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Siemens Chooses Mentor Graphics as Global EDA Partner in Multi-Tool Deal

WILSONVILLE, Ore., June 2, 2005 - Mentor Graphics Corporation (Nasdaq: MENT) today announced a multi-year agreement with Siemens AG whereby Mentor will supply various best-in-class solutions to multiple Siemens business units operating in more than 40 locations around the globe. The agreement will provide Siemens with Mentor's leading products in printed circuit board (PCB), integrated circuit (IC) and field-programmable gate array (FPGA) design and verification.

Tools purchased under the agreement include Board Station{reg}, Expedition™, XtremePCB™, ICX{reg} and DMS™ for printed circuit board design; ModelSim{reg}, Precision{reg} Synthesis, Catapult™ C, and the HDL Designer Series™ for ASIC and FPGA design; and Seamless{reg} for system design.

As a result of the agreement, Siemens benefits not only from a wide range of Mentor product families but also achieves the flexibility necessary to efficiently serve the needs of a fast moving global distributed engineering organization. The arrangement will enable Siemens to rapidly adopt new Mentor products when and where the need arises.

"We chose Mentor Graphics as a global provider of design solutions because they have the broadest range of market-leading products in design areas that are critical to us," stated the speaker of the Siemens Mentor Users Group (SMUG), Mr. Johann Pöschl, CAE manager, Siemens PSE, Vienna. "Mentor's leading technologies will enable us to deliver cutting edge products faster and more cost-effectively."

"Mentor is pleased to work with Siemens on a worldwide basis. This new agreement increases our ability to provide design solutions for Siemens' business-critical applications, and enables Mentor to respond more quickly than ever to Siemens' rapidly changing design tool needs," said Don Maulsby, senior vice president, World Trade at Mentor Graphics.

"To cover multiple Siemens business units around the globe with one multi year agreement is a win-win situation for both of us - Siemens as well as Mentor," said Mr. Georg Pilartz, vice president, Global Procurement, Siemens Munich.

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 $700 million and employs approximately 3,850 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: http://www.mentor.com/.

About Siemens

Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has 440,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190 countries. Founded more than 150 years ago, the company is active in the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal 2004 (ended September 30), Siemens had sales of €75.2 billion and net income of €3.405 billion. Further information is available on the internet at: http://www.siemens.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:

Ry Schwark
Mentor Graphics
503.685.1660
ry_schwark@mentor.com

Suzanne Graham
Mentor Graphics
503.685.7789
suzanne_graham@mentor.com