Filed by  Synopsys, Inc. Pursuant to Rule 425
                                    Under the Securities Act of 1933, as amended
                                            Subject Company:  IKOS Systems, Inc.
                                                   Commission File No.:  0-18623


                                                                    NEWS RELEASE



Editorial Contacts:
Craig Cochran                       Linda Prowse Fosler
Synopsys, Inc.                      IKOS Systems, Inc.
(650)584-4230                       (408)361-9667
craig@synopsys.com                  linda@ikos.com

Investor Contacts:
Steve Shevick                       Peter Denardo
Synopsys, Inc.                      Demer IR (for IKOS Systems)
(650)584-4880                       (925)938-2678, ext. 223
shevick@synopsys.com                pdenardo@demer-ir.com


                    SYNOPSYS AGREES TO ACQUIRE IKOS SYSTEMS

                Verification leaders agree to merger to provide
              industry's most complete SoC verification solutions


MOUNTAIN VIEW, Calif., July 2, 2001 -- Synopsys, Inc. (Nasdaq:SNPS) and IKOS
Systems, Inc. (Nasdaq:IKOS) today announced that they have signed a merger
agreement providing for the acquisition by Synopsys of all outstanding shares of
IKOS.  The merger is expected to benefit design teams faced with the challenges
of verifying multi-million gate system-on-chip (SoC) designs by providing a full
suite of functional verification products integrated with IKOS' high performance
hardware-assisted platforms.  The purchase price per share, which will range
between $6 and $20, will be determined by a formula based on IKOS' financial
performance in the 12-month period ending June 2002. Completion of the merger is
targeted for August 2002 in order to ensure Synopsys' full compliance with the
terms of a five-year non-competition


agreement arising from the June 1997 sale of its prior emulation technology.
Upon closing of the transaction, each shareholder of IKOS will receive Synopsys
common stock.


     "The functional verification problem faced by SoC designers today is
growing exponentially," stated Aart de Geus, chairman and CEO of Synopsys.  "Our
customers are demanding integrated solutions to address verification through
every step of the design flow, and they require best-in-class technology in each
product area.  The combination of Synopsys and IKOS solutions will provide the
deepest and broadest portfolio of integrated verification products in the
industry."

     With ever-increasing verification requirements, designers must employ both
faster tools and smarter verification strategies to meet their goals.  Synopsys
provides the fastest RTL simulation tools in the market, which are complemented
by leading testbench automation, formal verification and coverage analysis tools
to provide the fastest and smartest software-based solution in the industry.
Adding IKOS' technology-leading hardware-assisted verification platforms, which
increase verification speed by orders of magnitude, will provide designers with
the most complete solution for verifying very complex systems-on-chip.

     "IKOS has long held a vision of providing a broader offering of
verification solutions and of seeing our hardware-assisted platforms become
mainstream tools for the verification of large, complex designs. We see great
opportunities and benefits for our customers arising from the combination of
Synopsys' best-in-class software solutions with IKOS' leading-edge hardware-
assisted platforms," stated Ramon Nunez, president and CEO of IKOS.  "We have
been a member of Synopsys' in-Sync(R) partnership program for many years.  We
shall continue this historical type of activity during the next year and we are
excited about working together to create further state-of-the-art solutions for
SoC functional verification after the merger is complete."


Structure of the Transaction

     The target for closing the transaction is August 2002.  This date ensures
that Synopsys will fully honor its emulation non-competition agreement with
Quickturn Design Systems that expires in June 2002.  Due to the extended pre-
closing period, the companies have agreed that the final per-share purchase
price will be determined by IKOS' revenue, change in backlog, and


profit before tax (as defined in the Merger Agreement) for the 12-month
measurement period ending June 30, 2002, and ranges from $6 to $20.

