ACADEMIA

MSC.Software Corporation, a leading global provider of enterprise simulation solutions including simulation software and services, reported results for the fourth quarter and year ended December 31, 2007. Fourth quarter:

• Total fourth quarter revenue of $71.1 million, an increase of 7.7% over the fourth quarter last year,
• Fourth quarter revenue in the Americas of $22.0 million, an increase of 24% over the fourth quarter last year,
• Fourth quarter operating loss of $1.2 million, which includes restructuring charges of $0.4 million and impairment charges totaling $4.3 million.

Full Year:

• 2007 total revenue of $246.7 million versus $259.7 million last year, a decrease of 5% when compared to last years results,
• 2007 operating loss of $10.3 million, which includes restructuring charges of $8.5 million and impairment charges of $4.8 million, versus operating income of $4.7 million in 2006,
• 2007 EPS from continuing operations of ($0.06) per diluted shares versus $0.31 per diluted share last year,
• Cash and investments at December 31, 2007 totaled $135.0 million versus $126.0 million at December 31, 2006 and deferred revenue grew 3% to $80.6 million at December 31, 2007 from $78.2 million at December 31, 2006.

REVENUE Total revenue for the fourth quarter ended December 31, 2007 was $71.1 million compared to $66.0 million for the fourth quarter in 2006. Software revenue for the fourth quarter totaled $28.8 million compared to $27.9 million for the fourth quarter in 2006. For the fourth quarter ended December 31, 2007, maintenance revenue totaled $33.3 million and services revenue totaled $9.0 million, compared to $29.4 million of maintenance revenue and $8.7 million of services revenue for the fourth quarter in 2006. Total revenue for the year ended December 31, 2007 was $246.7 million compared to $259.7 million last year. Software revenue for 2007 totaled $94.7 million compared to $111.2 million for 2006. For the year ended December 31, 2007 maintenance revenue totaled $125.5 million and services revenue totaled $26.4 million, compared to $115.1 million of maintenance revenue and $33.3 million of services revenue for 2006. Fiscal year 2006 included $2.4 million of non-recurring PLM revenue of which $1.3 million was software and $1.1 million was services revenue. "We believe that MSC's solid performance in the fourth quarter, particularly in the Americas, is a positive sign indicating that we are in the final stages of completing our company transition," said Bill Weyand, CEO and Chairman of MSC.Software. "In the fourth quarter we saw strength in both our engineering tools and our enterprise solutions product categories as well as in our key industry verticals of aerospace and automotive." "We believe that MSC has the key business drivers for success in 2008. Our innovative Simulation Enterprise and MD product line introductions should continue to provide us with a first mover advantage in the simulation software marketplace. Further, as we launch a new product cycle with the R3 versions of our enterprise simulation products, we expect to see increased customer acceptance and transaction activity," continued Mr. Weyand. REVENUE BY GEOGRAPHY Total revenue in the Americas for the fourth quarter and year ended December 31, 2007 was $22.0 million and $75.3 million, respectively, compared to $17.7 million and $75.7 million for the same periods last year. Total revenue in EMEA for the fourth quarter and year ended December 31, 2007 was $30.0 million and $95.9 million, respectively, compared to $28.5 million and $103.5 million for the same periods last year. Changes in the Euro dollar increased EMEA revenue during 2007 by $8.2 million. In the Asia Pacific region, revenue for the fourth quarter and year ended December 31, 2007 totaled $19.1 million and $75.5 million, respectively, compared to $19.8 million and $80.5 million for the same periods last year. Changes in the Japanese Yen decreased Asia Pacific revenue during 2007 by $1.0 million. RESULTS OF OPERATIONS AND EPS Total operating expenses for the fourth quarter and year ended December 31, 2007 were $59.1 million and $210.7 million, respectively, compared to $54.4 million and $196.9 million for the same periods last year. Operating loss for the fourth quarter was $1.2 million and for the year end was $10.3 million, compared to an operating loss of $0.9 million and operating income of $4.7 million for the fourth quarter and year ended December 31, 2006. The operating loss for the year ended December 31, 2007 included a restructuring charge of $8.5 million and impairment charge of $4.8 million. For the fourth quarter ended December 31, 2007, income from continuing operations totaled $2.3 million or $0.05 per diluted share, compared to income from continuing operations of $11.2 million or $0.25 per diluted share for the fourth quarter last year. For the year ended December 31, 2007, loss from continuing operations totaled $2.6 million or ($0.06) per diluted share, compared to income from continuing operations of $13.3 million or $0.31 per diluted share for FY 2006. Other income, net, in the fourth quarter and for 2007, included a gain on the sale of securities of $6.8 million. GUIDANCE At this time the Company will not issue guidance. The Company will continue to evaluate its decision to provide guidance in the future.