MENTOR GRAPHICS AND MICROTEC RESEARCH CLOSE MERGER

Transaction Promises Hardware/Software Design Flows; Unprecedented Design
Cycle-Time Reductions

WILSONVILLE, ORE. -- FEBRUARY 1, 1996 -- Mentor Graphics Corporation and
Microtec Research, Inc. today announced the formal closing of the
companies' merger, which was first announced Oct. 10, 1995. The two
companies, through the transaction, have become the world leader in
complete electronic hardware and software design solutions.

At the time of the initial announcement, industry analyst Gary Smith of
Dataquest International, commented that the merger, "Is especially
significant as system designs incorporating integrated hardware and
software represent the majority of design starts today. Mentor Graphics'
hardware design tools, combined with Microtec Research's integrated
software development tools and family of real-time operating system (RTOS)
products, will bridge the gap between hardware and embedded software
design, a major bottleneck for system suppliers searching for better
design environments to significantly shrink product time- to-market and
address increasing complexity in embedded systems."

Mentor Graphics' Hardware/Software Systems Division (HSD) and the new
Microtec Research business unit will address these issues through the
Dynamic Design Integration family of hardware/software co- verification,
co-analysis and, ultimately, co-design tools. These offerings are
complemented by MRI's offering of the world's best software development
tools. These include a full line of high-performance C/C++ cross
compilers, assemblers, source-level XRAY Debugger, and the well-known
VRTX/OS operating system.

Microtec Research, (NASDAQ:MTEC), a leading supplier of software products
for the development of embedded systems, offers a broad, integrated
product line and extensive support network.

Established in 1981, Mentor Graphics Corporation (NASDAQ:MENT) designs,
manufactures, markets and distributes electronic design automation (EDA)
software and provides professional services supporting its customers'
complete design environments. The company is a leader in worldwide EDA
sales, with revenues of $384,461,000 over the last reported 12 months.
Mentor Graphics is the first EDA vendor to win the STAR (Software
Technical Assistance Recognition) award, and the only EDA vendor to win
the award twice. The award is given annually by the Software Support
Professionals Association (SSPA) for service excellence. The company
currently employs approximately 2,050 people worldwide. In addition to its
corporate offices, Mentor Graphics has sales, support, software
development and professional services offices worldwide. The company's
headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon
97070-7777. World Wide Web site: http://www.mentorg.com.

For more information, contact:

Laura Barber
Corporate Communications
Mentor Graphics Corporation
(503) 685-1809

Eileen Drake
Public Relations
KVO, Inc.
(503) 221-1551

Jim Ready
Vice President
Microtec Research, Inc.
(408) 980-1300
 
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