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Dassault Systemes and IBM Announce Intent to Integrate IBM PLM Sales Operation into DS

New Global Alliance Expected to Expand PLM in All Industries

ARMONK, N.Y & VELIZY-VILLACOUBLAY, France — (BUSINESS WIRE) — October 26, 2009 — Regulatory News:

IBM (NYSE: IBM) and Dassault Systèmes (DS) (Paris: DSY) (Euronext Paris: #13065, DSY.PA) today signed an agreement under which DS intends to acquire IBM sales and client support operations encompassing DS's Product Lifecycle Management (PLM) software application portfolio, as well as customer contracts and related assets, for approximately $600 million in cash.

DS and IBM have also defined the next steps in their long-standing relationship, and plan to establish DS as an IBM Global Alliance Partner and expand their services partnership.

The transaction is expected to be completed in the first half of 2010, subject to the execution of local agreements and completion of regulatory processes and applicable labor relations requirements in various countries.

While the transaction is being completed, both companies expect their existing operations, including customer service and product availability, to continue as usual. After completion of the transaction and integration of the two companies’ PLM operations, DS PLM customers will benefit from simplified engagement and support processes for DS's market-leading PLM product portfolio.

“The adoption and integration of PLM and 3D collaboration by a growing number of enterprises require deep industry knowledge," said Bernard Charlès, president and CEO of Dassault Systèmes. "The planned integration of the IBM sales force and related business operations represents the largest investment in our corporate history. We are putting our customers and partners first, creating a globally efficient sales organization to bring the value of V6 PLM applications to every enterprise in every industry.”

"We are reaching a new level of customer engagement built on commitment, multi-industry knowledge and high-value solutions for sustainable innovation," added Charlès. "Looking forward, the wide adoption of 3D lifelike experience and PLM will require the combination of direct sales, our network of partners and online communities."

Pursuant to the planned global alliance agreement, IBM and DS expect to continue to jointly invest in developing, deploying and supporting client PLM environments, delivering integrated PLM solutions to their clients worldwide.

The enhanced services agreement is expected to bring significant potential to the global marketplace with extended IBM resources and expertise to help transform client PLM environments, leveraging the DS V6 portfolio. Both companies are dedicated to strengthening and extending their cooperation in the areas of professional services, cloud computing, middleware, flexible financing, hardware, and sales and distribution.

"With this announcement, IBM is evolving its partnership with DS to better align our mutual strengths and better address our clients' PLM needs," said Tom Hawk, general manager, IBM Global Industrial Sector. "This transaction also helps fuel IBM's focus on PLM integration through middleware, business transformation and application services, and dynamic infrastructure."

Steve Mills, senior vice president and group executive, IBM Software Group, added: "Today's agreement positions both our companies for growth in the PLM space, allowing us to focus on our core competencies and better serve our clients. The extensive use of IBM Software platforms in the DS application portfolio will continue to make our partnership unique and valuable to our customers."

Dassault Systemes Forward-looking Information

Statements in this press release that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the completion of the acquisition of IBM PLM are forward-looking statements.

Such forward-looking statements are based on DS management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors. Some of the following risk factors could adversely affect the transaction, DS’s future results and/or the operations of the business acquired from IBM. In particular: (i) Required regulatory approvals for the acquisition may not be obtained on a timely basis or at all, which could delay or prevent completion of the transaction; (ii) The failure to consummate the transaction and successfully combine the businesses of IBM and DS in the expected time frame may adversely affect DS’s future results; (iii) Furthermore, even if the combination occurs in accordance with the expected time frame, the integration of IBM’s sales and client support business operations into DS may not be successful or anticipated benefits to DS from the transaction may not be realized; (iv) After completion of the transaction, DS will have significantly more revenue and employees than it did prior to the transaction and the attendant integration process will require DS to expand the scope of its operations and financial systems and DS's management will be required to devote a substantial amount of time and attention to the process of integrating the operations of the IBM business.

Unfavorable changes in any of the above or other general risk factors related to DS’s business as described in the Company’s regulatory reports, including the Document de référence, as filed with the French “Autorité des marchés financiers” (AMF) on April 2, 2009, could materially affect the Company’s financial position or results of operations.

About Dassault Systèmes

As a world leader in 3D and Product Lifecycle Management (PLM) solutions, Dassault Systèmes brings value to more than 115,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systèmes develops and markets PLM application software and services that support industrial processes and provide a 3D vision of the entire lifecycle of products from conception to maintenance to recycling. The Dassault Systèmes portfolio consists of CATIA for designing the virtual product - SolidWorks for 3D mechanical design - DELMIA for virtual production - SIMULIA for virtual testing - ENOVIA for global collaborative lifecycle management, and 3DVIA for online 3D lifelike experiences. Dassault Systèmes’ shares are listed on Euronext Paris (#13065, DSY.PA) and Dassault Systèmes’ ADRs may be traded on the US Over-The-Counter (OTC) market (DASTY). For more information, visit http://www.3ds.com.

CATIA, DELMIA, ENOVIA, SIMULIA, SolidWorks and 3D VIA are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.



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