Exhibit 99.1

Magma Reports Record Revenue for Fourth Quarter

News Release

CONTACTS:
Magma Design Automation Inc.:
Gregory C. Walker	Milan G. Lazich
Chief Financial Officer	Vice President, Corporate Marketing
(408) 565-7500	(408) 565-7706
gwalker@magma-da.com	milan.lazich@magma-da.com

Magma Reports Record Revenue & Earnings for Fourth Quarter and Fiscal Year

Fiscal 2004 revenue of $113.7 million an increase of 51 percent over prior year

SANTA CLARA, Calif., April 29, 2004 — Magma Design Automation Inc. (Nasdaq: LAVA), a provider of chip design solutions, today announced financial results that included record revenue and profitability for its fourth quarter and fiscal year ended March 31, 2004.

For the fourth quarter, Magma reported record revenue of $34.0 million, compared to $20.5 million for the year-ago fourth quarter ended March 31, 2003, an increase of 66 percent. In accordance with generally accepted accounting principles (GAAP), Magma reported net income of $4.2 million, or $0.10 per share (diluted), for the quarter, compared to net income of $2.6 million, or $0.08 per share (diluted), for the fourth quarter ended March 31, 2003.

Magma reported pro forma net income for the fourth quarter of fiscal 2004, excluding certain non-cash charges, of $7.2 million, or $0.17 per share (diluted), both of which are records for the company. This compares to a pro forma net income of $4.1 million, or $0.13 per share (diluted), for the fourth quarter of fiscal 2003, ended March 31, 2003. Pro forma net income for the fourth quarter of fiscal 2004 reflects reported net income excluding the effects of amortization of developed technology, amortization of intangibles, consolidation of an equity investment, amortization of deferred stock-based compensation and charges associated with loss in equity investments. Pro forma net income for the fourth quarter of fiscal 2003 is adjusted to exclude the effects of amortization of developed technology, amortization of deferred stock-based compensation and charges associated with loss in equity investments. A reconciliation of the pro forma to GAAP results is included in this press release.

For the fiscal year ended March 31, 2004, Magma reported revenue of $113.7 million, compared to $75.1 million for the fiscal year ended March 31, 2003, an increase of 51 percent. In accordance with GAAP, Magma reported net income of $11.5 million, or $0.29 per share (diluted), for the recently completed fiscal year, compared to net income of $3.1 million, or $0.10 per share (diluted), for the fiscal year ended March 31, 2003.

Magma Reports Record Revenue for Fourth Quarter Page 2

Magma reported pro forma net income, excluding certain non-cash charges, of $25.0 million, or $0.62 per share (diluted), for the fiscal year ended March 31, 2004. This compares to pro forma net income of $11.3 million, or $0.35 per share (diluted), for the fiscal year ended March 31, 2003. Magma provides pro forma data as a useful means for understanding the company’s operating results and ongoing business trends. Pro forma data is not in accordance with, or an alternative for, GAAP and may be materially different from pro forma measures used by other companies. Pro forma net income for the year ended March 31, 2004 is adjusted to exclude the effects of amortization of developed technology, amortization of intangibles, in-process research and development, consolidation of an equity investment, amortization of deferred stock compensation and charges associated with loss in equity investments. Pro forma net income for the year ended March 31, 2003 is adjusted to exclude the effects of amortization of developed technology, costs related to settlement of litigation, restructuring charges, amortization of stock-based compensation and charges associated with loss in equity investments. A reconciliation of the pro forma to GAAP results is included in this press release.

“The fiscal year just concluded was a period of significant growth for Magma, in terms of financial performance, product offerings and market penetration,” said Rajeev Madhavan, chairman and CEO of Magma. “We again set records for revenue and profitability, and our product expansion during the year positioned us solidly in new segments, such as logic synthesis and signoff capability. It was also a year in which we became more deeply involved with the industry infrastructure, as we established or deepened relationships with key foundry, ASIC, IP and EDA partners.”

Business Outlook

For Magma’s fiscal 2005 first quarter, which will end June 30, 2004, the company expects total revenue in the range of $34 million to $36 million. Pro forma EPS is expected to be in the range of $0.16 to $0.20. A schedule showing a reconciliation of the business outlook for GAAP to pro forma EPS is included in this release. A Financial Disclosure Supplement containing detailed financial information intended to provide guidance and further insight into our business is available online at http://investor.magma-da.com/supplement.cfm in the Investor Relations section of the Magma website.

