Dassault Systemes and CAXA Form Strategic Alliance.

BEIJING & PARIS -- Global Leader In 3D PLM and Chinese PLM Leader to Extend PLM Value to 2D Users in China and Worldwide

CAXA, the leading domestic PLM (Product Lifecycle Management) vendor in China, and Dassault Systemes (NASDAQ:DASTY)(BOURSE:DSY)(EURONEXT:13065) today announced a strategic alliance to create and sell "China-engineered" solutions based on Dassault Systemes' V5 PLM technology. These solutions will be developed in a joint R&D center operated by CAXA in Beijing combining CAXA's R&D expertise and technology with Dassault Systemes' 3D PLM solutions and V5 technology components.

Through the strategic alliance, CAXA will develop and market in China CAXA V5, a new generation of integrated and scalable 2D and 3D PLM solutions for the Chinese market that embed V5 technology components from Dassault Systemes. The CAXA V5 portfolio, which encompasses early design to process planning and manufacturing planning management, will provide breakthrough PLM value to the Chinese manufacturing industry by enabling companies to model and optimize the design-to-production cycle digitally, even while working in 2D. This new portfolio will enable Chinese small and medium-sized businesses (SMBs) to grow at their own pace into full-fledged 3D PLM users.

CAXA will also develop advanced PLM components that Dassault Systemes will integrate into its own solution portfolio to extend its PLM value proposition globally. The integration of CAXA's components into V5 PLM will offer 2D users worldwide a PLM alternative to traditional 2D-centric drafting and the significant flexibility to move incrementally to 3D PLM that their Chinese counterparts will enjoy.

"This strategic alliance is an important milestone for the Sino-French joint advancements in the manufacturing industry and manufacturing information technology," said Ma Songde, vice minister of Science and Technology of China at the announcement ceremony in Beijing. "The alliance creates a complementary collaboration and win-win prospect in this large potential market. The high-tech partnership from both countries could also significantly contribute to the development of world economy."

"CAXA V5 is the first true Chinese PLM solution," said Fan Boyuan, vice mayor of the People's Government of Beijing Municipality. "It will play a key role in the development of China's manufacturing industries, improving dramatically their capacity to innovate. We are excited to see CAXA, a native Chinese technology company, take the lead in the research and development for this solution and deliver advanced technology to the world market."

"This alliance is key to our PLM strategy and company expansion," said Dr. Lei Yi, president and CEO, CAXA. "We share with Dassault Systemes the same vision and passion for excellence. Dassault Systemes' V5 technology, product lines, markets and business model are a perfect match for CAXA in China. Dassault Systemes also offers CAXA the opportunity to carry our technology and components into world markets."

"We warmly welcome CAXA into the global R&D network of Dassault Systemes," said Bernard Charles, president & CEO, Dassault Systemes. "We are proud to team with CAXA to serve the Chinese market with 'made by China' solutions. Furthermore, CAXA offers us the opportunity to address the PLM needs of all 2D-based manufacturing companies, thus improving efficiency and innovation with CAXA V5. This partnership is not about outsourcing; it is for joint value creation and long term mutual benefits and is a strong illustration of our commitment to China."

About CAXA

CAXA is the market leader and largest Chinese provider of CAD/CAM/PLM solutions. Based on the mission of "software service manufacturing industry", CAXA has developed a serial of products in design, process planning, manufacturing and collaborative management that tailor domestic practices of Chinese industry. CAXA has received the "Best-10 Domestic Software Awards" for five consecutive years and, in 2004, the highest "Software Gold Award" from China Software Industry Association. CAXA has more than 120,000 installations in China through well-established channels including 35 sales and service branches, 300 training centers and 300 business partners. More than 1,000 domestic colleges and universities have selected CAXA as their standard education and training software. For additional information, please visit http://www.caxa.com.

About Dassault Systemes

As world leader in three-dimensional product lifecycle management (PLM) solutions, the Dassault Systemes group brings value to more than 70,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systemes develops and markets 3D PLM application software and services that support industrial processes and provide a 3D vision of the entire life cycle of products from conception to maintenance. Its offering includes 3D PLM integrated solutions for product development (CATIA(R), ENOVIA(R), DELMIA(R), SMARTEAM(R)), mainstream 3D product design tools (SolidWorks(R)), and 3D components (ACIS(R)) from Spatial Corp. Dassault Systemes is listed on the Nasdaq (DASTY) and Euronext Paris (#13065, DSY.PA) stock exchanges. Information about Dassault Systemes is available at http://www.3ds.com.