GOVERNMENT

ANN ARBOR, MI -- Hyundai Motor Company has purchased $337,000 in ADAMS(R)/Car software from Mechanical Dynamics, Inc. (Nasdaq: MDII) as it continues to implement system-level functional virtual prototyping as an integral element of its vehicle development process. Approximately $296,000 of the order will be recognized as revenue in the fourth quarter of 2001. Hyundai Motor Company is Korea's first and largest auto company and produces approximately 1.5 million vehicles per year. The company has a tradition of engineering excellence and innovation in product development, and continues to drive major process automation through their enterprise. "We are pleased with Hyundai's continuing commitment to ADAMS," said Robert R. Ryan, president of Mechanical Dynamics. "This most recent order demonstrates Hyundai's confidence in us as a strategic partner and in the ability of ADAMS to help them achieve their goals of improved vehicle quality and performance, innovative designs, and reduced reliance on costly and time-intensive hardware prototyping." "Our virtual prototyping approach based on ADAMS/Car helps us evaluate the quality of suspension and steering systems quickly during new vehicle development," said Y.J. Hyun, test engineer at Hyundai's Ulsan research and development center. "We have found close correlation between simulations on ADAMS conceptual suspension models and test data, which helps confirm that functional virtual prototyping is a valid, reliable, and necessary tool in today's product development environment." Mechanical Dynamics' ADAMS(R) software allows engineering teams to build and test functional virtual prototypes of complex mechanical designs, realistically simulating full-motion behavior on their computers. This helps manufacturers produce better products faster and at lower cost, with reduced risk and increased communication throughout the product development process. The company's products are the de facto standard in the automotive industry, and lead the market in aerospace, rail, and general machinery. Building on industry partnerships, strategic acquisitions, a strong product pipeline, and a dedicated team worldwide, Mechanical Dynamics has established itself as the global leader in functional virtual prototyping.