Conference Call

Magma will discuss the financial results for the recently completed quarter and fiscal year, including guidance going forward, during a live webcast and earnings call today at 2 p.m. PDT (5 p.m. EDT). The call will be available live by both webcast and conference call. To listen live via webcast, visit the Investor Relations section of Magma’s website at http://investor.magma-da.com/home.cfm. To listen live via telephone call either of the numbers below:

U.S. & Canada:	(800) 374-0247, conference ID #6574963
Elsewhere:	(706) 634-2358, conference ID #6574963

Magma Reports Record Revenue for Fourth Quarter Page 3

Following completion of the call, a webcast replay of the call will be available at http://investor.magma-da.com/home.cfm through May 6, 2004. Those without Internet access may listen to a replay of the call by telephone through May 6 by calling:

U.S. & Canada:	(800) 642-1687, conference ID #6574963
Elsewhere:	(706) 645-9291, conference ID #6574963

FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include statements in the “Business Outlook” section, and statements regarding engagements with new and existing customers; Magma’s continuing leadership in the IC implementation area; and wins and record bookings as a result of its technology advantages, are subject to risks and uncertainties that could cause actual results to differ materially from Magma’s current expectations. Factors that could cause or contribute to such differences include, but are not limited to: increasing competition in the EDA market; Magma’s ability to successfully integrate recently acquired businesses and technologies; the impact of the economic recession; effects terrorist activities or events in the Middle East may have on Magma, its customers and industry; any delay of customer orders or failure of customers to renew licenses; weaker-than-anticipated sales of the company’s products and services; weakness in the semiconductor or electronic systems industries; the ability to successfully manage the company’s expanding operations; the ability to attract and retain the key management and technical personnel needed to operate Magma successfully; the ability to continue to deliver competitive products to customers to help them get their products to market; and changes in accounting rules. 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.

About Magma

Magma provides leading software for designing highly complex integrated circuits while maximizing Quality of Results with respect to area, timing and power, and at the same time reducing overall design cycles and costs. Magma provides a complete RTL-to-GDSII design flow that includes prototyping, synthesis, place & route, and signal and power integrity chip design capabilities in a single executable, offering “The Fastest Path from RTL to Silicon”^™. Magma’s software also includes products for advanced physical synthesis and architecture development tools for programmable logic devices (PLDs); capacitance extraction; and characterization and modeling. The company’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 and “Fastest Path from RTL to Silicon” is a trademark of Magma Design Automation. All other product and company names are trademarks and registered trademarks of their respective companies.

Magma Reports Record Revenue for Fourth Quarter Page 4

MAGMA DESIGN AUTOMATION, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

	March 31, 2004			March 31, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	75,346		$	64,756
Short-term investments		—			3,059
Accounts receivable, net		34,237			19,223
Prepaid expenses and other current assets		9,588			3,627
Total current assets		119,171			90,665
Property and equipment, net		15,196			5,808
Intangibles, net		62,793			1,352
Goodwill		33,529			—
Long-term investments		79,958			27,882
Other assets		3,828			1,771
Total assets	$	314,475		$	127,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,658		$	1,384
Accrued expenses		19,132			7,711
Deferred revenue, current		19,947			12,539
Total current liabilities		40,737			21,634
Convertible subordinated notes		150,000			—
Deferred tax		5,102			—
Other long-term liabilities		897			72
Total non-current liabilities		155,999			72
Total liabilities		196,736			21,706
Stockholders’ equity:
Common stock		3			3
Additional paid-in capital		226,586			228,400
Deferred stock-based compensation		(718	)		(1,638	)
Notes receivable from stockholders		—			(2,037	)
Accumulated deficit		(107,063	)		(118,538	)
Treasury stock at cost		—			(408	)
Accumulated other comprehensive loss		(1,069	)		(10	)
Total stockholders’ equity		117,739			105,772
Total liabilities and stockholders’ equity	$	314,475		$	127,478

Magma Reports Record Revenue for Fourth Quarter Page 5

MAGMA DESIGN AUTOMATION, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

IMPACT OF PRO FORMA ADJUSTMENTS ON REPORTED NET INCOME

(in thousands, except per share data)

(Unaudited)

	For the Three Months Ended March 31, 2004									For the Three Months Ended March 31, 2003
	As Reported			Adjust- ments			As Adjusted			As Reported			Adjust- ments			As Adjusted
Revenue:
Licenses	$	29,560		$	—		$	29,560		$	18,321		$	—		$	18,321
Services		4,487			—			4,487			2,208			—			2,208
Total revenue		34,047			—			34,047			20,529			—			20,529
Cost of revenue		4,768			(1,124	)A,C,D		3,644			2,602			(131	)A		2,471
Gross profit		29,279			1,124			30,403			17,927			131			18,058
Operating expenses:
Research and development		7,560			(85	) B		7,475			4,610			—			4,610
Sales and marketing		11,532			—			11,532			6,629			—			6,629
General and administrative		3,551			—			3,551			2,412			—			2,412
Amortization of intangible assets		1,161			(1,161	)C		—			—			—			—
Amortization of stock-based compensation		429			(429	)D		—			718			(718	)D		—
Total operating expenses		24,233			(1,675	)		22,558			14,369			(718	)		13,651
Operating income		5,046			2,799			7,845			3,558			849			4,407
Interest and other income (expense):
Interest income		650			—			650			394			—			394
Interest expense		(339	)		—			(339	)		—			—			—
Other income (expense), net		(145	)		127	E		(18	)		(533	)		573	E		40
Interest and other income (expense), net		166			127			293			(139	)		573			434
Income before income taxes		5,212			2,926			8,138			3,419			1,422			4,841
Income taxes		(986	)		—			(986	)		(772	)		—			(772	)
Net income	$	4,226		$	2,926		$	7,152		$	2,647		$	1,422		$	4,069
Earnings per share – basic	$	0.13					$	0.22		$	0.09					$	0.13
Earnings per share – diluted*	$	0.10					$	0.17		$	0.08					$	0.13
Shares used in calculation:
Basic		32,910						32,910			30,785						30,785
Diluted*		42,664						42,664			31,542						31,542

