US Navy and Northrop Grumman to Renew Fleet Using PLM Solutions from IBM and Dassault Systèmes

Four-year, $2.9 billion next-generation stealth program to be developed using Product Lifecycle Management technology

Le Bourget (Euronaval trade show) Paris, France – October 26, 2004 – IBM and Dassault Systèmes (Nasdaq: DASTY, Euronext Paris: #13065, DSY.PA) today announced that Northrop Grumman (NYSE: NOC), one of the world’s largest defense and aerospace companies, has selected their Product Lifecycle Management (PLM) solutions and services to design, build and manage the United States Navy's advanced, 21st-century surface combatant program, the DD(X).

Northrop Grumman, leading a development consortium of six companies and more than one hundred suppliers, has selected IBM PLM Solutions, developed by Dassault Systèmes, as the collaborative product development environment for the project. The group will use CATIA V5, the world’s leading 3D product-development application; and ENOVIA Life Cycle Applications (LCA), for product data and lifecycle management and decision support; and is considering using DELMIA for digital factory and manufacturing processes development, and operations support.

Northrop Grumman and its partners will deploy nearly 600 licenses of CATIA V5 and ENOVIA. Using CATIA V5 and ENOVIA, the US Navy, Northrop Grumman, its primary suppliers, and other contributors to the project will jointly develop new ship designs in a secure, collaborative environment. With a DELMIA implementation, design can be leveraged to integrate and simulate the manufacturing processes of the various suppliers’ parts.

The DD(X) is the centerpiece of the US Navy's technological transformation and is the cornerstone program for a new family of surface combatants to be designed and built over the next 25 years. The DD(X) program includes 10 transformational technologies and the design and construction of new destroyers. These technologies will be utilized in the development of future combatants, as well as technology to be retro-fitted into today's existing fleet of Aegis-equipped cruisers and destroyers. The US Navy plans to develop the DD(X) fleet over the next four years, with detailed design starting in 2005 and with the lead ship entering service in 2011.

IBM Global Services will provide project management, implementation, and integration services, and implementation of product design best practices based on IBM and Dassault Systèmes’ shipbuilding industry expertise and tools. IBM Global Services, working closely in partnership with Northrop Grumman, successfully drove the proof-of-concept project over the past year, providing project management and architecture and IT support, as well as proof-of-concept development and deployment services.

“We have a unique vision and strategy that will ultimately transform ship design,” said Dr. Philip A. Dur, corporate vice president, and president of the Corporation’s Ship Systems Sector. “As with our counterparts in the aircraft business, we needed the tools that would enable a better way of designing and building ships. This technology will drive a new stream of opportunities to support ships we build over the lifecycle, to enhance collaboration with our suppliers, and to exceed our customers’ challenging expectations.”

“The continuation of the partnership between Northrop Grumman, IBM and Dassault Systèmes for the DD(X) program demonstrates to all industries how effective teamwork can bring world-class PLM solutions into production,” said Scott Hopkins, general manager, IBM Product Lifecycle Management. “The best and brightest technical and executive teams from each of our companies have architected, developed and are implementing a win/win/win solution based upon our customer's requirement. Our goals are defined against the Navy's and Northrop Grumman's objectives for the next generation of destroyers, DD(X), and we worked together to insure that each piece of the PLM solution is crafted into our PLM shipbuilding strategies. This partnership model is replicable across all industries.”

“Northrop Grumman’s adoption of V5 PLM is a milestone for the shipbuilding industry,” said Bernard Charlès, president and CEO, Dassault Systèmes. “Northrop Grumman understands the revolutionary value that PLM brings to shipbuilding projects, which are unique due to their massive size and complexity. PLM will enable NGSS to transform its business and effectively manage the long operational lifecycle of its ships.”

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