Exhibit 99.1

FOR IMMEDIATE RELEASE		OCTOBER 27, 2010
Investor Relations Contact:		Media Relations Contact:
Sujal Shah		Mitch Seigle
610-712-5471		408-954-3225
sujal.shah@lsi.com		mitch.seigle@lsi.com

cc10-70

LSI Reports Third Quarter 2010 Results

MILPITAS, Calif., October 27, 2010 — LSI Corporation (NYSE: LSI) today reported results for its third quarter ended October 3, 2010.

Third Quarter 2010 News Release Summary

n		Third quarter 2010 revenues of $629 million
n		Third quarter 2010 GAAP* net income of 4 cents per diluted share
n		Third quarter 2010 non-GAAP** net income of 13 cents per diluted share
n		Third quarter operating cash flows of $82 million

Fourth Quarter 2010 Business Outlook

n		Projected revenues of $635 million to $665 million
n		GAAP* net (loss)/income in the range of ($0.01) to $0.08 per share
n		Non-GAAP** net income in the range of $0.10 to $0.16 per share

Third quarter 2010 revenues were $629 million, a 9% increase year-over-year compared to $578 million reported in the third quarter of 2009, and compares to $639 million reported in the second quarter of 2010.

Third quarter 2010 GAAP* net income was $23 million or 4 cents per diluted share, compared to third quarter 2009 GAAP net income of $52 million or 8 cents per diluted share. Third quarter 2009 GAAP results included a tax benefit of $65 million, or 10 cents per diluted share. Third quarter 2010 GAAP results compare to second quarter 2010 GAAP net income of $7 million or 1 cent per diluted share. Third quarter 2010 GAAP net income included a net charge of $56 million from special items, consisting primarily of $40 million of amortization of acquisition-related items, $17 million of stock-based compensation expense, $4 million of net restructuring and other items, and $5 million of gain on the sale of securities.

Third quarter 2010 non-GAAP** net income was $79 million or 13 cents per diluted share, compared to third quarter 2009 non-GAAP net income of $119 million or 18 cents per diluted share. Third quarter 2009 non-GAAP results included earnings of 10 cents per diluted share reflecting the above-mentioned tax benefit. Second quarter 2010 non-GAAP net income was $71 million or 11 cents per diluted share.

Cash and short-term investments totaled approximately $601 million at quarter end. The company completed third-quarter purchases of approximately 32 million shares of its common stock for approximately $137 million. On a year-to-date basis, the company has purchased approximately 46 million shares of its common stock for approximately $218 million under its $250 million share repurchase program.

“Healthy growth in our storage systems business coupled with strong execution contributed to solid operating performance, with net income near the high end of our guidance range, despite some end-market softness and related customer inventory adjustments that affected sequential revenues,” said Abhi Talwalkar, LSI president and chief executive officer. “While end-market demand challenges could continue, we expect to benefit from new product ramps in 2011 as several of our design wins with top-tier storage and networking customers transition to production.”

Bryon Look, LSI CFO and chief administrative officer, said, “Our third quarter results reflect a continuing, strong focus on achieving our business model targets. Gross margins were at the high end of our guidance range, showing solid quarterly expansion and much improvement versus year-ago levels, while operating margins continued to grow on a sequential basis and were sharply higher year over year. Operating cash flows grew 21% sequentially to $82 million and were $256 million on a year-to-date basis, approximately double the $128 million recorded in the same period last year.”

LSI Fourth Quarter 2010 Business Outlook

		GAAP*		Special Items		Non-GAAP**
Revenue		$635 million to $665 million				$635 million to $665 million
Gross Margin		41% — 45%		$30 million to $40 million		47% — 49%
Operating Expenses		$243 million to $263 million		$20 million to $30 million		$223 million to $233 million
Net Other (Loss)/Income		$3 million				$3 million
Tax		Approximately $10 million				Approximately $10 million
Net (Loss)/Income Per Share		($0.01) to $0.08		($0.08) to ($0.11)		$0.10 to $0.16
Diluted Share Count		620 million				620 million

Capital spending is projected to be around $15 million in the fourth quarter and approximately $55 million in total for 2010.

