MENT Mentor Graphics Corp.

Mentor Graphics Corporation (NASDAQ: MENT) today announced that the Mentor® Embedded Nucleus® Real Time Operating System (RTOS) has again topped worldwide adoption in the mobile handset market with use in over 2.345 billion devices, according to the VisionMobile's 100 Million Club research report. The 100 Million Club is a watch-list of software companies whose products have been embedded in more than 100 million cellular handsets. The report was just published and the findings are available at www.100millionclub.com.

The Nucleus RTOS product is a proven, highly efficient, and reliable operating system, providing a comprehensive set of system services that scale to any target hardware. The Nucleus RTOS product delivers best-in-class performance while optimizing resource usage in a single-OS platform, or part of a multi-OS platform, across any project, processor or system architecture. Thus, developers and device manufacturers can create more profitable and differentiated products with reduced production costs and faster time to market. The growing demand for Android-based devices and multi-OS on multi-core development is also a factor in the increased adoption of RTOSs, particularly for products beyond mobile handsets.

"Nucleus is the market share leader in the RTOS market sector, with 2.3 billion cumulative shipments, an achievement hard to match," stated Dr. Andreas Constantinou, VisionMobile research director. "The Mentor Graphics RTOS is certain to maintain its leading position as the RTOS of choice for baseband and application processors."

VisionMobile just completed the new study which was made public yesterday, and it is based on companies that have developed and licensed embedded software for mass-market phones. Established as an industry analysis firm focused on mobile software and services, VisionMobile provides a broad range of services, from competitive analysis and industry maps, to on-site training and "under-the-radar" research studies.

"Mentor continues to invest in best-in-class technologies and services, particularly Nucleus, Linux, and Android for single- and multi-OS solutions, as evidenced by our recent product announcements, ReadyStart for Nucleus and the Inflexion Platform UI for Android," said Glenn Perry, general manager, Mentor Graphics Embedded Software Division. "VisionMobile's 100 Million Club study validates our expanding Nucleus technology as the de facto standard RTOS for mobile handsets and we are seeing a much broader adoption with Android-based consumer electronics."

The Mentor Graphics Embedded Software Division comprises the Mentor Embedded family of products and services, including embedded software intellectual property (IP), tools, and consulting services, to help embedded developers and silicon partners optimize their products for design and cost efficiency. More information on Mentor Embedded products and services can be found at the website: www.mentor.com/embedded.

About Mentor Graphics Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world's most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $800 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

(Mentor and Nucleus are registered trademarks and Inflexion Platform is a trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.)

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For more information, please contact: Larry Toda Mentor Graphics 503.685.1664 larry_toda@mentor.com Sonia Harrison Mentor Graphics 503.685.1165 sonia_harrison@mentor.com