Investec Announces Investment Opinion: Investec Initiates Coverage of the Electronic Design Automation Sector

Business Wire, June 7, 2002

Business Editors/Hi-Tech Writers

NOTE TO EDITORS: The following is an investment opinion issued by

Investec

NEW YORK--(BUSINESS WIRE)--June 7, 2002

Initiating Coverage on Synopsys, Verisity, Magma Design

Automation, Synplicity, Cadence Design Systems, and Nassda

Brad Mook, Electronic Design Automation (EDA) software analyst at Investec Inc., has initiated coverage of the EDA sector.

EDA companies provide software tools used to design semiconductors and electronic systems.

"We believe that the increased complexity of semiconductors and a developing upturn in the semiconductor market are likely to accelerate growth in the EDA sector over the next several years," Mook said. Within the context of that favorable long-term backdrop, Investec has identified key investment opportunities for the near term:

Synopsys, Inc. (SNPS--STRONG BUY). Synopsys has dramatically improved its positioning within the EDA segment through its acquisition of Avant!, and is now set to compete for ownership of the critical physical synthesis design flow. The second-largest EDA company, Synopsys has a solid subscription license model and is likely to see very appealing EPS growth on the heels of the Avant! merger, and its valuation is attractive.

Verisity Ltd. (VRST--STRONG BUY). Verisity is an emerging EDA company, growing quickly through its strong technology in the promising functional verification market. We believe that Verisity's continued growth in the challenging EDA environment over the past year is testament to both the recurring revenue stream from its license model and its green-field market opportunity.

Investec also initiated coverage of Magma Design Automation Inc. (LAVA) and Synplicity, Inc. (SYNP) with BUY recommendations, maintains its BUY rating on Ansoft Corporation (ANST), and has initiated coverage of Cadence Design Systems, Inc. (CDN) and Nassda Corporation (NSDA) with HOLD ratings.

Investec's Electronics Research Group employs a food chain approach to coverage of the electronics sector, which spans Semiconductor Capital Equipment, Electronic Design Automation Software, Semiconductor Devices, Electronics Manufacturing Services, Embedded Systems, and Consumer Electronics.

Investec Inc. makes a market in the shares of: SNPS, VRST, LAVA, SYNP, ANST, and NSDA.

Editor's note: Interviews are available upon request.

About Investec Group

The Investec Group (JSE Securities Exchange: INT) is an international specialist-banking group which provides a wide range of specialized products and services to a select client base in 15 countries worldwide. The Group is organized in four principal businesses: investment banking, treasury and finance activities, private client activities and asset management.

Investec Group employs over 5,000 individuals worldwide. It is one of the Top 25 largest companies listed on the Johannesburg Stock Exchange and ranks among the world's top 350 banks with total assets under management exceeding $70 billion.

About Investec Inc.

Investec Inc. is the United States investment banking arm of Investec Group. The firm is a full service, research-oriented investment bank focusing on companies in the technology, healthcare, and consumer products industries.

Investec provides a full range of investment banking services, including public and private equity financings, private placements, mergers and acquisitions, and financial advisory services. Clients also benefit from its wealth management and asset management services.

This communication is neither an offer to sell nor a solicitation of an offer to buy any securities mentioned herein. The information contained herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. Investec Inc. and/or its affiliates may have a position in the securities described herein. Available information supporting this recommendation will be furnished upon request. Investec Inc. and/or its affiliates usually make a market in this stock. Investec Inc. and/or its affiliates will sell this stock to or buy it from customers on a principal basis. This report is not directed to, nor intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Investec Inc. or its affiliates to any registration or licensing requirement within such jurisdiction.