LSI Logic Updates Third Quarter Outlook

Revenue Growth Expected to Resume in Q4

MILPITAS, Calif., September 13, 2004  - LSI Logic Corporation (NYSE: LSI) today updated its 2004-third quarter projections for revenue, earnings per share and gross margin, prompted by customer reassessment of end-demand for the second half of the year, resulting in a broad-based Q3 inventory correction in the supply chain.

LSI Logic expects to report revenues in the range of $370 million to $400 million. The company previously forecasted third quarter revenues in the range of $435 million to $465 million.

LSI Logic anticipates a third quarter GAAP* net loss in the range of 14-17 cents per diluted share. The company previously projected third quarter GAAP results in the range of breakeven to a net loss of 3 cents per diluted share.

* Generally Accepted Accounting Principles

LSI Logic Corporation (NYSE: LSI) focuses on the design and production of high-performance semiconductors for Consumer, Communications and Storage applications that access, interconnect and store data, voice and video. LSI Logic engineers incorporate reusable, industry-standard intellectual property building blocks that serve as the heart of leading-edge systems. LSI Logic serves its global OEM, channel and distribution customers with Platform ASICs, standard-cell ASICs, standard products, host bus adapters, RAID controllers and software. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035.  http://www.lsilogic.com