Third and Final Patent in California Litigation Accepted for Reexamination, Magma Announces
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Third and Final Patent in California Litigation Accepted for Reexamination, Magma Announces

SANTA CLARA, Calif.—(BUSINESS WIRE)—January 12, 2007— Magma(R) Design Automation Inc. (Nasdaq: LAVA) announced today that the third and final patent at issue in its lawsuit with Synopsys Inc. (Nasdaq:SNPS) has been accepted for reexamination after the U.S. Patent and Trademark Office (PTO) found substantial new questions of patentability as to all 54 of the patent's claims. As a result, all three patents at issue in the companies' California litigation are under reexamination and on a path that could result in their invalidation.

On Jan. 10 the PTO ordered reexamination of U.S. Patent No. 6,453,446 (the '446 patent), the third patent at issue in the lawsuit pending in the U.S. District Court for the Northern District of California. The PTO previously ordered reexamination of the other two patents at issue, U.S. Patents 6,378,114 and 6,725,438 (the '114 and '438 patents). The PTO has already issued an office action rejecting all 15 claims in the '114 patent, and in December Magma filed a second request for reexamination of the '114 patent based upon prior art not previously cited to the PTO.

The '114, '446 and '438 patents are the subject of a lawsuit Synopsys filed in 2004 asserting patent infringement by Magma. If the PTO ultimately finds the patents to be invalid, these assertions of infringement could be dismissed by the court.

Filings, court orders and other documents relevant to these matters are available on the Magma website at www.magma-da.com/PatentLitigation.html.

About Magma

Magma's software for integrated circuit (IC) design is recognized as embodying the best in semiconductor technology. The world's top chip companies use Magma's electronic design automation (EDA) software to design and verify complex, high-performance ICs for communications, computing, consumer electronics and networking applications, while at the same time reducing design time and costs. Magma provides software for IC implementation, analysis, physical verification, characterization and programmable logic design, and its integrated RTL-to-GDSII design flow offers "The Fastest Path from RTL to Silicon"(TM). Magma is headquartered in Santa Clara, Calif., with offices around the world. Magma's stock trades on Nasdaq under the ticker symbol LAVA. Visit Magma Design Automation on the Web at www.magma-da.com.

Magma is a registered trademark and "The Fastest Path from RTL to Silicon" is a trademark of Magma Design Automation Inc. All other product and company names are trademarks or registered trademarks of their respective companies.

FORWARD-LOOKING STATEMENTS:

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including risks inherent in litigation. Further discussion of these and other potential risk factors may be found in Magma's public filings with the Securities and Exchange Commission (www.sec.gov). Magma undertakes no additional obligation to update these forward-looking statements.

Contact:

Magma Design Automation Inc.
Monica Marmie, 408-565-7689
Director, Marketing Communications
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