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Mentor Graphics Collaborates with Budapest University of Technology and Economics to Open Integrated Circuit Design Laboratory

BUDAPEST, September 20, 2006 – Mentor Graphics Corporation (Nasdaq: MENT) today announced the opening of a new Mentor-sponsored electronic design laboratory at the Budapest University of Technology and Economics (BME) in Budapest, Hungary. As part of a mutual agreement, Mentor has donated more than $20M worth of EDA software and support to enable the students of BME to graduate with in-depth knowledge of leading edge design methodologies.

Over 4,000 freshmen start their engineering studies at BME each September, making it one of the leading Hungarian universities preparing specialists in electronic system design. “The support of Mentor Graphics is opening new avenues in the education of integrated circuit (IC) design for us,” said Professor Márta Rencz, head of the Department of Electron Devices, BME. “Teaching students how to work most effectively with industry-leading electronic design tools ensures a workforce well-prepared to advance Hungary’s growing electronic industry.”

Under the auspices of the Mentor’s Higher Education Program (HEP), the lab at BME is poised to become a center of excellence for future engineers in the region. In addition to the donation of software, Mentor is providing dedicated support, material and funds to quickly enable BME to develop a leading edge teaching and research program in the design of analog and mixed-signal custom ICs. Mentor is underwriting the cost of professors to develop and deliver these courses, and has also funded the upgrade of two laboratories to the latest facilities for the courses and research.

“Universities and educational establishments in Hungary and Eastern Europe are producing highly talented engineers,” said Hanns Windele, Mentor Graphics vice president for Europe. “As an EDA technology leader, we are delighted with this collaboration with Budapest University of Technology, which will produce engineers with knowledge of state-of-the-art design methodologies ready to contribute to the emerging electronics market in Eastern Europe.”

About Mentor’s Higher Education Program:
“Educate Tomorrow's Engineers and Technology Leaders”
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.

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 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:
Gabriele Tremmel
Mentor Graphics
+49-89-57096-0
gabriele_tremmel@mentor.com

Márta Rencz
Budapest University of Technology and Economics
+ 36 1 463 2702
rencz@eet.bme.hu