Stretch Inc. Licenses Mentor Graphics 10/100/1000 Mbps Ethernet MAC Intellectual Property

WILSONVILLE, Ore., May 25, 2005 - Mentor Graphics Corp. (Nasdaq: MENT) today announced the licensing of its 10/100/1000 Mbps Ethernet Media Access Controller (MAC) Intellectual Property (IP) by Stretch Inc. Mentor Graphics is a leading provider of standards-based semiconductor IP and its Ethernet MAC products are the building blocks for System-on-Chip (SoC) designs used in today's highly integrated communications and networking systems. The industry-leading Mentor Graphics® 10/100/1000 Mbps Ethernet MAC provides a multitude of possible design applications, such as network interfaces, Ethernet switching, and test equipment.

Stretch, a pioneer and leader in software-configurable processor devices, recently announced its new S5620 processor which was developed using Mentor's 10/100/1000 Ethernet MAC (PE-MCXMAC). The S5620 processor is based on Stretch's revolutionary S5 engine, and dramatically boosts system performance by off-loading compute-intensive tasks from a general purpose processor. Tailored embedded programmable logic within the processor engine enables system developers to optimize the application software and the instruction-set architecture simultaneously, resulting in remarkable performance enhancements to systems using PowerPC-based processors. Stretch has used Mentor's 10/100/1000 Ethernet MAC in its S5610 processor, as well.

"We selected Mentor based on their expertise, solid product quality, and position as the industry leader for Ethernet MAC IP," stated Reynette Au, vice president of marketing at Stretch. "Mentor's 10/100/1000 Ethernet IP was the perfect solution for our processor design-the ease of integration and exceptional customer support were other key factors in our decision to adopt Mentor Graphics IP."
As the first company to embed programmable logic within its processor, Stretch uses familiar C/C++ programming tools that systems developers can automatically configure which dramatically boosts system performance. By enabling application customization using only C/C++, the S5620 delivers a flexible and intelligent system processing solution where time-to-performance is critical for applications such as high-end imaging, networking and office automation.

"We're pleased that Stretch has licensed Mentor's industry leading Ethernet MAC IP since they have a solid reputation as the leader in software-configurable processors," said Michael Kaskowitz, general manager of Mentor Graphics Intellectual Property division and president of the VSI Alliance. "Our silicon-proven and certified standards-based IP cores are easily integrated into any design and enable Stretch to expedite their product development schedules. We're proud to contribute to this advantage."

Mentor Graphics 10/100/1000 Ethernet MAC
The PE-MCXMAC™, which originated from Mentor's acquisition of Alcatel's Ethernet IP product line (formerly of Packet Engines), is a 10/100/1000 Mbps Ethernet Media Access Controller (MAC) with a Gigabit Media Independent Interface (GMII) for incorporation into the customer's own ASIC or IC design. Mentor provides a broad portfolio of IP, including 10G Ethernet IP.

Key product features include:

• Meets IEEE 802.3, 802.3u, 802.3x, 802.3z and 802.3ac specifications
• 8-bit MAC engine optimized for size and minimal latency
• Built-in MII/GMII interface; optional interface modules available for RMII, SMII, RGMII, SGMII and TBI SEREDES
• Generates expanded Transmit and Receive statistics vectors, supporting RMON and SNMP applications
• Fully synthesizable
• Scan insertion-friendly design

Mentor Graphics Silicon-Proven, Standards-Based Intellectual Property
Mentor Graphics offers a variety of industry-leading, standards-based IP cores that are rigorously tested and validated to provide design teams with the most reliable cores in the industry. Mentor Graphics IP portfolio ranges from simple system-on-chip (SoC) building blocks, such as communications interfaces and microcontrollers, to an expansive offering of products for Ethernet, USB, Storage and PCI Express applications. To find out more about Mentor's intellectual product offerings, visit www.mentor.com/products/ip.

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 over $700 million and employs approximately 3,850 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: www.mentor.com.

Mentor Graphics is a registered trademark and PE-MCXMAC is a trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.