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China Telecom Leader ZTE, Ltd. Chooses XtremePCB from Mentor Graphics to Optimize Team Design

WILSONVILLE, OR, Nov. 3, 2005 - Mentor Graphics Corporation (Nasdaq: MENT), the market and technology leader in printed circuit board (PCB) design solutions, today announced that ZTE, Ltd., the largest listed communication device maker and national wireless supplier in China, has purchased XtremePCB. This product, available as part of Mentor's Expedition Enterprise flow, helps facilitate a team design environment, allowing multiple members of a PCB design team to work simultaneously on a design from a single database on a global network, whether they are in the same office or dispersed all over the world. This team design environment significantly reduces ZTE's design cycle time to meet today's accelerated time-to-market demands.

"Xtreme PCB is an innovative and unique technology, utilizing cooperative parallel design in real-time," said Liu Zhang, EDA director, ZTE. "XtremePCB provides a new platform for design process management, rational allotment of specialized design resources and can coordinate projects done in global dispersed locations. It is a new, highly-efficient solution to break the time limit of bursting PCB design tasks."

"Previous design collaboration methodologies required lengthy and error prone sessions to resynchronize parallel efforts of PCB design," said Henry Potts, vice president and general manager, System Design Division, Mentor Graphics. "With XtremePCB, Mentor has answered a challenge posed by our customers who asked for a tool that allowed simultaneous changes from multiple team members. For our customers like ZTE, with aggressive time-to-market goals and either large, global design teams or technology specialized design resources, XtremePCB enables real-time, automated feedback for complex, PCB designs incorporating diverse design technologies."

About XtremePCB

XtremePCB is a revolutionary and exciting new technology that enables multiple PCB designers to work on a single design database simultaneously. Unlike traditional team design methodologies that employ a split-and-join approach to design collaboration, XtremePCB requires no physical partitioning and every designer sees all other client edits in real-time. In addition, XtremePCB offers a unique benefit to a company's design process. With XtremePCB users may enter and exit designs at will, allowing designers to better utilize their time on projects as well as enable companies to take better advantage of a designer's singular expertise.

About ZTE

ZTE is the path-breaker of Chinese telecom device manufacturing and a comprehensive telecom device and service provider. It has 3 major products series of wireless, networking and terminal product (hand phone). Besides providing comprehensive solutions of various networks to global customers; ZTE also offers professional, all climate and all area quality service and is making way into international telecom operation. In 2004, contact sales of 34 billion RMB was made.

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 3,950 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

For more information, please contact:

Debbie Layton
Mentor Graphics
720.494.1043
debra_layton@mentor.com

Suzanne Graham
Mentor Graphics
503.685.7789
suzanne_graham@mentor.com