Mentor Graphics Solidifies Commitment to Open Source; Acquires Certain Assets of CodeSourcery, a Leader in Open Source Tools and Services

WILSONVILLE, OR -- (MARKET WIRE) -- Dec 02, 2010 -- Mentor Graphics Corporation (NASDAQ: MENT) today reaffirmed its commitment to the future of open source for embedded development with the acquisition of certain assets of CodeSourcery, Inc. (Granite Bay, CA), the leading provider of open source GNU-based toolchains and services for advanced systems development.

"CodeSourcery and its industry-recognized toolchain services and products significantly increase the value of embedded solutions that Mentor Embedded can provide its customers, as well as contributions to the open source community," said Glenn Perry, general manager, Mentor Graphics Embedded Software Division. "We believe that the future of embedded development depends on the wide availability of open source software and tools. The Mentor Embedded™ group continues to expand its OSS development team -- including the acquisition of Embedded Alley last year, well known for its runtime Linux® and Android offerings -- and continuing with today's announcement on CodeSourcery, renowned for their toolchain expertise. Our position as an independent embedded software solution provider enables Mentor Embedded to collaborate closely with hardware IP and SoC ecosystems, as well as the broader embedded software vendors, as the leading supplier of innovative embedded software services and products. Our mutual end customers reap the benefits via the optimization of resources, leveraging the strengths of the OSS community, hardware design community and Mentor Embedded software team."

"CodeSourcery's goal has always been to build great tools for embedded software developers," said Mark Mitchell, former CEO of CodeSourcery and now director of embedded tools, Mentor Graphics Embedded Software Division. "Mentor Embedded provides the resources needed to create better, more powerful tools that make embedded software development easier. Our service customers, many of whom already work with Mentor Embedded, will benefit from new offerings that integrate tools with Linux and/or Android environments. The future of embedded software development is based on open-source tools, and as part of Mentor Embedded, CodeSourcery will be able to participate in the open-source community on an even greater scale than before."

CodeSourcery builds software tools that enable its customers to maximize the performance of hardware platforms ranging from embedded devices to supercomputers. The Sourcery G++™ product, a software development environment based on the GNU Toolchain, is a leading choice of software engineers, operating system vendors, semiconductor companies, and device manufacturers. The Sourcery VSIPL++™ product, a portable, parallel signal- and image-processing toolkit, boosts performance and increases productivity for radar, sonar, and imaging applications. For more product information, visit http://go.mentor.com/codesourcery.

The Mentor Graphics Embedded Software Division comprises the Mentor Embedded family of products and services, including embedded software intellectual property (IP), tools, and consulting services to help embedded developers and silicon partners optimize their products for design and cost efficiency. More information on Mentor Embedded products and services can be found at the website: www.mentor.com/embedded.

Supporting comments from Mentor Graphics partners:

"For many years, CodeSourcery has been a key contributor to the ARM Partner ecosystem by providing tools and Open Source solutions across the entire range of ARM processors," said Eric Schorn, Vice President of Marketing, Processor Division, ARM. "Mentor's acquisition of CodeSourcery, and its recent acquisition of Embedded Alley, is a clear demonstration of the company's commitment to the future of open source services across the entire embedded industry."

"CodeSourcery provides advanced tools and services for a wide range of Freescale architectures, allowing our partners and end customers to fully optimize the performance of our world class processors," said Raja Tabet, Vice President of Solutions and Enablement Technology, Freescale Semiconductor. "Mentor's acquisition of CodeSourcery is good news for our shared customers and further strengthens Mentor's position as the leader in independent embedded software and open source solutions."

"CodeSourcery has an established reputation as a leader in GNU toolchain development, and the company's technology will be a valuable addition to Mentor Graphics' embedded portfolio," said Art Swift, Vice President of Marketing and Business Development, MIPS Technologies, Inc. "MIPS Technologies has had long and successful relationships with both Mentor Graphics and CodeSourcery, and we expect those relationships to continue with this acquisition."

"We congratulate Mentor and CodeSourcery on their combination that will bring enhanced value to the eco-system for our industry-leading XLP™, XLR®, and XLS® multi-core processors," said Chris O'Reilly, Vice President of Marketing, NetLogic Microsystems.

"Mentor's acquisition of CodeSourcery is a great complement to Mentor's existing open source capabilities with Linux and Android," said Jake Alamat, Director of Marketing, ARM MPU Business Unit, DSP Systems, and Application Specific Products, Texas Instruments. "This makes Mentor a compelling open source partner for Texas Instruments."

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 electronic, semiconductor and systems companies. Established in 1981, the company reported revenues over the last 12 months of about $850 million. 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 Mentor are registered trademarks and Mentor Embedded, Sourcery G++ and Sourcery VSIPL++ are trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owner.)

(The registered trademark Linux® is used pursuant to a sublicense from LMI, the exclusive licensee of Linus Torvalds, owner of the mark on a world-wide basis.)

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For more information, please contact:
Larry Toda
Mentor Graphics
503.685.1664

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Sonia Harrison
Mentor Graphics
503.685.1165

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