Mentor Graphics Strengthens ESL Offering with Acquisition

WILSONVILLE, Ore., October 24, 2006 – Mentor Graphics Corporation (Nasdaq: MENT) today announced that it has completed an acquisition of Summit Design, a leader in ESL (Electronic System Level) design solutions. The acquisition solidifies Mentor’s lead position of the emerging ESL design space by being the first EDA company with a complete solution in all three categories of ESL tool space: Design, Synthesis and Verification. Terms of the transaction were not disclosed.

"The key to enabling the overall ESL design space is to provide today’s HDL designers a path to ESL that doesn’t require them to abandon their existing flow. Summit Design has taken its great strength in RTL design, and helped customers begin the process of bridging RTL design flows into ESL flows," said Glenn Perry, General Manager, Mentor Graphics. "Mentor already has great strength in ESL synthesis and verification solutions that bridge the RTL & ESL domains through our Catapult and Questa solutions. Mentor will leverage Summit Design’s Visual, Vista and System Architect products to complete the flow in the ESL design category. We’re excited to have such a powerful, complementary portfolio of solutions we can begin offering existing and potential customers immediately."

Former Summit CEO Guy Moshe will lead the operation within Mentor’s Design Creation Business unit, as the Executive Director of Mentor’s R&D Center for Advanced Design solutions. Mentor will continue developing, offering and supporting the existing products of Summit Design, including support for non-Mentor flows.

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 $700 million and employs approximately 4000 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site: http://www.mentor.com/.

About Summit Design
Summit Design, Inc. is the electronic design automation (EDA) company that pioneered the field of electronic system-level (ESL) design. The company delivers engineering software products for the design, analysis, verification, and management of complex electronic systems and semiconductor intellectual property (IP).