Synplicity Announces Revenue of $11.8 Million for the Quarter Ended December 31, 2002
Pro Forma Net Loss Was $338,000, or $0.01 Per Share
GAAP Net Loss Was $1.6 Million, or $0.06 Per Share

SUNNYVALE, Calif., January 28, 2003 — Synplicity, Inc. (Nasdaq: SYNP), a leading supplier of software for the design and verification of semiconductors, today announced financial results for the quarter ended December 31, 2002. Revenue for the quarter ended December 31, 2002 was $11.8 million, a two percent decrease from revenue of $12.0 million for the quarter ended December 31, 2001 and unchanged from revenue for the quarter ended September 30, 2002.

Pro forma net loss was $338,000, or $0.01 per share, for the quarter ended December 31, 2002, compared to pro forma net income of $338,000, or $0.01 per share, for the quarter ended December 31, 2001 and pro forma net income of $266,000, or $0.01 per share, for the quarter ended September 30, 2002. Pro forma net income/loss excludes amortization of intangible assets from acquisitions, stock-based compensation expense and acquired in-process research and development expense. On a generally accepted accounting principles (GAAP) basis, Synplicity had a net loss of $1.6 million, or $0.06 per diluted share, for the quarter ended December 31, 2002, compared to net income of $125,000, or $0.00 per diluted share, for the quarter ended December 31, 2001 and a net loss of $1.7 million, or $0.07 per diluted share, for the quarter ended September 30, 2002. Synplicity’s net loss of $1.6 million for the quarter ended December 31, 2002 includes a nonrecurring charge of $1.1 million for the acquired in-process research and development from the Bridges2Silicon technology acquisition as well as an additional technology acquisition completed during the quarter.

For the year ended December 31, 2002, revenue was $45.6 million, a seven percent decrease from revenue of $49.2 million for the year ended December 31, 2001. Pro forma net income was $346,000, or $0.01 per share, for the year ended December 31, 2002, compared to pro forma net income of $2.3 million, or $0.09 per diluted share, for the year ended December 31, 2001. GAAP net loss was $3.3 million, or $0.13 per diluted share, for the year ended December 31, 2002, compared to net income of $1.3 million, or $0.05 per diluted share, for the year ended December 31, 2001.

"Synplicity had a solid fourth quarter and we believe it is well positioned for the coming year," said Bernard Aronson, president and CEO of Synplicity. "We had a large increase in the amount of time-based licenses booked during the quarter, which strengthens our business by improving our revenue visibility going into 2003. Additionally, we were able to meet our projected financial targets once again, even with this larger amount of time-based bookings. During 2002 we made two key product and technology acquisitions, which coupled with our internal development efforts have strengthened our product suite. For example, we recently introduced enhanced versions of our ASIC and FPGA synthesis tools and have already had several sales of the Identify™ RTL debugging tool we acquired in November 2002."

Synplicity’s earnings call will be webcast today at 2:00 p.m. Pacific, and may be accessed at http://www.synplicity.com or at http://www.tfn.com. Synplicity will discuss its results for the fourth quarter and fiscal year 2002, as well as its 2003 business outlook. Following completion of the call, a rebroadcast of the webcast will be available at http://www.synplicity.com through February 28, 2003. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on January 28, 2003 through February 28, 2003. To listen to a replay, call (719) 457-0820, access code 116313.

About Synplicity
Synplicity, Inc. (Nasdaq: SYNP) is a leading provider of software products that enable the rapid and effective design and verification of semiconductors used in networking and communications, computer and peripheral, consumer and military/aerospace electronics systems. Recognizing the company's industry-leading position, since the year 2000 Dataquest has named Synplicity as the #1 provider of PLD synthesis tools, announcing a 54 percent market share in 2001. Synplicity leverages its innovative logic synthesis, physical synthesis and verification software solutions to improve performance and shorten development time for complex programmable logic devices, application specific integrated circuits (ASICs) and system-on-chip (SoC) integrated circuits. The company’s fast, easy-to-use products offer high quality of results, support industry-standard design languages (VHDL and Verilog) and run on popular platforms. As of December 31, 2002, Synplicity employed over 250 people in its 20 facilities worldwide. Synplicity is headquartered in Sunnyvale, Calif. For more information on Synplicity, visit http://www.synplicity.com.

Forward-Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding our positioning for 2003, our revenue visibility for 2003, our product offerings, our internal development activities, and the benefits of our acquisitions in 2002. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause Synplicity's actual financial results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In some cases, you will be able to identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. Forward-looking statements are only predictions and the actual events or results may differ materially. Synplicity cannot provide any assurance that its future results will meet expectations. Synplicity's operating results could differ materially due to a number of factors, including the continued acceptance of Synplicity's existing products and the market acceptance of Synplicity's new products, including its Synplify ASIC® product, Fortify™ products and Identify™ product. For additional information and considerations regarding the risks faced by Synplicity, see its annual report on Form 10-K for the year ended December 31, 2001 as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time including its quarterly reports on Form 10-Q. Although Synplicity believes that the expectations reflected in the forward-looking statements are reasonable, Synplicity cannot guarantee future results, levels of activity, performance or achievements. In addition, neither Synplicity nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements. Synplicity disclaims any obligation to update information contained in any forward-looking statement.

