SCIENCE

SOUTHPOINTE, PA -- ANSYS, Inc. (Nasdaq: ANSS), a global leader in design analysis and optimization software, today announced second quarter 2001 results. ANSYS' second quarter results, excluding the impact in 2001 of a modification in annual lease revenue recognition discussed below and acquisition-related amortization, reflect: -- A 32% increase in total adjusted revenue to $21.4 million from $16.3 million in the second quarter of 2000, including a 22% increase in software license revenue and a 46% increase in maintenance and service revenue. -- An overall gross profit margin of 86% and an operating margin, excluding total amortization, of 30%. -- A 28% increase in second quarter adjusted earnings per share to $0.32 from $0.25 in the second quarter of 2000. -- Cash flows from operations of $6.8 million in the second quarter of 2001. Jim Cashman, ANSYS President and CEO, stated, "Second quarter 2001 results continue to demonstrate progress and success against our overall mission. We are pleased that we have been able to show momentum in a number of critical business areas, including the expansion of our relationships with both existing and new customers, the continued delivery of world-class technology and a continued focus on quality and building shareholder value. Our second quarter results include orders from Honeywell, General Motors, Maxtor, Boeing, Solar Turbines, General Electric, Toyoda Machine Works, Piaggio Aero, ABB, Alstom, Fujitsu Laboratories, Liebherr, Seiko Epson and Showa Denko. While we are excited about the commitments from these and other key customers, we have certainly noted the effects of current economic conditions, as the sales cycle, particularly in the major account arena, has lengthened. Not unlike other companies, we are also seeing slow downs in major economies, most notably in Europe. However, we believe that our overall business model and the breadth of our core business provide us with a solid foundation for continued growth." Cashman continued, "In the areas of technology and quality, we are excited by the initial positive customer response to DesignSpace 6.0, which began shipping in May. Additionally, we are very proud of our recent achievement of ISO 9001: 2000 certification. This has earned ANSYS sole status as the only simulation provider in the world to earn this important certification." Cashman closed by adding, "ANSYS is especially proud to have been recently named a member of the Russell 2000 Index. Membership in the Russell 2000 Index is determined strictly by market capitalization rankings, rather than subjective opinion or committee decisions. ANSYS remains committed to focusing our efforts and investments on increasing long-term shareholder value which we believe has benefited our shareholders to date and is reflected by the addition of ANSYS into this Index. This builds off of the recognition provided by our third consecutive yearly inclusion in BusinessWeek's 100 Hot Growth Companies." For more information visit www.ansys.com