Mentor Graphics Extends High Level Synthesis Leadership with Acquisition of Agility Design Solutions Inc. C Synthesis Suite

WILSONVILLE, Ore., January 22, 2009– Mentor Graphics Corporation, (NASDAQ: MENT), the market and technology leader in high level synthesis solutions, today announced completion of the acquisition of the C synthesis assets of Agility Design Solutions Inc. These tools were formerly owned and marketed by Celoxica Holdings. Mentor Graphics intends to offer continued sales and support to existing customers, as well as an upgrade path to Catapult C® Synthesis, the market-leading high level synthesis tool.

The electronic system level (ESL) products associated with this acquisition are the Handel C-based algorithm synthesis flow found in the DK Design Suite, PixelStreams and the RC Series of FPGA development and prototyping boards. Key employees will join Mentor to ensure continued product support.

“This agreement reaffirms Mentor’s leadership in ESL design with the richest ESL tool suite on the market,” said Simon Bloch, vice president and general manager of Mentor’s Design Creation and Synthesis Division. “Mentor is happy to work with Agility to provide its customers a home that gives them full support for their legacy products until they are ready to upgrade to Catapult® C Synthesis on their own terms and schedule.”

“Mentor understands ESL very well and is offering our customers continued support and a way forward with a technology that has proven itself to be a time-to-market saver,” said Dave Burow, Agility’s CEO. “By working with Mentor Graphics, we can safeguard the trust that our customers put in us.”

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 $850 million and employs approximately 4,450 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.