Accelerated Technology to Lead Expanded Mentor Graphics Embedded Systems Division.

Business Editors/High-Tech Writers

Embedded Systems Conference 2002

SAN FRANCISCO--(BUSINESS WIRE)--March 11, 2002

Mentor Graphics Corporation (Nasdaq:MENT) today announced the acquisition of privately-held embedded software company, Accelerated Technology, Inc.

Financial details of the transaction were not disclosed. Accelerated Technology, an established provider of real-time and embedded systems development software, will spearhead Mentor's expanded Embedded Systems Division, reinforcing the company's commitment to matching software development products with hardware design and verification tools.

"Mentor Graphics recognized early that software development would become the primary bottleneck in delivery of complex designs," said Dr. Walden C. Rhines, Chairman of the Board and CEO for Mentor Graphics. "In order to successfully integrate IC development into full system design, embedded software and hardware EDA providers need to work together to provide software development that is staged early in the IC design flow."

Rhines continued, "With the acquisition of Accelerated Technology, we significantly strengthen our embedded software portfolio, allowing us to offer our customers a unique combination of best-in-class embedded software and hardware design and verification solutions."

Accelerated Technology will continue to operate from its current location in Mobile, Alabama. Its two distinct product lines, code/lab(TM)(1), an embedded software development suite and Nucleus(R), a royalty-free real-time operating system, will join the Mentor Graphics(R) XRAY(R) Debugger as part of the Mentor Graphics Embedded Systems Division. The product portfolio will continue being integrated into other Mentor solutions, including the Seamless(R) Hardware/Software Co-Verification Environment(TM).

Accelerated Technology's broad customer base includes Compaq, Honeywell, Motorola, NASA, Sony and Texas Instruments and its products are used in a broad selection of applications, ranging from telecommunications, networking and portable devices to industrial control and medical instrumentation.

"By designing and maintaining all our software products in-house, we have developed extensive knowledge and expertise in the embedded market," said Neil Henderson, former president of Accelerated Technology and new general manager of the Mentor Graphics Embedded Systems Division. "As part of Mentor Graphics, we gain total access to Mentor's sales and marketing resources, distribution channels, engineering team and worldwide recognition, enabling us to reach more integrated software solutions for the embedded design community."

About Mentor Graphics Corporation

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 more than $600 million and employs approximately 3,100 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.

Mentor Graphics, Accelerated Technology, XRAY, Seamless and Nucleus are registered trademarks of Mentor Graphics Corporation. code/lab and Co-Verification Environment are trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.

(1) NOTE TO EDITORS: In the product name code/lab(TM) noted in this news release, there is a pipe symbol between code and lab. This symbol has been replaced with a slash, because it does not appear properly in some systems.