BIG DATA

Second Quarter Results Set Path for a Year of Record Results: ANSYS, a global innovator of simulation software and technologies designed to optimize product development processes, today announced a new Company record for second quarter non-GAAP operating results. Commenting on the second quarter performance, Jim Cashman, ANSYS President and CEO stated, "This quarter's results continue the momentum that we have seen building over the past several quarters and reflect the strength of our diversified global business. We have made encouraging progress during the recent quarter and first half of 2007 to capture the strength of combining the ANSYS and Fluent businesses into a broad portfolio of unprecedented engineering simulation solutions. Compared to a year ago, this quarter's non- GAAP revenues increased over 35% while non-GAAP diluted earnings per share increased 43%. We have also continued to focus on strengthening our margins and balance sheet. These efforts produced record cash flows from operations of $37 million for the second quarter and $59 million for the first six months of 2007. Based on our first half performance, we are increasing our 2007 full year guidance and believe we are poised to drive 2007 to be the most successful year in the Company's 37 year history." ANSYS' second quarter and year-to-date 2007 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation, purchase accounting for deferred revenue and acquisition-related amortization of intangible assets. The 2006 non-GAAP results also exclude a one-time charge related to in-process research and development associated with the acquisition of Fluent. Non-GAAP and GAAP results reflect:

• Total non-GAAP revenue of $92.3 million in the second quarter of 2007 as compared to $68.2 million in the second quarter of 2006; total non- GAAP revenue of $181.9 million in the first six months of 2007 as compared to $114.2 million in the first six months of 2006; total GAAP revenue of $92.2 million in the second quarter of 2007 as compared to $62.3 million in the second quarter of 2006; total GAAP revenue of $180.1 million in the first six months of 2007 as compared to $108.3 million in the first six months of 2006;
• A non-GAAP operating profit margin of 43.4% in the second quarter of 2007 as compared to 38.1% in the second quarter of 2006; a non-GAAP operating profit margin of 43.0% in the first six months of 2007 as compared to 40.2% in the first six months of 2006; a GAAP operating profit margin of 33.0% in the second quarter of 2007 as compared to (23.3%) in the second quarter of 2006; a GAAP operating profit margin of 31.8% in the first six months of 2007 as compared to 3.1% in the first six months of 2006;
• Non-GAAP net income of $24.6 million in the second quarter of 2007 as compared to $16.5 million in the second quarter of 2006; non-GAAP net income of $48.1 million in the first six months of 2007 as compared to $31.0 million in the first six months of 2006; GAAP net income of $18.3 million in the second quarter of 2007 as compared to GAAP net loss of $19.4 million in the second quarter of 2006; GAAP net income of $34.4 million in the first six months of 2007 as compared to GAAP net loss of $6.5 million in the first six months of 2006; and
• Non-GAAP diluted earnings per share of $0.30 in the second quarter of 2007 as compared to $0.21 in the second quarter of 2006; non-GAAP diluted earnings per share of $0.59 in the first six months of 2007 as compared to $0.43 in the first six months of 2006; GAAP diluted earnings per share of $0.23 in the second quarter of 2007 as compared to GAAP diluted loss per share of ($0.27) in the second quarter of 2006; GAAP diluted earnings per share of $0.43 in the first six months of 2007 as compared to GAAP diluted loss per share of ($0.09) in the first six months of 2006.

