Mentor Graphics Acquires Flomerics Group PLC

WILSONVILLE, Ore.—(BUSINESS WIRE)—October 9, 2008— Mentor Graphics Corporation, (NASDAQ:MENT), the market and technology leader in design automation and systems analysis solutions, today announced final completion of the acquisition of Flomerics Group PLC., a United Kingdom-based supplier of computational fluid dynamics analysis products.

The Flomerics company will become the Mechanical Analysis Division headed by Gary Carter, former CEO of Flomerics, reporting to Henry Potts, vice president of Mentor Graphics and general manager of the Systems Design Division. This acquisition not only complements Mentors offerings in printed circuit board (PCB) systems design with advanced electronic cooling thermal analysis capabilities typically used by mechanical engineers, but broadens Mentors product offerings into the engineering fluid dynamics (EFD) market for mechanical computer aided design (CAD) analysis. With superior ease-of-use and tight integration into all leading mechanical design systems, the EFD products are targeted at mechanical designers versus requiring the expertise of a specialist. Applications for EFD include complex fluid flow analysis of pumps, valves, aerodynamics and hydrodynamics, heating and refrigeration systems, and consumer appliances.

Thermal analysis of todays high powered, compact electronic products requires ever increasing sophisticated conduction and convection thermal analysis, for both the full enclosure and PCBs, during the design process to meet reliability and time-to-market goals, said Potts. As a supplier of design automation software, we must consider the entire product development process and provide analysis and collaboration tools wherever we can help our customers be more competitive. As the provider of the worlds most advanced computational fluid dynamics products, Flomerics products fall squarely into this strategy. Additionally, we see significant potential with the EFD products that address multiple analysis applications in many industries.

"All of us at Flomerics look forward to working as part of the Mentor Graphics organization to grow our customer base in mechanical design as well as our electronics cooling markets," said Carter, general manager of Mentors Mechanical Analysis Division. "We believe that with Mentor's global strength and greater financial resources, the success and potential of Flomerics' technology, technical expertise, and customer relationships can be better cultivated and significantly enhanced."

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 worlds most successful electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of about $850 million and employs approximately 4,500 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 is registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.



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