ENGINEERING

SOUTHPOINTE, PA -- ANSYS, Inc. (Nasdaq: ANSS), a global innovator of simulation software and technologies aimed at optimizing customers' product development processes, today announced third quarter 2001 results. ANSYS' third quarter results, excluding the impact of the adjustments and the non-recurring charge discussed in detail below, reflect: -- A 23% increase in total revenue to $20.5 million from $16.7 million in the third quarter of 2000, -- An overall gross profit margin of 87% and an operating margin, excluding total amortization, of 32%, -- A 29% increase in quarterly earnings per share to $0.31 from $0.24 in the third quarter of 2000, and -- 250,000 shares repurchased under the Company's ongoing stock repurchase program. Third Quarter 2001 and Nine Months Ended September 30, 2001 Reported Results: ANSYS reported a 24% increase in revenue to $20.6 million and $0.17 diluted earnings per share based on 15.6 million weighted average common shares outstanding, for the third quarter of 2001. In the third quarter of 2000, ANSYS reported $16.7 million in revenue and $0.21 diluted earnings per share, based on 16.0 million weighted average common shares outstanding. For the nine months ended September 30, 2001, ANSYS reported a 19% increase in revenue to $59.8 million and $0.56 diluted earnings per share, based on 15.4 million weighted average common shares outstanding. For the nine months ended September 30, 2000, ANSYS reported $50.3 million in revenue and $0.73 diluted earnings per share, based on 16.3 million weighted average common shares outstanding. Third Quarter 2001 Highlights: During the quarter, the Company received new commitments from customers such as John Deere, Cameron, US Army Ardec, the Army Research Lab, Allied Signal, Volvo, General Motors, AMI Semiconductor, Baker Hughes Christenson, ABB Offshore Technology, Siemens Westinghouse Power Corporation, Michelin, Oxford Instruments, Industria de Turbo Propulsores, Proton, Mitsubishi Electric Corporation, Hitachi and Sony. This broad spectrum of customers illustrates ANSYS' ability to provide an array of engineering analysis and simulation solutions both globally and across diverse industry classifications, ranging from defense to consumer goods. ANSYS believes that its solid operating performance in the third quarter is a testimony to the fact that its engineering solutions remain a high priority expenditure for its expanding customer base, even in a weak economic environment. Jim Cashman, ANSYS President and CEO, stated, "We are extremely proud of our business performance this quarter, especially in light of the uncertainties that continue to exist in today's global economic environment, as well as the fact that the third quarter has traditionally been our toughest one. We are also very fortunate that a combination of our solid business model, diverse customer base and committed employees allowed us to sustain continued positive results in spite of the tragic events of September 11, 2001." Cashman continued, "During the third quarter, ANSYS completed the development of two important offerings that we believe will further solidify our position as the global leader in design analysis and optimization software solutions: ANSYS 6.0, the latest release of our flagship product, and AI*WorkBench, ANSYS' new generation application development platform that offers customers a complete process integrated simulation environment. The initial positive customer response to these innovative engineering solutions has been highly encouraging. We also announced strategic software development partnerships with Dassault Systemes and Enductive Solutions, Inc. In today's economy, particularly as impacted by the events of September 11, 2001, the pressure to develop better engineered products and get them to market quickly has never been greater. ANSYS' product strength coupled with continued advancements in the areas of technological innovation and strategic partnerships should serve to strengthen our ability to meet today's growing needs of our expanding customer base and drive future growth." Cashman closed by stating, "The Securities and Exchange Commission in September used, for the first time ever, emergency powers regarding company stock repurchases in an effort to boost confidence in the United States financial system. ANSYS repurchased a total of 250,000 shares of its common stock after this emergency order, demonstrating both our support of the financial markets and commitment to long-term shareholder value."