Mentor Graphics Strengthens its Automotive Solutions Portfolio with the Acquisition of Volcano Communications Technologies.

WILSONVILLE, Ore. -- Mentor Graphics Corporation (Nasdaq:MENT) today announced it has acquired Volcano Communications Technologies AB (VCT), including the complete product line of Volcano's automotive networking series. The series includes network design tools, embedded software and test and validation tools for all major automotive networks. Terms of the deal were not disclosed.

The acquisition provides a logical extension of Mentor's growing presence in the automotive industry by broadening the company's portfolio of tools available for the design of automotive electrical and electronic systems. VCT adds predictable, real-time communications within automotive electrical systems to Mentor's strong solutions of cabling and harness, embedded software and system modeling. Mentor Graphics will continue to offer and support the full VCT product line.

VCT provides the automotive industry with comprehensive networking and data communication solutions that support the user in the development of in-vehicle networking systems. By using the Volcano concept, network design is made easy and predictable, guaranteeing data communications which reduces the verification effort to almost zero and eliminates warranty and change costs caused by networking issues. VCT is a premium member of AUTOSAR, actively participating in the development of an open network communication standard for the automotive industry. VCT customers include AUDI, BMW, Daimler Chrysler, Volkswagen, Volvo, Ford, Fiat, PSA, Bosch, Delphi, Magneti Marelli, Siemens VDO and Visteon.

"This is a natural step forward for VCT. We have been creating development tools and embedded software since 1998 but mainly focusing on the European marketplace," said Antal Rajnak, VCT founder, vice chairman of the board, and chief technical officer/vice president, Research and Development. "We are excited that, by joining Mentor Graphics, we will be expanding into the global automotive marketplace while combining our strong technologies into Mentor's automotive design flow."

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 over $700 million and employs approximately 3,850 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: http://www.mentor.com.

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