For Immediate Release

Synplicity Announces Third Quarter 2006 Results

Highlights:

• GAAP operating income as a percentage of revenue decreased from 13% to 10% due to stock-based compensation expense and the timing of the Design Automation Conference, while non-GAAP operating income increased from 14% to 17% in the quarters ended September 30, 2005 and 2006, respectively
• FPGA design tool bookings increased 26% year over year
• Rest of Asia bookings increased nearly 50% year over year

SUNNYVALE, Calif., October 23, 2006 — Synplicity®, Inc. (Nasdaq: SYNP), a leading supplier of software for the design and verification of semiconductors, today announced financial results for the quarter ended September 30, 2006. Revenue for the quarter ended September 30, 2006 was $16.3 million, compared with $15.9 million for the quarter ended September 30, 2005.

On a generally accepted accounting principles (GAAP) basis, net income was $1.6 million, or $0.06 per diluted share, for the quarter ended September 30, 2006, as compared to GAAP net income of $2.5 million, or $0.09 per diluted share, for the quarter ended September 30, 2005. For the quarter ended September 30, 2006, GAAP net income included $223,000 in amortization of intangible assets from acquisitions and $947,000 in stock-based compensation expense, resulting from implementation of SFAS123R as of January 1, 2006. For the quarter ended September 30, 2005, GAAP net income included $223,000 in amortization of intangible assets from acquisitions and a $24,000 stock-based compensation benefit.

Non-GAAP net income was $2.8 million, or $0.10 per diluted share, for the quarter ended September 30, 2006, compared to non-GAAP net income of $2.7 million, or $0.10 per diluted share, for the quarter ended September 30, 2005. A reconciliation of GAAP to non-GAAP net income is included with this press release.

For the nine months ended September 30, 2006, revenue was $46.1 million and GAAP net income was $1.6 million, or $0.06 per diluted share compared to revenue of $45.6 million and GAAP net income of $3.9 million, or $0.14 per diluted share for the nine months ended September 30, 2005. Included in GAAP net income for the nine month period ended September 30, 2006 were stock-based compensation expense of $2.8 million, amortization of intangible expense of $668,000, and from the first quarter of 2006, a restructuring charge of $854,000. Included in GAAP net income for the nine month period ended September 30, 2005 were $668,000 of amortization of intangibles and a $9,000 stock-based compensation benefit. Non-GAAP net income was $5.9 million, or $0.21 per diluted share for the nine months ended September 30, 2006 and $4.6 million, or $0.17 per diluted share for the nine months ended September 30, 2005.

“The results reported for our third quarter again demonstrate solid execution to our plan of focusing on the FPGA market and improving our bottom line,” said Gary Meyers, president and CEO of Synplicity. “I am proud of the entire Synplicity team for their commitment and execution to our FPGA-focused strategy. We are firing on all cylinders and I expect we will continue to do so during our fourth quarter,” concluded Meyers.

Business Outlook
The following statements are based on current expectations. We do not intend to update, confirm or change this guidance until our earnings conference call for the fourth quarter of 2006.

• Revenue for the fourth quarter of 2006 is expected to be in the range of $17.2 to $17.7 million.
• GAAP net income per fully diluted share for the fourth quarter of 2006 is expected to be in the range of $0.06 to $0.08. GAAP net income for the quarter is expected to include non-cash charges of approximately $950,000 relating to stock-based compensation and $222,000 of amortization of intangible assets. Tax expense for the fourth quarter of 2006 is expected to be approximately 28 percent of pretax income.
• Non-GAAP net income per share for the fourth quarter of 2006, which excludes the stock-based compensation and amortization of intangible assets mentioned above is expected to be in the range of $0.10 to $0.12, before consideration of the income tax effect of the excluded items.

Audio Webcast
The Company’s earnings call will be webcast today at 2:00 p.m. Pacific, and may be accessed at http://investor.synplicity.com. The Company will discuss the third quarter 2006 results. Following completion of the call, a rebroadcast of the webcast will be available at http://investor.synplicity.com through December 30, 2006. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific on October 23, 2006 through November 6, 2006. To listen to a replay, call (719) 457-0820, access code 4121052.

