Magma Design Automation Announces Initial Public Offering

CUPERTINO, CALIF., November 20, 2001 -- Magma^® Design Automation, Inc. today announced that shares of its common stock commenced trading on the Nasdaq National Market under the symbol "LAVA." Magma sold all of the 4,850,000 initial public offering shares at a price of $13.00 per share.

The offering is being managed by Credit Suisse First Boston Corporation and co-managed by Robertson Stephens Inc. and SG Cowen Securities Corporation. Magma has granted the underwriters the option to purchase up to 727,500 additional shares to cover over-allotments, if any.

Copies of the prospectus relating to this offering may be obtained from Credit Suisse First Boston, Prospectus Department, 11 Madison Ave., New York, N.Y., 10010, 212-325-2000; Robertson Stephens, Inc., 555 California Street, Suite 2600, San Francisco, Calif., 94104, 415-781-9700; or SG Cowen Securities Corporation, Financial Square, New York, N.Y., 10005, 631-254-7106.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Magma

Magma provides design and implementation software that enables chip designers to reduce the time it takes to design and produce complex integrated circuits used in the communications, computing, consumer electronics, networking and semiconductor industries. Its products, Blast Fusion^TM and Blast Chip^TM, utilize a new methodology for deep submicron chip design that combines traditionally separate logic design and physical design processes into an integrated flow. This integrated flow significantly reduces timing closure iterations, which allows Magma's customers to accelerate the time it takes to design and produce deep submicron integrated circuits. Blast Plan^TM works with Blast Fusion and Blast Chip to streamline the hierarchical planning and design of large chips and system-on-chips within a single environment. Blast Noise^TM works with Blast Fusion and Blast Chip to actively detect potential noise problems and correct them during the physical design process.

Magma's proprietary FixedTiming^® methodology and single data model architecture are the technical foundation for Magma's Blast Fusion and Blast Chip products. The FixedTiming methodology allows Magma's products to reduce the timing closure iterations that are often required between the front-end and back-end processes in conventional integrated circuit design flows. The single data model contains all of the logical and physical information about the chip design.

Headquartered in Cupertino, Calif., the company maintains sales and support offices in Silicon Valley, Austin, Boston, Germany, Israel, Japan, Korea, Taiwan and the United Kingdom. Corporate headquarters are at 2 Results Way, Cupertino, Calif., 95014. Visit Magma Design Automation on the Web at www.magma-da.com.