Axis Systems and Mentor Graphics Settle Litigation; Agree to Patent Cross-license

SUNNYVALE, Calif. and WILSONVILLE, Ore., December 5, 2002 - Axis Systems, Inc. and Mentor Graphics Corporation (Nasdaq: MENT) today announced they had reached a settlement of their patent litigation.  As part of the settlement, the companies will cross-license emulation patents and drop their on-going lawsuits.  The settlement covers Mentor's IKOS® emulation patents and Axis' hardware-assisted verification patents.

"We're happy to have reached a settlement with Axis Systems," said Gregory K. Hinckley, president of Mentor Graphics.  "We prefer to focus on competing in the marketplace, rather than in the courtroom."

"Our focus is to continue delivering breakthrough verification technology," said Mike Tsai, President and CEO of Axis Systems. "We are pleased that we were able to amicably resolve the dispute with Mentor Graphics."

About Axis Systems
Axis Systems, Inc. offers high-performance verification systems for the hardware and software development of complex electronic system and system-on-a-chip designs. Axis' products help increase confidence in new designs, improve overall verification productivity and shorten time to market. On a single system and with one design database, Axis' patented ReConfigurable Computing (RCC) technology provides software simulation, accelerated simulation, system emulation and hardware/software co-verification.  Customers include the world's leading graphics, networking, multimedia, and processor companies.  Axis is headquartered at 209 E. Java Drive, Sunnyvale, CA 94089. To learn more about Axis, www.axiscorp.com.
 
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 $600 million and employs approximately 3,700 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 and IKOS are registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owners.

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