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Mentor Graphics Partners with China Academy of Science to Build System Design Lab

WILSONVILLE, Ore., Aug. 23, 2005 - Mentor Graphics Corporation (Nasdaq: MENT), announced today that it has partnered with the Electronic Design Automation Center at China Academy of Science (EDA Center-CAS) in Beijing to build a joint laboratory of system design.

As early as March 2003, the EDA Center of CAS and Mentor Graphics established a joint lab of advanced system-on-chip (SoC) verification. The two institutions have joined again in cooperation. Establishing a joint laboratory of system design achieves multiple results for both parties. It is expected to elevate the design level of electronic products at CAS; ensure the output of high quality electronic product designs with superior performance; and lastly, raise market competence of research institutes. By creating an advanced integrated design platform at CAS, Mentor Graphics will help perfect CAS' research and development and quality assurance systems.

Furthermore, the company will also train first-rate electronic technology talents for CAS, and provide a high-tech learning/training platform as well as an open-communication environment. In addition to offering technical training at the lab, Mentor Graphics plans to provide customer service and a wide variety of its tools, which will include PCB design, high-speed signal integrity (SI) analysis, emulation and FPGA tools.

EDA Center-CAS director Ye Tianchun commented, "By cooperating with Mentor Graphics, the application engineers of CAS system will be able to use the most advanced and constantly updated system-level product design tools. We believe the overall design competence and CAS' design productivity will certainly be enhanced."

Daniel Yang, Mentor Graphics managing director of PacRim noted, "In recent years, Mentor Graphics has been paying close attention to the fast-growing China market and we have significantly increased our investment there. The strategic cooperation with CAS, China's most authoritative academic institute, testifies to the product power and service capacity of Mentor Graphics in the Chinese market. "

About the EDA Center at China Academy of Science

The EDA center at CAS is a non-legal entity approved by China Academy of Science. It is based out of the Microelectronics center of CAS and is co-founded by 15 research institutes.

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 3,900 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:

Suzanne Graham
Mentor Graphics
503.685.7789
suzanne_graham@mentor.com