     After the close of the measurement period, IKOS' auditors, subject to
review by Synopsys and its auditors, will calculate revenue plus change in
backlog and profit before tax (PBT), and the price per share will be calculated
using both metrics.  The final price per share will be the lower of the two,
except where the price determined by revenue alone (i.e., without the change in
backlog) is higher than the price determined by PBT, in which case the final
price will be determined by revenue plus change in backlog, if it produces a
higher price.  The following table summarizes the price per share at different
levels of revenue plus the change in backlog, and at different levels of profit
before tax.



- ------------------------------------------------------------------------------
        Price per Share                Revenue Plus           Profit (loss)
                                        Change in                Before
                                         Backlog*                 Tax*
- ------------------------------------------------------------------------------
                                                       
                                      (greater than           (greater than
                                       or equal to)            or equal to)
            $20.00                     $100 million            $18 million
- ------------------------------------------------------------------------------
            $18.00                      $90 million            $14 million
- ------------------------------------------------------------------------------
            $15.00                      $80 million             $8 million
- ------------------------------------------------------------------------------
            $12.00                      $70 million             $0
- ------------------------------------------------------------------------------
            $ 9.00                      $60 million            ($5 million)
- ------------------------------------------------------------------------------
            $ 6.00                      $50 million            ($10 million)
- ------------------------------------------------------------------------------


          *If revenue plus the change in backlog or PBT falls between any of
          the points in the table, the price will be calculated using linear
          interpolation.

A full explanation of the pricing structure of the merger will be filed in a
Registration Statement on Form S-4 with the Securities and Exchange Commission,
and qualifies the preceding table.

     Upon closing of the merger, IKOS stockholders will receive shares of
Synopsys common stock, with the ratio determined by dividing the purchase price
per share by the average closing price of Synopsys stock during the ten trading-
day period ending on the fifth trading day prior to the closing date.  IKOS
stock options will be assumed by Synopsys at the same exchange ratio.


The transaction is expected to be tax free to holders of IKOS stock. The merger
will be accounted for as a purchase transaction.

     The merger is subject to certain conditions, including IKOS achieving
revenue of at least $50 million and losses before tax not exceeding $10 million
during the measurement period, expiration or termination of the Synopsys
emulation non-compete provision, IKOS stockholder approval, retention of certain
employees, compliance with regulatory requirements and customary closing
conditions.


Conference Call Open to Investors

     Synopsys and IKOS will hold a conference call for financial analysts and
investors today at 2:30 p.m., Pacific Time. The conference call is accessible by
calling 1-877-209-9921 (or  +1-612-332-1213 for international callers).  A live
webcast of the call will also be available from http://www.StreetFusion.com or
                                                ---------------------------
through a link on Synopsys' web site at
http://www.synopsys.com/corporate/invest/invest.html. A recording of the call
- ----------------------------------------------------
will be available beginning at 6:00 p.m. today and ending at 11:45 p.m. on July
13, 2001, and is accessible by calling 1-800-475-6701 (or +1-320-365-3844 for
international callers), access code 593964. A webcast replay will also be
available from http://www.StreetFusion.com or through a link on Synopsys' web
               ---------------------------
site at http://www.synopsys.com/corporate/invest/invest.html from approximately
        ----------------------------------------------------
4:30 p.m. today and ending at 5:00 p.m. on July 13, 2001.


Forward Looking Statements

     The second, third and fourth paragraphs of this press release contain
forward-looking statements under the safe harbor provisions of Section 21E of
the Securities Exchange Act of 1934. These statements are based on Synopsys' and
IKOS' current expectations and beliefs. Actual results could differ materially
from the results implied by these statements.  Factors that may cause or
contribute to such differences include the successful closing of the
acquisition; changes in both companies' businesses during the period between now
and the target closing date; litigation relating to the transaction or the
businesses; the successful integration of IKOS into Synopsys' business
subsequent to the closing of the acquisition; timely development, production and
acceptance of products and services contemplated by the merged company after


completion of the proposed acquisition; increasing competition in the market for
verification hardware or software; the ability to retain key management and
technical personnel; adverse reactions to the proposed transaction by customers,
suppliers and strategic partners and other risks described in Synopsys' report
on Form 10-Q filed with the Securities and Exchange Commission (SEC) on June 15,
2001 (pp. 20-23), IKOS' report on Form 10-Q filed with the SEC on May 14, 2001
(pp. 10-14) and such other risks as may be detailed from time to time in each
company's periodic reports filed with the SEC.


