EXHIBIT 99.1


                                 PRESS RELEASE

FOR IMMEDIATE RELEASE
For further information, contact:

Lillian Tsai                                 Fletcher Chamberlin
Marketing Communications Manager             Investor Relations
Analogy, Inc.                                Harris Massey Herinckx
(503) 626-9700                               (503) 973-9226


ANALOGY ANNOUNCES EXPENSE REDUCTIONS


Beaverton, Oregon - June 5, 1998 - Analogy, Inc. (NASDAQ: ANLG) today 
announced that it is taking steps to reduce expenses to bring them in line 
with current sales levels. As a result, the company has eliminated 
approximately 10 percent of its workforce in the last two months.  Half of 
these were the result of attrition and positions that will not be replaced. 

The company also announced that it expects to report an operating loss for 
the first fiscal quarter ending June 30, 1998.  The quarter will also include 
a restructuring charge associated with the employment reductions and 
associated costs.

"While we deeply regret having to take these actions," said Gary Arnold, 
chairman and president of Analogy, "we must return the company to acceptable 
levels of growth and profitability as we move forward in the new fiscal 
year."

This press release contains forward-looking statements that are made pursuant 
to the safe harbor provisions of the Private Securities Litigation Act of 
1995.  The forward-looking statements involve risks and uncertainties that 
could cause actual results to differ materially from the forward-looking 
statements, including, without limitation, changes in capital spending plans 
by key customers, increased adoption of behavioral modeling design 
methodologies for mixed-signal and mixed-technology systems design, increased 
dependence on large orders as a portion of quarterly revenue, Analogy's 
ability to expand its markets as planned, seasonal fluctuations in the 
Analogy's order patterns and competitive initiatives.  The forward-looking 
statements should be considered in light of these risks and uncertainties.

Analogy, Inc. is a world leader in the development of high-performance design 
and analysis software and model libraries for the design of mixed-signal and 
mixed-technology systems.  The company's products are used in the aerospace, 
automotive/transportation, semiconductor, telecommunications, computer 
peripherals, medical, and industrial control industries.  Analogy has offices 
and support staff throughout the United States, Europe and Asia and is 
headquartered in Beaverton, Oregon.  For on-line information, visit the 
company's web site at: http//www.analogy.com.


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