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Synplicity and Synplify ASIC are registered trademarks of Synplicity, Inc. Fortify and Identify are trademarks of Synplicity. All other brands or products are the trademarks or registered trademarks of their owners.

Investor Relations :
Doug Miller
Synplicity, Inc.
(408) 215-6000
ir@synplicity.com

Public Relations :
Steve Gabriel
Porter Novelli
(408) 369-1500
steve.gabriel@porternovelli.com

Synplicity, Inc.

Consolidated Balance Sheets
(in thousands)

				December 31, 2002	December 31, 2001
Assets:
Current assets:
	Cash, cash equivalents and short-term investments.........................			$ 41,310	$ 47,873
	Accounts receivable, net..................................................................			8,607	7,286
	Other current assets........................................................................			1,041	895
	Total current assets........................................................................			50,958	56,054
	Property and equipment, net.............................................................			3,439	3,283
	Goodwill..........................................................................................			1,272	--
	Intangible assets, net.......................................................................			4,128	--
	Other assets...................................................................................			711	568
	Total assets...................................................................................			$ 60,508	$ 59,905
Liabilities and Shareholders' Equity:
Current liabilities:
		Accounts payable and accrued liabilities...........................................		$ 3,868	$ 2,977
		Accrued compensation....................................................................		2,270	2,138
		Deferred revenue.............................................................................		12,197	10,992
		Current portion of long-term debt......................................................		--	71
			Total current liabilities................................................................	18,335	16,178
Shareholders' equity:
	Common stock...............................................................................			55,597	54,109
	Additional paid-in capital..................................................................			3,466	3,694
	Notes receivable from shareholders...................................................			(294)	(294)
	Deferred stock-based compensation................................................			(731)	(1,501)
	Accumulated deficit.........................................................................			(15,821)	(12,503)
	Accumulated other comprehensive income (loss)...............................			(44)	222
		Total shareholders' equity............................................................		42,173	43,727
		Total liabilities and shareholders' equity......................................		$ 60,508	$ 59,905

Synplicity, Inc.

Consolidated Statements of Operations
(in thousands, except per share data)

			Quarter Ended December 31,		Year Ended December 31,
			2002	2001	2002	2001
			(unaudited)
Revenue:
License.................................................................			$ 6,587	$ 7,362	$ 25,830	$ 32,126
Maintenance..........................................................			5,208	4,683	19,777	17,076
	Total revenue.................................................		11,795	12,045	45,607	49,202
Cost of revenue:
	Cost of license..................................................		49	51	227	237
	Cost of maintenance..........................................		478	488	1,877	1,918
	Amortization of intangible assets from acquisitions....		192	--	322	--
	Total cost of revenue......................................		719	539	2,426	2,155
Gross profit.....................................................			11,076	11,506	43,181	47,047
Operating expenses:
Research and development.....................................			5,114	4,964	19,043	19,353
Sales and marketing...............................................			5,380	5,066	20,099	21,500
General and administrative.....................................			1,117	1,414	4,557	5,493
Stock-based compensation.....................................			6	213	542	1,012
Acquired in-process research and development.........			1,100	--	2,800	--
	Total operating expenses...............................		12,717	11,657	47,041	47,358
Loss from operations .............................................			(1,641)	(151)	(3,860)	(311)
Other income, net ..................................................			171	346	900	1,922
Income (loss) before income taxes......................			(1,470)	195	(2,960)	1,611
Provision for income taxes......................................			166	70	358	304
Net income (loss)..............................................			$ (1,636)	$ 125	$ (3,318)	$ 1,307
Basic earnings per share:
Basic net income (loss) per common share..............			$ (0.06)	$ 0.01	$ (0.13)	$ 0.05
Shares used in per share calculation........................			25,508	24,802	25,270	24,422
Diluted earnings per share:
Diluted net income (loss) per common share...........			$ (0.06)	$ --	$ (0.13)	$ 0.05
Shares used in per share calculation........................			25,508	26,976	25,270	27,205
Pro forma earnings per share: (1)
Pro forma net income (loss)....................................			$ (338)	$ 338	$ 346	$ 2,319
Pro forma net income (loss) per common share..........			$ (0.01)	$ 0.01	$ 0.01	$ 0.09
Shares used in pro forma per share calculation........			25,508	26,976	26,541	27,205

1. Pro forma net income (loss) is computed by adjusting GAAP net income (loss) for the following items: