<PAGE>
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QUICKTURN DESIGN SYSTEMS, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
MENTOR GRAPHICS CORPORATION
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<PAGE>
[MENTOR GRAPHICS LOGO]
The Power to Create -Trademark-
BT ALEX.BROWN
1998 TECHNOLOGY CONFERENCE
Greg Hinckley
Senior Vice President
COO/CFO
<PAGE>
PRELIMINARY 3Q RESULTS
- - Estimated EPS of $0.12 exceeds First Call analyst consensus estimates by 20%
- - Accelerating bookings paced by software in North America and by emulation in
Europe and Asia
- - Flat revenue, in quarter, year-over-year
- - Best gross margin in the 1990's
<PAGE>
Q2 HIGHLIGHTS
- - Best 2Q order rate this decade
- - Record backlog
- - 4th consecutive quarter of increasing gross margins
- - New product revenue up 50%
- - Major consulting engagements at Motorola and Toshiba
<PAGE>
QUARTERLY EDA SALES GROWTH
VERSUS IC SALES GROWTH
[GRAPH]
[Figures in percentages]
IC Growth EDA Growth
--------- ----------
Q195 47 18
Q295 49 21
Q395 41 23
Q495 39 22
Q196 -13 23
Q296 -13 23
Q396 -17 15
Q496 -16 15
Q197 -10 13
Q297 10 13
Q397 12 23
Q497 11 23
SOURCE: HAMBRECHT & QUIST
<PAGE>
MEETING THE CHALLENGE
"NEC Corp. chip boss Hajime Sasaki's prescription...accelerate chip designs,
better use fab capacity, squeeze expense out of the budget and dream up
system-on-chip proposals for key customers."
EE TIMES
<PAGE>
QUICKTURN ACQUISITION
TRANSACTION SUMMARY
Offer Price: $12.125 per share
Premium: 51.6%
Consideration: 100% cash fully financed
Total $216 million
Consideration: - Balance sheet financed
- Bank financed
<PAGE>
EDA INDUSTRY ANALYST VIEWS
"Quickturn should consider the offer as a way to revive its
sluggish recent performance."
- RITA GLOVER, PRESIDENT & PRINCIPAL ANALYST
EDA TODAY MARKET RESEARCH
8/14/98
No, this isn't about the lawsuit... The acquisition of
Quickturn would not only give Mentor the vertical market
strength, acceleration/emulation to RTL Simulation, but
would make them the powerhouse in horizontal space, RTL
Simulation to acceleration/emulation to hardware/software
coverification to Microtec, their embedded software tool
division. Not a bad package!"
- GARY SMITH, CHIEF EDA ANALYST, DATAQUEST
WORLDWIDE ELECTRONIC DESIGN AUTOMATION
8/17/98
<PAGE>
EDA INDUSTRY ANALYST VIEWS
(EE Times 8/17/98)
"Brilliant"
- GARY SMITH, CHIEF EDA ANALYST, DATAQUEST
WORLDWIDE ELECTRONIC DESIGN AUTOMATION
8/17/98
<PAGE>
QUICKTURN ACQUISITION
CURRENT STATUS
- - October 9 - Hearing on motion to dismiss
- - October 19 - Trial on antitakeover defenses
- - October 29 - Date Called By Mentor Graphics for Special Stockholders Meeting
<PAGE>
WHAT IS EDA?
Software tools used by all electronic engineers
to design the world's ICs and electronic systems
[PHOTOGRAPHS]
<PAGE>
CHALLENGES REQUIRE FOCUS
System Verification
Mentor Intellectual Property
---------------------------------------------------------------------------
Design Services
Cadence Physical Design
- -------------------------------------------------------------------------------
Design Creation
Synopsys Logic Synthesis
---------------------------------------------------------------------------
<PAGE>
FPGA DESIGN
Renoir
ModelSim
Leonardo Spectrum
<PAGE>
A STRATEGIC OPPORTUNITY
- - FPGA DESIGN STARTS RAPIDLY INCREASING
- 100K FPGA design starts/year
- 10K ASIC design starts/year
- - AGGRESSIVE TECHNOLOGY ROADMAPS
- Million gate, 150 MHz by end of 1998
Data collected by Model Technology, Inc. from FPGA/PLD vendors,
EDA vendors and customers
<PAGE>
INCREASING GATE COUNT REQUIRES NEW
TOOLS
[Picture showing growing FPGA and ASIC gate counts]
Data collected by Model Technology, Inc. from FPGA/PLD vendors,
EDA vendors and customers
<PAGE>
HDL FPGA TOOLS MARKET TO DOUBLE IN
TWO YEARS
[GRAPH]
[Revenue figures in millions]
1998 1999 2000
---- ---- ----
Capture 15 20 25
Simulation 30 40 50
Synthesis 45 60 90
Total 90 120 165
Estimates based on Dataquest, FPGA/PLD vendors, Mentor Graphics,
Exemplar and MTI sources
<PAGE>
Mentor Graphics Owns
50%
of the FPGA/PLD
Design Market
<PAGE>
MENT: A VALUE OPPORTUNITY
<TABLE>
<CAPTION>
10-7-98
Company Share Price Market Cap/Revenue
- ---------------------------------------------------------------------------
<S> <C> <C>
Mentor Graphics $6.56 0.9
Cadence $20.63 4.4
Synopsys $29.56 2.9
Avant! $11.63 2.0
</TABLE>
<PAGE>
FPGA DESIGN
A Market Creating New HDL Users
- - Increasing Densities Driving the Need for HDL-Based FPGA Designs
- - Dataquest Estimates 24K new seats in 1998
- Xilinx: 10K new Xilinx HDL users/year
(50% of all new users)
- - Major FPGA Vendors Investing in EDA Integration and Alliances
<PAGE>
[MENTOR GRAPHICS LOGO]
The Power to Create-Trademark-
