IBM and Dassault Systemes Create New Strategic Alliance to Address PDM II Market

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CHARLOTTE, North Carolina, USA, & PARIS, France - 25 Feb 1998: .. IBM* and Dassault Systemes announced today a new strategic alliance to deliver new integrated solutions -- along with business transformation, consulting and implementation services -- in response to an emerging market opportunity called Product Development Management II (PDM II).

Responding to the PDM II opportunity means helping businesses manage and give appropriate and timely access to huge quantities of data generated during a product's entire development process. This data includes information about the product itself and about processes involved with designing, developing and manufacturing it. IBM and Dassault Systemes believe the
PDM II market opportunity is substantial.

The IBM and Dassault Systemes integrated PDM II solutions encompass what are now two separate domains or applications areas -- Product Data Management (PDM) and Virtual Product Development Management (VPDM). The IBM and Dassault Systemes PDM II solutions will let customers go far beyond today's data management and concurrent engineering practices to model, simulate and manage product information throughout the entire product life cycle.

The new alliance includes:

In a separate, but related announcement, Joel R. Lemke is being named as chief executive officer of ENOVIA Corp., reporting to Bernard Charles, president of Dassault Systemes. Mr. Lemke was general manager for solutions in IBM's Global Manufacturing Industries Unit.

Two World-Class Product Lines

The IBM and Dassault Systemes PDM II solutions fall into two, integrated world-class product lines. Both provide a Computer-Aided Design (CAD)-independent, open and collaborative environment that allows customers to graphically define, manage and share product and process information during the product's life cycle and across an extended enterprise, including suppliers and partners.

- ENOVIA.VPM** (Virtual Product Model) addresses Virtual Product Development Management requirements. This solution is being tested by early adopters in pilot projects with planned general availability in mid-1998. It facilitates innovation to create better products by helping define, configure and optimize product definitions and manufacturing processes. It manages relationships among different parts of a product and the processes that are used to make and assemble those parts. It also forwards any changes to appropriate teams, including those responsible for design, development and manufacturing.

ENOVIA.PM** (ProductManager) addresses Product Data Management requirements. It helps manage product data and documents better. It manages the process for distribution and release of data, while providing wide access to this information at multiple geographical sites throughout the product life cycle. It also distributes and enforces corporate processes.

These two PDM II solutions pull together product development processes in a similar way that Enterprise Resource Planning solutions pull together production processes. However, they do more by enabling the interaction of both processes across the extended enterprise and throughout the entire life of the product.

The customer benefit of the PDM II solutions is even greater when combined with the new IBM and Dassault Systemes low cost, high speed Java-based web browser -- CATweb Navigator** product and its 4D graphical window feature. Customers can navigate through the virtual product model and access the right level of information required for any activity.

Dassault Systemes Chairman and Chief Executive Office, Charles Edelstenne, said the new agreement "strengthens the long-term partnership between IBM and Dassault Systemes across the new PDM II market. With these new product lines we continue to demonstrate our long-term commitment to bring innovative product solutions to our customers and to enhance shareholder value."

Bernard Charles, president of Dassault Systemes said, "This announcement accelerates Dassault Systemes' ability to execute its vision of the digital enterprise. The IBM and Dassault Systemes alliance provides a comprehensive answer to our customers' requirements from business transformation to implementation. By creating a true integrated portfolio of products we can address both the product development centric and enterprise wide product data management challenges faced by our customers."

He added, "Our R&D investments will include an expansion of ProductManager's capabilities within the new integrated PDM II solutions. Customers already using ProductManager are ideally positioned to take early advantage of the new product lines and will have their investments well protected."

Greg Lock, general manager, IBM Global Manufacturing Industries, said, "The new ENOVIA solutions will significantly help customers achieve more innovation and higher quality. They address the need for collaborative idea sharing in the early design stages, while also providing for integrated control of product information once it is released to manufacturing. Dassault Systemes R&D investment combined with IBM's services and consulting capability mean we are uniquely positioned to provide solutions for our customers on a global scale."

More information about this announcement can be found at the following Web site:

More information about the ENOVIA Corp. can be found at a new Web site:

ProductManager is an enterprise-wide, scaleable PDM system which runs as a client-server application on a wide range of computing environments across large servers, UNIX workstations, PCs, networks and archiving systems. ProductManager enables manufacturers to streamline the design and manufacturing process and reduce both design costs and cycle times. It acts as a data vault, providing a single source of product information and offers users fast and easy access to the most current data wherever the data resides. ProductManager uses object oriented technology to deliver prepackaged, yet flexible, functions that are easily adapted to a company's business processes. It also offers an intuitive graphical user interface plus extensive tailoring capabilities for users and a powerful customization toolkit for extending the product.

