Xilinx and Mentor Graphics Team to Deliver Communications Cores

SAN JOSE, Calif., Oct. 23 -- Mentor Graphics Corp. (Nasdaq: MENT) and Xilinx, Inc. (Nasdaq: XLNX - ) today announced a joint development agreement to provide on-line licensing and delivery of communications-targeted cores. Under the terms of the agreement, Mentor Graphics® will provide a series of high-performance cores from its Inventra(TM) IP library tailored for Xilinx Virtex(TM), Virtex-E and Spartan(TM)-II families of FPGAs. The cores will be sold and supported by Xilinx as LogicCORE products and may be purchased online at the Xilinx IP Center at www.xilinx.com/ipcenter. Cores will also be sold and supported by the Mentor Graphics Inventra IP division at www.mentor.com/inventra.

``Mentor Graphics, one of the industry leaders in commodity IP, offers one of the broadest portfolio of cores for communications and networking applications,'' said Mark Aaldering, senior director of IP Solutions for Xilinx. ``Together, Mentor and Xilinx provide designers with an industry-leading, time-to-market solution for the rapid development of communications systems.''

The initial cores planned for release include T1/E1 framers and deframers for use in wireless base stations, satellite modems, next-generation PBXs and voice gateways as well as Internet core and edge routers and multi-service switches. The Inventra cores optimized for Xilinx FPGAs will form the backbone for a variety of communications applications.

``This agreement, which builds on Inventra's existing participation in the Xilinx AllianceCORE(TM) third-party IP development program, is the next logical step in Mentor's long-standing and successful relationship with Xilinx,'' said Susheel Chandra, general manager of the Inventra IP division of Mentor Graphics. ``The mutual focus on licensing and delivering optimized netlists for the Xilinx leading FPGA devices further reinforces our strategy for providing web-based IP for FPGAs.''

About Xilinx

Xilinx is the leading innovator of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as cores and unparalleled field engineering support. Founded 1984 and headquartered in San Jose, Calif., Xilinx invented the field programmable gate array (FPGA) and fulfills more than half of the world demand for these devices today. Xilinx solutions enable customers to reduce significantly the time required to develop products for the computer, peripheral, telecommunications, networking, industrial control, instrumentation, high-reliability/military, and consumer markets. For more information, visit the Xilinx website at http://www.xilinx.com.

About Mentor Graphics Corp.

Mentor Graphics Corp. 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 more than $500 million and employs approximately 2,600 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.

NOTE: Mentor Graphics is a registered trademark of Mentor Graphics Corp. Inventra is a trademark of Mentor Graphics Corp. Virtex and Spartan are registered trademarks of Xilinx, Inc. All other company or product names are the registered trademarks or trademarks of their respective owners.

CONTACT: Sheri Andrew, Product Marketing, Inventra IP, 408-451-5670, or sheri_andrew@mentor.com, or Editorial, Jeremiah Glodoveza of Benjamin Group/BSMG Worldwide, 415-352-2628, ext. 559, or jeremiah@benjamingroup.com, both for Mentor Graphics Corporation; or Ron DiGiuseppe of IP Solutions Marketing, 408-879-5170, or ron.digiuseppe@xilinx.com, for Xilinx, Inc.; or Editorial, Jennifer Wright of Xilinx, Inc. 408-879-7727, or jennifer.wright@xilinx.com.