Exhibit 99.1

FOR IMMEDIATE RELEASE		JANUARY 26, 2011
Investor Relations Contact:		Media Relations Contact:
Sujal Shah		Mitch Seigle
610-712-5471		408-954-3225
sujal.shah@lsi.com		mitch.seigle@lsi.com

cc11-04

LSI Reports Fourth Quarter and Full-Year 2010 Results

MILPITAS, Calif., January 26, 2011 — LSI Corporation (NYSE: LSI) today reported results for its fourth quarter and full year ended December 31, 2010.

Fourth Quarter and Full-Year 2010 News Release Summary

•		Fourth quarter 2010 revenues of $664 million
•		Fourth quarter 2010 GAAP* net loss of 2 cents per share
•		Fourth quarter 2010 non-GAAP** net income of 14 cents per diluted share
•		Fourth quarter operating cash flows of $112 million
•		Full-year 2010 revenues of $2.6 billion

First Quarter 2011 Business Outlook

•		Projected revenues of $605 million to $635 million
•		GAAP* net (loss)/income in the range of ($0.03) to $0.07 per share
•		Non-GAAP** net income in the range of $0.07 to $0.13 per share

Fourth quarter 2010 revenues were $664 million, a 4% increase year over year compared to $638 million reported in the fourth quarter of 2009, and compare to $629 million reported in the third quarter of 2010.

Fourth quarter 2010 GAAP* net loss was $13 million or 2 cents per share, compared to fourth quarter 2009 GAAP net income of $65 million or 10 cents per diluted share. Fourth quarter 2010 GAAP results compare to third quarter 2010 GAAP net income of $23 million or 4 cents per diluted share. Fourth quarter 2010 GAAP net income included a net charge of $103 million from special items, consisting primarily of $48 million of net restructuring and other items, $40 million of amortization of acquisition-related items, and $15 million of stock-based compensation expense.

Fourth quarter 2010 non-GAAP** net income was $90 million or 14 cents per diluted share, compared to fourth quarter 2009 non-GAAP net income of $124 million or 18 cents per diluted share. Third quarter 2010 non-GAAP net income was $79 million or 13 cents per diluted share.

Cash and short-term investments totaled approximately $677 million at quarter end. The company completed fourth-quarter purchases of approximately 6 million shares of its common stock for approximately $32 million. In 2010, the company purchased approximately 51 million shares of its common stock for approximately $250 million, completing its repurchase program announced in March, 2010.

“We delivered solid quarterly revenue growth with revenues near the high end of our guidance range, reflecting seasonal strength in our storage systems and storage semiconductor businesses,” said Abhi Talwalkar, LSI president and chief executive officer. “For the full year, our revenues grew substantially, driven by increased enterprise spending for IT infrastructure products that rely on our technology. As economic conditions continue to improve in 2011, we expect to benefit from higher enterprise spending levels and new product ramps with our tier one customers.”

LSI recorded full-year 2010 revenues of $2.57 billion, a 16% increase compared to $2.22 billion in 2009. The company reported 2010 GAAP net income of $40 million or 6 cents per diluted share. Full-year 2010 GAAP results compare to full-year 2009 GAAP net loss of $48 million or 7 cents per share. Full-year 2010 GAAP net income included a net charge of $293 million from special items, consisting primarily of $161 million in the amortization of acquisition-related items, $66 million of stock-based compensation expense, $59 million of restructuring costs, and $7 million of net loss on the sale and write-down of investments.

Non-GAAP net income for 2010 was $333 million or 52 cents per diluted share, compared to 2009 non-GAAP net income of $232 million or 35 cents per diluted share.

Bryon Look, LSI CFO and chief administrative officer, said, “We delivered another quarter of solid operating performance, with operating cash flows growing 36% sequentially to $112 million. For the full year, our operating cash flows were $367 million, up 80% year over year. Our balance sheet further strengthened as we ended the year with $677 million of net cash while remaining debt free. On a full-year basis, our profitability also improved significantly as we continued to focus on making progress toward our business model targets.”

LSI First Quarter 2011 Business Outlook

		GAAP*		Special Items		Non-GAAP**
Revenue		$605 million to $635 million				$605 million to $635 million
Gross Margin		41.5% — 45.5%		$20 million to $30 million		46.5% — 48.5%
Operating Expenses		$245 million to $265 million		$20 million to $30 million		$225 million to $235 million
Net Other (Loss)/Income		$3 million				$3 million
Tax		Approximately $7 million				Approximately $7 million
Net (Loss)/Income Per Share		($0.03) to $0.07		($0.06) to ($0.10)		$0.07 to $0.13
Diluted Share Count		625 million				625 million

Capital spending is projected to be around $15 million in the first quarter and approximately $60 million in total for 2011.

Depreciation and software amortization is projected to be around $26 million in the first quarter and approximately $105 million in total for 2011.

