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Mentor Graphics Receives Industry Certification of ULPI Support for USB On-The-Go IP Core

WILSONVILLE, Ore., July 21, 2005 - Mentor Graphics Corporation (Nasdaq: MENT), a leader in standards-based semiconductor intellectual property (IP), today announced the successful certification of its UTMI + low pin interface (ULPI) support for the Universal Serial Bus (USB) On-The-Go (OTG) standard from the USB Implementers Forum. ULPI is a new interface standard for hi-speed USB IP systems designed to reduce the pin count of discrete hi-speed USB physical interfaces (PHYs). Most UTMI + PHY require between 40-60 pins from the USB IP controller but this solution reduces the number of pins down to 12 when using an off-chip or discrete PHY, resulting in a lower cost solution.

Mentor is a major contributor to the ULPI specification and supports the new ULPI interface standard with a wrapper for its hi-speed USB OTG cores. This technology provides a highly cost-effective solution for the consumer electronics segment. Mentor previously announced the successful certification of its hi-speed USB OTG controller IP by the USB Implementers Forum Compliance Workshop (please refer to press release entitled, Mentor Graphics Announces Certification of its High-Speed USB On-The-Go Controller IP, May 13, 2005), part of an ongoing commitment to secure industry certification of its standards-based IP solutions.

Successful Partnership with SMSC for Off-Chip PHY

Hi-speed USB systems require a parallel interface between the host controller and PHY in order to run the bus at 480Mbps, increasing complexity and pin count. However, the certification of Mentor's ULPI support of USB OTG provides the customer with a risk-free low pin count interface when the IP controller and off-chip or discrete PHY are implemented. Mentor's USB OTG controller combined with a reliable third-party PHY, such as SMSC's USB3300, currently the only PHY certified by the USB-IF, enables quick, proven integration and design reuse benefits, for a complete USB OTG solution. The ULPI "wrapper" is a no-cost option provided with all of the Mentor hi-speed USB cores, and has been rigorously tested on real hardware for risk-free implementation.

"Building on the Hi-Speed On-The-Go certification achieved with Mentor in April, the certification of our USB3300 ULPI PHY with Mentor's USB OTG controller further demonstrates the robust interoperability of the combined ULPI solution," stated Steve Nelson, vice president of marketing, connectivity solutions at SMSC. "The ULPI standard is gaining momentum across the board and its low pin count interface and low-risk implementation of hi-speed USB. Many of our mutual customers are discovering the positive impact that our ULPI solution can make in bringing consumer electronics products rapidly into production."

"Mentor strives to provide complete, low-risk, certified standards-based IP solutions for key and emerging applications, and our relationship with SMSC helps accelerate the adoption of USB OTG," stated Michael Kaskowitz, Mentor Graphics IP division general manager and president of the VSI Alliance. "Our customers are now able to develop innovative products that support the latest standards and manage competitive delivery schedules while minimizing cost and risk by using our certified ULPI solution for USB On-The-Go designs."

Mentor Graphics Silicon-Proven, Standards-Based Intellectual Property

Mentor Graphics provides "early-IP" for emerging consumer and communications applications. Mentor offers a broad portfolio of industry-leading IP cores that are standards-compliant, foundry- and tool- independent, and interoperable. Mentor Graphics IP core technologies range from simple system-on-chip (SoC) building blocks, such as communications interfaces and microcontrollers, to an expansive offering of products for Storage (SATA and CE-ATA), PCI Express, Ethernet, and USB applications. To find out more about Mentor's intellectual product offerings, visit www.mentor.com/products/ip/.

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: 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:

Larry Toda
Mentor Graphics
503.685.1664
larry_toda@mentor.com

Suzanne Graham
Mentor Graphics
503.685.7789
suzanne_graham@mentor.com