Mentor Graphics Unveils Embedded Technology Adoption Program.

Business/High-Tech Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--June 14, 2001

Mentor Graphics Corp. (Nasdaq:MENT) today announced the formation of the Embedded Technology Adoption Program (ETAP).

The program meets growing demand from semiconductor manufacturers, intellectual property (IP) companies and real-time operating systems (RTOS) providers for configurable, best-in-class embedded software tools to support new processor, core and RTOS releases. Through ETAP, Mentor Graphics will license its market-leading embedded software technology, including its XRAY(R) Debugger, VRTX(R) RTOS and development tools, enabling companies to provide complete embedded software tools with emerging technology.

Companies specializing in hardware design have often treated embedded software as an afterthought. Furthermore embedded software companies have historically targeted only the industry-leading processor architectures. Increased competition, spurred by the advent of System-on-Chip (SoC) platforms, has led to a multitude of new processor architectures with finely differentiated capabilities, but with each one requiring a platform-optimized software development and debugging environment.

Mentor Graphics has recognized that, while software tools are not a core business for the semiconductor and IP vendors, they do need to provide leading-edge design tools with their SoC platforms in order for them to succeed. ETAP enables its licensees to leverage a proven embedded technology platform from which embedded software development tools can be developed quickly and efficiently.

"ETAP formalizes our relationship with current Mentor Graphics(R) Embedded Software licensees and makes potential members aware of a program that can significantly enhance the capabilities of their internal software tools organizations," said Michael Kaskowitz, vice president and general manager of Mentor's Embedded Software Division. "Our approach enables companies, from start-ups to established vendors, to develop custom-built software development tools that leverage our leading technology but are still marketed under the licensee's name."

Mentor Graphics has developed ETAP due to requests from semiconductor IP houses, semiconductor manufacturers, RTOS companies and large printed circuit board (PCB) system designers that wish to take advantage of Mentor's established technology leadership in the embedded software market. The first ETAP licensees include ARM, Philips Semiconductors, OSE Systems and Siroyan Ltd.

First ETAP Members Validate New Licensing Model

"Mentor has given ARM access to proven embedded tools software, allowing us to enhance our industry-leading software development tool, the ARM Developer Suite(TM)(ADS). ADS will support the complete development and debug environment of our customers' mixed architecture SoC designs," said Derek Morris, general manager of Development Systems at ARM. "Participating in ETAP will continue to enhance our ability to deliver sophisticated multi-core debug which is so important to our SoC customers." ARM will be releasing debug tools incorporating Mentor Graphics Embedded Software later this year.

"Essential to the widespread deployment of our OSE RTOS has been the tight coupling between the RTOS and the debugger," said Mike Dager, president and CEO of OSE Systems. "With access to Mentor's technology through ETAP, we plan on sending our customers the best RTOS-aware tools environment with a consistent interface throughout the software development and debug cycle."

About ETAP Membership

The Embedded Technology Access Program (ETAP) is a technology licensing program formed by Mentor Graphics to service the needs of customers needing access to state-of-the-art embedded software tools and products in a form that frees them to customize them to their specific requirements.

Mentor Graphics provides its embedded software products under intellectual property licensing or OEM arrangements, providing licensees with the ability to integrate the software with their system environment. Software available in this form includes the XRAY Debugger, VRTX RTOS and its FAA certification package. Other products will be added later based on identified application needs from ETAP partners.

Licensees automatically become members of ETAP. General benefits of membership include early access to new developments plus invitations to participate in a Technical Advisory Board to help guide the future development of Mentor Graphics Embedded Software products and the business models under which they are supplied. ETAP will provide an invaluable technology and business-networking forum for companies who want to address embedded solutions for SoC development.

For more information on the Mentor Graphics Embedded Technology Adoption Program, please visit www.mentor.com/etap.

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 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 2,850 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: www.mentor.com.

Mentor Graphics, VRTX and XRAY are registered trademarks of Mentor Graphics Corporation. ARM is a registered trademark of ARM Limited. ARM Developer Suite is a trademark of ARM Limited. "ARM" is used to represent ARM Holdings plc (LSE:ARM) (Nasdaq:ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM, INC.; ARM KK; ARM Korea Ltd., ARM Taiwan. All other company or product names are the registered trademarks or trademarks of their respective owners.