Depreciation and software amortization is projected to be around $27 million in the fourth quarter and approximately $107 million in total for 2010.

LSI Conference Call Information

LSI will hold a conference call today at 2 p.m. PDT to discuss third quarter financial results and the fourth quarter 2010 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast. Subsequent to the conference call, a replay will be available at the same web address.

Forward-Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and market conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About LSI

LSI Corporation (NYSE: LSI) is a leading provider of innovative silicon, systems and software technologies that enable products which seamlessly bring people, information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs, adapters, systems and software that are trusted by the world’s best known brands to power leading solutions in the Storage and Networking markets. More information is available at www.lsi.com.

# # #

Editor’s Notes:

1.		All LSI news releases (financial, acquisitions, manufacturing, products, technology, etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.
2.		LSI and the LSI & Design logo are trademarks or registered trademarks of LSI Corporation.
3.		All other brand or product names may be trademarks or registered trademarks of their respective companies.

LSI CORPORATION
Condensed Consolidated Balance Sheets
(In millions)

(Unaudited)

		October 3,				July 4,				December 31,
		2010				2010				2009
Assets
Current assets:
Cash and short-term investments		$	600.8			$	669.8			$	962.1
Accounts receivable, net			313.9				307.1				339.0
Inventories			220.1				191.6				169.3
Prepaid expenses and other current assets			103.4				110.5				115.1
Total current assets			1,238.2				1,279.0				1,585.5
Property and equipment, net			208.8				212.8				219.0
Goodwill and identified intangible assets, net			807.2				847.5				927.9
Other assets			221.4				224.8				235.5
Total assets		$	2,475.6			$	2,564.1			$	2,967.9
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt		$	—			$	—			$	350.0
Other current liabilities			499.3				489.6				504.4
Total current liabilities			499.3				489.6				854.4
Pension, tax and other liabilities			599.9				609.8				652.4
Total liabilities			1,099.2				1,099.4				1,506.8
Stockholders’ equity:
Common stock and additional paid-in capital			6,003.9				6,123.8				6,149.2
Accumulated deficit			(4,355.1	)			(4,378.5	)			(4,408.5	)
Accumulated other comprehensive loss			(272.4	)			(280.6	)			(279.6	)
Total stockholders’ equity			1,376.4				1,464.7				1,461.1
Total liabilities and stockholders’ equity		$	2,475.6			$	2,564.1			$	2,967.9

LSI CORPORATION
Consolidated Statements of Operations (GAAP)
(In thousands, except per share amounts)
(Unaudited)

		Three Months Ended												Nine Months Ended
		October 3,				July 4,				October 4,				October 3,				October 4,
		2010				2010				2009				2010				2009
Revenues		$	628,984			$	639,405			$	578,419			$	1,905,571			$	1,581,363
Cost of revenues			319,061				330,194				315,067				982,192				892,984
Purchase accounting effect on inventory			—				—				1,892				—				4,442
Amortization of acquisition-related intangibles			31,288				31,288				34,177				93,864				101,654
Stock-based compensation expense			2,109				2,292				1,697				6,113				5,732
Total cost of revenues			352,458				363,774				352,833				1,082,169				1,004,812
Gross profit			276,526				275,631				225,586				823,402				576,551
Research and development			158,558				162,509				144,661				480,041				433,807
Stock-based compensation expense			7,714				8,644				6,386				24,256				21,443
Total research and development			166,272				171,153				151,047				504,297				455,250
Selling, general and administrative			69,272				69,304				66,323				209,139				197,661
Amortization of acquisition-related intangibles			8,948				8,948				9,123				26,844				27,369
Stock-based compensation expense			7,135				7,559				6,729				21,515				22,629
Total selling, general and administrative			85,355				85,811				82,175				257,498				247,659
Restructuring of operations and other items, net			3,693				5,067				4,745				10,380				35,960
Income/(loss) from operations			21,206				13,600				(12,381	)			51,227				(162,318	)
Interest expense			—				(1,707	)			(3,899	)			(5,601	)			(17,999	)
Interest income and other, net			10,315				4,639				3,535				6,147				15,742
Income/(loss) before income taxes			31,521				16,532				(12,745	)			51,773				(164,575	)
Provision/(benefit) for income taxes			8,100				9,100				(65,230	)			(1,600	)			(52,030	)
Net income/(loss)		$	23,421			$	7,432			$	52,485			$	53,373			$	(112,545	)
Net income/(loss) per share:
Basic		$	0.04			$	0.01			$	0.08			$	0.08			$	(0.17	)
Diluted		$	0.04			$	0.01			$	0.08			$	0.08			$	(0.17	)
Shares used in computing per share amounts:
Basic			629,852				651,778				651,865				646,167				650,183
Diluted			633,731				661,540				658,963				653,685				650,183

