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Mentor Graphics Signs Exclusive Global Agreement with Automotive Supplier Magneti Marelli

Jul 16, 2010

WILSONVILLE, OR - Mentor Graphics Corporation (NASDAQ: MENT), today announced the signing of an exclusive, worldwide agreement with automotive electronics systems and components provider, Magneti Marelli. Valor, a division of Mentor and a global provider of productivity improvement software across the printed circuit board manufacturing supply chain, will supply its vManage™ solutions for traceability of the entire production process, from the screen printer to the Surface Mount Technology (SMT) component placement machine at the company’s multiple global locations. The agreement is the culmination of a partnership which, eighteen months ago, saw Magneti Marelli decide to expand its Valor® vManage installations for assembly traceability and feeder verification worldwide, including manufacturing sites in Italy, Spain, and Mexico.

The Valor vManage software enables Magneti Marelli to achieve full traceability and visibility of materials and manufacturing processes on its multiple-vendor SMT assembly lines. The vManage product will also help the company eliminate feeder errors due to its advanced feeder verification functionality.

“Valor’s software solution has more than proven itself over the past few years, not only with the great value it offers in terms of traceability and quality, but also in the vast efficiency improvements this tool offers,” stated Marco Ausenda, Director of Technology and Standardization at Magneti Marelli. “This agreement will enable us to standardize our process worldwide, so that each of our facilities can take advantage of its many benefits.”

The vManage product provides a complete shop floor control and material management solution that is a key component of the Valor MSS (Manufacturing Systems Solutions) suite. The vManage solution is used by leading electronics manufacturers as the single platform which collects accurate real-time machine performance data from all major equipment vendors and provides complete visibility and control over every aspect of the manufacturing operation, from SMT lines to final system assembly.

“This partnership has been extremely beneficial to both companies and we are delighted that it has now resulted in an exclusive agreement with Magneti Marelli,” said Stephan Häfele, President of the Valor Europe division of Mentor Graphics. “vManage enables Magneti Marelli to comply with the special requirements for the automotive industry, and I am certain that it will continue to be a valuable software solution by helping them to remain competitive.”

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. 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 and vManage is a trademark of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owner.)

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