LSI Conference Call Information

LSI will hold a conference call today at 2 p.m. PST to discuss fourth quarter financial results and the first quarter 2011 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)

		December 31,				October 3,				December 31,
		2010				2010				2009
Assets
Current assets:
Cash and short-term investments		$	676.6			$	600.8			$	962.1
Accounts receivable, net			326.6				313.9				339.0
Inventories			186.8				220.1				169.3
Prepaid expenses and other current assets			73.8				103.4				115.1
Total current assets			1,263.8				1,238.2				1,585.5
Property and equipment, net			223.2				208.8				219.0
Goodwill and identified intangible assets, net			749.8				807.2				927.9
Other assets			188.1				221.4				235.5
Total assets		$	2,424.9			$	2,475.6			$	2,967.9
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt		$	—			$	—			$	350.0
Other current liabilities			484.6				499.3				504.4
Total current liabilities			484.6				499.3				854.4
Pension, tax and other liabilities			622.8				599.9				652.4
Total liabilities			1,107.4				1,099.2				1,506.8
Stockholders’ equity:
Common stock and additional paid-in capital			6,004.3				6,003.9				6,149.2
Accumulated deficit			(4,368.5	)			(4,355.1	)			(4,408.5	)
Accumulated other comprehensive loss			(318.3	)			(272.4	)			(279.6	)
Total stockholders’ equity			1,317.5				1,376.4				1,461.1
Total liabilities and stockholders’ equity		$	2,424.9			$	2,475.6			$	2,967.9

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

		Three Months Ended												Year Ended
		December 31,				October 3,				December 31,				December 31,				December 31,
		2010				2010				2009				2010				2009
Revenues		$	664,476			$	628,984			$	637,796			$	2,570,047			$	2,219,159
Cost of revenues			345,542				319,061				335,792				1,327,734				1,228,776
Purchase accounting effect on inventory			—				—				56				—				4,498
Amortization of acquisition-related intangibles			31,367				31,288				33,448				125,231				135,102
Stock-based compensation expense			2,104				2,109				1,650				8,217				7,382
Total cost of revenues			379,013				352,458				370,946				1,461,182				1,375,758
Gross profit			285,463				276,526				266,850				1,108,865				843,401
Research and development			159,267				158,558				146,526				639,308				580,333
Stock-based compensation expense			6,258				7,714				6,536				30,514				27,979
Total research and development			165,525				166,272				153,062				669,822				608,312
Selling, general and administrative			70,371				69,272				63,239				279,510				260,900
Amortization of acquisition-related intangibles			8,949				8,948				9,123				35,793				36,492
Stock-based compensation expense			6,195				7,135				5,993				27,710				28,622
Total selling, general and administrative			85,515				85,355				78,355				343,013				326,014
Restructuring of operations and other items, net			48,505				3,693				2,286				58,885				38,246
(Loss)/income from operations			(14,082	)			21,206				33,147				37,145				(129,171	)
Interest expense			—				—				(3,932	)			(5,601	)			(21,931	)
Interest income and other, net			7,701				10,315				4,530				13,848				20,272
(Loss)/income before income taxes			(6,381	)			31,521				33,745				45,392				(130,830	)
Provision/(benefit) for income taxes			7,020				8,100				(31,081	)			5,420				(83,111	)
Net (loss)/income		$	(13,401	)		$	23,421			$	64,826			$	39,972			$	(47,719	)
Net (loss)/income per share:
Basic		$	(0.02	)		$	0.04			$	0.10			$	0.06			$	(0.07	)
Diluted		$	(0.02	)		$	0.04			$	0.10			$	0.06			$	(0.07	)
Shares used in computing per share amounts:
Basic			616,809				629,852				654,560				638,998				651,238
Diluted			616,809				633,731				663,237				646,324				651,238

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

		Three Months Ended												Year Ended
Reconciliation of GAAP net (loss)/income to		December 31,				October 3,				December 31,				December 31,				December 31,
non-GAAP net income:		2010				2010				2009				2010				2009
GAAP net (loss)/income		$	(13,401	)		$	23,421			$	64,826			$	39,972			$	(47,719	)
Special items:
a) Stock-based compensation expense — cost of revenues			2,104				2,109				1,650				8,217				7,382
b) Stock-based compensation expense — R&D			6,258				7,714				6,536				30,514				27,979
c) Stock-based compensation expense — SG&A			6,195				7,135				5,993				27,710				28,622
d) Amortization of acquisition-related intangibles — cost of revenues			31,367				31,288				33,448				125,231				135,102
e) Amortization of acquisition-related intangibles — SG&A			8,949				8,948				9,123				35,793				36,492
f) Purchase accounting effect on inventory			—				—				56				—				4,498
g) Restructuring of operations and other items, net			48,505				3,693				2,286				58,885				38,246
h) (Gain)/loss on sale/ write-down of investments, net			—				(4,821	)			—				6,779				1,650
Total special items			103,378				56,066				59,092				293,129				279,971
Non-GAAP net income		$	89,977			$	79,487			$	123,918			$	333,101			$	232,252
Non-GAAP net income per share:
Basic		$	0.15			$	0.13			$	0.19			$	0.52			$	0.36
Diluted *		$	0.14			$	0.13			$	0.18			$	0.52			$	0.35
Shares used in computing non-GAAP per share amounts:
Basic			616,809				629,852				654,560				638,998				651,238
Diluted			626,079				633,731				689,317				646,324				658,679