A reconciliation of net income/(loss) on the GAAP basis to non-GAAP net income is included below.

		Three Months Ended												Nine Months Ended
Reconciliation of GAAP net income/(loss) to		October 3,				July 4,				October 4,				October 3,				October 4,
non-GAAP net income:		2010				2010				2009				2010				2009
GAAP net income/(loss)		$	23,421			$	7,432			$	52,485			$	53,373			$	(112,545	)
Special items:
a) Stock-based compensation expense — cost of revenues			2,109				2,292				1,697				6,113				5,732
b) Stock-based compensation expense — R&D			7,714				8,644				6,386				24,256				21,443
c) Stock-based compensation expense — SG&A			7,135				7,559				6,729				21,515				22,629
d) Amortization of acquisition-related intangibles — cost of revenues			31,288				31,288				34,177				93,864				101,654
e) Amortization of acquisition-related intangibles — SG&A			8,948				8,948				9,123				26,844				27,369
f) Purchase accounting effect on inventory			—				—				1,892				—				4,442
g) Restructuring of operations and other items, net			3,693				5,067				4,745				10,380				35,960
h) (Gain) on sale/write-down of securities, net			(4,821	)			—				1,650				6,779				1,650
Total special items			56,066				63,798				66,399				189,751				220,879
Non-GAAP net income		$	79,487			$	71,230			$	118,884			$	243,124			$	108,334
Non-GAAP net income per share:
Basic		$	0.13			$	0.11			$	0.18			$	0.38			$	0.17
Diluted *		$	0.13			$	0.11			$	0.18			$	0.37			$	0.17
Shares used in computing non-GAAP per share amounts:
Basic			629,852				651,778				651,865				646,167				650,183
Diluted			633,731				661,540				685,043				653,685				655,460

		Three Months Ended												Nine Months Ended
Reconciliation of GAAP to non-GAAP shares used in the calculation		October 3,				July 4,				October 4,				October 3,				October 4,
of diluted per share amounts:		2010				2010				2009				2010				2009
Diluted shares used in per share computation — GAAP			633,731				661,540				658,963				653,685				650,183
Dilutive stock awards			—				—				—				—				5,277
Effect of $350 million convertible notes considered dilutive			—				—				26,080				—				—
Diluted shares used in per share computation — non-GAAP			633,731				661,540				685,043				653,685				655,460

