Source : Webster's Revised Unabridged Dictionary (1913)

Exaggerate \Ex*ag"ger*ate\, v. t. [imp. & p. p. {Exaggerated};
   p. pr. & vb. n. {Exaggerating} . ] [L. exaggeratus, p. p. of
   exaggerare to heap up; ex out + aggerare to heap up, fr.
   agger heap, aggerere to bring to; ad to + gerere to bear. See
   {Jest}. ]
   1. To heap up; to accumulate. [Obs.] ``Earth exaggerated upon
      them [oaks and firs].'' --Sir M. Hale.

   2. To amplify; to magnify; to enlarge beyond bounds or the
      truth; to delineate extravagantly; to overstate the truth
      concerning.

            A friend exaggerates a man's virtues. --Addison.

Source : WordNet®

exaggerate
     v 1: to enlarge beyond bounds or the truth; "tended to
          romanticize and exaggerate this `gracious Old South'
          imagery" [syn: {overstate}, {overdraw}, {hyperbolize}, {hyerbolise},
           {magnify}, {amplify}] [ant: {understate}]
     2: do something to an excessive degree; "He overdid it last
        night when he did 100 push-ups" [syn: {overdo}]