Jul 26 2005

Dassault Systèmes and IBM Strengthen Their Strategic Partnership to Accelerate PLM Growth in the SMB Market

Partners streamline channel management model in selected European countries and the United States

Paris, France, July 26, 2005 – Dassault Systèmes (DS - Nasdaq: DASTY; Euronext Paris: #13065, DSY.PA) and IBM today announced the implementation of a new channel management model designed to improve organizational efficiency and help IBM Business Partners better capture the growing PLM opportunities in the small and medium-sized business (SMB) market. While IBM will continue to provide end-to-end, global PLM solutions, Dassault Systemes will be responsible for operation of the sales channel of IBM PLM Business Partners in the SMB market in selected European countries and in the U.S.

Mid-market manufacturers will increase PLM spend at 16% CAGR* through 2008, according to an AMR Research report. The new Channel Management Provider (CMP) organization has been established jointly by IBM and Dassault Systemes to streamline their support to IBM Business Partners in the PLM market and help accelerate the transition of small and medium- sized customers from CAD to full PLM implementations. In this new organization, Dassault Systemes will be in charge of the operational management (sales management, channel enablement and marketing programs) in the U.S., Germany, Switzerland, the United Kingdom, Sweden, Russia and the CIS (Commonwealth of Independent States) countries, leveraging the success of the model already in place in France, Belgium, Monaco, and Luxembourg.

This is the first of a series of agreements aimed at strengthening and transforming the IBM-Dassault Systèmes partnership to maximize the value of their PLM offerings. This will help customers, including SMBs, accelerate their On Demand Business transformation of which Product Lifecycle Management is a key component and will help IBM and Dassault Systèmes increase their global PLM market share.

In this new model, the contractual relationship between IBM and its Business Partners in the PLM area remains unchanged, as they continue to be IBM Business Partners. IBM will continue to have the overall responsibility of marketing, sales and support of its PLM portfolio of solutions.

“The SMB market is recognizing the tremendous benefits that can be achieved by implementing PLM,” said John Gaydac, director, PLM Transformation, IBM Product Lifecycle Management Solutions. “Together with Dassault Systèmes, we have agreed on a new and more efficient operational approach for channel management. This new level of teaming will allow IBM and DS—along with our Business Partners—to deliver increased value to our SMB clients, enabling them to realize the full value of PLM.”

“This new development is a major evolution of our long-lasting partnership with IBM and demonstrates our continuous dedication to provide our PLM channel with best-in-class skills and resources for sales, marketing and technical support,” said Etienne Droit, executive vice president, Sales and Distribution, Dassault Systèmes. “V5 PLM brings tremendous innovation capabilities to our customers. We see this evolution as a unique opportunity to accelerate the adoption of V5 PLM, and expand into new markets in Europe and the US.”

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*compound annual growth rate