The Collaborative International Dictionary of English v.0.48:

Exaggerated \Ex*ag"ger*a`ted\, a.
   Enlarged beyond bounds or the truth. -- Ex*ag"ger*a`ted*ly,
   adv.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

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.
      [1913 Webster]

   2. To amplify; to magnify; to enlarge beyond bounds or the
      truth; to delineate extravagantly; to overstate the truth
      concerning.
      [1913 Webster]

            A friend exaggerates a man's virtues. --Addison.
      [1913 Webster]

WordNet (r) 3.0 (2006):

exaggerated
    adj 1: represented as greater than is true or reasonable; "an
           exaggerated opinion of oneself" [syn: exaggerated,
           overdone, overstated]
    2: enlarged to an abnormal degree; "thick lenses exaggerated the
       size of her eyes" [syn: exaggerated, magnified,
       enlarged]