Tower Semiconductor Adopts Mentor Graphics Calibre as Internal Standard for Design-to-Silicon

WILSONVILLE, Ore., June 16, 2003 - Mentor Graphics? Corporation (Nasdaq: MENT) today announced that Tower Semiconductor Ltd. (Nasdaq: TSEM, TASE: TSEM), a pure-play independent wafer manufacturer that provides design support, manufacturing and turnkey services for integrated circuits, has selected Mentor's Calibre? design-to-silicon platform as Tower's internal manufacturing standard.  The Calibre tool suite now in place at Tower includes design rule checking (Calibre DRC^TM), layout versus schematic (Calibre LVS^TM), parasitic extraction (Calibre xRC^TM) and resolution enhancement technologies (Calibre OPCpro^TM).

As part of its foundry services, Tower offers a high-density flash process for embedded memory applications, CMOS image sensors (CIS) for video cellular phones, still cameras and other imaging applications, and analog components with extremely low noise for use in mixed analog/digital devices.

"We chose Calibre because it offers a single design-to-silicon platform that meets our requirements for performance, capacity and accuracy," stated Sergio Kusevitzky, vice president of IP and design services at Tower Semiconductor.  "Using Calibre not only streamlines our internal processes, thereby improving time to market, but also ensures that our customers receive fully qualified and extensive rule file support, which gives them a distinct market advantage."

"In nanometer design, post-layout modifications are required.  If they're not done right, it can create serious yield issues," said Joseph Sawicki, general manager of Mentor's design-to-silicon division.  "The Calibre design-to-silicon platform of tools handles post-layout modifications with the highest accuracy and performance, which ultimately leads to more profitable IC manufacturing and reduced cycle time."

The Calibre Design-to-Silicon Platform
In deep sub-micron design, the handoff between IC layout and manufacturing has changed.  In previous technologies, the handoff was a simple DRC/LVS check at tapeout.  Now it is a multi-step process where the layout database is modified so the design can be manufactured.  This presents a host of challenges.  Issues arise concerning process effects, photolithography, data volumes and acceptable yield.

To meet these challenges with confidence, design teams turn to the integrated Calibre design-to-silicon platform, which includes physical verification, full-chip, transistor-level parasitic extraction, design for manufacturability (DFM), mask data preparation (MDP), optical proximity correction (OPC) and resolution enhancement technologies (RET).  Every facet of the design-to-silicon transition is efficiently and accurately managed by Calibre. 

In a continuing tradition of delivering advanced technology, the Calibre design-to-silicon platform of integrated tools is recognized as the industry standard worldwide to address the complexities of advanced IC design.

About Tower Semiconductor Ltd.
Tower Semiconductor Ltd. is a pure-play independent wafer foundry established in 1993. The company manufactures integrated circuits with geometries ranging from 1.0 to 0.18 microns; it also provides complementary manufacturing services and design support.

In addition to digital CMOS process technology, Tower offers advanced non-volatile memory solutions, mixed-signal and CMOS image-sensor technologies.  To provide world-class customer service, the company maintains two manufacturing facilities: Fab 1 has process technologies from 1.0 to 0.35 microns and can produce up to 20,000 150mm wafers per month. Fab 2 features 0.18-micron and below process technologies, including foundry-standard technology, and will offer full production capacity of 33,000 200mm wafers per month. The Tower Web site is located at www.towersemi.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 $600 million and employs approximately 3,500 people worldwide.  Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site: www.mentor.com.

Calibre and Mentor Graphics are registered trademarks, and Calibre DRC, Calibre LVS, Calibre xRC, and Calibre OPCpro are trademarks, of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.

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For more information, please contact:
Nan Devlin Mentor Graphics 503.685.1809 nan_devlin@mentor.com	Suzanne Graham Mentor Graphics 503.685.7789 suzanne_graham@mentor.com