<SUBMISSION>
<ACCESSION-NUMBER>0000950134-09-000276
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20090108
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20090108
<DATE-OF-FILING-DATE-CHANGE>20090108
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CADENCE DESIGN SYSTEMS INC
<CIK>0000813672
<ASSIGNED-SIC>7372
<IRS-NUMBER>770148231
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1229
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-10606
<FILM-NUMBER>09516138
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2655 SEELY ROAD BLDG 5
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
<PHONE>4089431234
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>555 RIVER OAKS PARKWAY
<CITY>SAN JOSE
<STATE>CA
<ZIP>95134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ECAD INC /DE/
<DATE-CHANGED>19880609
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f51037e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of<BR>
the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): January&nbsp;8, 2009</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CADENCE DESIGN SYSTEMS, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-15867</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>77-0148231</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction <BR>
of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>2655 Seely Avenue, Building 5</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>San Jose, California</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>95134</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(408)&nbsp;943-1234</B><BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="f51037exv99w01.htm">EX-99.01</A></TD></TR>
</TABLE>
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<!-- link1 "Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers" -->
<DIV align="left"><A NAME="000"></A></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective as of January&nbsp;8, 2009, the Board of Directors (the &#147;Board&#148;) of Cadence Design Systems,
Inc. (&#147;Cadence&#148;) appointed Lip-Bu Tan to serve as President and Chief Executive Officer of Cadence.
Mr.&nbsp;Tan, who is 49, has been a member of the Board since 2004 and serves as a member of the
Finance and Technology Committees of the Board. Mr.&nbsp;Tan, who had been serving as Interim Vice
Chairman of the Board and member of the Interim Office of the Chief Executive, will remain a member
of the Board but will no longer be Interim Vice Chairman of the Board. In connection with Mr.
Tan&#146;s appointment, Cadence also announced that the Interim Office of the Chief Executive has been
dissolved. The members of Cadence&#146;s Interim Office of the Chief Executive will resume their
positions with Cadence. Mr.&nbsp;Tan is the founder and Chairman of Walden International, an
international venture capital firm founded in 1987. Mr.&nbsp;Tan also serves as a director of
Flextronics International Ltd., Semiconductor Manufacturing International Corporation, SINA
Corporation, MindTree Consulting and Creative Technology Ltd. Mr.&nbsp;Tan has agreed to reduce such
board memberships  by the end of March&nbsp;2009 to two public companies in addition to  Cadence.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with his appointment as President and Chief Executive Officer, effective January&nbsp;8,
2009, Cadence entered into an employment agreement with Mr.&nbsp;Tan (the &#147;Employment Agreement&#148;). The
Employment Agreement provides for Mr.&nbsp;Tan&#146;s employment as President and Chief Executive Officer, at
an initial base salary of $600,000 per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Tan will participate in the Cadence Senior Executive Bonus Plan (the &#147;Bonus Plan&#148;) and will
have an annual target bonus under the Bonus Plan of 100% of his base salary. In addition, as a
signing bonus, Mr.&nbsp;Tan received on January&nbsp;8, 2009, an option to purchase 900,000 shares of common
stock at the fair market value of Cadence&#146;s common stock on the grant date and an award of 300,000
shares of incentive stock. The option and award of incentive stock were granted pursuant to
Cadence&#146;s form of option agreement and incentive stock award agreement, respectively, reflecting
the vesting provisions outlined in this Form 8-K. One-fourth of the shares subject to the option
will vest upon the first anniversary of the grant and one forty-eighth (1/48<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) of the
shares subject to the option will vest monthly over a three year period thereafter. One quarter of
the incentive stock award shares will vest on each of the first four anniversaries of the effective
date of Mr.&nbsp;Tan&#146;s employment, subject to the achievement of
the performance criteria specified in the
incentive stock award agreement. The vesting criteria for fiscal year 2009 under the incentive
stock award agreement is based on the attainment of a specified level of revenue in fiscal year
2009. If the performance goal for fiscal year 2009 is not attained, all shares of incentive stock
