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Mentor Graphics Announces Partnership with NXP Semiconductors for Design-for-Test Tools and Technology

Business Wire, May 6, 2008

WILSONVILLE, Ore. -- Mentor Graphics Corporation (Nasdaq: MENT) today announced a partnership with NXP Semiconductors in which Mentor's Design-for-Test (DFT) products will be used by NXP Semiconductors to further improve the quality and time-to-market of NXP's solutions. The agreement provides NXP with Mentor's market- and technology-leading DFT solutions, including the TestKompress[R] compressed pattern generation and the YieldAssist[TM] failure diagnosis tools. It also provides interim support for NXP's test tools.

"NXP believes that a partnership with Mentor Graphics is the most effective way to continue to meet our manufacturing test needs and to deliver the highest quality devices to our customers," said Rene Penning de Vries, senior vice president and chief technical officer, NXP Semiconductors. "First-Time-Right being a crucial element of the manufacturing and design process, NXP selected Mentor's technology for testing before tapeout and silicon to help improve our time-to-market. Mentor combines industry-leading design-for-test technology with a proven software development and support organization. Our partnership allows NXP to use commercial DFT tools without disrupting any of our critical design projects."

Under the agreement, Mentor Graphics also obtains rights to NXP's internally-developed test tools, technology and talent as a portion of NXP's DFT tools development organization joins Mentor's Design-for-Test product division. This division of Mentor is also establishing a new R&D facility in Hamburg.

"We're excited about our new business relationship with NXP. It not only brings new DFT technology to Mentor, but also brings the talent of world-class DFT developers which will help us accelerate the development and delivery of innovative DFT technologies into the marketplace," said Joe Sawicki, vice president and general manager of the Design-to-Silicon division at Mentor Graphics. "We expect the partnership to produce dividends for both parties and ultimately to create value that can be passed on to all Mentor DFT customers."

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 $875 million and employs approximately 4,350 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.> (Mentor Graphics and TestKompress are registered trademarks and YieldAssist is a trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.)