LSI CORPORATION
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

		Three Months Ended												Nine Months Ended
		October 3,				July 4,				October 4,				October 3,				October 4,
		2010				2010				2009				2010				2009
Operating activities:
Net income/(loss)		$	23,421			$	7,432			$	52,485			$	53,373			$	(112,545	)
Adjustments:
Depreciation and amortization *			67,450				66,251				67,600				200,718				198,918
Stock-based compensation expense			16,958				18,495				14,812				51,884				49,804
Gain on redemption of convertible subordinated notes			—				—				—				—				(149	)
(Gain) on sale/write-down of securities, net			(4,821	)			—				1,529				6,779				1,529
(Gain)/loss on sale of property and equipment			(115	)			265				(337	)			153				(220	)
Unrealized foreign exchange loss			5,384				3,205				8,431				6,374				315
Deferred taxes			(149	)			85				(242	)			34				(253	)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable, net			(6,793	)			(8,509	)			(39,271	)			25,094				(3,217	)
Inventories			(28,538	)			(5,806	)			4,824				(50,785	)			78,406
Prepaid expenses and other assets			7,555				14,438				4,814				13,898				48,272
Accounts payable			(9,131	)			(5,863	)			46,807				(23,541	)			(6,581	)
Accrued and other liabilities			10,919				(22,376	)			(92,794	)			(28,446	)			(126,556	)
Net cash provided by operating activities			82,140				67,617				68,658				255,535				127,723
Investing activities:
Purchases of debt securities available-for-sale			(23,029	)			(1,189	)			—				(24,218	)			(10	)
Proceeds from maturities and sales of debt securities available-for-sale			14,684				10,271				13,695				36,209				77,640
Purchases of equity securities			—				(316	)			(4,534	)			(316	)			(9,534	)
Proceeds from sales of securities			9,795				—				165				9,795				165
Purchases of property, equipment and software			(18,889	)			(21,097	)			(20,137	)			(67,262	)			(68,738	)
Proceeds from sale of property and equipment			360				177				2,637				559				2,749
Acquisition of business and companies, net of cash acquired			—				—				(26,141	)			—				(46,981	)
Decrease in non-current assets and deposits			—				—				—				—				13,501
Proceeds from maturity of notes receivable associated with sale of semiconductor operations in Thailand			—				—				10,000				—				10,000
Net cash used in investing activities			(17,079	)			(12,154	)			(24,315	)			(45,233	)			(21,208	)
Financing activities:
Redemption of convertible subordinated notes			—				—				—				—				(244,047	)
Repayment of debt obligations			—				(349,999	)			—				(349,999	)			—
Issuance of common stock			469				17,953				3,367				22,057				10,040
Purchase of common stock under repurchase programs			(137,011	)			(54,524	)			—				(217,743	)			—
Net cash (used in)/provided by financing activities			(136,542	)			(386,570	)			3,367				(545,685	)			(234,007	)
Effect of exchange rate changes on cash and cash equivalents			(915	)			(895	)			2,721				(3,927	)			3,576
Net change in cash and cash equivalents			(72,396	)			(332,002	)			50,431				(339,310	)			(123,916	)
Cash and cash equivalents at beginning of period			511,377				843,379				654,954				778,291				829,301
Cash and cash equivalents at end of period		$	438,981			$	511,377			$	705,385			$	438,981			$	705,385

LSI CORPORATION
Selected Financial Information (GAAP)
(In millions)
(Unaudited)

		Three Months Ended
		October 3,				July 4,				October 4,
		2010				2010				2009
Semiconductor revenues		$	390.1			$	416.7			$	371.8
Storage Systems revenues		$	238.9			$	222.7			$	206.6
Total revenues		$	629.0			$	639.4			$	578.4
Percentage change in revenues-qtr./qtr. ( a )			-1.6	%			0.3	%			11.1	%
Percentage change in revenues-yr./yr. ( b )			8.7	%			22.8	%			-19.0	%
Days sales outstanding			45				43				48
Days of inventory			56				47				40
Current ratio			2.5				2.6				1.8
Quick ratio			1.8				2.0				1.5
Gross margin as a percentage of revenues			44.0	%			43.1	%			39.0	%
R&D as a percentage of revenues			26.4	%			26.8	%			26.1	%
SG&A as a percentage of revenues			13.6	%			13.4	%			14.2	%
Employees ( c )			5,640				5,612				5,318
Revenues per employee (in thousands) ( d )		$	446.1			$	455.7			$	435.1
Selected Cash Flow Information:
Purchases of property and equipment ( e )		$	11.1			$	13.3			$	11.4
Depreciation and amortization ( f )		$	27.2			$	25.8			$	23.9