VERPLEX SIGNS DEFINITIVE AGREEMENT TO BE ACQUIRED BY CADENCE


Best-in-Class Formal Verification Enhances RTL Design Flow for Electronic Design Leader

MILPITAS, Calif., July 14, 2003 -- Verplex™ today announced it has signed a definitive agreement to be acquired by Cadence Design Systems, Inc. (NYSE: CDN). The company's best-in-class formal verification software will be integrated with the market-leading CadenceR Incisive™ and Cadence® Encounter™ platforms for a complete integrated circuit (IC) design solution.

The Verplex product line -- which is complementary and does not overlap with Cadence's products -- provides customers with formal verification that offers best-in-class speed, capacity and debug environment to automate the RTL-GDSII flow.

In making the announcement, Michael Chang, Verplex president and chief executive officer (CEO), remarks: "Verplex's market-leading formal verification solution has been adopted by over 300 companies who have verified thousands of tape-outs across every major ASIC and foundry process. This success was due to a highly acclaimed technology team developing breakthrough formal verification solutions that enabled our customers to verify their entire system-on-chip (SoC) designs from RTL to layout. Combining with Cadence will enable us to further address their most complex verification challenges by leveraging advanced formal techniques throughout the entire design process. We are confident that the combination of our formal verification products with Cadence's design flow, along with access to its broad reaching channel, will provide the most complete solution available on the market today."

"Cadence is delighted with the opportunity to integrate and grow the Verplex product line, its customer base, and its reputation for complete and thorough independent verification. Many customers had suggested we bring our two market leading verification capabilities together," said Penny Herscher, senior vice president and general manager at Cadence. "A roadmap for the incorporation of Verplex's products is currently under development. This will include the ConformalR equivalence checking family and BlackTieR functional checker for pre-defined checks and assertion-based verification."

Cadence and Verplex expect to close the transaction in the third quarter of this year. This acquisition is a key milestone in Cadence's ongoing technology leadership platform strategy. Cadence will incorporate Verplex's formal verification technology into the Incisive platform's verification flow and the Encounter platform's nanometer implementation flow to enable efficient and independent verification for the industry's route to big, fast chips. Cadence also will continue to support Verplex products in alternative flows.

For additional information contact Tony Larson, vice president of marketing at Verplex. He can be reached at (408) 586-0300 or via email at tlarson@verplex.com.

About Verplex

Verplex Systems Inc. is an electronic design automation (EDA) company focusing on delivery of the highest speed, highest capacity and easiest to use formal verification products for complex system-on-chip (SOC) design. Founded in 1997, it is privately held and funded by leading venture capital firms. Corporate headquarters is located at 300 Montague Expressway, Suite 100, Milpitas, Calif. 95035. Telephone: (408) 586-0300. Facsimile: (408) 586-0230. Email: info@verplex.com. Online information is found at its Web Site: http://www.verplex.com.

About Cadence

Cadence is the world's leader in electronic design technologies, methodology services, and design services. Cadence solutions are used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. With approximately 5,200 employees and 2002 revenues of approximately $1.3 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services is available at www.cadence.com.

Except for historical information, the matters discussed in this release contain forward-looking statements, including, without limitation, statements related to beliefs and expectations regarding the acquisition of Verplex and other recent acquisitions; expectations and intentions regarding products and technologies; and beliefs and expectations regarding Cadence's employees, business, competitors and customers. These statements are based on current expectations or beliefs and are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including without limitation, the successful integration of Verplex's employees and technologies; the rapid pace of technological change in the electronics and semiconductor industries; fluctuations in the demand for Cadence's products, services and solutions; possible development or marketing delays relating to product offerings; and the introduction of new products by competitors or the entry of new competitors into the markets for Cadence's products. For a detailed discussion of these and other cautionary statements, please refer to Cadence's most recent filings with the Securities and Exchange Commission. Cadence does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Conformal and BlackTie are registered trademarks of Verplex Systems Inc. Verplex is a trademark of Verplex Systems Inc. All other companies and products referenced herein are trademarks or registered trademarks of their respective holders..

RELEASE July 14, 2003

MORE INFORMATION:
Nanette Collins,
Verplex, Public Relations Counsel,
(617)437-1822