IFRS net operating cash flow was €408.3 million for 2010, compared to €297.9 million for 2009.

The Company’s net financial position was €845.7 million at December 31, 2010, compared to a net financial position of €858.0 million at December 31, 2009. The Company’s cash and short-term investments and long-term debt were €1.14 billion and €293.4 million, respectively at December 31, 2010 compared to €1.06 billion and €200.0 million, respectively at the end of 2009. For 2010, the Company’s principal uses of cash included cash acquisitions totaling €462.5 million, net of cash acquired and cash dividends of €54.5 million.

Business and Corporate Highlights

Premium German Automaker, BMW, Implements Dassault Systèmes’ V6 PLM Solutions as New Platform for Embedded Systems Architecture, Integration and Design. In a separate press release issued today, Dassault Systèmes announced that BMW has selected its V6 PLM Solutions to develop the future electrical, electronics and embedded software (E/E) architecture of BMW cars to thousands of engineers.

ENOVIA V6 Collaborative Innovation Solution is Helping LG Electronics to Enhance and Integrate Collaboration and Product Data Management. On November 3, 2010 Dassault Systèmes announced that LG Electronics (LG) has successfully adopted Dassault Systèmes’ ENOVIA V6 solution. Designed to enhance and integrate collaboration and product data management, LG’s Mobile Communications (MC) Company’s deployment of ENOVIA V6 has been implemented in its R&D, manufacturing and purchasing processes by LG CNS, an IT consulting and Solutions Company, and Dassault Systèmes. Starting with LG’s MC business unit, ENOVIA V6 will be implemented enterprise-wide to support the entire product development process.

Bell Helicopter Improves Collaboration and Time-to-Market with Dassault Systèmes V6 PLM Platform. On November 9, 2010 Dassault Systèmes announced that Bell Helicopter, a Textron company, is using its V6 PLM platform to improve collaboration and decrease the amount of time it takes to bring a new helicopter to market. As part of an effort to improve business processes and update systems across the company, Bell Helicopter is leveraging Dassault Systèmes’ full range of brands, including ENOVIA V6, CATIA V6, DELMIA V6, 3DVIA V6, and SIMULIA V6. The project will eventually be deployed to 6,000 users.

Apparel Manufacturer Mammut Sports Group AG Adopts Dassault Systèmes’ ENOVIA V6 Solution. On November 18, 2010 Dassault Systèmes announced that Switzerland-based Mammut Sports Group AG has selected Dassault Systèmes’ ENOVIA V6 solution to manage its development processes from initial product design through to sourcing, manufacturing and sales. The company needed to group information related to all its products in one database and replace manual, time-consuming methods for data search and consolidation that left room for error when communicating internally and with external suppliers.

Ran-tech Engineering & Aerospace, an Aerospace and Defense Part Supplier to Airbus and Boeing, is utilizing Dassault Systèmes’ V6 platform to manufacture parts, design fixtures and collaborate throughout the company. On December 15, 2010 Dassault Systèmes announced that Ran-tech will be utilizing DELMIA V6 Machining solutions to virtually create and control all production processes and CATIA V6 Design for innovative product authoring.

Dassault Systèmes Reinforces its Field Operations with Jeff Ray promoted to Executive Vice President, Geography Operations, Newly Created Position. On January 5, 2011 Dassault Systèmes announced that Jeff Ray, formerly SolidWorks CEO, will oversee the company’s geographies in order to empower the Dassault Systèmes local teams to serve customers’ and partners’ growing needs and fully exploit the market growth potential. In tandem, Bertrand Sicot has been named SolidWorks CEO. These changes were effective as of January 5, 2011.

Dassault Systèmes Five-Year Financial Objectives Outlined at Capital Markets Day on June 15, 2010. Dassault Systèmes publicly outlined its growth plan targeting a five-year goal to more than double non-IFRS EPS in comparison to 2009. The presentations and webcasts are available on Dassault Systèmes website at www.3ds.com/company/finance/overview.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “During 2010 we achieved all our key financial and business objectives. It was a year of good execution, with the integration of IBM PLM, the expansion of our addressable markets with the acquisitions of Exalead in search-based applications and Geensoft for embedded systems management, and the investments in strengthening our infrastructure and all our teams, with our employee base growing 15% in 2010. With these results, we had a promising start for our five-year financial objectives.

“Working with customers in more than 80 countries across a diverse set of industries, Dassault Systèmes has a strong global presence. We are also focused on continuing to develop our local teams to serve our customers and are already well positioned thanks to the extraordinary value brought by our employees, representing more than 90 different nationalities, and to the leadership of Jeff Ray who was recently appointed to lead Geography Operations.

“Looking forward, both our fourth quarter sales as well as the pipeline of opportunities we have entering 2011 support our view of a pattern of progressive improvement in customer investments. At the same time, we believe the overall global economic environment could continue to be volatile. Taking into account these factors, we are targeting new license revenue growth of about 15% in constant currencies, a healthy increase in our recurring revenue, even with the important level of one-time maintenance recoveries we had in 2010, and further improvement of our operating margin.”