Engineous and Boeing Complete an Intellectual Property Agreement for the Development of a Rapid Air Vehicle Synthesis Solution.

Business Editors/High-Tech Writers

CARY, N.C.--(BUSINESS WIRE)--March 24, 2004

Engineous Software, Inc. ("Engineous") the world's leader in Process Integration and Design Optimization (PIDO), announces that they have completed an agreement with The Boeing Company, which involves the exchange of Boeing intellectual property created within the Boeing Phantom Works organization.

Through this agreement, Engineous has been designated as Boeing's software systems integrator responsible for the commercialization of a rapid air vehicle synthesis solution called CAVSIM or Conceptual Air Vehicle Simulation. CAVSIM utilizes NURB (nonuniform rational B-splines) technologies developed by Phantom Works, combined with Knowledge-Fusion a knowledge-based engineering tool from UGS/PLM Solutions and ACSYNT (AirCraft SYNThesis) from AVID LLC. These robust commercial technologies have been integrated together through Engineous' iSIGHT product, producing a groundbreaking rapid prototyping solution for Boeing.

"We are proud and excited to be leading this commercialization effort for Boeing," said Glenn Reis, Vice President of Business Development of Engineous. "This continues our efforts to support the creative and advanced technology practices from the Phantom Works organization, which will benefit many of the programs across the Boeing Company."

"The CAVSIM solution addresses the need for accelerating the front-end conceptual design phase of Boeing's business processes while increasing the fidelity of the design space to satisfy the demands of our customers," said Jim Mark, Manager, Configuration Synthesis of Boeing.

The CAVSIM solution developed will generate interactive geometry and real-time updates within the Knowledge-Fusion environment, providing truly parametric airframe and component surface geometries. The integrated tools suite, linked via iSIGHT, will drive the geometries through a dynamic and intelligent feedback loop utilizing iSIGHT's integration and optimization engine and its parallel computing capabilities to minimize exploration time and maximize fidelity of the design space.

"We are glad to be working with Engineous Software on this strategic activity. Their iSIGHT solution and the company's world-class support have made the vision of CAVSIM a reality," states Jim Mark.

"The CAVSIM solution and this IP agreement with The Boeing Company will have a strategic impact on our company. This is a great example of how commercially robust technology like iSIGHT can be blended with the vision and innovative works from Phantom Works, to provide important functionality to The Boeing Company and their customers," stated Reis.

About Engineous Software, Inc.

Engineous Software, Inc. provides engineering design optimization software solutions and services. The company's flagship product, iSIGHT, enables organizations to explore more design alternatives in less time, dramatically reduce production costs, decrease time-to-market, and create innovative design alternatives. Its FIPER product is a web-based, distributed engineering process infrastructure that allows organizations to access, execute and reuse design tools and processes. Resources can be connected within an organization or through a global network of external partners and geographically dispersed design teams. Founded in 1996, Engineous operates numerous sales offices in the U.S., as well as wholly owned subsidiaries in Asia and Europe.

Engineous was selected as a Premier Automotive Supplier in the 2002 PACE awards, and is recognized by top analysts as the worldwide market leader in the Process Integration and Design Optimization market. Customers include leading Fortune 500 companies such as General Electric, General Motors, UTC/Pratt & Whitney, Honeywell, Lockheed Martin, Ford Motor Company, DaimlerChrysler US, Toyota, Nissan, Renault, Hitachi, Peugeot, MTU Aero Engines, TRW, BMW, Rolls Royce, and York International. Additional information can be found at www.engineous.com.

About Boeing Phantom Works

Boeing Phantom Works is the advanced research and development unit and a catalyst of innovation for The Boeing Company. It provides advanced solutions and innovative, breakthrough technologies that reduce cycle time and cost while improving the quality and performance of aerospace products and services.

About UGS/PLM Solutions

UGS PLM Solutions, a leader in product data management, collaboration and product design software and services with 41,000 clients and more than 2.6 million seats of technology operating in the market, is the product lifecycle management (PLM) subsidiary of EDS. The company works collaboratively with its clients to create solutions enabling them to transform their process of innovation and thus begin to capture the promise of PLM. For more information on UGS PLM Solutions products and services, visit www.ugsplmsolutions.com or www.eds.com.

About AVID, LLC

AVID, LLC specializes in aircraft design consulting and creation, and dissemination and maintenance of open-source aircraft analysis and design software. AVID provides design and software support for U.S. Government agencies and aerospace companies -- both military and commercial sectors. For additional information, visit their website at http://www.avidllc.biz.