that would otherwise vest for the 2009 performance period and any subsequent periods shall be
forfeited. If the performance goals for fiscal year 2009 are achieved, the shares will vest,
subject to the satisfaction of the time-based vesting criteria set forth in the incentive stock
award agreement.  With respect
to any equity awards granted to Mr.&nbsp;Tan in the first year of his service
as President and Chief Executive Officer
(including the sign-on grants described in this paragraph), the
vesting of such awards (to the extent
then unvested) shall continue after he ceases to serve as President and Chief Executive Officer if he voluntarily
resigns his position as President and Chief Executive Officer other than in the event
of a &#147;Constructive
Termination&#148; (as defined in the Employment Agreement) so long as he continues to serve Cadence as an
employee, director or consultant, with such additional vesting continuing until the lesser of
eighteen (18)&nbsp;months or the number of full months he served as President and
Chief Executive Officer.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Employment Agreement
also provides for Cadence&#146;s indemnification of Mr.&nbsp;Tan pursuant to
Cadence&#146;s form of indemnification agreement, filed as Exhibit&nbsp;10.01 to Cadence&#146;s Form 10-Q filed on
December&nbsp;11, 2008.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Employment Agreement, if Mr.&nbsp;Tan&#146;s employment is terminated by Cadence without &#147;Cause&#148;
(as defined in the Employment Agreement) or if Mr.&nbsp;Tan terminates his employment in connection with
a &#147;Constructive Termination,&#148; Mr.&nbsp;Tan will be entitled to the benefits provided for in the Executive
Transition and Release Agreement attached to the Employment Agreement (the &#147;Transition Agreement&#148;)
in exchange for his execution and delivery of the Transition Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Transition Agreement provides for the employment of Mr.&nbsp;Tan as a non-executive employee for up
to one year after his termination with continued coverage under Cadence&#146;s medical, dental and
vision insurance plans, at Cadence&#146;s expense, should Mr.&nbsp;Tan elect COBRA coverage. In addition, the
unvested options and outstanding incentive stock awards (other than any incentive stock awards
subject to performance-based vesting criteria) held by Mr.&nbsp;Tan on the date of his termination that
would have vested over the succeeding eighteen (18)&nbsp;month period will immediately vest and, to the
extent applicable, become exercisable. Incentive stock awards subject to performance-based vesting
criteria will remain outstanding and continue to vest through the end of the applicable performance
period to the extent earned upon satisfaction of the performance-based vesting criteria, at which
time such awards will immediately vest with respect to the portion thereof that would have vested
over the eighteen (18)&nbsp;month period following the date of termination. Provided Mr.&nbsp;Tan does not
resign from Cadence and Cadence does not terminate his employment during the term of the Transition
Agreement, Mr.&nbsp;Tan shall receive the following benefits: (i)&nbsp;a monthly salary of $4,000 for a
period of six (6)&nbsp;months, commencing on the first pay date that is more than thirty (30)&nbsp;days
following the date that is six (6)&nbsp;months after the commencement of the transition period, (ii)&nbsp;a
lump-sum payment of 100% of his annual base salary (at the highest rate in effect during his
employment as President and Chief Executive Officer) on a date that is at least six (6)&nbsp;months
after the commencement of the transition period, subject to his execution and delivery of a release
of claims, and (iii)&nbsp;a lump-sum payment of 100% of his annual base salary (at the highest rate in
effect during his employment as President and Chief Executive Officer) on the thirtieth (30th) day
following the date of his termination under the Transition Agreement, subject to his execution and
delivery of a release of claims. The Transition Agreement also requires Mr.&nbsp;Tan to comply with
non-solicitation and non-competition provisions in favor of Cadence and to release Cadence from all
claims related to his employment and, subject to such limitations, does not otherwise preclude
Mr.&nbsp;Tan from accepting and holding full-time employment elsewhere.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If, within three (3)&nbsp;months before or thirteen (13)&nbsp;months after a &#147;Change in Control&#148; (as defined
in the Employment Agreement), Mr.&nbsp;Tan&#146;s employment is terminated without &#147;Cause&#148; or Mr.&nbsp;Tan
terminates his employment in connection with a &#147;Constructive Termination,&#148; then, in exchange for
Mr.&nbsp;Tan&#146;s execution and delivery of the Transition Agreement, the payments described in clauses
(ii)&nbsp;and (iii)&nbsp;of the paragraph above shall each be 150% of his highest annual base salary instead
