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Mentor Graphics Announces Calibre Encryption Technology Adopted by IBM

WILSONVILLE, Ore., Dec. 19, 2005 - Mentor Graphics Corporation (Nasdaq: MENT) today announced that IBM has adopted the patent pending† Calibre® encryption technology for use with IBM's 90nm, 65nm, and 45nm process design kits. Encryption is used to expand the range of data IBM can securely transfer to its foundry customers in support of design for manufacturing (DFM), DRC, LVS and extraction methodologies, while protecting valuable intellectual property.

Encryption can enable IBM and its customers to access information at a level that approaches the design and manufacturing functions of an integrated device manufacturer (IDM). Within this "virtual IDM" communications model, IBM's customers can access the information they need, such as proprietary device models to perform the DFM analyses required for performance and yield improvement.

"Calibre's encryption technology develops stronger ties between the fabless community and their foundry partners, which is necessary for success in 90nm and smaller process nodes," said Matthew Graf, manager, Design Automation Enablement for IBM Systems & Technology Group. "Foundry customers need access to data that allows them to design high-yielding silicon while foundries need to protect proprietary manufacturing process data. Without a secure vehicle to transfer this information, there is a reluctance to share data. Encryption provides the much-needed step toward two-way protected communication between designer and manufacturer."

Data protection is and has been a key concern for manufacturers in the DFM era in which designers gain responsibility for making layouts more robust for enhanced yield. In order to succeed at this task, designers must have access to foundry data, such as recommended rules, that may contain unique design or manufacturing recipes.

Calibre provides both partial and full encryption capabilities. IBM is using partial encryption for design rule checking (Calibre DRC™) and parasitic extraction (Calibre xRC™) models. Encryption is optimized across the entire Calibre design-to-silicon platform of tools, which also includes Calibre LVS™, DFM solutions (such as Calibre YieldAnalyzer and Calibre YieldEnhancer) lithographic solutions (such as Calibre OPC™) and mask data preparation tools.

"Calibre encryption capability is a critical enabler that allows foundries to protect their IP while enabling technologies such as DFM," said Joseph Sawicki, vice president and general manager of Mentor Graphics Design-to-Silicon division. "Calibre's leading design to silicon platform is uniquely suited for the latest technologies that require encryption, allowing protected communication between design and manufacturing."

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 $700 million and employs approximately 3,950 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

Calibre is a registered trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.

† WO05043283A3 and national patent applications pending in convention and non-convention countries.

For more information, please contact:

Carole Thurman
Mentor Graphics
503.685.4716
carole_thurman@mentor.com

Sonia Harrison
Mentor Graphics
503.685.1165
sonia_harrison@mentor.com