uveličati

1. (by one's presence) to grace; to lend solemnity to
   Ministar je svojim prisustvom uveličao otvaranje škole. — The minister graced the school's opening with his presence.
   Hvala vam što ste uveličali naše slavlje. — Thank you for gracing our celebration.
2. (a problem, importance) to exaggerate
   Novine su uveličale ceo problem. — The papers exaggerated the whole problem.
3. (an image, a photo) to enlarge; to magnify
   Uveličaj sliku da vidim detalje. — Enlarge the picture so I can see the details.
   Fotograf je uveličao staru fotografiju i uramio je. — The photographer enlarged the old photo and framed it.

For "to exaggerate", preuveličati is more common.