Federman & Sherwood Announces to All Current Owners of Magma Design Automation, Inc. (NASDAQ: LAVA) Common Stock

OKLAHOMA CITY, OK–(EMWNews – August 7, 2008) – YOU ARE HEREBY NOTIFIED that the Parties

to a shareholder derivative action styled Susan Willis v. Rajeev Madhavan,

et al.; Civil Action No. 1:05-CV-045834 (Superior Court of CA, County of

Santa Clara) (the “Derivative Action”) have entered into a Stipulation and

Agreement of Settlement (the “Stipulation”) to resolve the allegations

asserted in the Derivative Action (the “Settlement”).

PLEASE BE FURTHER ADVISED that pursuant to an Order of the Superior Court

of CA, County of Santa Clara (the “Court”), the Settlement was

preliminarily approved on August 4, 2008. A hearing will be held in the

Derivative Action on October 3, 2008, at 9:00 a.m. PDT (the “Settlement

Hearing”), before the Honorable Jack Komar for the purpose of determining:

(a) whether the Settlement of the Derivative Action by way of the adoption

of certain corporate governance provisions (as set forth in more detail in

the Stipulation) should be approved by the Court as fair, reasonable and

adequate to Magma (NASDAQ: LAVA) and its common stockholders; (b) whether

the application of Plaintiff’s Counsel for attorneys’ fees and

reimbursement of expenses should be approved; and (c) whether the

application of Plaintiff for an incentive fee award should be approved.

If you are a current shareholder of Magma, your rights to pursue certain

derivative claims on behalf of Magma may be affected by this Settlement.

Any person who is a current Magma shareholder, i.e., persons who have

continuously owned Magma common stock since on or after October 23, 2002

and who continue to hold their Magma common stock as of the date of the

Settlement Hearing, may appear in person or by attorney at the hearing and

show cause, if any, why the Stipulation should not be finally approved; why

a judgment dismissing the Derivative Action with prejudice as against the

Defendants should not be entered and the claims of Magma should not be

barred permanently; why the application of Plaintiff’s counsel for an award

of attorneys’ fees and reimbursement of expenses should not be approved;

and/or why the application of Plaintiff for an incentive fee award should

not be approved. Before the Court will consider an objection, however,

such objection must be in writing and must include the objector’s name,

address, telephone number and signature; and must be accompanied by formal

proof of continuous ownership of Magma stock from October 23, 2002 through

the date of objection. Any shareholder that files a written objection and

appears at the Settlement Hearing, either in person or through counsel,

must also be prepared to show continuous ownership through the date of the

Settlement Hearing. Any written objection must be filed with the Court and

served upon the following attorneys at least twenty (20) days before the

Settlement Hearing date.

If you want additional information regarding the Derivative Action or the

Settlement, please go to www.federmanlaw.com to access the Stipulation and

Agreement of Settlement or contact Plaintiff’s counsel.

PLEASE DO NOT TELEPHONE THE COURT OR MAGMA

REGARDING THIS NOTICE