of 100% of his highest annual base salary, and all of Mr.&nbsp;Tan&#146;s outstanding stock options and
incentive stock awards will immediately vest in full and become
exercisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Tan is not entitled to benefits under the Transition Agreement if his employment is
terminated for &#147;Cause,&#148; or as a result of his &#147;Permanent Disability&#148; (each as defined in the
Employment Agreement) or death or if he voluntarily terminates his employment (other than in
connection with a &#147;Constructive Termination&#148;). However, if Mr.&nbsp;Tan is terminated due to his death
or &#147;Permanent Disability,&#148; and he or his estate executes and delivers a release agreement in the
form attached to the Employment Agreement, the unvested options and outstanding stock awards held
by Mr.&nbsp;Tan on the date of his termination that would have vested over the succeeding twelve
(12)&nbsp;month period will immediately vest and, to the extent applicable, will become exercisable and
remain exercisable for a twenty-four (24)&nbsp;month period following his termination date (but no later
than the original expiration period of the applicable award). In addition, if Mr.&nbsp;Tan&#146;s employment
terminates on account of his &#147;Permanent Disability&#148; and Mr.&nbsp;Tan elects COBRA continuation coverage,
Cadence will pay Mr.&nbsp;Tan&#146;s COBRA premiums for twelve (12)&nbsp;months following termination.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A copy of the press release announcing the appointment of Mr.&nbsp;Tan is attached hereto as Exhibit
99.01 and is incorporated by reference herein.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release issued by Cadence Design Systems, Inc. on January&nbsp;8, 2009.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: January&nbsp;8, 2009

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CADENCE DESIGN SYSTEMS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ James J. Cowie
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">James J. Cowie&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" nowrap>Senior Vice President, General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.01
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release issued by Cadence Design Systems, Inc. on January&nbsp;8, 2009.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DOCUMENT>
<TYPE>EX-99.01
<SEQUENCE>2
<FILENAME>f51037exv99w01.htm
<DESCRIPTION>EX-99.01
<TEXT>
<HTML>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.01</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For more information, please contact:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jennifer Jordan<BR>
Investors and Shareholders<BR>
Cadence Design Systems, Inc.<BR>408-944-7100
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Adolph Hunter<BR>
Media and Industry Analysts<BR>
Cadence Design Systems, Inc.<BR>408-914-6016

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Cadence
Appoints Lip-Bu Tan President and
Chief Executive Officer</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SAN
JOSE, Calif., Jan. 8, 2009 &#150; Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced that
its Board of Directors has unanimously appointed Lip-Bu Tan as
president and chief executive
officer, effective immediately. Tan, who had been serving as interim
vice chairman of the Board
of Directors of Cadence<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> and member of the Interim Office of the Chief Executive, will remain a
member of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Over
the past several months, our board has conducted an extensive search for a CEO candidate with
the expertise and ability to effectively navigate the challenges facing Cadence and the industry
and to capitalize on the opportunities in the market we serve,&#148;
said Dr.&nbsp;John Shoven, chairman of
the Board of Directors. &#147;On behalf of our Board of Directors, I am pleased to announce Lip-Bu as
Cadence&#146;s president and CEO. While leading Cadence over the past few months, Lip-Bu has been
instrumental in refining the company&#146;s strategy, optimizing its R&#038;D structure, implementing audit
committee recommendations resulting from its investigation of accounting issues, monitoring the
completion of the financial restatement, and executing on a significant restructuring plan. We are
fortunate to have someone of Lip-Bu&#146;s caliber who possesses the vision and experience to lead
Cadence at this critical time.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Having served as a member of Cadence&#146;s Board of Directors for almost five years and as a member
of the interim leadership team since October, I know firsthand the challenges we face and the
opportunities that lie ahead,&#148; Tan said. &#147;Cadence is widely recognized for its product
leadership, innovation and robust technology portfolio. I am confident that Cadence is solidly
positioned to execute on its business strategy to help customers succeed, while improving
