Mentor Graphics and Global Edge Software Bring H.264 Digital Video Standard Support to Multimedia Applications

WILSONVILLE, Ore., June 14, 2006 – Mentor Graphics Corporation (Nasdaq: MENT) today announced that it has teamed up with Global Edge Software to offer multimedia application developers H.264 technology for the Nucleus® PLUS real-time operating system (RTOS). Software developers using the Nucleus PLUS RTOS with support for the newest H.264 video compression standard can now build applications such as cellular handsets that include higher quality and lower bit-rate streaming video.

“Working with Mentor Graphics along with our expertise on the Nucleus RTOS has enabled us to offer superior, cost-effective solutions and services to Mentor's customers. It has also enhanced our service offerings for the Nucleus RTOS,” said MP Kumar, Chief Executive Officer of Global Edge Software.

Using new compression tools, H.264 is a next-generation video codec that provides 70 percent improvement over MPEG-2 and 50 percent improvement over MPEG-4. The advanced coding efficiency and lower bit rate that H.264 offers make it ideal for the limited bandwidth and memory capacity that today’s mobile broadcasting and streaming multimedia applications require.

Scalable and highly optimized, the Nucleus PLUS RTOS is widely accepted by developers for building multimedia applications and for leveraging the required video and audio codec compression capabilities. Additionally, Mentor Graphics royalty-free business model makes the Nucleus software especially attractive to the high-volume handset market, as it enables manufacturers to reduce costs that would normally be passed on to their customers.

“The dramatically increased compression performance of H.264 allows developers to implement superior quality, lower cost streaming video and audio into multimedia applications, bringing high-end features down into the low and medium price range,” said Glen Johnson, product marketing manager, Embedded Systems Division, Mentor Graphics. “The Nucleus PLUS RTOS support for codec technology will help make ‘household items’ out of multimedia applications previously considered economically or technology unfeasible.”

Pricing and Availability
Licenses for the Nucleus RTOS software begin at $12,495. For more information, please contact Mentor Graphics embedded systems division at 800-468-6853 or embedded_info@mentor.com

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 4,000 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

Mentor Graphics and Nucleus are registered trademarks 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:
Jennifer Tanveer
Mentor Graphics
251.208.3400 ext 3415
jennifer_tanveer@mentor.com

Sonia Harrison
Mentor Graphics
503.685.1165
sonia_harrison@mentor.com