AUTOMOTIVE

"ANSYS is off to a strong start in 2006, as evidenced by our record first quarter financial performance. We believe that our first quarter results are further validation that we are headed in the right strategic direction and that we must continue to focus on execution and delivery of our commitments for continued success in the future. Our first quarter results include the further expansion of a long-term customer relationship that contributed significant incremental software revenues for the first quarter. I am very proud that the ANSYS team was able to stay focused on delivering a solid quarter, while at the same time engaging in planning and finalizing logistics related to the upcoming closing of the Fluent acquisition, which is anticipated to occur on May 1, 2006," stated ANSYS President and CEO, Jim Cashman. Cashman further commented, "We are encouraged that customers see the tremendous value, as we expand our portfolio of advanced technologies by bringing more powerful engineering simulation tools to more people in the product development cycle. Next week we are hosting our 2006 International Users' Conference and we are very pleased with the strong support and interest that has been received from our customers and partners. We plan to demonstrate how simulation has become a critical element of the product development process, as well as how global, forward-thinking companies have put engineering simulation at the forefront in producing innovative and successful products." "We've had an exciting start to a milestone year for ANSYS with the anticipated closing of a very strategic acquisition and our upcoming conference," said Cashman. "Our results in the first quarter lay the groundwork as we look forward to a strong 2006 and continued growth and progress on our long-term strategy." The adjusted results highlighted above, and the adjusted estimates for 2006 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months ended March 31, is included in the condensed financial information included in this release. Adjustments to Reported GAAP Financial Results - Acquisition-Related Amortization: As previously disclosed, the Company completed its acquisition of both Century Dynamics, Inc. and the assets of Harvard Thermal, Inc. in 2005. In previous years, the Company also acquired other businesses. These acquisitions have all been accounted for as purchases, resulting in the recording of a significant amount of identifiable intangible assets. - Stock-Based Compensation: On January 1, 2006, the Company adopted SFAS No. 123R, "Accounting for Stock-Based Compensation." Accordingly, the first quarter GAAP results for 2006 reflect charges for stock-based compensation. Because the Company elected prospective adoption of SFAS No. 123R, as permitted by the standard, the 2005 results do not reflect charges for stock-based compensation. ANSYS is providing, and has historically provided, its current quarter GAAP results as well as financial results that have been adjusted for the impact of acquisition-related amortization and stock-based compensation. The Company believes that these non-GAAP measures supplement its consolidated GAAP financial statements as they provide a consistent basis for comparison between reporting periods that are not influenced by certain non-cash items and are, therefore, useful to investors in helping them to better understand the Company's operating results and underlying operational trends. Management uses these non-GAAP financial measures internally to evaluate the Company's business performance and plan for future periods; however, these measures are not intended to supersede or replace the GAAP results. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP. As such, a reconciliation of GAAP and non-GAAP financial measures is provided in the financial statements attached to this press release. Recent Business Highlights - Acquisition of Fluent Inc. - April 2006 -- Announced that the waiting period under the Hart-Scott- Rodino Antitrust Improvements Act of 1976, as amended, with respect to ANSYS' pending acquisition of Fluent, a stock and cash transaction valued at approximately $574 million, expired at 11:59 p.m. (Eastern Time) on Wednesday, April 26, 2006. Under the terms of the agreement, ANSYS will issue 6,000,000 shares of its common stock and pay approximately $300 million of net cash to acquire Fluent, subject to certain adjustments at closing. After the anticipated May 1, 2006 closing, ANSYS expects the acquisition to be immediately accretive to earnings, excluding acquisition-related costs, amortization of intangibles, the impact of deferred revenue purchase accounting treatment and expensing of stock options. The Company will use a combination of existing cash and proceeds from approximately $200 million of committed bank financing to fund the transaction. Management's Financial Outlook The Company has provided its 2006 revenue and earnings per share guidance below. The earnings per share guidance is provided on both a GAAP basis and an adjusted basis. Adjusted diluted earnings per share excludes acquisition- related amortization and the effects of stock-based compensation. Second Quarter 2006 Guidance The Company currently expects the following for the quarter ending June 30, 2006: - Revenue of approximately $41 - $42 million - GAAP diluted earnings per share of $0.30 - $0.31 - Adjusted (non-GAAP) diluted earnings per share of $0.35 - $0.36 Fiscal Year 2006 Guidance The Company currently expects the following for the fiscal year ending December 31, 2006: - Revenue in the range of $178 - $180 million - GAAP diluted earnings per share of $1.32 - $1.36 - Adjusted (non-GAAP) diluted earnings per share of $1.54 - $1.56 The above guidance excludes the impact of the acquisition of Fluent Inc. announced in the first quarter of 2006. The Company intends to provide updated financial guidance after the anticipated May 1, 2006 closing of the transaction. Adjusted diluted earnings per share is a supplemental non-GAAP financial measure and should not be considered as a substitute for, or superior to, diluted earnings per share determined in accordance with GAAP. ANSYS will hold a conference call at 10:30 a.m. Eastern Time on April 27, 2006 to discuss first quarter results. To participate in the live conference call, dial 888-695-0612 or 719-457-2663 and enter the passcode "ANSYS" or "26797". The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for one week by dialing 888-203-1112 or 719-457-0820 and entering the passcode "ANSYS" or "26797". The archived webcast can be accessed, along with other financial information, on ANSYS' website at its web site.