STMicroelectronics and Mentor Graphics Partner on Nucleus Mobile OS to Power Nomadik Multimedia Mobile Phone Applications

Mentor Graphics Nucleus Mobile OS and ST's Nomadik multimedia processors to propel high-end features into high-volume mobile phones

GENEVA and WILSONVILLE, Ore., September 20, 2006 – STMicroelectronics (NYSE:STM) and Mentor Graphics® Corporation (Nasdaq: MENT) today announced that the two companies are partnering to make Mentor's Nucleus® Mobile Operating System (OS) available on STMicroelectronics' Nomadik™ STn880x and STn881x series of multimedia application processors. Developers using the Nomadik processors now have a scalable and robust foundation from which to build mobile features phone applications quickly and easily.

As consumer adoption of mobile technology becomes pervasive, handset manufacturers and wireless carriers realize the need to provide high-end features - such as multimedia, Internet and PDA functionality - in mid-range phones, in order to achieve high sales volume and drive usage of wireless data and content services. By pairing the ubiquitous Nucleus Mobile OS with its Nomadik processors, ST provides a platform solution that enables mobile phone manufacturers to address this growing market.

"The Nucleus Mobile OS has long dominated the baseband side of the mobile phone processing equation," said Neil Henderson, general manager for the Embedded Systems Division of Mentor Graphics. "Now, we're seeing more and more opportunities to play on the application side as well. By combining the powerful Nomadik-based platform with the expansive features of the Nucleus Mobile OS, handset makers can give consumers the features they want at a price they can afford."

"Nomadik is an award-winning family of application processors that delivers best-in-class multimedia performance for mobile phone manufacturers," said Jyrki Hännikainen, general manager, Application Processor Division, STMicroelectronics. "We quickly recognized that the Nucleus Mobile OS is extremely popular. The partnership with Mentor Graphics will provide Nomadik customers the ability to leverage their existing experience and legacy while adopting sophisticated multimedia functionality for mass volume deployment."

ST's Nomadik family of mobile multimedia processors harnesses a multi-core distributed architecture based upon an ARM926EJ-S core to deliver superior video, audio and graphics, reduced power consumption and simplified software development for such products as smart phones, personal digital assistants, Internet appliances and car entertainment systems.

The Nucleus Mobile OS is the most widely deployed commercial operating system in mobile handsets. It includes support for the most important differentiating features in today's cell phones and converged wireless devices, such as Internet and USB connectivity, graphical user interfaces and secure communications.

About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2005, the Company's net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at www.st.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 $725 million and employs approximately 4,050 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

Nomadik is a trademark of STMicroelectronics. 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:
Mentor Graphics
Jennifer Tanveer
251-208-3415
jennifer_tanveer@mentor.com

STMicroelectronics
Michael Markowtiz
212-821-8959
michael.markowitz@st.com