Mentor Graphics Expects Earnings-per-Share of 9 Cents

WILSONVILLE, Ore. (PROTEXT) - Mentor Graphics Corporation(Nasdaq: MENT) today announced it expects second quarter revenuesin the range of $120M and earnings-per-share of about 9 centsbefore one-time charges. While revenue and earnings are less thananticipated, Mentor experienced continued strong growth inworldwide product bookings which were up almost 20%, and NorthAmerican software bookings that were up about 40% from thequarter a year ago. Operating income before special chargesapproximately doubled over the second quarter 1998. "While disappointed in our revenue, we saw continued strengthin our newer product lines, and remain bullish on the business,"commented Gregory K. Hinckley, COO and CFO of Mentor Graphics. "Aconsolidation in the first quarter of our alternate channel did,however, slow sales. Previously, we had two distinct alternatechannels. 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 electronichardware and software design solutions, providing products andconsulting services for the worlds largest electronics andsemiconductor companies. Established in 1981, the companyreported revenues over the last 12 months of over $500 millionand employs approximately 2,600 people worldwide. Companyheadquarters 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 ofthe Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertaintiesand other factors that may cause the actual results, performanceor achievements of the Company or industry results to bematerially different from any results, performance orachievements expressed or implied by such forward-lookingstatements. Such factors include, among others, the following:(i) the Company's ability to successfully offer products andservices that compete in the highly competitive and dynamic EDAindustry including the risk that the company's technology,products or inventory become obsolete; (ii) effects of theincreasing volatility of foreign currency fluctuations on theCompany's business and operating results; (iii) the overallinstability of Asian or other economies, including changes inregional or worldwide economic or political conditions,government trade restrictions, limitations on repatriation ofearnings, licensing and intellectual property rights protection;(iv) the timing of completion of customer contracts and the termsof delivery of software, hardware and other services and (v) theCompany's ability to recruit and retain necessary personnel toresearch and develop, market, sell and service products. Giventhese uncertainties, prospective investors are cautioned not toplace undue reliance on such forward-looking statements. MentorGraphics disclaims any obligation to update any such factors orto publicly announce the results of any revisions to any of theforward-looking statements to reflect future events ordevelopments. CONTACT: Ryerson Schwark, Investor Relations, 503-685-1462, orry_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, InvestorRelations, 503-685-1462, or ry_schwark@mentor.com, or DennisWeldon, Treasurer, 503-685-1462, or dennis_weldon@mentor.com,both of Mentor Graphics Corporation Web site:http://www.mentor.com

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