On January 30, 2009, the management of Magma Design Automation, Inc. ("Magma") approved the implementation of a series of actions designed to reduce operating costs. These actions are the result of Magma's efforts to improve its cost structure and to align better its resources and improve operating efficiencies and also are a reflection of the state of the global economy. As part of these actions, Magma has reduced employment levels, closed two sales and support offices in North America and one in Europe, and plans to consolidate its Beijing, China operations into a single facility and its Shanghai, China, operations into a single facility.

Magma expects to complete these actions in the fourth quarter of its 2009 fiscal year, which ends on May 3, 2009.

In connection with these actions, Magma expects to record a restructuring charge in the third quarter of its 2009 fiscal year ranging from $2.75 million to $3.75 million. The majority of these charges will include personnel-related costs, including severance benefits and other costs. Most of these charges represent cash expenditures which are expected to be paid during the fourth quarter of Magma's 2009 fiscal year.

On February 5, 2009, Magma issued a press release related to these actions. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

During the third quarter of Magma's 2009 fiscal year, Magma instituted salary reductions for Rajeev Madhavan (Magma's Chief Executive Officer), Roy E. Jewell (Magma's President and Chief Operating Officer), Peter S. Teshima (Magma's Corporate Vice President, Finance and Chief Financial Officer), Bruce Eastman (Magma's Corporate Vice President, Worldwide Sales), and David H. Stanley (Magma's Corporate Vice President, Corporate Affairs and Corporate Secretary). In light of this salary reduction and a prior salary reduction, said officers' salaries have been reduced by twenty percent (20%) such that their salaries are now as follows:

                                              Fiscal 2009
                                              Annual Base
                         Applicable Officer   Salary ($)
                         Rajeev Madhavan          408,000
                         Roy E. Jewell            408,000
                         Peter S. Teshima         256,000
                         Bruce Eastman            240,000
                         David H. Stanley         240,000

FORWARD-LOOKING STATEMENTS

The statements above regarding the amount of estimated expenses and charges of these actions, anticipated timing for paying such expenses and recording such charges, anticipated completion date of these actions and related activities, the ability to successfully improve operating efficiencies, and plans to consolidate certain offices are forward-looking statements based on current information and expectations and involve a number of risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including but not limited to larger than projected costs and difficulties in implementing the reduction in operations on the timetable currently contemplated. Magma undertakes no additional obligation to update these forward-looking statements. Please refer to Magma's filings with the Securities and Exchange Commission, including but not limited to Magma's most recent Quarterly Report on Form 10-Q for additional factors. These filings can be accessed via the Internet at http://www.sec.gov.

(d) Exhibits.

                 Exhibit
                 Number    Description

                  99.1     Press Release dated February 5, 2009.