Mentor Graphics Acquires Valor Computerized Systems, Ltd.

WILSONVILLE, Ore. — Mentor Graphics Corporation (NASDAQ: MENT), the market and technology leader in electronic design automation (EDA) and systems analysis solutions, today announced completion of the acquisition of Valor Computerized Systems, Ltd. for net consideration valued at about $50 million. Mentor paid approximately 5.6 million shares of Mentor stock and $32.5 million in cash. Immediately prior to closing, Valor had cash of approximately $29 million. Valor’s revenues for its last reported full year ending December 31, 2008 were approximately $40 million.

Valor products are the world’s leading software for printed circuit board (PCB) design for manufacturing (DFM) and manufacturing execution (MES) systems. Valor’s solutions target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components. With the acquisition of Valor, Mentor is now positioned as the only EDA supplier to provide the electronics industry with a PCB systems solution from concept through manufacturing.

“Valor’s expertise and products in the manufacturing segment are an excellent fit to Mentor’s in the PCB design area as together we provide a concept-through-manufacturing design solution to our customers,” stated Henry Potts, vice president and general manager of the Systems Design Division of Mentor Graphics. “This acquisition will reinforce our number one position in PCB design while enabling Valor to leverage the strengths of Mentor and accelerate their delivery of differentiated design for manufacturing and manufacturing execution products.”

By acquiring Valor, Mentor is the first major EDA vendor to extend its scope into the market for PCB systems manufacturing solutions. This will benefit the electronics industry by enabling electronics companies to finally eliminate the long-standing technical barriers and inefficiencies between the worlds of design and manufacturing. Mentor will be in a unique position to deliver an efficient, bi-directional engineering process between designers, their partners in systems manufacturing, and the product supply chain.

“This is a very exciting opportunity for all of us,” said Dan Hoz, former Valor CEO and now general manager of the newly-formed Valor division of Mentor Graphics. “With both companies occupying leading positions in their respective markets, our combined expertise can deliver a breakthrough in operational integration between the world of design and the supply-chain oriented world of manufacturing, for the benefit of the entire electronics industry. We foresee a promising future for Valor as a division of Mentor Graphics.”

The development of solutions for the manufacturing market will remain a core activity of the Valor division, reinforcing Valor’s and Mentor’s long-term commitment to deliver solutions and support to the manufacturing market, as well as powerful integration of design for manufacturing functionality into Mentor and non-Mentor PCB design environments. For more information regarding the acquisition and the go-forward strategy, visit http://www.mentor.com/valor.

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 about $800 million and employs approximately 4,425 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 a registered trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.)