MARLBORO, Mass., July 23, 2001 - Innoveda, Inc. (Nasdaq: INOV), a leading provider of innovative software and services for the design of advanced electronic products, today announced an agreement in which Intusoft will provide circuit simulation capabilities for Innoveda's recently announced DxDesigner™ product suite. Intusoft, the San Pedro, California-based designer of circuit simulation and test software, will deliver proprietary algorithms and simulation technology for DxDesigner, scheduled to be released later this summer. The agreement expands upon the existing OEM relationship between the two companies.

DxDesigner redefines front-end design engineering through a process of "design definition" that combines four key process technologies: component information systems; design entry and sharing; simulation and planning; and enterprise connectivity within a single, comprehensive solution. This enables better communication among geographically dispersed engineering and manufacturing teams, resulting in more efficient component selection, less post-layout rework, fewer design defects, and shorter prototype-debugging cycles.

DxAnalog Module
According to Rick Almeida, Innoveda's vice president of marketing, Product Realization Group, "DxDesigner stresses the need for simulation and planning as one of the critical components in design definition. To meet the simulation requirements of analog and mixed-signal circuits, the DxAnalog™ module will incorporate Intusoft's interactive SPICE (Simulation Program with Integrated Circuit Emphasis) engine, as well as the IntuScope5 waveform analyzer, SPICE modeling program, and extensive model libraries. Together, these tools will enable Innoveda customers to run Monte Carlo, optimization, sweep, and fault analyses on analog and mixed-signal PCB and IC designs, as well as on multi-discipline systems."

Competitive Advantage
Larry Meares, Intusoft founder and president, said, "Circuit simulation has become increasingly important as manufacturers strive to narrow time between new product introductions while retaining quality and decreasing costs. The complexity of today's systems demands stringent simulation and verification testing that can only be met with the latest technology. Our expanded relationship will help deliver that capability to Innoveda's customers."

Technology Benefit
Almeida added, "Without simulation templates, designers must enter nominal values for the parameters of their circuit. Then, to see the effects of parameter tolerance variation, designers must change those parameters using a cumbersome, time-consuming, and often costly process. With DxDesigner, electrical engineers will be able to customize advanced circuit analyses that include measurements based on parametric variations for intra-component sensitivity, root summed square, extreme value, worst case, and Monte Carlo statistical simulations."

Keith Kasregis, Principal Engineer and Electronic Design Automation specialist at Siemens Building Technologies, Inc., agreed, stating, "The strengthening of the relationship between Innoveda and Intusoft, along with Innoveda's renewed commitment to the analog simulation marketplace, is good news for us at Siemens Building Technologies. The more capabilities Innoveda can build into their solutions, the more reliable our designs will be. The immediate inclusion of Intusoft's new simulation scripts, optimization, sweep, and fault analyses in DxDesigner are great first examples of that."

About Intusoft's Technology
The DxDesigner product suite will incorporate technology from Intusoft's latest release of its ICAP/4 software, including significant new functionality for running Monte Carlo, optimization, sweep, and fault analyses. These functions customize SPICE-based netlists for enhanced circuit analysis that goes well beyond the traditional SPICE boundaries of AC, DC, and transient analysis. The proprietary simulation templates used by these analyses employ interactive command language (ICL) scripts that tell a netlist which operations to perform. After a simulation is complete, designers can run additional scripts to view waveform functions such as phase margin, complex mathematical transformations, and group delay. By incorporating Intusoft technology in DxDesigner, designers will be able to automate the selection of component values to achieve their specified design objectives and help ensure manufacturing compliance early in the design cycle.

About Intusoft
Established in 1985, Intusoft designs, develops and markets award-winning software applications and tools for analog and mixed-signal circuit design, analysis and test automation to electronics industries worldwide. Information on Intusoft and its products is available on the company's web site at http://www.intusoft.com.

About Innoveda
Innoveda, Inc. (Nasdaq:INOV) is a leading provider of innovative software and services that help engineers visualize, design and build advanced electronic systems for companies participating in the telecommunications, transportation, computers and consumer electronics markets. The company enjoys a rich heritage of technical innovation from the merger of Viewlogic Systems, Inc. and Summit Design, Inc. that formed Innoveda, and the subsequent merger of Innoveda and PADS Software, Inc. These unions form the foundation of Innoveda's comprehensive electronic product solutions for system level design, design capture, board design and electromechanical design.

Headquartered in Marlboro, Mass., Innoveda has offices worldwide. Additional information can be found at: http://www.innoveda.com/

Forward-Looking Statements
This press release includes forward-looking statements that are subject to a number of risks and uncertainties. All statements, other than statements of historical facts, included in this press release including, without limitation, statements regarding Innoveda's financial projections for any period, strategy, future operations, financial position, prospects, plans, goals and objectives of management are forward-looking statements. When used in this press release, the words "will", "believe", "anticipate", "intend", "estimate", "expect", "project", "plan" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We cannot guarantee future results, levels of activity, performance or achievements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future transactions or strategic alliances. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including the ability of Innoveda to successfully integrate its business combinations, recent economic uncertainty, weakness in the business of our customers, the cyclical nature of the electronics industry, the failure of Innoveda's quarterly results to meet market expectations, the impact of financial charges related to business combinations, the intense competition Innoveda faces, Innoveda's ability to develop new products, and the other risks described in Innoveda's annual report on Form 10-K for the fiscal year ended December 30, 2000 as filed with the Securities and Exchange Commission on March 30, 2001, Innoveda's most recent quarterly report on Form-10Q and the other public filings made by Innoveda with the SEC, which factors are incorporated herein by reference.

Note to Editors: DxDesigner and DxAnalog are trademarks of Innoveda, Inc. All other trademarks are the property of their respective owners.