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CADKEY BREAKS RANKS ON CAD SOFTWARE PRICING, LOWERS COST OF FLAGSHIP PROGRAM TO $495 FROM $3,495, WILL BE SOLD VIA DIRECT MARKETING

 WINDSOR, Conn., Jan. 18 /PRNewswire/ -- Cadkey, Inc. today became the first maker of PC-based computer-aided design (CAD) software to provide a fully-featured product for the professional engineering market at under $500. The move puts a sophisticated software system that has sold for over $3,000 since the 1980's in the same price category as most popular commercial applications.
 As part of a new corporate strategy, the company will sell its flagship CADKEY(R) 2-D and 3-D wireframe modeler for $495 via direct marketing channels and through a network of authorized dealers. It has also lowered the price of its popular CADKEY DRAFTER program, sold through mass distributors, to $250 from $495. Another retail offering, CADKEY Light, remains at $99.
 $495 Reflects the Real World of Software Pricing in the 90's
 "Professional CAD prices are simply too high," said Malcolm Davies, Cadkey's president & chief executive officer. "Lowering the cost of our mainstream CADKEY 6 program to $495 reflects the real world of software pricing in the 90's."
 While the principal sales focus is on direct marketing, authorized Cadkey dealers are fully integrated into the program, and some high-end products will be sold only through this network. The first such dealer marketed product is the new CADKEY Professional, priced at $3,495. "It's CADKEY 6 plus analysis, surfaces, solids modeling and enhanced drafting, providing a fully functional design product at a lower price than AutoCAD(R)'s comparable wireframe system," stated Davies.
 CADKEY 6 and CADKEY Professional are available now, and operate on 386/486 DOS platforms, OS/2 Version 2 and can run as a full screen DOS application under Microsoft WINDOWS(R). CADKEY also supports the SUN and Silicon Graphics UNIX platforms.
 Hardware Lock Lifted Worldwide
 Cadkey, Inc. also announced the removal of the hardware lock on its products worldwide. "Copyright laws and normal standards of ethical behavior are now adequate to protect our interests," said Davies. "Lifting the lock also simplifies and reduces our costs, enabling us to pass these savings along to our customers."
 CAD is entering its third decade as a software category and has remained virtually untouched by the pricing revolution which dropped the cost of PC-based business and graphics software to hundreds of dollars. Principally the domain of designers and engineers, CAD software is used for a number of intricate commercial applications.
 CAD Software on Same Playing Field with Spreadsheet,
 Word Processing Applications
 Paced by Autodesk, Inc., with the largest market share in the CAD sector, typical costs for fully featured configurations rarely have dropped below $3,000, say industry reports. "We have placed full 2-D and 3-D wireframe functionality on the same playing field as spreadsheets and word processing programs," stated Davies, who said that "low prices to date carried with them limited software capabilities. For users requiring high end CAD performance, CADKEY Professional contains all the tools necessary to perform advanced applications and Cadkey's authorized dealers are available to provide additional services, support, training, customization, and consulting."
 Sweeping New Business Strategies Turn Cadkey
 into Virtual Corporation
 Davies noted that pricing and distribution moves undertaken at Cadkey "stem from implementing across-the-board reduction in costs, and improvements in efficiency over the past year. While others in our industry have talked about the Virtual Corporation, Cadkey is implementing it," he stated. "We embraced an outsourcing strategy that streamlined our organization and enabled us to partner with professional support organizations. The resulting cost cutting measures, customer service efficiencies and creative marketing programs have enabled the company to become the low price leader without reducing the major features that have earned its software programs numerous industry awards and recognition."
 Direct Marketing Practices Already Paying Off
 A similar pricing/direct marketing strategy was begun late last year for the company's DataCAD(R) family of software for architects, designers, and builders. Its $49 to $149 price tag has led to a tenfold increase in the number of software units sold as compared to its predecessor product, which cost $2,495 and was marketed only by dealers. "The dealer channel will remain an important part of Cadkey's marketing organization," said Davies, "but direct marketing efficiencies are more appropriate for today's low cost products, enabling us to deliver prices at mainstream levels."
 Cadkey, Inc. with headquarters in Windsor, Conn., and offices in Europe and the Pacific Region, develops, manufactures, markets and supports productivity-enhancing computer-aided design (CAD) and architectural design products. Its software is one of the most widely used and acclaimed mechanical engineering programs, with more than 110,000 installations in a dozen languages worldwide.
 For further information, call: 800-671-3956.
 NOTE: CADKEY and DataCAD are registered trademarks of Cadkey, Inc. Microsoft Windows is a registered trademark of Microsoft Corporation. AutoCAD is a registered trademark of Autodesk, Inc.
 -0- 1/18/94
 /CONTACT: Charley Ferrucci of Cadkey, 203-298-6421; or Russ Barmmer of TBG, Inc., 203-399-7337/


CO: Cadkey, Inc. ST: Connecticut IN: CPR SU:

GK -- NY105 -- 2938 01/18/94 16:40 EST
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Publication:PR Newswire
Date:Jan 18, 1994
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