ACADEMIA

MSC.Software today announced that it has entered into a definitive agreement to sell its wholly-owned Japanese service subsidiary, ESTECH Corporation, to Information Services International -- Dentsu, Ltd. (ISID), the leading provider of professional consulting and reseller services in Japan. The transaction is subject to satisfaction of certain closing conditions and the parties anticipate closing the transaction within 30 days. The financial terms of the transaction are not being disclosed at this time. MSC and ISID have also expanded their business relationship through an amendment of their existing distribution agreement. Through this amendment, ISID will expand their portfolio of MSC's industry leading VPD solutions for resale accelerating the delivery of ideal solutions to the Japanese market. MSC's significant presence in Japan will be further enhanced by the expanding role of ISID. "The sale of ESTECH is part of our previously announced plan to improve business execution on software license revenue while at the same time improving operating margins," said Bill Weyand, chairmen and CEO, MSC.Software. "ESTECH's customers will continue to receive the same 'world class' services that they have experienced from ESTECH in the past and ESTECH will benefit from ISID's years of experience in the Japanese marketplace." "We have had a long term relationship with ISID as a channel partner in Japan and we are very pleased to be expanding our partnership with ISID. MSC has identified a few key resellers worldwide and we are honored to have ISID as part of our team," added Mr. Weyand. Takakazu Morita, General Manager, CAE Marketing of ISID stated, "With the acquisition of ESTECH we will be able to respond to the demand for best-in-class solutions and accelerate our expansion in the Asia Pacific region. We are pleased to grow our valuable partnership with MSC and have the opportunity to deliver the next generation of software solutions to the Japanese market."