LSI LOGIC CORPORATION CALCULATION OF EARNINGS PER SHARE (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 1997 1996 Primary Earnings Per Share Net income $ 38,407 $ 42,284 ======== ======== Average common and common equivalent shares: Average common shares outstanding 129,285 129,193 Dilutive options 3,504 2,581 -------- -------- 132,789 131,774 ======== ======== Earnings per common and common equivalent share $ 0.29 $ 0.32 ======== ======== Fully Diluted Earnings Per share Net income $ 38,407 $ 42,284 Interest expense on convertible subordinated debt, net of tax effect 1,279 1,542 -------- -------- Adjusted net income $ 39,686 $ 43,826 ======== ======== Average common and common equivalent shares on a fully diluted basis: Average common shares outstanding 129,285 129,193 Convertible subordinated debt 11,735 11,734 Dilutive options 2,913 2,582 -------- -------- 143,933 143,509 ======== ======== Fully diluted earnings per common and common equivalent share $ 0.28 $ 0.31 ======== ========