UMC foundry customers now receive fully qualified, silicon-calibrated device model parameters for Eldo

WILSONVILLE, Ore., July 17, 2000 - Mentor Graphics Corporation today announced UMC's adoption of Eldo for analog circuit simulation. Through a multi-year agreement, UMC provides its customers with fully qualified, silicon calibrated device model parameters, based on Eldo, for excellent capacity, accuracy and speed of its system-on-chip (SoC) and deep submicron (DSM) integrated circuit (IC) designs. This agreement covers all aspects of support infrastructure and addresses the dependencies between transistor-level circuit simulation technology and the latest device modeling developments needed for UMC's advanced process technologies.

"Our support of the Eldo models allows us to better meet our customers' expectations," said Dr. L.C. Hsia, director of UMC Technology Development Device Group. "Eldo is an extremely powerful circuit simulation tool for IC designs. Customers using Eldo will have greater confidence moving their DSM designs into production knowing UMC supports the model parameters libraries they have already qualified."

Collaboration Brings New Performance and Service Standards
The Eldo simulator has the largest capacity available in the industry today, enabling customers to simulate the building blocks of SoCs faster and more accurately than ever. UMC and Mentor Graphics? will generate and distribute new fully qualified Eldo model parameters that are necessary for future SoC and DSM designs. Mentor Graphics has also partnered with UMC to offer best in class service and support for the over 20,000 licensed Eldo users worldwide.

"UMC's adoption of our analog circuit simulator demonstrates the tremendous acceptance Eldo is receiving across all regions," said Jue-Hsien Chern, vice president and general manager of Mentor's Deep Submicron (DSM) division. Now we can work with UMC to continuously improve the model generation capabilities and manufacturability of our customers' complex SoC and deep submicron designs."

The Eldo simulator is an entry point to Mentor Graphics' comprehensive DSM simulation technology offering, which includes radio frequency analysis (RF), DSM timing verification, and language based SoC design flows. Eldo is the core engine of Mentor's analog and mixed-signal product line, from a comprehensive device model library to multi-algorithms, offering high accuracy and robust convergence.

Eldo Circuit Simulator Foundry Program
The Mentor Graphics foundry support program for the Eldo circuit simulator was initiated to improve model generation and characterization for deep submicron IC design ensuring first pass success of silicon. The program provides a complete business model, which enhances productivity by providing automation in model generation and qualification.

About UMC
UMC, a world leading semiconductor foundry, operates seven 8-inch fabs in Taiwan's Hsinchu Science Park and two more in Japan and has two 12-inch fabs under construction. The company started construction on a 12-inch facility in Taiwan that is expected to enter production by mid-year 2001 with a design capacity of 40,000 wafers per month. UMC is a leader in foundry technology and expects capacity to reach 2.4 million wafers per year in 2000 with more than half in advanced 0.18 and 0.25 micron technology. Its Worldlogic standard 0.13 micron technology is on target for introduction this year. UMC serves customers around the world through sales and marketing offices located in the United States, Japan, and the Netherlands. UMC can be found on the web at http://www.umc.com.

About Mentor Graphics:
Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products and consulting services for the world's largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of over $500 million and employs approximately 2,700 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products; and technological and development risks.

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