Dassault Claims 25% PLM Market Share Milestone

PARIS—(BUSINESS WIRE)—February 13, 2007— Dassault Systemes (DS) (NASDAQ: DASTY) (Paris:DSY) reported financial results for the fourth quarter and year ended December 31, 2006.

Summary Financial Highlights

-- Financial results well in line with objectives for the fourth quarter and full year

-- Acquisitions achieved key financial targets

-- 2006 GAAP revenue of EUR 1.16 billion and GAAP EPS of EUR 1.51

-- 2006 total non-GAAP revenue of EUR 1.18 billion or 27% growth in constant currencies and non-GAAP EPS growth of 15% to EUR 1.83

-- Non-GAAP revenue growth of 12% in constant currencies before including ABAQUS and MatrixOne

Bernard Charles, Dassault Systemes President and Chief Executive Officer, commented, "2006 was a remarkable year for DS. We delivered strong financial results growing revenue by 27% in constant currencies and earnings per share by 15%. We successfully integrated two major acquisitions within a twelve-month period. And we redesigned our 25-year strategic partnership with IBM to jointly expand the enterprise PLM offering sold by IBM and to transition to a DS-managed PLM indirect channel. Thanks to everyone's focus across DS on innovation and execution to serve our customers, DS reached an important leadership milestone, with a total PLM market share estimated at 25%.

"Our market leadership reflects the confidence that our customers and partners have placed in us and our passion to invent new approaches to help them take advantage of the 3D virtual world as a vehicle for advancing innovation, global collaboration and productivity.

"During 2006 we completed our first ten years as a public company. Over this timeframe, DS has established a strong performance track record, delivering compound annual growth of 18% for revenues and 15% for earnings and maintaining a very attractive financial model. 2006 also serves as a very solid foundation for the coming years. With leading brands in growing markets, I believe we are well-positioned to attain our 2005-2010 goals of doubling both revenue and earnings."

Fourth Quarter and Full Year 2006 Financial Summary

Dassault Systemes completed the acquisition of ABAQUS, Inc. in October, 2005 and MatrixOne Inc. in May, 2006 and has accounted for these acquisitions pursuant to U.S. GAAP ("GAAP"). In addition to GAAP information, this press release presents supplemental non-GAAP financial information which reflects certain adjustments to our GAAP information. The supplemental non-GAAP financial information adjusts our GAAP financial information to exclude: (i) deferred revenue adjustments, (ii) amortization of acquired intangibles, (iii) stock-based compensation expense and (iv) one-time tax restructuring effects. See Attachment A of this press release for an explanation of these adjustments, and tables which set forth the most comparable GAAP financial measures and a reconciliation of the GAAP and non-GAAP financial data.

Fourth Quarter 2006 Financial Highlights:
                                     GAAP               Non-GAAP
Fourth Quarter 2006          -------------------- --------------------
In millions of Euro, except                Growth               Growth
 per share data               Q4             in    Q4             in
                              2006  Growth   cc*   2006  Growth   cc*
---------------------------- ------ ------ ------ ------ ------ ------
Total Revenue                349.4     15%    20% 353.2     13%    18%
---------------------------- ------ ------ ------ ------ ------ ------
E.P.S.                        0.66     14%         0.72      7%
---------------------------- ------ ------ ------ ------ ------ ------
Operating margin              29.9%                34.3%
---------------------------- ------ ------ ------ ------ ------ ------
* in constant currencies

GAAP total revenue increased 15% to EUR 349.4 million (20% in constant currencies) for the 2006 fourth quarter on a 14% increase in software revenue and a 21% increase in services and other revenue.

Non-GAAP total revenue increased 13% to EUR 353.2 million (18% in constant currencies) with non-GAAP software revenue increasing 11% (17% in constant currencies) and non-GAAP services and other revenue rising 21% (27% in constant currencies). CATIA and SolidWorks new seats licensed in the quarter increased 4% to 23,280 seats.

From a regional perspective, all regions contributed to the increase in non-GAAP revenue, led by the Americas with 28% growth (39% in constant currencies) and Asia with 7% growth (19% in constant currencies). Europe increased 7% year-over-year, following a very strong performance in the year-ago quarter.

From a segment perspective, both Product Lifecycle Management ("PLM") and SolidWorks achieved strong growth. Specifically, non-GAAP PLM revenue increased 12% to EUR 293.9 million (18% in constant currencies), and included non-GAAP ENOVIA revenue of EUR 71.1 million. Non-GAAP SolidWorks revenue increased 14% to EUR 59.3 million (20% in constant currencies).

GAAP earnings per diluted share increased 14% to EUR 0.66 in the 2006 fourth quarter, on higher GAAP operating income and financial revenue and a lower effective tax rate.

Non-GAAP earnings per diluted share increased 7% to EUR 0.72 in the 2006 fourth quarter, primarily reflecting higher operating income and financial revenue and a lower effective tax rate.

Full Year 2006 Financial Highlights:
                                  GAAP                 Non-GAAP
Full Year 2006           ---------------------- ----------------------
In millions of Euro,                     Growth                 Growth
 except per share data                     in                     in
                         FY 2006  Growth   cc*  FY 2006  Growth   cc*
------------------------ -------- ------ ------ -------- ------ ------
Total Revenue            1,157.8     24%    26% 1,177.5     25%    27%
------------------------ -------- ------ ------ -------- ------ ------
E.P.S.                      1.51      1%           1.83     15%
------------------------ -------- ------ ------ -------- ------ ------
Operating margin            21.2%                  26.9%
------------------------ -------- ------ ------ -------- ------ ------
* in constant currencies

GAAP total revenue increased 24% to EUR 1.16 billion (26% in constant currencies) on a 23% increase in GAAP software revenue and a 29% increase in GAAP services and other revenue.

Non-GAAP total revenue increased 25% to EUR 1.18 billion (27% in constant currencies) reflecting a 24% increase in non-GAAP software revenue (26% in constant currencies) and a 29% increase in non-GAAP services and other revenue (31% in constant currencies). CATIA and SolidWorks new seats licensed increased 9% to 78,684.

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