		Three Months Ended												Year Ended
Reconciliation of GAAP to non-GAAP shares used in the calculation		December 31,				October 3,				December 31,				December 31,				December 31,
of diluted per share amounts:		2010				2010				2009				2010				2009
Diluted shares used in per share computation — GAAP			616,809				633,731				663,237				646,324				651,238
Dilutive stock awards			9,270				—				—				—				7,441
Effect of $350 million convertible notes considered dilutive			—				—				26,080				—				—
Diluted shares used in per share computation — non-GAAP			626,079				633,731				689,317				646,324				658,679

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

		Three Months Ended												Year Ended
		December 31,				October 3,				December 31,				December 31,				December 31,
		2010				2010				2009				2010				2009
Operating activities:
Net (loss)/income		$	(13,401	)		$	23,421			$	64,826			$	39,972			$	(47,719	)
Adjustments:
Depreciation and amortization *			65,954				67,450				69,244				266,672				268,162
Stock-based compensation expense			14,557				16,958				14,179				66,441				63,983
Non-cash restructuring of operations and other items, net			45,681				—				—				45,681				690
Gain on redemption of convertible subordinated notes			—				—				—				—				(149	)
(Gain)/loss on sale/write-down of investments, net			—				(4,821	)			—				6,779				1,529
(Gain)/loss on sale of property and equipment, including assets held-for-sale			(142	)			(115	)			75				11				(145	)
Unrealized foreign exchange (gain)/loss			(2,063	)			5,384				986				4,311				1,301
Deferred taxes			3,478				(149	)			3,316				3,512				3,063
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable, net			(12,737	)			(6,793	)			(31,769	)			12,357				(34,986	)
Inventories			33,348				(28,538	)			(13,814	)			(17,437	)			64,592
Prepaid expenses and other assets			506				7,555				20,197				14,404				68,469
Accounts payable			(11,672	)			(9,131	)			15,001				(35,213	)			8,420
Accrued and other liabilities			(11,869	)			10,919				(65,490	)			(40,315	)			(192,736	)
Net cash provided by operating activities			111,640				82,140				76,751				367,175				204,474
Investing activities:
Purchases of debt securities available-for-sale			(20,425	)			(23,029	)			—				(44,643	)			(10	)
Proceeds from maturities and sales of debt securities available-for-sale			20,320				14,684				12,932				56,529				90,572
Purchases of other investments			—				—				(4,625	)			(316	)			(14,159	)
Proceeds from sales of other investments			—				9,795				—				9,795				165
Purchases of property, equipment and software			(25,080	)			(18,889	)			(21,266	)			(92,342	)			(90,004	)
Proceeds from sale of property and equipment			281				360				24				840				2,773
Acquisition of business and companies, net of cash acquired			—				—				—				—				(46,981	)
Decrease in non-current assets and deposits			—				—				—				—				13,501
Proceeds from maturity of a note receivable			10,000				—				—				10,000				10,000
Net cash used in investing activities			(14,904	)			(17,079	)			(12,935	)			(60,137	)			(34,143	)
Financing activities:
Redemption of convertible subordinated notes			—				—				—				(349,999	)			(244,047	)
Issuance of common stock			18,826				469				8,707				40,883				18,747
Purchase of common stock under repurchase programs			(32,199	)			(137,011	)			—				(249,942	)			—
Net cash (used in)/provided by financing activities			(13,373	)			(136,542	)			8,707				(559,058	)			(225,300	)
Effect of exchange rate changes on cash and cash equivalents			(558	)			(915	)			383				(4,485	)			3,959
Net change in cash and cash equivalents			82,805				(72,396	)			72,906				(256,505	)			(51,010	)
Cash and cash equivalents at beginning of period			438,981				511,377				705,385				778,291				829,301
Cash and cash equivalents at end of period		$	521,786			$	438,981			$	778,291			$	521,786			$	778,291

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

		Three Months Ended
		December 31,				October 3,				December 31,
		2010				2010				2009
Semiconductor revenues		$	392.5			$	390.1			$	380.8
Storage Systems revenues		$	272.0			$	238.9			$	257.0
Total revenues		$	664.5			$	629.0			$	637.8
Percentage change in revenues-qtr./qtr. ( a )			5.6	%			-1.6	%			10.3	%
Percentage change in revenues-yr./yr. ( b )			4.2	%			8.7	%			4.6	%
Days sales outstanding			44				45				48
Days of inventory			44				56				41
Current ratio			2.6				2.5				1.9
Quick ratio			2.1				1.8				1.5
Gross margin as a percentage of revenues			43.0	%			44.0	%			41.8	%
R&D as a percentage of revenues			24.9	%			26.4	%			24.0	%
SG&A as a percentage of revenues			12.9	%			13.6	%			12.3	%
Employees ( c )			5,718				5,640				5,397
Revenues per employee (in thousands) ( d )		$	464.8			$	446.1			$	472.7
Selected Cash Flow Information:
Purchases of property and equipment ( e )		$	12.3			$	11.1			$	14.1
Depreciation and amortization ( f )		$	25.5			$	27.2			$	26.2