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Galileo Avionica Signs a Multi-year PCB Design Software Purchase Agreement with Mentor Graphics

WILSONVILLE, Ore., 24, 2006 – Mentor Graphics Corporation (Nasdaq: MENT), the leader in printed circuit board (PCB) design solutions, today announced that it has implemented a multi-year agreement with Galileo Avionica to standardize on Mentor’s PCB Board Station® RE solution for the design of complex digital boards. Use of the Board Station RE solution will help Galileo Avionica to solve their most advanced product design challenges as a technology leader in the avionics industry.

“This agreement with Mentor Graphics improves Galileo Avionica’s PCB design process,” stated Fabio Vitale, process improvement manager, Galileo Avionica. “With this agreement we can provide our designers with a complete, integrated, company-wide and centralized PCB design process.”

This multi-year agreement with Mentor helps to improve Galileo Avionica’s PCB and FPGA processes, as well as integrate the two solutions to enable concurrent FPGA/PCB design. This integration provides the opportunity to optimize performance at the system level and reduce PCB complexities and layer counts. Galileo Avionica will also be able to improve product quality with Mentor’s advanced high-speed layout/analysis functionality and patented team design products.

“Mentor Graphics is pleased to enter into this agreement with Galileo Avionica, a leader in the Italian defense industry,” stated Henry Potts, vice president and general manager, systems design division, Mentor Graphics Corporation. “Not only will this agreement aid Galileo Avionica with its internal PCB and FPGA design processes but also greatly improve the productivity of their design teams throughout Galileo Avionica’s multiple sites.”

About Galileo Avionica
Galileo Avionica, the Italian leader in mission electronics, avionics and electro-optics, is wholly owned by Finmeccanica, GA. It specializes in navigation/attack equipment, airborne and precision approach radar, UAVs and simulators, space and electro-optics, logistics and services. The company participates in the key European military platforms: NH90, EH101, Eurofighter Typhoon.

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 $725 million and employs approximately 4,050 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 and Board Station are registered 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:
Anne Cirkel
Mentor Graphics
503.685.7934
anne_cirkel@mentor.com

Suzanne Graham
Mentor Graphics
503.685.7789
suzanne_graham@mentor.com