Verisity and Axis Announce Early Termination of Hart-Scott-Rodino Waiting Period and Date of California Fairness Hearing

Mountain View, CA and Sunnyvale, CA – January 14, 2004 – Verisity Ltd. (Nasdaq:VRST), the leading supplier of Verification Process Automation (VPA) solutions, and Axis Systems, Inc. today announced that the U.S. Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with Verisity's pending acquisition of Axis. The expiration of the waiting period was one of the conditions to Verisity's pending acquisition. The two companies also announced that the fairness hearing to be held by the California Commissioner of Corporations has been scheduled for February 5, 2004 at 10:00 a.m. The fairness hearing is for purposes of obtaining a permit authorizing the issuance and sale of Verisity's ordinary shares in the transaction, which is another condition to the pending acquisition. If the permit is granted, the transaction is expected to close, subject to obtaining requisite stockholder consents and satisfaction or waiver of other closing conditions, as promptly as possible thereafter.

About Verisity
Verisity, Ltd. (NASDAQ: VRST), is the leading supplier of process automation solutions for the functional verification market. The company addresses customers' critical business issues with its market-leading software and intellectual property (IP) that effectively and efficiently verify the design of electronic systems and complex integrated circuits for the communications, computing, and consumer electronics global markets. Verisity's VPA solutions enable projects to move from executable verification plans to module, unit, and chip/system level 'total coverage' and verification closure, while maximizing productivity, product quality, and predictability of schedules. The company's strong market presence is driven by its proven technology, methodology and solid strategic partnerships and programs. Verisity's customer list includes leading companies in all strategic technology sectors. Verisity is a global organization with offices throughout Asia, Europe, and North America. Verisity's principal executive offices are located in Mountain View, California, with its principal research and development offices located in Rosh Ha'ain, Israel. For more information, visit www.verisity.com.

About Axis Systems, Inc.
Axis Systems, Inc., offers high-performance verification systems for the hardware and software development of complex electronic system and system-on-a-chip designs. Axis' products help increase confidence in new designs, improve overall verification productivity and shorten time to market. On a single system and with one design database, Axis' patented ReConfigurable Computing (RCC) technology provides software simulation, accelerated simulation, system emulation and hardware/software co-verification. Customers include the world's leading graphics, networking, multimedia, and processor companies. Axis is headquartered at 209 E. Java Drive, Sunnyvale, CA 94089. To learn more about Axis, visit www.AxisSystems.com.

THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA DOES NOT RECOMMEND OR ENDORSE THE PURCHASE OF VERISITY'S SECURITIES.

Forward-Looking Statements
To the extent statements contained herein are not purely historical, they are forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission. Words such as "anticipate," "estimate," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements. All forward-looking statements represent only management's present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results or performance to differ materially from those described in the forward-looking statements. In particular, these include the company's ability to close this transaction in the time projected, or at all, including the possibility that the required permit may not be issued following the fairness hearing. Verisity Ltd. is not under any obligation, and expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

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Verisity and the Verisity logo are either registered trademarks or trademarks of Verisity Design, Inc. in the United States and/or other jurisdictions. All other trademarks are the property of their respective holders.