Use of Non-GAAP Financial Measures
This press release includes financial measures for net income and net income per share that exclude certain non-cash and other charges and that have not been calculated in accordance with GAAP. These measures differ from GAAP in that it excludes amortization of intangible assets from acquisitions and stock-based compensation and, in addition in 2006, a restructuring charge. The Company has provided these measurements in addition to GAAP financial results because it believes it provides a consistent basis for comparison between quarters that is not influenced by other activities and therefore are helpful to understanding the Company’s underlying operational results. Further, these non-GAAP measures are some of the primary measures the Company’s management uses for planning and forecasting. These measures should not be considered an alternative to GAAP and these non-GAAP measures may not be comparable to information provided by other companies.

About Synplicity
Synplicity®, Inc. (Nasdaq: SYNP) is a leading supplier of innovative software solutions that enable the rapid and effective design of Programmable Logic Devices (FPGAs, PLDs and CPLDs) and are used in a wide range of communications, military/aerospace, consumer, semiconductor, computer, and other electronic systems markets. Synplicity’s tools provide outstanding performance, cost and time-to-market benefits by simplifying, improving and automating key design planning, logic synthesis, physical synthesis and verification functions for FPGA, FPGA-based ASIC prototyping and DSP designers. Synplicity is the number one supplier of FPGA synthesis solutions and has been rated #1 in customer satisfaction since 2004 in EE Times’ Annual FPGA Customer Survey. Synplicity products support industry-standard design languages (VHDL and Verilog) and run on popular platforms. The company operates in over 20 facilities worldwide and is headquartered in Sunnyvale, California. For more information visit http://www.synplicity.com.

Forward-Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding the Company’s FPGA market focus, profitability, growth in revenue, the Company’s execution and results, estimated net income, net income per share, effective tax rate, and certain expenses for the remainder of 2006. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual financial results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements including continued demand for the Company’s FPGA products, the Company’s ability to increase revenue from its FPGA products, the orderly wind down of its ASIC business, employee retention and the impact of variability in the Company’s stock price on its stock-based compensation expense. 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 actual events or results may differ materially. The Company cannot provide any assurance that its future results will meet expectations. The Company’s operating results could differ materially due to a number of factors, including the performance and quality of its software products relative to its competitors’ products, the growth of the markets addressed, and the Company’s level of expenses. For additional information and considerations regarding the risks faced by the Company, see its annual report on Form 10-K for the year ended December 31, 2005 and quarterly report on Form 10-Q for the three months ended June 30, 2006, as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements. The Company disclaims any obligation to update information contained in any forward-looking statement.

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Synplicity is registered trademarks of Synplicity, Inc. All other brands or products are the trademarks or registered trademarks of their owners.

Investor Relations :
John J Hanlon
Synplicity, Inc.
(408) 215-6000
ir@synplicity.com

Public Relations :
Steve Gabriel
Porter Novelli
(408) 369-4600 x627
steve.gabriel@porternovelli.com

SYNPLICITY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

(1) Derived from audited financial statements

SYNPLICITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

(2) Amortization of stock-based compensation relates to the following:

SYNPLICITY, INC.
RECONCILIATION OF GAAP NET INCOME TO PRO FORMA NET INCOME
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Net Income (Loss)

(3) The non-GAAP calculations of net income and net income per share for the three and nine months ended September 30, 2006 were not tax-effected. If the non-GAAP computation of net income was taxed at the rate the Company is projecting for the full year, the non-GAAP net income would have been $2.5 million, or $0.09 per share and $4.7 million, or $0.17 per share, respectively, for the three and nine months ended September 30, 2006. In 2005, the Company incurred minimal income tax expense principally due to the utilization of net operating loss carryforwards and research and development tax credits.

Operating Income (as a percentage of revenue)

Forward-Looking Net Income per Share