May 10, 2002

Mentor Graphics Ups Prospects for New Rules on Shareholder Aproval of Option Plans

NCEO founder and senior staff member

Shareholders of Mentor Graphics have voted to require the company to get approval of stock option plans. Mentor granted seven percent of its outstanding shares in options in 2000. The vote may send a signal to the NASDAQ and New York Stock Exchange, which are currently considering whether to institute tougher requirements for shareholder approval of option plans.