Magma, Rio Design Automation Sign OEM Agreement; Magma Will Re-sell and Support RioMagic Package-Aware Chip Design Software

SANTA CLARA, Calif.—(BUSINESS WIRE)—Feb. 22, 2006— Magma(R) Design Automation Inc. (Nasdaq: LAVA), a provider of semiconductor design software, and Rio Design Automation Inc. today announced that Rio Design Automation's software will be resold by Magma through an original equipment manufacturer (OEM) agreement.

Under terms of the non-exclusive, multi-year agreement, Magma will re-sell and support RioMagic, package-aware chip design and optimization software, which considers package escape, routability and parasitics, and enables simultaneous tradeoffs between chip and package design.

"Our customers have given us positive feedback on RioMagic and have said repeatedly that package analysis is of critical concern," said Kam Kittrell, general manager of Magma's Design Implementation Business Unit. "The relationship between the two companies is strong and proves that EDA companies can work cooperatively."

Comments Robert Knoth, senior engineer at Tektronix Inc and a Magma and Rio Design Automation customer: "The combination of Magma Blast Plan(TM) Pro and RioMagic is the missing link for flip-chip designs today. RioMagic fits seamlessly into the Magma design environment. What previously took three months, we were able to accomplish in two weeks using RioMagic, and we reduced the area of our chip by 20 percent. This is a remarkable accomplishment."

"Magma has been supportive of our efforts from the outset," adds Kaushik Sheth, Rio Design Automation's chief executive officer (CEO) and co-founder. "Having RioMagic available from Magma helps ensure that chip designers will have access to this new software."

About Rio Design Automation

Rio Design Automation is an electronic design automation (EDA) company bridging the gap between the design of high-performance integrated circuits (ICs) and packages, and a chip's integration with the rest of the electronic system. Its revolutionary approach offers chip designers package-aware software to make optimal tradeoffs among the chip layout, wires within the package and printed circuit board (PCB) connections. Corporate headquarters is located at: 2901 Tasman Drive, Suite 112, Santa Clara, Calif. 95054. Telephone: (408) 844-8038. Facsimile: (408) 844-8945. Email: info@rio-da.com. Website: http://www.rio-da.com.

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 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 the company's 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 Blast Plan and "The Fastest Path from RTL to Silicon" are trademarks 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, including statements that Magma will resell and support RioMagic and generally about the performance of Magma and Rio technology, 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, but not limited to Magma's and Rio's abilities to keep pace with rapidly changing technology, Magma's decision to continue reselling RioMagic, both companies' decisions to continue working together and the companies' products' abilities to produce desired results. 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

Email Contact
or
Rio Design Automation Inc
Public Relations
Nanette Collins, 617-437-1822

Email Contact



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