Mentor Graphics Expects Earnings-per-Share of 9 Cents

WILSONVILLE, Ore. (PROTEXT) - Mentor Graphics Corporation (Nasdaq: MENT) today announced it expects second quarter revenues in the range of $120M and earnings-per-share of about 9 cents before one-time charges. While revenue and earnings are less than anticipated, Mentor experienced continued strong growth in worldwide product bookings which were up almost 20%, and North American software bookings that were up about 40% from the quarter a year ago. Operating income before special charges approximately doubled over the second quarter 1998. "While disappointed in our revenue, we saw continued strength in our newer product lines, and remain bullish on the business," commented Gregory K. Hinckley, COO and CFO of Mentor Graphics. "A consolidation in the first quarter of our alternate channel did, however, slow sales. Previously, we had two distinct alternate channels. Now we have one that can sell all of our HDL products. We believe this improves our position for sustained growth." About Mentor Graphics Mentor Graphics Corporation is a world leader in electronic hardware and software design solutions, providing products and consulting services for the worlds largest electronics and semiconductor companies. Established in 1981, the company reported revenues over the last 12 months of over $500 million and employs approximately 2,600 people worldwide. Company headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com Certain statements contained in the press release constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or industry results to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: (i) the Company's ability to successfully offer products and services that compete in the highly competitive and dynamic EDA industry including the risk that the company's technology, products or inventory become obsolete; (ii) effects of the increasing volatility of foreign currency fluctuations on the Company's business and operating results; (iii) the overall instability of Asian or other economies, including changes in regional or worldwide economic or political conditions, government trade restrictions, limitations on repatriation of earnings, licensing and intellectual property rights protection; (iv) the timing of completion of customer contracts and the terms of delivery of software, hardware and other services and (v) the Company's ability to recruit and retain necessary personnel to research and develop, market, sell and service products. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. Mentor Graphics disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements to reflect future events or developments. CONTACT: Ryerson Schwark, Investor Relations, 503-685-1462, or ry_schwark@mentor.com, or Dennis Weldon, Treasurer, 503-685-1462, or dennis_weldon@mentor.com, both of Mentor Graphics Corporation. ots Original Text Service: Mentor Graphics Corporation Internet: http://www.newsaktuell.de Contact: Ryerson Schwark, Investor Relations, 503-685-1462, or ry_schwark@mentor.com, or Dennis Weldon, Treasurer, 503-685-1462, or dennis_weldon@mentor.com, both of Mentor Graphics Corporation Web site: http://www.mentor.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT