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Mentor Graphics and the College of Automotive Engineering of Tongji University Create Joint Lab and Technical Training Center for Auto Electronic System Design

WILSONVILLE, Ore., August 28 2007 - Mentor Graphics Corporation (Nasdaq: MENT) today announced an agreement with the College of Automotive Engineering of Tongji University, China to set up a Joint Lab and Technical Training Center for Auto Electronic System Design in Shanghai. Mentor Graphics will donate over US$16 million (about RMB123 million) worth of software to Tongji University in order to support Tongji’s teaching and research programs on auto electronic and electric design.

Designer training is important in meeting the demand of China’s auto market and developing independent brands in the industry, while auto electronic system design is the key element and the most technical part of auto design. Yu Zhuoping, Dean of the College of Automotive Engineering, Tongji University, said, “Our cooperation with Mentor Graphics gives researchers, faculty and students of the College access to the most advanced auto electronic system design software in the world. We are confident that this cooperation will enhance Tongji University’s research capabilities and its influence on both domestic and international auto electronic system industry.”

Danny Perng, General Manager, Mentor Graphics China, said: “The rapidly developing China market has been a top priority for Mentor Graphics. We have been increasing our input in China in recent years. By engaging in strategic cooperation with the College of Automotive Engineering of Tongji University and other specialized academic institutions, Mentor Graphics makes its substantive contribution to high-level technical personnel training in East China with our quality products and service capabilities in the China market. Mentor Graphics has set up joint labs with many leading education institutions in China, such as Beijing University and China Academy of Science. Its new joint lab with the College of Automotive Engineering of Tongji University will be another solid base for supporting companies to train up qualified personnel in auto electronic system design.”

About the College of Automotive Engineering, Tongji University
The College of Automotive Engineering is dedicated to scientific innovation and new energy automobile development, featuring innovative research mechanism and organization and providing a complete range of technical services to the automobile industry in the country. The new energy automotive engineering research program of the College has become an important base for innovation and talent training in the country’s independent development of new energy automobiles.

The College is equipped with up-to-date teaching and research facilities. Thanks to support from the relevant Commissions and Ministries of the central government, local government authorities, Shanghai Automotive Industry Corporation (Group) and many multi-nationals, the College now boasts world-class automobile and engine research and test equipments, e.g., running drum test-beds, engine exhaust analyzers, vibration tables that simulate road surface profile, semi-anechoic rooms, 3-D measuring machines as well as up-to-date and complete testing environment for new energy power train and key components. The College is now building two first-class auto product R&D bases, the Shanghai Ground Transportation Vehicle Wind Tunnel Center and the Automobile Styling Research Center. The College also undertakes several state-level key research projects, including “fuel-cell sedan car research”, an “863” key project. For more information, please visit http://web.tongji.edu.cn/~istju/eng/yuanxi7.htm

About Mentor’s Higher Education Program
The Mentor Graphics Higher Education Program provides leading edge design tools and support to universities and colleges for classroom instruction and academic research, to ensure that engineering graduates enter into the industry proficient in state-of-the-art tools and methodologies. Established in 1985, the Higher Education Program develops long term relationships with engineering colleges and universities around the world, and currently has more than 1,100 member colleges in 49 countries. For more information, please visit the HEP website: http://www.mentor.com/company/higher_ed/index.cfm

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 $825 million and employs approximately 4,300 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/ .

Mentor Graphics established its presence in China in 1989, and in 2002, Mentor Graphics (Shanghai) Electronic Technology Co., Ltd, a wholly owned subsidiary, was registered and established. It now has offices in Beijing and Shenzhen: www.mentorg.com.cn.

Mentor Graphics is a registered trademark 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:
Sarah Bartash
Mentor Graphics
503-685-0443
sarah_bartash@mentor.com