Dassault Systemes Reports Solid First Quarter Performance, with Revenue, Operating Margin and EPS above Objectives

Business Wire, April 29, 2004

DS and Schneider Electric, the world's Power & Control specialist, entered into a business partnership pursuant to which Schneider Electric will sell DELMIA solutions and develop Consulting and Services for the Automation and Production Engineering markets through a newly formed company called Dextus, fully owned by Schneider Electric. The DELMIA solutions that will be distributed pursuant to this partnership will include a new product line called DELMIA Automation, dedicated to define, control and monitor automated systems.

DS and Rand A Technology Corporation, operating as RAND Worldwide, announced plans to create RAND North America, Inc. (Rand Americas), a new joint venture focused on increasing sales of DS PLM software in North America. Subject to the closing of the transaction, Rand Americas will become a subsidiary of Dassault Systemes and will be 60% owned by DS and 40% owned by RAND Worldwide.

Charles Edelstenne, Chairman of Dassault Systemes, concluded, "All major product lines and geographies contributed to our revenue growth in the first quarter, which drove strong increases in our operating margin and earnings per share."

Business Outlook

"We are increasing our revenue growth objective for 2004 to about 8% growth in constant currencies, reflecting higher activity in the first quarter and our new North American joint venture with Rand in PLM," Thibault de Tersant stated. "Due to the strengthening of the U.S. dollar during the first quarter, we think it is appropriate to assume a U.S. dollar to Euro exchange rate of $1.25 per EUR 1.00 for purposes of calculating reported revenue, operating margin and EPS objectives, leading to a reported revenue objective of about EUR 785 million and an EPS objective before acquisition costs of about EUR 1.30 - EUR 1.32 for 2004. Our objective for 2004 is to deliver a stable to slightly increasing operating margin before acquisition costs in comparison to the 29.0% achieved in 2003. Our revenue objective for the second quarter is about EUR 180 - EUR 185 million, based upon a U.S. dollar to Euro exchange rate of $1.25 per EUR 1.00."

Major Press Release Highlights
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April 15, 2004.    Dassault Systemes and RAND Worldwide announce Joint
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