially from those projected in the forward-looking statements. Any failure to meet expectations could cause the price of Actel’s stock to decline significantly.

Editor’s Note: The Actel name and logo are registered trademarks of Actel Corporation. All other trademarks and servicemarks are the property of their respective owners.

—30—

1

ACTEL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands except per share amounts)

                                         
    Three Months Ended   Fiscal Year Ended
    Jan. 1, 2006   Jan. 2, 2005   Oct. 2, 2005   Jan. 1, 2006   Jan. 2, 2005
Net revenues
  $ 43,708     $ 40,256     $ 46,378     $ 179,397     $ 165,536  
 
                                       
Costs and expenses:
                                       
Cost of revenues
    17,883       20,864       19,033       73,392       70,451  
Research and development
    12,390       11,160       12,166       48,173       45,360  
Selling, general, and administrative
    12,348       12,969       12,204       50,056       48,269  
Amortization of acquisition-related intangibles
    258       663       540       1,908       2,651  
Total costs and expenses
    42,879       45,656       43,943       173,529       166,731  
Income (loss) from operations
    829       (5,400 )     2,435       5,868       (1,195 )
Interest income and other, net
    1,199       782       1,019       3,924       2,935  
Income (loss) before tax (benefit) provision
    2,028       (4,618 )     3,454       9,792       1,740  
Tax provision (benefit)
    874       (1,451 )     1,216       2,756       (654 )
Net income (loss)
  $ 1,154     $ (3,167 )   $ 2,238     $ 7,036     $ 2,394  
 
                                       
Net income (loss) per share:
                                       
Basic
  $ 0.05     $ (0.12 )   $ 0.09     $ 0.28     $ 0.09  
Diluted
  $ 0.05     $ (0.12 )   $ 0.09     $ 0.28     $ 0.09  
 
                                       
Shares used in computing net income (loss) per share:
                                       
Basic
    25,425       25,368       25,388       25,277       25,584  
Diluted
    25,577       25,368       25,596       25,556       26,421  

2

ACTEL CORPORATION

NON-GAAP INFORMATION
EXCLUDING ACQUISITION-RELATED AMORTIZATION
AND OTHER ITEMS
(in thousands, except per share amounts)

The following Non-GAAP supplemental information adjusts for the effect of acquisition-related amortization and other non-operating items. Not all acquisition-related amortization charges are deductible for income tax purposes. The tax implications of these items have been included in the determination of Non-GAAP net income. This Non-GAAP information is not prepared in accordance with generally accepted accounting principles (GAAP).

                                         
    Three Months Ended   Fiscal Year Ended
    Jan. 1, 2006   Jan. 2, 2005   Jan. 1, 2006   Jan. 2, 2005   Jan. 1, 2006
Non-GAAP operating costs and expenses
  $ 24,738     $ 24,129     $ 24,370     $ 98,229     $ 93,629  
Non-GAAP operating income (loss)
  $ 1,087     $ (1,586 )   $ 2,975     $ 7,776     $ 4,607  
Non-GAAP net income
  $ 1,412     $ 647     $ 2,778     $ 8,944     $ 8,196  
Non-GAAP basic earnings per share
  $ 0.06     $ 0.03     $ 0.11     $ 0.35     $ 0.32  
Non-GAAP diluted earnings per share
  $ 0.06     $ 0.03     $ 0.11     $ 0.35     $ 0.31  

NON-GAAP TO GAAP RECONCILIATION
(unaudited, in thousands)

                                         
    Three Months Ended   Fiscal Year Ended
    Jan. 1, 2006   Jan. 2, 2005   Oct. 2, 2005   Jan. 1, 2006   Jan. 2, 2005
Non-GAAP net income
  $ 1,412     $ 647     $ 2,778     $ 8,944     $ 8,196  
Amortization of acquisition-related intangibles
  $ (258 )   $ (663 )   $ (540 )   $ (1,908 )   $ (2,651 )
RTSX-S testing costs and inventory write-off
          (3,151 )                 (3,151 )
GAAP net income (loss)
  $ 1,154     $ (3,167 )   $ 2,238     $ 7,036     $ 2,394  

ACTEL CORPORATION

CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

                 
    Jan. 1, 2006   Jan. 2, 2005
ASSETS                
 
               
Current assets:
               
Cash and cash equivalents
  $ 24,033     $ 6,405  
Short-term investments
    144,283       148,297  
Accounts receivable, net
    25,831       17,686  
Inventories, net
    37,372       41,218  
Deferred income taxes
    21,555       22,230  
Prepaid expenses and other current assets
    4,245       4,831  
Total current assets
    257,319       240,667  
Property and equipment, net
    23,859       22,804  
Goodwill, net
    32,142       32,142  
Other assets, net
    23,304       19,677  
 
  $ 336,624     $ 315,290  
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Accounts payable
  $ 14,503     $ 11,397  
Accrued salaries and employee benefits
    4,994       6,776  
Other accrued liabilities
    6,431       4,364  
Deferred income on shipments to distributors
    29,238       23,658  
Total current liabilities
    55,166       46,195  
Deferred compensation plan liability
    3,667       3,258  
Deferred rent liability
    1,242       1,044  
Long term royalty, net
    3,828        
Total liabilities
    63,903       50,497  
Shareholders’ equity
    272,721       264,793  
 
  $ 336,624     $ 315,290  

3


The following information was filed by Actel Corp on Tuesday, January 31, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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