Insignia and Accelerated Technology Announce Licensing Agreement to Include Secure System Provisioning Client Software with the Nucleus Operating System.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 17, 2003

Enables Phones Based on Nucleus RTOS to be Repairable

and Upgradeable Over-the-Air

Insignia Solutions(R) (Nasdaq:INSG) and Accelerated Technology(R), the Embedded Systems Division of Mentor Graphics Corporation (Nasdaq:MENT), today announced that Insignia has licensed its Secure System Provisioning client software technology to Accelerated Technology to be included with its Nucleus(TM) real-time operating system (RTOS) for mobile phones. The Nucleus RTOS is one of the most widely adopted operating systems for phones around the world, with more than 150 design wins. The new agreement will enable phone manufacturers using the Nucleus RTOS to ship a platform with Insignia Secure System Provisioning features such as Over-The-Air Repair(TM) and Dynamic Capabilities(TM) built-in.

Insignia Secure System Provisioning (SSP) is an end-to-end system for mobile operators and phone manufacturers that reduces bottom line software recall costs by enabling Over-The-Air Repair, and increases top line revenues by providing Dynamic Capabilities to enable a wide range of new mobile services to existing devices. Insignia's SSP Client, which is being licensed by Accelerated Technology (AT), is a software component embedded in the terminal that enables its system software to be securely updated.

As more features are being packed into mobile handsets, increased software complexity is leading to a growing number of recalls. Each recall is estimated to cost between US $50 and $150 per phone including operator and manufacturer costs as well as churn and loss of airtime. New rich media capabilities and industry standards are being rolled out at a frenetic pace, including numerous new Java APIs, and Insignia Secure System Provisioning enables mobile operators to capitalize on a raft of new revenue-bearing rich content using phones that can be upgraded over-the-air.

Accelerated Technology's Nucleus software is provided with complete source code and without run-time royalty fees. Complimenting the base of Nucleus real-time kernels are services for networking and Internet protocols, a file system, a graphical user interface, and easy-to-use services for World Wide Web access.

"With the Nucleus RTOS and associated middleware, we provide mobile phone manufacturers with the embedded software backbone that will enable them to create valuable and cost effective devices for mobile operator networks worldwide," said Robert Day, director of marketing for Accelerated Technology. "As a result of this agreement with Insignia, we can provide yet another key technology to meet the needs of tomorrow's phone users."

Insignia's licensing agreement with Accelerated Technology will enable the rapid proliferation of phone platforms that can take advantage of these new upgrade and repair capabilities. In addition, platforms based on the Nucleus RTOS will speed development time for manufacturers and therefore help reduce overall development costs.

"Accelerated has pioneered the spread of rich and robust environments for mobile phone manufacturers and we look forward to the proliferation of repairable and upgradeable platforms with this relationship," said Peter Bernard, chief product officer of Insignia. "This is a major step toward solidifying Insignia's position as the de facto standard for Over-The-Air Repair and Dynamic Capabilities in the mobile market."

About Insignia Solutions

Insignia provides an essential ingredient to mobile operators and terminal manufacturers by enabling Over-The-Air Repair of a growing complex and diverse community of devices on the network. Insignia's products and services radically reduce customer care and recall costs, maintain device integrity, and enable a wide range of new mobile services. Founded in 1986, Insignia has a long history of innovation, stewardship of major industry standards, and the trust of dozens of manufacturers around the world. Insignia Solutions is traded on NASDAQ under the symbol INSG. The company is headquartered in Fremont, California with R&D and European operations based in the United Kingdom. For additional information about Insignia or its products please visit http://www.insignia.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.

Accelerated Technology, Embedded Systems Division of Mentor Graphics Corporation, is located in Mobile, Alabama with sales offices and distributors worldwide. By providing embedded systems developers with a focus on service, well-documented source code and industry leading non-royalty based Real-Time Operating Systems (RTOS) software, AT's RTOS software shortens time-to-market and provides a complete solution for engineers. For more information, please visit www.acceleratedtechnology.com or e-mail us at [e-mail].

Insignia, Insignia Solutions, and the Insignia Solutions logo are registered trademarks and Secure System Provisioning, Dynamic Capabilities and Over-The-Air Repair are trademarks of Insignia Solutions, Inc. All other trademarks are the property of their respective holders.

Mentor Graphics and Accelerated Technology are registered trademarks and Nucleus is a trademark of Mentor Graphics Corporation.

Forward-Looking Statements

The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties. This release includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, Insignia's need for additional capital to sustain operations, Insignia's reliance on the successful introduction of its Secure System Provisioning ("SSP") product line, Insignia's need to generate significantly greater revenue to achieve profitability and Insignia's liquidity and capital needs. Further details on these and other risks are set forth in Insignia Solutions' filings with the Securities and Exchange Commission, including its most recent filings on Forms 10-K and 10-Q. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Insignia Solutions does not undertake an obligation to update forward-looking or other statements in this release.