Magma® Design Automation Inc. (Nasdaq: LAVA), a provider of chip design software, today announced development of a new yield enhancement software system customized for solar fabs to improve conversion efficiency, increase yield and reduce the manufacturing costs of solar cells. Magma is collaborating with Pegasus Semiconductor-Solar to refine product specifications and test the new product, based on Magma's YieldManager® software system. Bangalore, Aug. 27, 2008 - Magma® Design Automation Inc. (Nasdaq: LAVA), a provider of chip design software, today announced development of a new yield enhancement software system customized for solar fabs to improve conversion efficiency, increase yield and reduce the manufacturing costs of solar cells. Magma is collaborating with Pegasus Semiconductor-Solar to refine product specifications and test the new product, based on Magma's YieldManager® software system.

Solar-converted electricity costs two to three times as much to produce as energy generated from traditional sources. Inefficient energy conversion and the need to produce a very large number of wafers contribute to the high cost. Only about 16 percent of light that hits a solar cell wafer can be collected as usable electricity. To produce enough solar cells to generate 500 megawatts a year, a solar cell fab must produce as many as 400,000 wafers a day, an exponentially larger number than even the largest semiconductor plants produce. The cost of the silicon alone, not to mention the manufacturing costs, for that number of wafers is considerable. Improving the energy conversion efficiency, reducing the manufacturing costs and increasing the yield of silicon wafer-based solar cells are critical to the growth of the solar market.

Magma's new product will allow solar fabs to better monitor all metrology, inspection and performance data throughout the manufacturing process. This would enable fab operators to identify and correct root causes of solar-efficiency and yield degradation caused by subtle fab processing fluctuations or instability.

"Semiconductor manufacturing tools such as rapid fault detection, advanced process control and integrated yield management – which enabled rapid technology introductions and fast yield ramps – are now critically needed in the solar industry to reduce costs," said Dr. Sudhindra Tatti, president of Pegasus Semiconductor-Solar, a systems integrator in the solar industry that also provides semiconductor manufacturing expertise and consulting to solar manufacturers. "To keep up with the overwhelming demand, innovation in the solar fabrication process must be accelerated, and today no enterprise-wide yield enhancement software exists for solar fabs. Being able to base a much-needed solution on a proven product such as YieldManager is a terrific advantage for Magma."

- End -

Magma is collaborating with several solar fabs and will soon announce installation sites in Asia. Magma is defining the product specifications with Pegasus Semiconductor-Solar, which will also conduct beta testing.

"The demand for low-cost alternative energy far outstrips the supply today," said Ankush Oberai, vice president of the Magma's Failure Analysis Business Unit. "We're pleased to support the explosive growth of this fledgling industry with proven, yield management technology."

About Pegasus Semiconductor-Solar

Pegasus Semiconductor-Solar is working to bring solar energy into the energy infrastructure of semi-rural and urban areas of India. Pegasus applies its extensive expertise and experience in semiconductor manufacturing to bring the "semiconductor approach and mentality" necessary to achieve rapid cost reductions and improved performance of solar cell manufacturing. Adoption of advanced technologies is key the company's strategy. In addition, Pegasus is a pioneer in developing ultra-low-power LED lamps which consume much less energy than conventional light sources.