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SAN JOSE, Calif., Nov. 13 -- Mentor Graphics Corporation (Nasdaq: MENT), today announced that Philips Semiconductors, a division of Royal Philips Electronics (NYSE: PHG), has selected Mentor Graphics® XRAY® technology to enable software development and debug on all Embedded RISC and DSP processor cores offered as part of its Sea of IP(TM) library of Intellectual Property, available through Philips' Reuse Technology Group.

Philips Semiconductors is one of the world's leading semiconductor manufacturers, developing ASIC and ASSP devices for convergence applications in the exploding communications, consumer, PC peripherals and automotive markets. Philips Semiconductors will integrate Mentor's XRAY debugger into its multi-core, System-on-Chip (SoC) design flow to accelerate the development of end-user applications, such as digital television, multi-channel audio and digital video, based on ARM(TM), MIPS(TM), DSP Group SmartDSPCores(TM) and R.E.A.L.(TM) DSP cores.

XRAY provides a consistent design flow interface, from development through debug, that will speed time-to-market for Philips Semiconductors' convergent applications. These next-generation applications cannot be effectively implemented without the aid of multi-processor semiconductors. Philips has developed multiprocessor architectural platforms via its Nexperia Advanced Prototyping Architecture, and XRAY's unique multi-core debug capabilities are uniquely targeted for the advanced dual-core architectures currently in development.

``Working with Mentor Graphics allows Philips to provide a clear advantage for both the hardware and software development teams engaged in advanced SoC design,'' said Ray Slusarczyk, director of marketing for Embedded Processors at Philips Semiconductors. ``Our decision to standardize on XRAY internally and to offer the product to our external developers is based on the software's abilities in multi-process, multi-core debug. XRAY is a perfect complement to our dual-core architectures and will provide our teams with a consistent 'look and feel' over different compilers and processor architectures.''

``Over the past few months major embedded microprocessor companies have recognized the need for tightly-integrated software solutions that provides a consistent, end-to-end development and debug environment,'' said Michael Kaskowitz, vice president and general manager of the Embedded Software Division of Mentor Graphics. ``Philips Semiconductors and other leading semiconductor developers are embracing XRAY technology as the undisputed industry standard for advanced SoC development.''

About XRAY

Mentor's XRAY debugger is the industry's first choice for the development and debug of advanced SoCs. XRAY is ideally suited for companies with their proprietary or third-party CPU or DSP. As a result, industry leaders like Philips Semiconductor, ARM Ltd., and MIPS have standardized on XRAY debug technology.

XRAY significantly reduces the amount of time needed to identify and resolve problems in multi-core SoC applications. It provides a common debugger interface for all stages of the embedded development process and supports all phases of embedded software for SoC design, including simulation, integration and hardware/software co-verification. Through the Mentor Graphics Seamless® Co-Verification Environment (CVE(TM)), the XRAY debugger can be used to develop software and hardware in parallel, allowing users to verify system-level software, such as startup code and device drivers, against a gate-level simulation of the target hardware. Application development can proceed even when no hardware is available by using the XRAY debugger with an Instruction Set Simulator. When connected to the final target hardware via the JTAG interface, the XRAY debugger can provide complete control over the processor, with zero target intrusion, ensuring rapid project completion and shortened time to market.

About Philips Semiconductors

Philips Semiconductors, which has annual revenues of approximately $5 billion, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia(TM) platform and VLSI Velocity(TM) tool set. The company's Sea-of-IP design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: www.philips.semiconductors.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 $525 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, XRAY and Seamless are registered trademarks of Mentor Graphics Corporation. CVE is a trademark of Mentor Graphics. PHILIPS is a registered trademark of PHILIPS Ltd. Nexperia is a trademark of PHILIPS Ltd. ARM is a registered trademark of ARM Ltd. All other company or product names are the registered trademarks or trademarks of their respective owners.

CONTACT: Larry Toda of Mentor Graphics Corp., 503-685-1664, or larry_toda@mentor.com; or Jeremiah Glodoveza of Benjamin Group/BSMG Worldwide, 415-352-2628, ext. 559, or jeremiah@benjamingroup.com, for Mentor Graphics Corp.; or Paul Morrison of Philips Semiconductor, 408-474-5065, or paul.morrison@philips.com.