Infineon and Mentor Graphics Team to Provide System-on-Chip Designers with 16-Bit Controller Core

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PRESS RELEASE

Infineon and Mentor Graphics Team to Provide System-on-Chip Designers with 16-Bit Controller Core
Infineon C166S Added to Mentor's Inventra IP Library Offering

SAN JOSE, Calif. - September 20, 1999 - Infineon Technologies AG (formerly Siemens Microelectronics) and Mentor Graphics Corporation (NASDAQ: MENT), today announced an Intellectual Property (IP) publishing agreement that will make the Infineon C166S 16-bit microcontroller core available for System-on-Chip (SoC) designs as part of the Inventra^TM IP library.

The agreement calls for the Mentor Graphics Inventra IP Division to publish a fully-synthesizable core version of the Infineon C166, which is recognized as one of the world's most popular 16-bit microcontroller architectures. As the leading IP publisher, Inventra serves as the licensing agent for an extensive library of proven cores used in the design of new electronics components for consumer, computer, multimedia and communications applications. Delivered as soft cores, Inventra IP supports all leading EDA tools and can be readily mapped to different chip manufacturing processes, providing customers with design flexibility and foundry independence.

"Infineon is committed to the proliferation of its IP for system-on-chip design, and we believe that the Inventra IP publishing model provides the premier channel for distribution of processor cores and related products," stated Tony Webster, vice president of the Cores & Modules Group of Infineon Technologies. "We chose Mentor as publisher of the C166S core because of their proven success in delivering qualified IP to systems designers. Inventra IP offers the most extensive library of cores in the industry, and the C166S is a significant enhancement to this portfolio."

The C166S will provide the full functionality of current C166 hardware produced by Infineon, while offering improved die area and speed specifications. Features such as the memory interface, system control and interrupt control logic will be reconfigurable by Inventra IP licensees, enabling users to enhance and optimize designs to meet applications requirements. "The C166 architecture is recognized for its performance and flexibility, and is supported by a large base of programming and system design tools used to produce industrial process control, consumer electronics, computer peripherals and automotive semiconductors," said Mick O'Brien, general manager of the Mentor Graphics Inventra IP Division. "The synthesizable version of the core is well positioned to emerge as a top choice for new designs that combine the integration advantage of a broad IP library with the application development simplicity of a proven 16-bit microcontroller family."

Availability
The C166S will be available from Mentor Graphics in the first quarter of 2000. Mentor Graphics will release additional information, including license fees, near the availability date.

About the Companies
Infineon Technologies (formerly Siemens Semiconductor Group), based in Munich, Germany, was ranked by Dataquest as the 10th largest semiconductor manufacturer worldwide in 1998. Infineon provides semiconductor solutions for the telecommunications, automotive, data networking, consumer electronics, and industrial automation markets. The company's comprehensive product portfolio includes integrated system ICs, memory and high frequency components, smart card ICs, discrete semiconductors and power ICs, sensors and fiber optic components. In fiscal 1997/98, the company achieved sales of $3.8 billion (DM 6.7 billion) and employed 25,000 people worldwide. Further information is available at http://www.infineon.com. Infineon Technologies Corporation is the company's North American subsidiary, with headquarters at 1730 North First Street, San Jose, CA 95112. For more information, contact (800) 777-4363; (408) 501-6000.

The Mentor Graphics Inventra IP Division provides the broadest array of soft cores for a wide range of electronic consumer, computing, multimedia, and communications applications. The Inventra IP library of cores includes DSP processors, Viterbi and Reed-Solomon encoders/decoders, audio codecs, bus interface cores, microprocessors, microcontrollers and communications functions such as ISDN and HDLC. Soft cores are written in Verilog and VHDL HDL, which are synthesizable into gate-level design representations that can be mapped to a number of different processes and foundries, thus giving designers a broad choice of suppliers.

Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products and consulting services for the world's largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of over $500 million and employs approximately 2,600 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com.

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Any statements in this document that are not historical facts are forward looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. Infineon Technologies AG and Mentor Graphics Corporation undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Mentor Graphics is a registered trademark and Inventra is a trademark of Mentor Graphics Corporation. Infineon and the Infineon logo are trademarks of Infineon Technologies AG. All other company or product names are the registered trademarks or trademarks of their respective owners.

For more information, please contact:
Information Contact Infineon Technologies Corporation Jacob Rice 408-501-6390 jacob.rice@infineon.com	Information Contact Mentor Graphics Corporation Sabina Burns 408-487-7125 sabina_burns@mentor.com