THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Magma Design Automation, Inc. (LAVA)

7/17/2006 Proxy Information

Magma’s Policies

It is our policy that all employees must avoid any activity that is or has the appearance of being adverse or competitive with Magma, or that interferes with the proper performance of their duties, responsibilities or loyalty to Magma. These policies are included in our Code of Ethics, which covers Magma’s directors, executive officers and other employees. Any waivers to these conflict rules with regard to a director or executive officer require the prior approval of the Board or the Audit Committee.

Certain Relationships and Related Transactions

Mr. Ng is a managing director with Deutsche Bank. In connection with Magma’s repurchases of common stock and convertible notes in May 2005, Magma paid Deutsche Bank approximately $65,000. In May 2006, Magma repurchased additional convertible notes and paid Deutsche Bank approximately $100,862.50.

During fiscal 2006, Masoud Ghafouri, a brother of Saeid Ghafouri, Magma’s Corporate Vice President, Worldwide Field Operations, was employed by Magma as Director of Purchasing and Facilities, in which capacity he earned aggregate compensation of $207,735.

Mr. Stanley was a consultant to Magma from April 2005 to November 2005. Under his consulting agreement, Mr. Stanley was paid compensation totaling $237,920.

Indebtedness of Management

None of our directors, executive officers, nominees for such positions, or their family members, have been indebted to Magma or its subsidiaries at any time in the past fiscal year.

7/29/2005 Proxy Information

Magma’s Policies

It is our policy that all employees must avoid any activity that is or has the appearance of being adverse or competitive with Magma, or that interferes with the proper performance of their duties, responsibilities or loyalty to Magma. These policies are included in our Code of Ethics, which covers Magma’s directors, executive officers and other employees. Any waivers to these conflict rules with regard to a director or executive officer require the prior approval of the Board or the Audit Committee.

Relationships and Related Party Transactions

Mr Ng is a managing director with Deutsche Bank. In connection with Magma’s repurchase of common stock and its repurchase of convertible notes in May 2005, Deutsche Bank was paid approximately $65,000. During fiscal 2005, Masoud Ghafouri, a brother of Saeid Ghafouri, Magma’s Senior Vice President of Worldwide Sales, was employed by Magma as Director of Purchasing and Facilities, in which capacity he earned aggregate compensation of $150,300.

Indebtedness of Management

None of our directors, executive officers, nominees for such positions, or their family members, have been indebted to Magma or its subsidiaries at any time in the past fiscal year.