CHARTER FOR THE

 

                                 AUDIT COMMITTEE

 

                                       OF

 

                                ACTEL CORPORATION

 

 

 

     This charter  governs the operations of the Audit  Committee.  The Board of

Directors shall appoint an Audit  Committee (the  "Committee") of at least three

members,  consisting  entirely of independent  directors of the Board, and shall

designate  one member as  chairperson  or delegate the  authority to designate a

chairperson to the Committee.  For purposes hereof,  members shall be considered

independent  as long as they satisfy all of the  independence  requirements  for

Board Members as set forth in the applicable  stock exchange  listing  standards

and Rule 10A-3 of the Exchange Act.

 

     Each  member of the  Committee  shall be  financially  literate,  or become

financially literate within a reasonable period of time, and at least one member

shall be an "audit committee financial expert," as defined by SEC rules.

 

     Members shall not serve on more than three public company audit  committees

simultaneously.

 

     The  Committee  shall meet at least  quarterly.  The  Committee  shall meet

separately and periodically with management,  the personnel  responsible for the

internal audit function, and the independent auditor. The Committee shall report

regularly to the Board of Directors with respect to its activities.

 

PURPOSE:

 

     The purpose of the Committee shall be to:

 

          Provide  assistance  to the Board of  Directors  in  fulfilling  their

          oversight responsibility to the shareholders,  potential shareholders,

          the investment community, and others relating to: (i) the integrity of

          the Company's financial statements; (ii) the Company's compliance with

          legal and regulatory  requirements;  (iii) the  independent  auditor's

          qualifications  and independence;  and (iv) and the performance of the

          Company's internal audit function and independent auditors.

 

          Prepare the Audit Committee  report that SEC proxy rules require to be

          included in the Company's annual proxy statement.

 

     The Committee shall retain and compensate  such outside legal,  accounting,

or other advisors as it considers necessary in discharging its oversight role.

 

     It is the  responsibility of the Committee,  in fulfilling its purpose,  to

maintain  free  and  open  communication  between  the  Committee,   independent

auditors, the internal auditors (if applicable),  and management of the Company,

and to determine that all parties are aware of their responsibilities.

 

DUTIES AND RESPONSIBILITIES:

 

     The  Committee  has the  responsibilities  and  powers  set  forth  in this

Charter.  Management  is  responsible  for the  preparation,  presentation,  and

integrity of the Company's financial statements;  for the appropriateness of the

accounting  principles and reporting policies that are used by the Company;  and

for implementing and maintaining internal control over financial reporting.  The

independent  auditors  are  responsible  for auditing  the  Company's  financial

statements  and  for  reviewing  the  Company's   unaudited   interim  financial

statements.

 

     The Committee, in carrying out its responsibilities,  believes its policies

and  procedures  should  remain  flexible  in  order to best  react to  changing

conditions and circumstances. The Committee will take appropriate actions to set

the overall  corporate "tone" for quality  financial  reporting,  sound business

risk practices, and ethical behavior.

 

     The following  shall be the principal  duties and  responsibilities  of the

Committee.  These  are set  forth  as a guide  with the  understanding  that the

Committee may supplement them as appropriate.

 

          The  Committee  shall be  directly  responsible  for the  appointment,

          compensation,  retention, and oversight of the work of the independent

          auditors (including resolution of disagreements between management and

          the  auditor  regarding  financial   reporting)  for  the  purpose  of

          preparing  or  issuing  an audit  report or  performing  other  audit,

          review,  or  attest  services  for the  Company,  and the  independent

          auditors must report directly to the Committee.

 

          At least  annually,  the Committee shall obtain and review a report by

          the independent auditors  describing:  (i) the firm's internal quality

          control procedure;  (ii) any material issues raised by the most recent

          internal  quality control review,  or peer review,  of the firm, or by

          any  inquiry  or   investigation   by   governmental  or  professional

          authorities,  within the preceding five years,  respecting one or more

          independent  audits  carried  out by the firm,  and any steps taken to

          deal with any such  issues;  and (iii) all  relationships  between the

          independent   auditors  and  the  Company  (to  assess  the  auditors'

          independence).

 

          After  reviewing the foregoing  report and the  independent  auditors'

          work  throughout the year, the Committee  shall evaluate the auditors'

          qualifications, performance, and independence.

 

          The  Committee  shall  confirm that the  independent  audit firm has a

          process in place to address the rotation of the lead audit partner and

          other audit  partners  serving  the account as required  under the SEC

          independence rules.

