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Mentor Graphics Introduces its High-Speed USB-Certified PHY for Embedded Host Applications in the SMIC 0.13 micron Process

WILSONVILLE, Ore., Dec. 5, 2006 – Mentor Graphics Corporation (“Mentor”) Nasdaq: MENT), a leader in standards-based semiconductor intellectual property (IP), and Semiconductor Manufacturing International Corporation (“SMIC”, NYSE: SMI, HKSE: 0981.HK) today announced the development and adoption of the Mentor Graphics® High-Speed Universal Serial Bus (USB) 2.0 physical layer (PHY) in the SMIC 0.13um process. The PHY can be integrated with a USB controller, serving as a bridge between the digital and modular parts of the design. Mentor’s USB PHY (MUSBPHY) provides very low power consumption and minimal die area, making it an ideal solution for consumer products, such as digital cameras, game consoles, set-top boxes, mobile devices, digital printers and scanners.

This “proven-in-silicon” USB 2.0 PHY implements a UTMI+ Level3 USB Transceiver Macrocell Interface, and offers support for device, host, embedded host and OTG USB controllers. The MUSBPHY provides an optional integrated charge pump to reduce cost and board space requirements. The MUSBPHY complements Mentor’s USB 2.0 Controller portfolio and USB Software stack and, together, provides a complete and fully integrated USB solution that enables significant time savings and risk reduction for chip designers.

“We selected Mentor for the development of the USB High-Speed OTG PHY based on our strong relationship with Mentor and Mentor’s silicon-proven history of standards-compliant IP,” stated Paul Ouyang, vice president of design services at SMIC. “Mentor provides a high level of cooperation rarely seen with other IP vendors, including its ability to provide our customers with fully compliant and highly integrated IP solutions, so we anticipate great success with this development.”

“Mentor continues to provide complete, pre-certified, standards-based digital and mixed signal IP solutions for USB and other key applications," stated Bill Martin, Mentor Graphics IP division general manager. "Our collaboration with SMIC serves to minimize the risk of PHY and other IP by providing a total, integrated solution for USB applications. Together, we believe we provide huge productivity gains for companies focused on delivering innovative consumer products with minimized risk."

Fully Compliant USB PHY Solution
Mentor’s commitment to standards-compliance is reflected in its entire USB portfolio. Providing one of the industry’s lowest USB PHY power consumption (57mW in Rx mode, and 42mW in Tx mode) and minimal die areas (sub-1mm2 including the Electro Static Discharge (ESD) and I/O structures), the MUSBPHY is ideal for consumer electronics. Mentor’s USB High-Speed OTG controller has been chosen as the “Golden Reference” by the USB-IF and provides the USB-Implementer’s Forum (IF) with the OTG Protocol Test board.

Additionally, Mentor’s USB 1.1, USB 2.0 and USB OTG devices and USB software stack have successfully achieved USB-IF compliance. The MUSBPHY has been silicon proven and certified as an Embedded Host, via the USB-IF organization. Mentor’s in-house test labs provide characterization, interoperability and compliance pre-testing based on SIG standards, and was used for the development of the MUSBPHY technology. To find out more about Mentor’s MUSBPHY product, visit www.mentor.com/ip

Mentor Graphics Silicon-Proven, Standards-based Intellectual Property
Mentor Graphics offers a variety of industry-leading, standards-based IP cores that are rigorously tested and validated to provide design teams with reliable IP solutions for system-on-chip (SoC) design and reuse. Mentor Graphics IP portfolio ranges from simple SOC building blocks, such as communications interfaces and microcontrollers, to an expansive offering of products for Ethernet, USB, Storage and Analog PHY applications.

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 $750 million and employs approximately 4,100 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. 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.

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Safe Harbor Statements (Under the Private Securities Litigation Reform Act of 1995) This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements concerning the benefits of the collaboration to customers and the continuing collaboration between SMIC and Mentor Graphics, are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements.

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