Safe Harbor and GAAP Reconciliation Statement

This Webcast contains forward looking statements relating to Synopsys’ business, products and technology, including projected financial results and objectives, and any statements regarding the expected closing of Synopsys’ acquisition of Magma Design Automation, Inc. (“Magma”), the expected impact of such acquisition on Synopsys’ financial results, benefits of such acquisition, and integration of Magma’s products and employees with those of Synopsys. These statements are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to, uncertainty in the growth of the semiconductor and electronics industry; changes in demand for Synopsys’ products due to fluctuations in demand for its customers’ products; Synopsys' ability to realize the potential financial or strategic benefits of acquisitions and the difficulties in the integration of the products and operations of acquired companies or assets into Synopsys' products and operations; Synopsys ability to consummate its acquisition of Magma in a timely manner or at all, including the satisfaction of the conditions precedent to the closing of the acquisition, the ability to secure regulatory approvals for the acquisition in a timely manner or at all, and the approval of the acquisition by Magma’s stockholders; the possibility of litigation, including litigation relating to Synopsys’ acquisition of Magma; the effect of the announcement of Synopsys’ acquisition of Magma on Synopsys and Magma’s respective businesses, including possible delays in customer orders; Synopsys’ ability to successfully operate or integrate Magma’s business and technologies, including potential loss of customers, key employees, partners or vendors and uncertain customer demand and support obligations for new product offerings; continued uncertainty in the global economy and its potential impact on the semiconductor and electronics industries; increased competition in the market for Synopsys' products and services including through consolidation in the industry and among our customers; lower-than-anticipated new IC design starts; lower-than-anticipated purchases or delays in purchases of software or consulting services by Synopsys’ customers, including delays in the renewal, or non-renewal, of Synopsys’ license arrangements with major customers; changes in the mix of time-based licenses and upfront licenses; lower-than-expected orders; and failure of customers to pay license fees as scheduled.

In addition, Synopsys' actual expenses, earnings per share and tax rate on a GAAP and non-GAAP basis for the fiscal quarter ending January 31, 2012, actual expenses, earnings per share, tax rate, and other projections on a GAAP and non-GAAP basis for fiscal year, and cash flow from operations on a GAAP basis for fiscal year 2012 could differ materially from the targets stated under "Financial Targets" above for a number of reasons, including, but not limited to, (i) integration and other acquisition-related costs such as those arising from Synopsys’ pending acquisition of Magma, including amortization of intangible assets and costs formerly capitalized but now expensed due to new accounting guidance related to business combinations, as well as changes in the fair value of contingent consideration related to prior acquisitions, (ii) application of the actual consolidated GAAP and non-GAAP tax rates for such periods, or judgment by management, based upon the status of pending audits and settlements to increase or decrease an income tax asset or liability, (iii) a determination by Synopsys that any portion of its goodwill or intangible assets have become impaired, (iv) changes in the anticipated amount of employee stock-based compensation expense recognized on Synopsys' financial statements, (v) actual change in the fair value of Synopsys' non-qualified deferred compensation plan obligations, (vi) increases or decreases to estimated capital expenditures, (vii) changes driven by new accounting rules, regulations, interpretations or guidance, (viii) general economic conditions, and (ix) other risks as detailed in Synopsys' SEC filings, including those described in the "Risk Factors" section in its latest Quarterly Report on Form 10-Q for the third fiscal quarter ended July 31, 2011. Furthermore, Synopsys' actual tax rates applied to income for the first quarter and fiscal year 2012 could differ from the targets given in this press release as a result of a number of factors, including the actual geographic mix of revenue during the quarter and year, and actions by the government. Finally, Synopsys' targets for outstanding shares in the first quarter and fiscal year 2012 could differ from the targets given in this Webcast as a result of higher than expected employee stock plan issuances or stock option exercises, acquisitions, including the pending acquisition of Magma by Synopsys, and the extent of Synopsys' stock repurchase activity.

This Webcast also contains non-GAAP financial measures as defined by the Securities and Exchange Commission in Regulation G. Reconciliations of the non-GAAP financial measures to their comparable GAAP measures are included in the fourth quarter and fiscal year 2011 earnings release and financial supplement, each dated November 30, 2011 and available on Synopsys' website at www.synopsys.com. Additional information about such reconciliations can be found in Synopsys’ Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 30, 2011.

The targets and the information given in the Webcast represent Synopsys' expectations and beliefs as of November 30, 2011. Although this Webcast will remain available on Synopsys' website through the date of the first quarter fiscal year 2012 earnings results call, its continued availability through such date does not mean that Synopsys is reaffirming or confirming its continued validity. Furthermore, Synopsys is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this Webcast whether as a result of new information, future events or otherwise, unless otherwise required by law.