 

          The  Committee  shall  pre-approve  all audit and  non-audit  services

          provided  by  the  independent  auditors  and  shall  not  engage  the

          independent  auditors to perform non-audit services  prohibited by law

          or regulation.  The Committee may delegate pre-approval authority to a

          member of the Audit  Committee.  The decisions of any Committee member

          to whom  pre-approval  authority is delegated must be presented to the

          full Committee at its next scheduled meeting.

 

          The Committee shall discuss with the internal auditors (if applicable)

          and the  independent  auditors  the overall  scope and plans for their

          respective  audits,  including  the adequacy of staffing and budget or

          compensation.

 

          The Committee shall regularly review with the independent auditors any

          audit problems or  difficulties  encountered  during the course of the

          audit work, including any restrictions on the scope of the independent

          auditors'   activities  or  access  to  requested   information,   and

          management's  response.  The Committee  should  review any  accounting

          adjustments  that were  noted or  proposed  by the  auditors  but were

          "passed" (as immaterial or otherwise);  any communications between the

          audit team and the audit firm's  national  office relating to problems

          or difficulties  encountered  with respect to significant  auditing or

          accounting  issues;  and any "management" or "internal control" letter

          issued, or proposed to be issued, by the audit firm to the Company.

 

          The  Committee  shall  review  and  discuss  the  quarterly  financial

          statements,   including   Management's   Discussion  and  Analysis  of

          Financial Condition and Results of Operations, with management and the

          independent  auditors  prior to the filing of the Company's  Quarterly

          Report on Form 10-Q.  Also, the Committee shall discuss the results of

          the quarterly review and any other matters required to be communicated

          to the Committee by the independent  auditors under generally accepted

          auditing standards.

 

          The Committee  shall review and discuss the annual  audited  financial

          statements,   including   Management's   Discussion  and  Analysis  of

          Financial Condition and Results of Operations, with management and the

          independent  auditors  prior to the  filing  of the  Company's  Annual

          Report  on  Form  10-K  (or  the  annual  report  to  shareholders  if

          distributed  prior to the filing of Form 10-K).  Also,  the  Committee

          shall  discuss the results of the annual  audit and any other  matters

          required  to be  communicated  to the  Committee  by  the  independent

          auditors under professional standards.

 

          The Committee  shall receive and review a report from the  independent

          auditors,  prior to the filing of the Company's  Annual Report on Form

          10-K (or the annual report to shareholders if distributed prior to the

          filing  of  Form  10-K),  on  all  critical  accounting  policies  and

          practices of the Company and all material  alternative  treatments  of

          financial  information within generally accepted accounting principles

          that have been discussed with management,  including the ramifications

          of the use of such  alternative  treatments  and  disclosures  and the

          treatment preferred by the independent auditor.

 

          The Committee shall review and approve all related party transactions.

 

          The   Committee   shall   review   management's   assessment   of  the

          effectiveness of internal  control over financial  reporting as of the

          end of the  most  recent  fiscal  year and the  independent  auditors'

          report on management's assessment.

 

          The Committee shall discuss with management, the internal auditors (if

          applicable),   and  the   independent   auditors   the   adequacy  and

          effectiveness of internal control over financial reporting,  including

          any  significant  deficiencies  or material  weaknesses  identified by

          management  of the Company in connection  with its required  quarterly

          certifications  under  Section  302  of  the  Sarbanes-Oxley  Act.  In

          addition,  the Committee shall discuss with  management,  the internal

          auditors (if applicable), and the independent auditors any significant

          changes  in  internal  control  over  financial   reporting  that  are

          disclosed,  or considered for  disclosure,  in the Company's  periodic

          filings with the SEC.

 

          The  Committee  shall  review the  Company's  compliance  systems with

          respect to legal and regulatory  requirements and review the Company's

          code of conduct and programs to monitor compliance with such programs.

          The Committee shall receive corporate  attorneys'  reports of evidence

          of a material  violation of  securities  laws or breaches of fiduciary

          duty.

 

          The Committee shall establish  procedures for the receipt,  retention,

          and  treatment  of  complaints   received  by  the  Company  regarding

          accounting, internal accounting controls, or auditing matters, and the

          confidential,  anonymous  submission  by  employees  of the Company of

          concerns regarding questionable accounting or auditing matters.

 

          The Committee  shall perform an evaluation of its performance at least

          annually to determine whether it is functioning effectively.

 

          The Committee shall review and reassess this Charter at least annually

          and obtain the approval of the Board of Directors.