INDUSTRY

MSC.Software Corporation today announced that it will streamline its global operations by reducing its current workforce by approximately 85 people. The Company is also taking additional steps to further reduce operating expenses through facility consolidations and other overhead cost reductions. Severance costs and other one-time charges associated with these reductions and consolidations will total between $6 and $8 million, most of which will be recognized in the first quarter of 2007. "We believe that streamlining our global operations is the next step in positioning MSC for sustained profitable growth aligned with our new enterprise sales strategy," said Bill Weyand, Chairman and CEO of MSC Software. "We have implemented this cost improvement program in order to more efficiently align our operating expense structure with our evolving business model as we move to larger value enterprise transactions. This realignment has effectively flattened the sales organization and eliminated layers of management and overhead within our corporate marketing, product development and global sales organizations. Our ability to execute our multi-discipline and enterprise strategy remains intact, given our off-shore R&D investment and continued growth of resources in India." "Along with our new global business partners, we feel that MSC is well positioned to efficiently and profitably execute our 2007 plan," continued Mr. Weyand.