A Amortization of developed technology

B Consolidation of equity investments

C Amortization of intangibles

D Amortization of deferred stock-based compensation

E Loss in equity investments

* Gives effect to the potential issuance of common stock upon conversion of convertible subordinated notes and to the effect of all dilutive potential common shares outstanding during the period, including stock options and warrants, using the treasury stock method.

Magma Reports Record Revenue for Fourth Quarter Page 6

MAGMA DESIGN AUTOMATION, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

IMPACT OF PRO FORMA ADJUSTMENTS ON REPORTED NET INCOME

(in thousands, except per share data)

(Unaudited)

	For the Year Ended March 31, 2004									For the Year Ended March 31, 2003
	As Reported			Adjust- ments			As Adjusted			As Reported			Adjust- ments			As Adjusted
Revenue:
Licenses	$	100,387		$	—		$	100,387		$	63,631		$	—		$	63,631
Services		13,342			—			13,342			11,461			—			11,461
Total revenue		113,729			—			113,729			75,092			—			75,092
Cost of revenue		16,647			(2,824	)A,E,F		13,823			11,518			(218	)A		11,300
Gross profit		97,082			2,824			99,906			63,574			218			63,792
Operating expenses:
Research and development		26,097			(444	)B		25,653			18,687			—			18,687
Sales and marketing		36,973			—			36,973			25,656			—			25,656
General and administrative		11,348			—			11,348			10,680			(1,850	)		8,830
Restructuring costs		—			—			—			727			(727	)C		—
In-process research and development		200			(200	)D		—			—			—			—
Amortization of intangible assets		1,745			(1,745	)E		—			—			—			—
Amortization of stock-based compensation		7,086			(7,086	)F		—			4,830			(4,830	)F		—
Total operating expenses		83,449			(9,475	)		73,974			60,580			(7,407	)		53,173
Operating income		13,633			12,299			25,932			2,994			7,625			10,619
Interest and other income (expense):
Interest income		2,584			—			2,584			1,841			—			1,841
Interest expense		(1,066	)		—			(1,066	)		—			—			—
Other income (expense), net		(100	)		1,228	G		1,128			(578	)		573	G		(5	)
Interest and other income, net		1,418			1,228			2,646			1,263			573			1,836
Income before income taxes		15,051			13,527			28,578			4,257			8,198			12,455
Income taxes		(3,576	)		—			(3,576	)		(1,183	)		—			(1,183	)
Net income	$	11,475		$	13,527		$	25,002		$	3,074		$	8,198		$	11,272
Earnings per share – basic	$	0.36					$	0.79		$	0.10					$	0.37
Earnings per share – diluted*	$	0.29					$	0.62		$	0.10					$	0.35
Shares used in calculation:
Basic		31,648						31,648			30,521						30,521
Diluted*		40,245						40,245			31,976						31,976

A Amortization of developed technology

B Consolidation of equity investments

C Restructuring charges

D In-process research and development

E Amortization of intangibles

F Amortization of deferred stock-based compensation

G Loss in equity investments

* Gives effect to the potential issuance of common stock upon conversion of convertible subordinated notes and to the effect of all dilutive potential common shares outstanding during the period, including stock options and warrants, using the treasury stock method.

Magma Reports Record Revenue for Fourth Quarter Page 7

MAGMA DESIGN AUTOMATION, INC.

AS OF MARCH 31, 2004

IMPACT OF PRO FORMA ADJUSTMENTS ON FORWARD-LOOKING DILUTED NET INCOME PER SHARE

(Unaudited)

	Quarter Ending June 30, 2004
GAAP diluted net loss per share	$ (0.16) to $ (0.12)
Amortization of intangibles	$0.04
Amortization of capitalized developed technology	$0.09
In-process research and development	$0.17
Amortization of deferred stock compensation	$0.01
Loss in equity investments	$0.01
Pro forma diluted net income per share	$0.16 to $0.20