CFDRC Announces Software Products Division Spin-Off and Collaboration with ESI-Group

January 28, 2004 -- Huntsville, Alabama, USA -- CFD Research Corporation (CFDRC), the leading provider of Computational Fluid Dynamics (CFD) and Multiphysics Software, announced today the spin-off of its commercial Software Products Division. Six products (including CFD-ACE+ and CFD-FASTRAN) and the associated intellectual property assets, personnel, and facilities have been acquired by ESI Software, the leading supplier of PAM-CRASH, PAM-STAMP, virtual prototyping, and manufacturing processes software. The two companies also established a collaborative development initiative, which will provide the most versatile and comprehensive simulation capabilities for a wide range of industries, including Automotive, Aerospace, Biomedical, Biodiagnostics, Fuel Cells, Materials, Microfluidics, MEMS, Plasma, and Semiconductor Equipment and Processes.

CFDRC's flagship product, CFD-ACE+, is the best-in-class of Multiphysics Simulation Software. It allows coupled simulations of fluid, thermal, chemical, electrical, biological, and mechanical phenomena in engineering equipment and systems. Such first-principle based simulations enable Better Decisions during concept, design, and operation stages of industrial products, and hence facilitate Better Products with reduced risk, time, and cost.

The second product, CFD-FASTRAN, is the most matured commercial software for high-speed flows with multiple moving bodies. Other products, e.g., CFD-VISCART and CFD-CADalyzer, are relatively new, and have been designed particularly for CAD engineers. CFDRC's software and services are used by over 600 organizations worldwide, including ABB, Applied Materials, Ballard Power, BMW, Boeing, Canon, Caterpillar, Chrysler, Dupont, Ford, GE, Guidant, Hitachi, Honeywell, HP, Hyundai, IBM, Intel, J&J, Kodak, Lockheed Martin, Motorola, Mitsubishi, Novellus, Parker Hannifin, Proctor & Gamble, Pratt & Whitney, Rolls Royce, Samsung, Siemens (Infineon), Toyota, TSMC, Volkswagen, and others.

ESI Software has a well-established infrastructure for global sales and marketing, as well as for the technical support in over 30 countries. ESI also has state-of-the-art capabilities for providing excellent interoperability with commonly used CAD, CAE, and PLM software.

Ashok Singhal, President and CEO of CFDRC, stated, "The combined capabilities of CFDRC and ESI will present the best of both worlds, i.e., the most advanced Multiphysics, Multidisciplinary simulations in all popular software infrastructure and user environments."

This spin-off will enable CFDRC to focus on and accelerate its growth in its core competency areas:

a) Development and applications of the state-of-the-art numerical and physical models for coupled multidisciplinary simulations; and b) Development and licensing of new innovative designs and prototypes of engineering devices, for use in Biomedical, Biodiagnostics, Combustion, Propulsion, Power, and other industries.

CFDRC performs Research & Development projects, funded by both government and private organizations, and collaborates with lead universities and research centers around the world. Selected designs and prototypes are commercialized via exclusive and non-exclusive licenses to interested parties.

About CFDRC: CFDRC is a technology leader in advanced multiphysics and multidisciplinary simulation software and research. The company's CFD-ACE+ and CFD-FASTRAN product lines and related services allow users to significantly reduce design time and expenses through comprehensive up-front modeling and simulation. The key industries served are Microfluidics, BioMEMS, Medical Devices, MEMS, Fuel Cells, Semiconductor, Automotive and Aerospace. CFDRC's extensive research in advancement of numerical methods, physical models, and new concepts, under contracts sponsored by government agencies and industry, guarantees to sustain its technology leadership role. The company is privately held, has over 1000 users worldwide, and is headquartered in Huntsville, AL, with branch offices in Sunnyvale, CA and Stuttgart, Germany. Worldwide representation is provided through a network of distributors. For more information, visit www.cfdrc.com.

Contact: Lynn Smith, Tel: (256) 726-4841 Fax: (256) 726-4807 - email: mls@cfdrc.com

About ESI Software: ESI Group is a pioneer and world leading provider of digital simulation software for prototyping and manufacturing processes that take into account the physics of materials. ESI Group has developed an entire suite of coherent, industry-oriented applications to realistically simulate a product's behavior during testing, to fine tune the manufacturing processes in synergy with the desired product performance, and to evaluate the environment's impact on product usage. ESI Group's product portfolio, which has been industrially validated and combined in multi-trade value chains, represents a unique collaborative, virtual engineering solution, known as the Virtual Try-Out Space (VTOS), enabling a continuous improvement on the virtual prototype. By drastically reducing costs and development lead times, VTOS solutions offer major competitive advantages by progressively eliminating the need for physical prototypes. With revenues close to 43 million euros in fiscal year 2002, ESI Group (Nouveau Marché: Euronext Paris - Software - Euroclear 6584 - Bloomberg ESI FP - Reuters ESIG.LN) employs over 400 high-level specialists worldwide. The company and its global network of agents provide sales and technical support to customers in more than 30 countries. On the Net: ESI Group site: www.esi-group.com

Virtual Try-Out Space® and VTOS® are registered trademarks of ESI Group. All other products, names and companies referenced are trademarks or registered trademarks of their respective owners.

Contact: Philippe Barzilai Arlette Gaulene Tel : +33(0)1 41 73 58 00 Tel. : +33(0)1 46 43 55 73 philippe.barzilai@esi-group.com