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EMBEDDED SYSTEMS CONFERENCE, SAN JOSE, Calif., Sept. 25 -- Setting the new standard in high-end embedded real time development and debug, Mentor Graphics Corp. (Nasdaq: MENT) and Enea OSE Systems today announced an agreement to provide customers with a single source for best-in- class software development and debugging tools for high-availability, high- reliability embedded applications.

Recognizing the importance of software development tools as part of a complete real-time operating system (RTOS) solution, Enea OSE Systems will market and distribute an integrated solution comprised of the Mentor Graphics® XRAY® debugger, the OSE® RTOS, and support for Mentor Graphics Microtec and GNU and Diab compilers.

Customers will now have access to the most comprehensive software development suite for today's challenging embedded systems environments, including complex distributed, multi-processor systems and heterogeneous multi-core environments. This collaboration will provide a best-in-class RTOS and integrated software development solution for high-growth, vertical market segments, including telephony infrastructure and safety-critical systems.

``By joining forces with Mentor Graphics, we are able to offer our customers the embedded industry's most comprehensive solution for RTOS-based application development,'' said Lars Osterberg, president, Enea OSE Systems. ``Our tightly integrated development tool suite will enable engineers to develop even the most challenging RTOS applications, for the most demanding environments.''

XRAY's state-of-the-art feature set, designed to enhance the development of applications based on realtime operating systems, includes such features as RTOS object browsing, thread and process awareness with window-per-thread visibility, and support for the unified debugging of multi-processor systems. XRAY also supports most popular compilers including Microtec, GNU and Diab. The XRAY Debugger product line includes versions to support BDM, JTAG, emulators, processor probes and other hardware-assist solutions, target resident monitors, and instruction-set simulators. XRAY provides a common interface to the complete set of tools for debugging embedded applications, improving developer productivity and eliminating the need to learn multiple user interfaces.

``With this integration, we have laid the groundwork for a development roadmap that extends beyond our initial collaboration,'' said Michael Kaskowitz, vice president and general manager, Mentor Graphics Embedded Software division. ``As the market dictates, we will work towards providing additional state of the art tools while continuing to offer the most complete, end-to-end development environment for high-end embedded systems.''

XRAY for OSE is also tightly integrated with the OSE Illuminator tool suite, enabling comprehensive application-level debugging, essential in high-availability telecommunications systems. With XRAY for OSE, embedded systems developers will now be able to produce higher quality applications while reducing development time and costs.

The OSE RTOS supports fault-tolerant systems that are designed to allow recovery from hardware and software failures. OSE differs from other RTOSs by adopting message-passing as its primary method of inter-process communication. Because of its support for high-availability systems, OSE has a particularly significant impact in the telecommunications industry.

``This collaboration comes in response to the high demand for an integrated, high-performance RTOS and tools integration in numerous vertical market segments,'' said Jerry Krasner, Ph.D., executive director for Electronic Market Forecasters, a research firm specializing in embedded software/systems industry analysis.

About Enea OSE Systems

Enea OSE Systems is the technological leader for realtime operating systems and development tools for building distributed and fault-tolerant real-time applications. A subsidiary of Enea Data (SAXESS: ENEA), Enea OSE Systems employs over 150 people. The company focuses primarily on development in telecommunications, data communications, wireless and safety-critical industries. For more information on Enea OSE Systems, please visit http://www.enea.com .

About Mentor Graphics Corp.

Mentor Graphics Corporation is a world leader in electronic hardware and software design solutions, providing products and consulting services for the world's largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of more than $500 million and employs approximately 2,600 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.

NOTE: Mentor Graphics and XRAY are registered trademarks of Mentor Graphics Corporation. OSE is a registered trademark of Enea OSE Systems. All other company or product names are the registered trademarks or trademarks of their respective owners.