The Company's GAAP results reflect stock-based compensation charges of approximately $2.1 million ($1.8 million after tax) or $0.02 diluted earnings per share for the second quarter of 2007 and approximately $4.3 million ($3.6 million after tax) or $0.04 diluted earnings per share for the first six months of 2007. The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2007 discussed below, represent non-GAAP financial measures. A reconciliation of these measures to the appropriate GAAP measures, for the three months and six months ended June 30, 2007 and 2006, and for the 2007 financial outlook, is included in the condensed financial information included in this release. On May 14, 2007, the Company announced that its Board of Directors approved a 2-for-1 stock split of the Company's common shares. The stock split was payable in the form of a stock dividend and entitled each stockholder of record at the close of business on May 25, 2007 to receive one share of common stock for every outstanding share of common stock held on that date. The stock dividend was distributed on June 4, 2007. The share data and earnings per share data in this press release give effect to the stock split, applied retroactively, to all periods presented. Management's Remaining 2007 Financial Outlook The Company has provided its 2007 revenue and earnings per share guidance below. The revenue and earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP revenue and non-GAAP diluted earnings per share exclude charges for stock-based compensation, as well as the income statement effects of purchase accounting for deferred revenue and acquisition- related amortization of intangible assets. As required by SFAS No. 123R and guidance issued by the Securities and Exchange Commission, the Company records expenses and tax benefits related to stock-based compensation. As a result, the GAAP estimates for earnings per share provided below reflect the anticipated impact of stock-based compensation. The Company issues both nonqualified and incentive stock options; however, incentive stock options comprise a significant portion of outstanding stock options. The tax benefits associated with incentive stock options are unpredictable, as they are predicated upon an award recipient triggering an event that disqualifies the award and which then results in a tax deduction to the Company. GAAP requires that these tax benefits be recorded at the time of the triggering event. The triggering events for each option holder are not easily projected. In order to estimate the tax benefit related to incentive stock options, the Company makes many assumptions and estimates, including the number of incentive stock options that will be exercised during the period by U.S. employees, the number of incentive stock options that will be disqualified during the period and the fair market value of the Company's stock price on the exercise dates. Each of these items is subject to significant uncertainty. Additionally, a significant portion of the tax benefits related to disqualified incentive stock options is accounted for as an increase to equity (additional paid-in capital) rather than as a reduction in income tax expense, especially in the periods most closely following the adoption date of SFAS No. 123R. Although all such benefits continue to be realized through the Company's tax filings, this accounting treatment has the effect of increasing tax expense and reducing net income. For example, the Company realized a tax benefit of approximately $2.0 million during the first six months of 2007 related to disqualified incentive stock options; however, only $137,000 of such amount was recorded as a reduction in income tax expense. Because there are significant limitations in estimating the impact of SFAS No. 123R, including those discussed above, the actual impact of stock-based compensation on GAAP earnings per share may differ materially from the estimated amounts included in the guidance below. Impact of Adoption of FIN 48 Effective January 1, 2007, the Company adopted FASB Interpretation No. (FIN) 48, "Accounting for Uncertainty in Income Taxes" - an Interpretation of SFAS No. 109, "Accounting for Income Taxes." Pursuant to FIN 48, ANSYS identified, evaluated and measured the amount of income tax benefits to be recognized for its income tax positions. The adoption of FIN 48 resulted in an increase to income tax expense in the second quarter and first six months of 2007 of $470,000 and $1.1 million, respectively, and a corresponding adverse impact on the effective tax rate of 1.6% and 1.9%, respectively. Income taxes as a percentage of GAAP earnings before income taxes were approximately 37% in each of the first two quarters of 2007. This rate fluctuates over time based on the income tax rates in the various jurisdictions in which the Company operates, and based on the level of profits in those jurisdictions. Third Quarter 2007 Guidance The Company currently expects the following for the quarter ending September 30, 2007: -- GAAP revenue in the range of $89 - $90 million -- Non-GAAP revenue in the range of $89 - $90 million -- GAAP diluted earnings per share of $0.18 - $0.20 -- Non-GAAP diluted earnings per share of $0.26 - $0.27 Fiscal Year 2007 Guidance The Company currently expects the following for the fiscal year ending December 31, 2007: -- GAAP revenue in the range of $367 - $371 million -- Non-GAAP revenue in the range of $369 - $373 million -- GAAP diluted earnings per share of $0.79 - $0.84 -- Non-GAAP diluted earnings per share of $1.14 - $1.16 Non-GAAP revenue and diluted earnings per share are supplemental financial measures and should not be considered as a substitute for, or superior to, revenue and diluted earnings per share determined in accordance with GAAP. ANSYS will hold a conference call at 10:30 a.m. Eastern Time on August 2, 2007 to discuss second quarter results. To participate in the live conference call, dial 913-312-6673 or 866-293-8973 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 719-457-0820 or 888-203-1112 and entering the passcode "ANSYS" or "26797". The archived webcast can be accessed, along with other financial information, on ANSYS' Web site .