Dassault Systemes is a worldwide recognized leader in CAx and PDM II markets. CATIA-CADAM Solutions with Deneb, the digital manufacturing company, address the CAD/CAM/CAD process-centric market. Through a unique strategic partnership, CATIA-CADAM Solutions are marketed, distributed and supported by IBM worldwide. This unique partnership is now extended to PDM II solutions. SolidWorks, a Dassault Systemes subsidiary, addresses the CAD design-centric market, with its flagship native Windows NT product and its dedicated distribution channel. In the network computing environments, the Java-based CATweb product line provides a graphical window into native enterprise product data. In the PDM II market, Dassault Systemes is focusing on delivering a new CAD-independent collaborative and innovative environment for virtual product and process modeling and management across the extended enterprise.

Customers and Consultants Applaud New PDM II Efforts

"In the intensely competitive consumer products arena the team to beat is the one that can manage concurrent product development and at the same time seamlessly integrate its engineering and manufacturing processes -- all on an enterprise-wide scale. With IBM's ProductManager, we are well on our way in accomplishing the seamless integration of our engineering and manufacturing processes across the enterprise. The new application suite from IBM and Dassault Systemes will allow Black and Decker to better manage our concurrent product development and strengthen our industry-leading role in the introduction of new innovative products," saidGlenn Gise, design systems manager of Black and Decker.

"We are pleased that we made the right strategic decision by investing in CATIA and ProductManager and look forward to working with IBM and Dassault Systemes to help with the evolution of their solutions into world-class offerings," said Brian Carr, manager of integrated product development and product information environment, British Aerospace Military Aircraft and Aerostructures.

John Holding, group executive vice president, Engineering and Product Development, at Bombardier, commented: "This new project with Dassault Systemes is in line with Bombardier's strategy of participating very early in the development of new, innovative information solutions to ensure that they are perfectly adapted to the requirements of our customers and our products. Key to our success in delivering the Global Express on time was the use of VPM facilities, and we are convinced that by extending the concept to other sectors of our business, we will further enhance our competitive advantage."

"This is a very positive announcement for IBM, Dassault Systemes, their customers and the industry," saidEd Miller, president of CIMdata. "These two companies have a long history of working together and the new application suite reflects a positive evolution of that collaboration. Combining the functionality of ProductManager with the new suite should result in an improved total offering focused on enterprise design and manufacturing integration."

David Burdick, vice president of Gartner Group consultants added: "Gartner Group believes the worlds of PDM and VPDM will converge during the next several years to form the basis of a new technological foundation designed to enhance competitiveness in product development organizations. Key to this convergence will be the ability of systems to leverage intellectual capital as opposed to simply capturing design intent."

"It's great to se this synthesis between product-centric and process-centric approaches to Product Information Management (PIM)." says Wayne Collier, Senior Research Analysts at D. H. Brown Associates, Inc. "There is no way to substitute CAD master model management for the detailed requirements of configuration management. The approaches complement each other, but both are essential. It's an important breakthrough for a stand-alone company to emerge with competency in both areas. The PIM industry has tried for too long to squeeze fundamentally different product representations into a single modeling approach. We need to pay more attention to applications that manage different product views, to support different business functions across the enterprise."

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* Indicated a trademark or registered trademark of International Business Machines Corporation

** Indicates a trademark or registered trademark of Dassault Systemes SA.

This release contains forward-looking statements, including, without limitation, statements about future ENOVIA financial performance and the effects of the proposed acquisition on Dassault Systemes' financial performance. These statements are subject to risks and uncertainties, including risks related to: (i) competition; (ii) new developments in technology, which may adversely affect the markets for Dassault Systemes or ENOVIA products; (iii) variability of future operating results of Dassault Systemes, ENOVIA, or the combined companies following the proposed acquisition: (iv) failure of the proposed acquisition to close or, if closed, to achieve the desired synergies and efficiencies; and (v) risks associated with the reaction to the proposed acquisition by employees, customers, distributors and others who affect the business of Dassault Systemes and/or ENOVIA.

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