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Mentor Graphics Corporation Announces Redemption of 6⅞% Convertible Subordinated Notes Due 2007

WILSONVILLE, OR, March 6, 2006 - Mentor Graphics Corporation (Nasdaq: MENT) today announced that it will redeem all outstanding principal amount of its 6⅞% Convertible Subordinated Notes due 2007 (the "Notes") (as of March 6, 2006, approximately $99.3 million) on March 27, 2006. The notice of redemption was mailed to the holders of the Notes on or about March 6, 2006.

Questions regarding the redemption should be directed to Wilmington Trust Company, the trustee under the indenture governing the Notes, at Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, DE 19890, Attn: Corporate Trust Administration.

About Mentor Graphics

Mentor Graphics Corporation (NASDAQ:MENT - News) 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 4,000 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site:

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:

Ryerson Schwark
Mentor Graphics