About IKOS

     IKOS Systems, Inc. (Nasdaq:IKOS) is a technology leader in high-performance
design verification solutions including hardware and software simulation for
language-based design, logic emulation for system integration and compatibility
verification, and verification services. The company's mission is to develop and
deliver high performance solutions that enable its customers to verify the
functional correctness of their complex electronic system designs. IKOS has
direct sales operations in North America, UK, France, Germany, The Netherlands,
Japan and India, and a distribution network throughout Asia-Pacific and Israel.
The corporate headquarters is located at 79 Great Oaks Blvd., San Jose, Calif.,
95119, 408/284-0400. For more information, visit http://www.ikos.com.
                                                 -------------------


About Synopsys

     Synopsys, Inc. (Nasdaq:SNPS), headquartered in Mountain View, California,
creates leading electronic design automation (EDA) tools for the global
electronics market. The company delivers advanced design technologies and
solutions to developers of complex integrated circuits, electronic systems, and
systems on a chip. Synopsys also provides consulting and support services to
simplify the overall IC design process and accelerate time to market for its
customers. Visit Synopsys at http://www.synopsys.com.
                             -----------------------

                                     # # #


Synopsys and in-Sync are registered trademarks and VCS is a trademark of
Synopsys, Inc.  IKOS is a registered trademark of IKOS Systems, Inc. All other
trademarks or registered trademarks mentioned in this release are the
intellectual property of their respective owners.

Additional Information: In connection with the proposed merger, Synopsys, Inc.
plans to file a Registration Statement on Form S-4 (including a Proxy
Statement/Prospectus) and IKOS plans to file a Proxy Statement, each containing
information about the proposed merger, with the Securities and Exchange
Commission ("SEC").  Thereafter, IKOS will mail the Proxy Statement/ Prospectus
to IKOS stockholders.  Investors and security holders are urged to read the
Registration Statement and the Proxy Statement/Prospectus carefully when each
document becomes available.  The Registration Statement and the Proxy
Statement/Prospectus will contain important information about Synopsys, IKOS,
the proposed merger and related matters.  Investors and security holders will be
able to obtain free copies of these documents through the website maintained by
the SEC at http://www.sec.gov.  Free copies of the Registration Statement, Proxy
Statement/Prospectus and Synopsys' other filings may also be obtained by
accessing Synopsys' website at http://www.synopsys.com or by directing a request
by mail or telephone to Synopsys, Inc., 700 East Middlefield Rd., Mountain View,
California 94043, (650) 584-5000.  Free copies of the Proxy Statement/Prospectus
and IKOS' other filings may also be obtained by accessing IKOS' website at
http://www.ikos.com or by directing a request by mail or telephone to IKOS
Systems, Inc., 79 Great Oaks Blvd., San Jose, California 95119, (408) 284-0400.

You may read and copy any reports, statements and other information filed by
Synopsys and IKOS at the SEC public reference rooms at 450 Fifth Street, N.W.,
Washington, D.C. 20549 or at the Commission's other public reference rooms in
New York, New York and Chicago, Illinois.  Please call the Commission at 1-800-
SEC-0330 for further information on public reference rooms.  Synopsys' and IKOS'
filings with the Commission are also available to the public from commercial
document-retrieval services and the web site maintained by the Commission at
http://www.sec.gov.

Synopsys and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from IKOS stockholders by IKOS and
its Board of Directors in favor of the adoption and approval of the merger
agreement and approval of the merger.

IKOS and its directors and executive officers may be deemed to be participants
in the solicitation of proxies from IKOS stockholders in favor of the adoption
and approval of the merger agreement and approval of the merger.  Investors and
securities holders may obtain additional information regarding the interests of
the participants from IKOS' filings with the SEC under Rule 14a-12 of the
Exchange Act of 1934, as amended.