SAN JOSE, Calif.—(BUSINESS WIRE)—April 6, 2006— The EDA Consortium's Market Statistics Service (MSS) today announced that the electronic design automation (EDA) industry revenue for Q4 of 2004 was $1,253 million, a 5% increase over Q4 2004. For the full year 2005, revenue totaled a record $4,575 million, which was 3% more than $4,437 million in 2004.

"The EDA industry continued to strengthen in the fourth quarter," said Walden C. Rhines, chairman of the EDA Consortium and chairman and CEO of Mentor Graphics Corporation. "Revenues were up in all regions and most product lines."

Highlights

Product and Maintenance revenue (excluding services) increased 5% over Q4 2004 and posted a record high quarter of $1,185 million revenue in Q4 2005.

Employment Data

Reporting companies employed 22,832 professionals in Q4 2005, 2% more than Q4 2004.

Revenue by Product Category

EDA's largest tool category, Computer-Aided Engineering (CAE), generated revenue of $542 million in Q4 2005, 4% more than the same period in 2004. CAE revenue at, $1,925 million for all of 2005, was flat compared to 2004.

IC Physical Design & Verification increased 6% to $346 million in Q4 2005 over the same quarter in 2004. For the full year 2005, IC Physical Design & Verification revenue totaled $1,209 million, a 4% increase over 2004.

Revenue for Printed Circuit Board (PCB) and Multi-Chip Module (MCM) Layout totaled $87 million in Q4 2005, a 4% decrease over Q4 2004. PCB and MCM Layout revenue totaled $342 million for all of 2005, flat compared to 2004.

The EDA industry's Semiconductor Intellectual Property (SIP) revenue totaled $209 million in Q4 2005, 13% greater than Q4 2004. For 2005, SIP revenue increased by 12% to $816 million (vs. $731 million in 2004). To more completely represent SIP, the market statistics service was expanded beginning in 2005 to include SIP revenue data from publicly available sources. Past quarters were updated in the report so that annual and quarterly comparisons include the publicly available data.

EDA Services revenue was $69 million in Q4 2005, up 2% from Q4 2004. Services revenue totaled $282 million in 2005, nearly the same as in 2004.

Revenue by Consuming Region

North America, EDA's largest customer base with 45% global share, purchased $569 million of EDA and SIP products and services in Q4 2005, a 5% increase over Q4 2004. For all of 2005, North American revenue was $2129, flat compared to 2004.

Western Europe in Q4 2005 decreased by 3% from Q4 2004 to $272 million. For the full year 2005, revenue from Western Europe was $872 million, a slight 1% increase over 2004. Western Europe had a 22% share of global revenue in 2005.

In Q4, revenue from Japan grew 12% to $256 million. Japan continued to extend previous years of revenue growth by increasing 10% to $1,023 million in 2005 -- a new record for the region. EDA sales in Japan constituted 20% of the global total in 2005.

Rest-of-World (ROW) growth increased 12% in Q4 2005, to $552 million. Revenue from ROW grew at a rate second only to Japan in 2005, increasing 7% for the year to $552 million (13% of global 2005 revenue).

About the MSS Report

The EDA Consortium's Market Statistics Service reports EDA industry revenue data quarterly and is available by annual subscription. Each quarterly report is published approximately three months after quarter close. MSS report data is segmented as follows: revenue type (product licenses and maintenance, services, and SIP), application (CAE, PCB/MCM Layout, and IC Physical Design and Verification), operating system (UNIX vs. Windows) and region (North America, Western Europe, Japan, and Rest of World), with many subcategories of detail provided. The report also tracks total employment of the reporting companies.

About the EDA Consortium

The EDA Consortium is the international association of companies that provide tools and services that enable engineers to create the world's electronic products. EDA is the critical technology used to design electronics for the communications, computer, space technology, medical and industrial equipment and consumer electronics markets among others.

For more information about the EDA Consortium or to subscribe to the Market Statistics Service, contact EDA Consortium, 111 West Saint John Street, Suite 220, San Jose, Calif. 95113, USA, office 408-287-3322, fax 408-283-5283 or visit www.edac.org.

The information supplied by the EDA Consortium is believed to be accurate and reliable, but the Consortium assumes no responsibility for any errors that may appear in this document. All trademarks and registered trademarks are the property of their respective owners.

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Contact:

Mentor Graphics Corporation 
Ryerson Schwark, 503-685-1660

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