SCIENCE

COSTA MESA, CA -- MSC.Software Corp. (NYSE:MNS), an established information technology software and services provider today announced financial results for the second quarter ended June 30, 2001. MSC.Software reported revenue of $48.7 million, an increase of 12% over revenue of $43.4 million for the second quarter last year. Net income, excluding goodwill amortization, was $4.2 million or $0.25 per diluted share compared with $3.4 million or $0.22 per diluted share in the second quarter last year. Reported net income, including goodwill amortization, increased 41% to $2.9 million or $0.18 per diluted share for the second quarter of 2001 compared with $2.0 million or $0.14 per diluted share for the second quarter of last year. In the second quarter, moving expenses and other facility costs associated with the corporate headquarters relocations in Santa Ana, CA and Munich, Germany were approximately $800,000. In addition, approximately $1 million of previously established reserves for possible bad debts were reversed in the quarter, due to better accounts receivable collection activity in the second quarter. For the six months ended June 30, 2001, MSC reported revenue of $93.3 million, an increase of 13% over revenue of $82.8 million for the same period last year. Net income, excluding goodwill amortization, was $6.9 million or $0.43 per diluted share compared with $5.7 million or $0.38 per diluted share in the six months last year. Reported net income, including goodwill amortization, increased 40% to $4.2 million or $0.27 per diluted share for the six months ended June 30, 2001, compared to net income of $3.0 million or $0.21 per diluted share for the same period last year. "In spite of the recent reports of general weakness in world economies, MSC.Software's business is strong and vital in all world regions, as our customers continue to derive significant cost savings and return on investment value from the use of our software and service products," said Frank Perna, CEO and chairman of MSC.Software. "The 498 new customers signed in the quarter are further evidence of the emergence of the small and medium enterprise markets for simulation products and services. "Ten consecutive quarters of double digit revenue growth confirms of our technical and market share leadership," added Perna. "In local currencies our core software and service business grew 18 percent. During the second quarter, we moved into new cost efficient headquarters in both Santa Ana, CA and Munich, Germany, on time, on schedule and on budget with no disruption of our business momentum. "With the successful completion of the AES acquisition, MSC.Software's product portfolio will address the full spectrum of product lifecycle management environments and consequently our new business opportunities will be immediately increased. Our process and product knowledge is unsurpassed in product development settings. In addition, the principal markets for our new initiatives are gaining strength, with supercomputing systems using Linux clusters leading the charge, and our alternate channel activities gaining momentum." For more information visit www.mscsoftware.com