Magma Reports Record Revenue of $45.1 Million for Third Quarter

                    MAGMA DESIGN AUTOMATION, INC.
                       AS OF DECEMBER 31, 2006
 IMPACT OF KNOWN NON-GAAP ADJUSTMENTS ON FORWARD-LOOKING DILUTED NET
                   INCOME PER SHARE AND NET INCOME
                             (Unaudited)

                                         Quarter Ending April 1, 2007

GAAP net loss per share                      $ (0.30) to $ (0.26)
   Amortization of developed technology
    and intangibles                                 $0.26
   Stock-based compensation                         $0.07
   Acquisition related expenses                     $0.02

Non-GAAP diluted net income per share           $0.05 to $0.09


(in millions)                            Quarter Ending April 1, 2007

GAAP net loss                                  $ (13) to $ (11)
   Amortization of developed technology
    and intangibles                                  $11
   Stock-based compensation                          $3
   Acquisition related expenses                      $1

Non-GAAP net income                                $2 to $4


Contact:

Magma Design Automation
Monica Marmie, 408-565-7689
Director, Marketing Communications
Email Contact
Milan G. Lazich, 408-565-7706
Vice President, Corporate Marketing
Email Contact



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