Mentor Embedded Nucleus Real Time Operating System Adoption Exceeds 2.1 Billion Handsets

WILSONVILLE, Ore., July 22, 2010—Mentor Graphics Corporation (NASDAQ: MENT) today announced that the Mentor Embedded™ Nucleus® Real Time Operating System (RTOS) is the handset industry’s most widely adopted RTOS, found in over 2.11 billion devices, according to the VisionMobile’s 100 Million Club research report. The 100 Million Club is a watch-list of software companies whose products have been embedded in more than 100 million cellular handsets. The Mentor Graphics® Nucleus RTOS product usage equates to 42% of the worldwide handset market, according to the study.

The Nucleus RTOS product is a proven, highly efficient, and reliable operating system, providing a comprehensive set of system services that scale to any target hardware. The Nucleus RTOS product delivers best-in-class performance while optimizing resource usage in a single-OS platform, or part of a multi-OS platform, across any project, processor or system architecture. Thus, developers and device manufacturers can create more profitable and differentiated products with reduced production costs and faster time to market.

“The Mentor Embedded Nucleus RTOS is recognized for its hard real-time performance and efficiency, reflected in our 100 Million Club study,” stated Dr. Andreas Constantinou, VisionMobile research director. “As the market share leader for RTOS, we predict that Mentor’s Nucleus OS will continue to see broader usage with the explosion of multi-core SoCs and open source-based Smartphones that use Linux and Android in addition to the RTOS.”

VisionMobile reported the research results in May 2010, based on companies that have developed and licensed embedded software for mass-market phones. Established as an industry analysis firm focused on mobile software and services, VisionMobile provides a broad range of services, from competitive analysis and industry maps, to on-site training and “under-the-radar” research studies. The recent report can be found at www.100millionclub.com.

“We are proud that our Nucleus RTOS is recognized as the industry’s market share leader for cellular devices,” said Glenn Perry, general manager, Mentor Graphics Embedded Software division. “We are responding to our customers’ needs by continuing to invest in best-in-class technologies and services, particularly Nucleus, Linux, and Android for single- and multi-OS solutions on single- and multi-core SoCs for today’s consumer products. As cellular technology expands beyond mobile phones, we look forward to continued growth and adoption of Nucleus as the defacto standard RTOS in this arena.”

The Mentor Graphics Embedded Software Division comprises the Mentor Embedded family of products and services, including embedded software intellectual property (IP), tools, and consulting services, to help embedded developers and silicon partners optimize their products for design and cost efficiency. More information on Mentor Embedded products and services can be found at the website: www.mentor.com/embedded.

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 $800 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.