efficiency and productivity, and investing in areas that enhance our competitive position. I am
honored to lead Cadence as president and CEO and look forward to continuing to work closely with
the board and our talented and dedicated employees around the globe to deliver compelling products
and solutions to our customers and build value for our shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;On behalf of the Board of Directors and management team, I would like to thank the other members
of our Interim Office of the Chief Executive, Kevin Palatnik and Charlie Huang, as well as each of
our world class employees, for their dedication to Cadence during this transition,&#148; added Shoven. &#147;Thanks to their collective hard work, Cadence has a solid foundation in place and is
poised for strong performance in the future.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with Tan&#146;s appointment, Cadence announced today that the Interim Office of the
Chief Executive has been dissolved. The members of the Interim Office of the Chief Executive will
resume their positions with the company: Shoven will continue to
serve as chairman
of the Board of Directors; Huang will serve as senior vice president
and chief strategy
officer; and Palatnik will continue to serve as senior vice president
and chief financial
officer.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>About Lip-Bu Tan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lip-Bu Tan, 49, has been a member of Cadence&#146;s Board of Directors since 2004, and serves as a
member of the Finance and Technology Committees of the Board. He
continues to serve as chairman of
Walden International, a venture capital firm he founded in 1987. Tan received an M.S. in
nuclear engineering from the Massachusetts Institute of Technology, an MBA from the University of
San Francisco, and a B.S. from Nanyang University in Singapore.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>About Cadence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cadence enables global electronic design innovation and plays an essential role in the creation of
today&#146;s integrated circuits and electronics. Customers use Cadence software and hardware,
methodologies, and services to design and verify advanced semiconductors, consumer electronics,
networking and telecommunications equipment, and computer systems. The company is headquartered in
San Jose, Calif., with sales offices, design centers, and research facilities around the world to
serve the global electronics industry. More information about the company, its products, and
services is available at www.cadence.com.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cadence is a registered trademark and the Cadence logo is a trademark of Cadence Design Systems,
Inc. All other trademarks are the property of their respective owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The
statements contained above by Dr.&nbsp;John B. Shoven and Lip-Bu Tan include forward-looking
statements based on current expectations or beliefs, as well as a number of preliminary assumptions
about future events that are subject to factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking statements. Readers are cautioned
not to put undue reliance on these forward-looking statements, which are not a guarantee of future
performance and are subject to a number of risks, uncertainties and other factors, many of which
are outside Cadence&#146;s control, including, among others: (i)&nbsp;Cadence&#146;s ability to compete
successfully in the electronic design automation product and the commercial electronic design and
methodology services industries; (ii)&nbsp;Cadence&#146;s ability to successfully complete and realize the
expected benefits of the previously announced restructuring without significant unexpected costs or
delays; (iii)&nbsp;change in customer demands, including the possibility that the announcement of our
restructuring and management changes could result in delays in customers&#146; purchases of products and
services; (iv)&nbsp;economic and industry conditions in regions in which Cadence does business; (v)
fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in
which Cadence does business; (vi)&nbsp;the effects of the announcement of the restructuring and
management changes on Cadence&#146;s business, including its strategic and customer relationships,
ability to retain key employees and stock prices; and (vii)&nbsp;the effects of any litigation and other
proceedings to which we are or may become a party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For a detailed discussion of these and other cautionary statements, please refer to the company&#146;s
filings with the Securities and Exchange Commission. These include the company&#146;s Annual Report on
Form 10-K for the year ended December&nbsp;29, 2007 and the risk
factors section of Cadence&#146;s Quarterly
Report on Form 10-Q for the period ended September&nbsp;27, 2008.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"># # #
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