Faraday Adopts Mentor Graphics Eldo as their Internal SPICE Simulator

WILSONVILLE, Ore., Jan. 10, 2006 - Mentor Graphics Corporation (Nasdaq: MENT) and Faraday Technology Corporation (TAIEX: 3035) today jointly announced that Faraday has adopted the Mentor Graphics Eldo® simulation tool as their internal SPICE simulator for cell library and IP characterization. Eldo is used in lieu of other SPICE tools for improving the convergence rate from 60% to 100% and reducing the characterization time.

"IP characterization needs a verification tool that provides a high level of accuracy, efficiency, and ability to handle complex designs and characterization methodologies," said Kun-Cheng Wu, director of design development at Faraday Technology. "We have been very impressed by the powerful performance and results of Eldo for our designs."

"We are extremely pleased to be working closely with Faraday, the leading IP provider in Taiwan. Faraday's adoption of Eldo for simulating IP characterization demonstrates the versatility and performance of Eldo over a broad range of designs," said Jue-Hsien Chern, vice president and general manager, Deep Submicron Division, Mentor Graphics. "Eldo is the cornerstone of Mentor Graphics' ADMS scaleable analog/mixed-signal verification platform. We look forward to having ample cooperation with Faraday."

Eldo is the simulator of choice for IC silicon vendors and fabless design centers. Designers worldwide use Eldo on designs ranging from the lowest complexity of a single cell to systems consisting of several hundred thousand transistors. The Eldo analog IC and system simulator speed the design and verification of complex analog/mixed-signal circuits.

About Faraday Technology Corporation
Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, DSPs, PHY/Controllers for USB 2.0, Ethernet, and Serial ATA. With more than 600 employees and 2004 revenue of $159 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other markets, worldwide. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China. For more information, please visit: www.faraday-tech.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 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:

Carole Thurman
Mentor Graphics
503.685.4716
carole_thurman@mentor.com

Diana Wu
Faraday
+886.3.578.7888 ext: 8032
diana_wu@faraday-tech.com

Mentor Graphics and Eldo are registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.