SANTA ANA, CA -- MSC.Software Corp. (NYSE: MNS), a leading global provider of simulation software, services and systems, today announced that it has completed the acquisition of Mechanical Dynamics, on Thursday, May 9, 2002. The company also announced a new organizational structure, which included some appropriate downsizing of personnel and other cost consolidations, and is designed to provide a tightly focused growth strategy in specific regional and vertical markets. "Completing the MDI acquisition has confirmed our strategy to provide a full range of 'Best of Class' simulation and services products," said Frank Perna, chairman and chief executive officer of MSC.Software. "The complementary nature of MDI's products makes this acquisition a natural fit that immediately expands our product offerings and service capabilities in the Product Lifecycle Management market. Furthermore, our customer base has grown providing new opportunities for our systems offerings." Former Mechanical Dynamics CEO Mike Korybalski will be available as an advisor and consultant to MSC.Software. Former Mechanical Dynamics President and COO, Robert Ryan, has joined MSC.Software as Executive Vice President with responsibilities for Global Automotive activities as well as motion products. Former Mechanical Dynamics CFO, David Peralta, has become Vice President and Treasurer of MSC.Software. "We have established a leaner and more focused organizational structure that will fuel our account penetration strategy and enhance our ability to increase the use of simulation and virtual prototyping technologies for customers around the world, even in these uncertain economic times. We have reduced our global workforce by approximately 8% which will result, along with some appropriate facilities optimizations, in a reduction of our operating expenses by 5% - 7% this year. "In addition we expect to keep other key operational costs such as the legal fees associated with the FTC investigation under our projected budget," continued Perna. "MSC.Software's fundamental strategy is solid, our product offerings are 'Best of Class,' and we have a powerful global team to better satisfy a greater number of customers." For further information visit www.mscsoftware.com.