MIPS Technologies Verifies Newest 24K Processor Family with Mentor Graphics High-Performance VStationTBX Accelerator

Mentor Graphics VStation™TBX Accelerator Verifies Industry-Leading Performance For MIPS Technologies’550 MHz Synthesizable 32-Bit Core Family

MOUNTAIN VIEW, Calif., March 29, 2004 - MIPS Technologies, Inc. (Nasdaq: MIPS) and Mentor Graphics® Corp. (Nasdaq: MENT) today announced that the industry-leading performance of the MIPS32® 24K™ family of processors, which operates from 400 to 550 MHz worst case in a 0.13 micron process, was verified using the Mentor Graphics VStation™TBX verification accelerator. By using best-in-class technology from companies such as Mentor Graphics, MIPS Technologies is helping customers meet their performance targets using a 24K core.

"With Mentor Graphics' verification accelerator, we were able to boot both Linux and the Windows CE .NET operating systems. We ran thousands of tests and 1.8 billion random verification cycles per day while still meeting our internal delivery schedule. With this level of verification quality, we are delivering a 24K core that is proven, solid and reliable," said Don Ramsey, director of CAD operations at MIPS Technologies.

"MIPS Technologies has used Mentor Graphics acceleration and emulation products for several years," said Eric Selosse, vice president and general manager of the Mentor Emulation Division. "We are pleased that MIPS Technologies is reaping the performance benefits of our latest verification accelerator products for the development of their newest and most advanced processor family."

Mentor Graphics is a technology leader in high-performance hardware-assisted design verification tools. With the VStationTBX system, MIPS Technologies created ultrafast transaction-level testbenches that reduced HDL regression testing time by 1,000 times. By compiling behavioral Verilog code into high-performance testbenches, VStationTBX reduced the time and effort to achieve acceleration. The VStationTBX accelerator is used like a simulator, increasing verification productivity 3 to 5 times by eliminating co-simulation bottlenecks and utilizing existing testbench setups. As Mentor's third generation transaction-based product, the VStationTBX accelerator increases design efficiency by providing a scalable testbench methodology from software simulation to hardware acceleration.

The Mentor Graphics and MIPS Technologies Partnership
In addition to supporting development of the 24K core family, Mentor Graphics is supporting customers of the 24K core family through its Seamless® Hardware/Software Co-Verification Processor Support Package (PSP). See Feb. 25, 2004 press release and recent Webinar by Mentor Graphics and MIPS Technologies by visiting www.mentor.com or www.mips.com. Mentor's Seamless PSP enables SOC designers to shave months off the development of their 24K core-based systems and ensure optimum performance by creating a virtual prototype of their design prior to physical hardware availability. Both, the Seamless and the VStationTBX products, are tools of the Mentor Graphics Scalable Verification™ platform, a comprehensive electronic design automation (EDA) vendor tool platform for functional verification.

About the MIPS32 24K Family
The MIPS32 24K core family, which includes the 24Kc™, 24Kc Pro™, 24Kf™ and 24Kf Pro versions, offers performance from 400 to 550 MHz in a 0.13 micron process, the highest frequency available in 32-bit synthesizable cores, while minimizing design time and reducing product costs. Tailored SOC design methodologies, an Open Core Protocol (OCP) interconnect structure, standard libraries and on-chip memories from industry-leading companies help speed time-to-market, an important advantage for a processor core suited to consumer applications such as digital and interactive TVs, set-top boxes and DVD players.

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 $675 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.

About MIPS Technologies
MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at +1 (650) 567-5000 or www.mips.com.