Mentor Reports Weak First Quarter Results; Second Quarter Looking Better than Forecast

WILSONVILLE, Ore., April 8, 2002 - Mentor Graphics Corporation (Nasdaq: MENT) today announced that it expects to report revenues of just under $130M and EPS slightly less than $.10 for the first quarter. The company reaffirms its second quarter and 2002 guidance. Additionally, Mentor foresees a stronger than forecasted second quarter.

"We continue to be bullish about recovery in the EDA market in the first half. Despite our weak first quarter, our second quarter is shaping up well," said Walden C. Rhines, chairman and CEO of Mentor Graphics. "We're seeing great business activity, and have already closed notable business in the second quarter. Our sales forecast is the strongest it has been in five quarters, and the upside potential to our forecast is the strongest ever. EDA recoveries tend to be led by North America, particularly San Jose, so we're pleased that our San Jose sales strongly exceeded forecast in the first quarter, and second quarter is looking better still."

First quarter results will be reported after market close on April 25, 2002.

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 more than $600 million and employs approximately 3,100 people worldwide. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777; Silicon Valley headquarters are located at 1001 Ridder Park Drive, San Jose, California 95131-2314. World Wide Web site: 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.