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• v  to enlarge beyond bounds or the truth
  tended to romanticize and exaggerate this `gracious Old South' imagery
• v  do something to an excessive degree

• Just this week, a parliamentary inquiry exonerated Blair's government on the charge that it "sexed up" intelligence reports to exaggerate the threat posed by Saddam's regime, but .
• Most egregiously, they exaggerate women's financial foibles at a time when we are making more money than ever before.
• He figured out people essentially exaggerate on profile answers.

• overstate
• overdraw
• hyperbolize
• hyperbolise
• magnify
• amplify
• overdo

• understate

News & Articles

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• That's a wrap
  I’ve been known to exaggerate a time or two, but hear me out:  the Baltimore 10-Miler was nearly as tough this year as each marathon.  And I’ve finished three.  Wow! 
  June 17, 2013 - ABC 2 Baltimore
• Obama and the Callous Kanye Culture
  Egotistical musicians often exaggerate their political influence, none more than the nattering, narcissistic rapper Kanye West. He has compared himself in global stature to Apple founder Steve Jobs and has titled his latest album "Yeesus."
  June 14, 2013 - Brent Bozell III via Yahoo! News

Quotes

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• Ted Strickland in FOXNews
  It's difficult to exaggerate or embellish upon what's happened here. It's absolutely devastating,Strickland said in a telephone interview.
• Dani Levy in International Herald Tribune
  I had the feeling that I must do it with another genre, do it by being able to exaggerate through comedy,Levy said in an interview.
• Max Mosley in Reuters South Africa
  There is always somebody new,Mosley told the BBC. "If it wasn't him (Hamilton) it would be either (Nico) Rosberg or (Robert) Kubica or one of the other new stars. I think there's a tendency to exaggerate the importance of Lewis Hamilton."