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ASUS Adopts Mentor Graphics Printed Circuit Board Tools; Expedition, DxDesigner and XtremePCB to Decrease PC Motherboard Design Times

WILSONVILLE, Ore., July 8, 2005 - Mentor Graphics{reg} Corporation, (Nasdaq: MENT), the market and technology leader in printed circuit board (PCB) design solutions, today announced the sale of the Expedition Series{reg} PCB tools to ASUS, Taiwan's largest PC manufacturer and a leading provider of 3C (computers, communications, and consumer electronics) solutions. This sale includes Mentor's new product XtremePCB™, which allows designers to work simultaneously on the same design from anywhere in the world. Also included is Mentor's PCB design definition solution, DxDesigner™. Adoption of these technologies by ASUS will enable them to significantly reduce their design cycle times in the highly competitive PC motherboard industry.

"ASUS is striving to be number one in the areas of quality, speed, service, innovation, and cost-efficiency," stated Jason Cheng, VP of research and development, ASUS. "We feel that Mentor Graphics Expedition Series is the solution that will enable us to achieve that goal. In addition, it will allow ASUS to be even more efficient and to create a greater number of advanced designs faster and with better quality."

ASUS plans to use Expedition as a routing engine for their OEM partners, reducing push and shove times up to 30%, all without impacting the current flow. Most importantly, ASUS intends to use Expedition, Xtreme and DxDesigner exclusively for their OEM products.

With recent revenues reaching $7.7 billion in 2004, ASUS is the largest PC motherboard supplier in Asia. In 2004, ASUS shipped over 40 million motherboards, supplying 25% of the total number of desktop PCs sold. Time-to-market and optimized production costs are paramount in this industry, and the Expedition Series will enable ASUS to effectively design the most advanced products in today's highly competitive market.

"The sale of Expedition to ASUS further confirms Mentor Graphics' commitment to the Asian PC design market," stated Henry Potts, vice president and general manager of mentor's Systems Design Division. "Expedition offers the most advanced technology in the world for the design of high performance systems. With ASUS taking advantage of Mentor's superior product functionality, they can expect to see their design cycle times reduced significantly - up to 40%."

About Expedition

The Expedition Series offers advanced functionality with ease-of-use for the creation of today's most complex PCB designs. The Expedition Series features the industry's best place and route environment, powered by AutoActive{reg} technology and ideal for high-speed, complex and advanced technology boards. For more information on the Expedition Series, please visit: http://www.mentor.com/products/pcb/expedition/.

About XtremePCB

XtremePCB is Mentor Graphics Corporation's state of the art technology that allows multiple members of a PCB design team to work simultaneously on a design from a single database, whether they are in the same office or dispersed all over the world. It addresses the layout portion of the design flow, allowing electronic companies to significantly reduce their design cycle times, to meet today's accelerated time-to-market demands.

About DxDesigner

DxDesigner is Mentor Graphics' tool that provides a complete solution for design creation, definition, and reuse. It provides everything needed for circuit design and simulation, component selection, library management, signal integrity planning, project management and team-based design.

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: http://www.mentor.com/.

About ASUS

ASUS, a technology-oriented company blessed with one of the world's top R&D teams, is well known for high-quality and innovative technology. As a leading provider of 3C (computers, communications and consumer electronics) total solutions, ASUS offers a complete product portfolio to compete in the new millennium. In 2004, ASUS shipped 40 million motherboards, which means one out of every 4 desktop PCs sold last year is based on ASUS motherboards. If we line them up side by side, the length will be longer than the distance from New York to San Francisco. ASUS' 2004 revenues reached US$7.7 billion, up 28% from the year before.

Mentor Graphics and AutoActive are registered trademarks and Expedition, DxDesigner and XtremePCB are trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.

For more information, please contact:

Debra Layton
Mentor Graphics
720.494.1043
debra_layton@mentor.com

Ry Schwark
Mentor Graphics
503.685.1660
ry_schwark@mentor.com