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To Our Stockholders, Business Partners And Employees:

At Synopsys we talk a lot about commitment, and about what it takes to be a great, enduring company. A key element of Synopsys' success is our strong set of core values: Integrity, Execution Excellence and Leadership. We adhere to these principles because they are right, and because they achieve results.

Our first commitment is to our customers. Synopsys is dedicated to enabling its customers to design remarkable chips by delivering the most complete semiconductor design solution through a combination of software, services and intellectual property. Customer satisfaction is Synopsys' most critical measure. We track success "one chip at a time."

For its stockholders, Synopsys is committed to managing its business skillfully and in accordance with all legal and ethical requirements, and to reporting its results with accuracy and candor. We believe great companies sustain growth and strong profitability over time, and opt for the long-term health of the enterprise rather than focusing only on short-term gain.

For its employees, Synopsys is committed to fostering an environment that treats people with respect, honesty and professionalism. We strive to develop the best in all of our employees, and to provide an environment that encourages corporate and personal growth.

Finally, Synopsys is committed to partnering with the communities in which we work. Every year, Synopsys reaches out to local communities with resources and employee leadership to support education, science programs and a variety of other activities.

Synopsys is proud to be a technology and community leader. We look forward to sustaining that leadership by fulfilling our commitments with energy, skill and integrity.

Aart de Geus
Chairman and co-CEO

Chi-Foon Chan
President and co-CEO